Intellectual Property and Technological Standards Intellectual Property and Technological Standards

By Han Run

Technology Division, Ministry of Industry and Information Technology of the People’s Republic of China

Sep, 2011

Main content

The integration of intellectual properties and standards has become the obvious trend for the adjustment and upgrade of global industrial structure

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Practice and understanding on the integration of intellectual properties and standards

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Prospect on the next step4

The integration of intellectual properties and standards has formed new interests relationship, which greatly influences industrial development and market competition pattern

1. The integration of intellectual properties and standards has become the obvious trend for the adjustment and upgrade of gl

obal industrial structure

Against the backdrop of fast technological development and increasingly fierce market c

ompetition, grasping the commanding height for industrial development and the advanta

geous opportunity of market competition by the integration of intellectual properties and

standards has become the very means and measures for different countries and multinatio

nal companies in competition strategy.

International, local, association standard organizations and industry alliances have

brought intellectual property into standards systematically with great efforts, formulated

and improved the policies for intellectual property disposal successively, and established

new order and new pattern for technological standard in the world at large.

Some enterprises even regard it as one kind of means to promote global strategy on

intellectual propertyand grasp the world market.

1. The integration of intellectual properties and standards has become the obvious t

rend for the adjustment and upgrade of global industrial structure

Technologies in traditional industry is with a very slow development; technological standar

d mainly aims to guarantee the interchangeability and popularity of products but the relation

ship between technological standard and patent is not that closed to each other.

Emerging industry is short in technological alternate cycle and high in technological innovat

ion degree; the combination of intellectual propertyand technological standard mainly focus

es on high-tech field.

During the process of industrial transition and upgrade, independent technological standard

system is constructed by taking the cooperation of intellectual properties and standards

formulation as tie, so as to promote the creation of intellectual property and industrial

application, and enhance the status of our country in global industrial division system; it has

become the consensus and critical practice of the government and enterprises in our country.

2. The combination of standard development and intellectual property system has formed a technology-patent- standard- industrialization- market scale “ecological” development system and it is an inevitable choice for our country to realize industrial transformation, upgrade and development.

intellectual property result from technological innovation

The patented technologies are adopted in standard

The expansion of technological application, formation of market scale and realization of

industrial emerging by implementing standard;

The relation chain has become the basic path and features for the development of emerging

industries

3. Under the background of economic globalization, the relationship among creation, intellectual properties, standard, industry and market becomes closer.

Results of technological innovation

Production of intellectual property

Bringing into technological standard

Implementation of technological standard has formed market scale

Industry emerging

On one hand, the creation and accumulation of new technology entail the protecti

on and encouragement of intellectual propertysystem

On the other hand, the application and promotion of new technology need excell

ent industrial order and standard.

To combine standards and intellectual properties strategically and dispose issues

on intellectual propertyin standards tactically will directly affect the development

of industrial development in our country as well as the capacity and level of the e

nterprises to participate in international competition.

3. Under the background of economic globalization, the relationship among creation, intellectual properties, standard, industry and market becomes closer.

Point of view: the combination of intellectual propertysystem and standardization ha

s become an important part for the innovation development system of the nation, reg

ion and enterprise; it includes the issues on the intellectual propertyprotection as wel

l as industrial development and market competition.

Currently, there are more than 3,000 standards to be formulated or revised in industr

ial and information industry each year, with technological standards accounting for

1/5. A majority of standards get involved in intellectual properties. 。

Wheather disposals of intellectual property are proper or not will exert great influen

ce on the continuous promotion and application of these standards.

It is of great necessity to standardize the procedures on the disposal of intellectual

propertyinvolved in the standard timely, establish evaluation mechanism on the disp

osal of intellectual propertyin standard and develop disposal and evaluation of

intellectual property at due time.

To promote different interested parties in the standard to properly deal with issues

related to intellectual propertyduring the process of formulating it will effectively re

duce the risks of intellectual propertyof the agency to issue the standard.

4. Disposals of intellectual property within technological standard in industrial and information field will exert influence on the development of relevant industry.

2.The integration of intellectual properties and standards has formed new interest relationship, which greatly influences indu

strial development and market competition pattern

Overview:

The combination of standards and intellectual properties not only promotes the industrialization of new technology but also causes the abuse of intellectual propertyand inhibits the development of technological innovation; it can strengthen the core competitiveness for industrial development as well as forming industrial monopoly.

If the combination of both is neglected, the favorable opportunity for the industrial development may be lost. If intellectual propertyis brought into standard without any restraints, it may easily cause the abuse of intellectual propertyin standard and affect the normal industrial development environment and market competition order.

It is of great importance to properly handle the relationship between intellectual properties and standards.

Presentation from the following five aspects: 1. To promote the development of innovative system of production, learning, research and application 2. To support the development of industrial innovative strategic alliance3. To promote the interaction between innovation chain and industry chain 4. To win the advantageous status in market competition 5.To deal with requirements of new international pressure

Presentation from the following five aspects: 1. To promote the development of innovative system of production, learning, research and application 2. To support the development of industrial innovative strategic alliance3. To promote the interaction between innovation chain and industry chain 4. To win the advantageous status in market competition 5.To deal with requirements of new international pressure

Production, learning, research and application are a kind of new mode for the research and

development of intellectual propertywhile intellectual propertysystem has provided excelle

nt legal environment for innovation system.

Work on the disposal of intellectual propertyinvolved in the standard is the important link i

n the mode of production, learning, research and application.

The integration of intellectual properties and standards has exerted great influence on the de

velopment of innovation system of production, learning, research and application.

1. To promote the development of innovative system of production, learning, research and application

The combination of standards and intellectual properties is the important bridge and tie for t

he development of industrial innovative strategic alliance.

The enterprises can not be developed in the long run if they are loose but only cooperate in

form.

The powerful tie such as intellectual properties and standards makes enterprises unite, whic

h easily obtains competition advantage on the market and realize the shared target.

2. To support the development of industrial innovative strategic alliance

Note: industry alliance represents the interests of the enterprises after all. During the p

rocess, we shall take advantage of the guidance and supervision of the government and

establish system for mutual check and balance to prevent industry alliance from abusi

ng intellectual propertyand pursuing for the maximum local interest excessively.

For many years, the cohesion among innovation system, industrialization and application sc

ale has not been realized yet. It is difficult for the mere innovation resources to become effe

ctive driving force.

Innovation results will be made as standard by combining standard and intellectual

properties; innovative resources are effectively utilized and expanded by implementation an

d expansion of standard and transaction and distribution of intellectual propertyto establish

industrial system with higher additional value and form industrial cluster.

This is a tangible ecological chain for intellectual properties, enabling the industrialization

of technologies.

3. To promote the interaction between innovation chain and industry chain

The standard alone cannot help the enterprises obtain favorable market competition status.

The enterprises with new technological standards must enhance their core competitiveness

by intellectual propertyif they want to establish favorable market competition status.

intellectual properties in standards can become a favorable tool to win market competition.

If serious industrial monopoly occurs, it will pose threats to the development and progress o

f the relevant enterprise or industry and even limit market competition.

4. To win the advantageous status in market competition

Our country remains in the low end of global industry chain and value chain ,

fundamentally due to the low end of knowledge chain.

The accumulation of intellectual propertyis the essence for the enhancement of knowledge

competitiveness while technological standard is the critical vector to effectively promote th

e application of intellectual propertyindustrialization.

Domestic industries need to face the status quo of domestic industry with weak

technological foundation and knowledge base on one hand and focus on the increasingly fie

rce standard competition rule in the international market on the other hand.

The enterprises in our country need to enhance the competitiveness of intellectual propertyi

n critical standard and realize the industrial transformation from being “made in China” to b

eing “created by China”.

5.To deal with requirements from new international pressure

3. Practice and understanding on the integration of intellectual properties and standards

As the main department for the formulation and management of industrial standard, Minist

ry of Industry and Information Technology of the People’s Republic of China highly stresses

“the problems of intellectual propertyin standard” and its influence on industrial development.

In recent years, our division focuses on the main line of industrial structure adjustment and

transformation of development way and insists on the principle of “market-oriented, serving f

or the industry, independent customization, proper promotion and timely revision” to earnestl

y implement the function of standardization management.

The enterprises are guided to participate in domestic and foreign standardization activities,

research and explore work on the disposal of intellectual property in standard, further improve

the current standard system, enhance the competitiveness of intellectual property in standard

and exert the critical support and guarantee of standards and intellectual properties to the

industrial upgrade and transformation.

Overview

Operation level: researching and exploring the disposal mode of intellectual propertyin standards suitable for the development of Chinese industry.

Planning level: highly stressing and strengthening the research and demonstration of issues on intellectual propertycarried out for the critical technological standard affecting the upgrade and transformation of industrial structure.

System level: standardizing the disclosure obligation of intellectual propertyin industrial standardization work

Three levels:

Practice on the Formulation and Management of Industrial Standard of Ministry of Industry a

nd Information Technology of the People’s Republic of China (provisional) was formulated an

d promulgated, and brings “provided patent gets involved in standard, obvious description of

intellectual propertyshall be available” into the content of drafting standard; it also lists

“whether the patent situation in standard is clear” into the contents to be reviewed in standard

approval standard.

It effectively guides the relevant institutions participating in standard formulation to stress and

implement the issues on intellectual propertyduring the formulation process, which guarantees

the orderly development of standardization work in the industry.

1. System level

Special attention shall be paid to the function of major technological standard to industrial

upgrade and transformation.

Key industry to be developed in different stages is determined by combining the integral pl

anning direction of industrial development and the demand of industrial upgrade and transf

ormation.

Standard items shall be ensured to be scientific, rational and feasible from the original sour

ce of standard project by combining with key points of industrial planning.

Experts within the organization and professional agencies shall be properly organized to fo

cus on the issues on intellectual propertyin these major technological standards.

From the integral planning level, the demand for industrial upgrade and transformation shal

l be utmost satisfied, the requirements on technological progress shall be met and obligatio

n on noticing intellectual property shall be executed.

2. Planning level

AVS1

Disposal of international intellectual property on digital TV terrestrial transmission

IGRS(Intelligent Grouping and Resource Sharing), etc.

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3. Operation level

AVS

The first typical example for the sound combination of intellectual property

work and work on standard formulation; to go along the independent innovativ

e road for the harmonious development of technology, standard and intellectual

properties.

On one hand, the rules for the establishment of patent pool group in foreign

countries shall be referred to explicitly advocate the principle of being fair, rati

onal and against discrimination and standardize patent evaluation procedure an

d patent convention procedure;

On the other hand, the management mode and charge principle shall be des

igned according to the features of industrial development in China.

3. Operation level

IGRS(Intelligent Grouping and Resource Sharing)

The management work of intellectual propertyand industrialization promotion shall be

closely combined and the core function of intellectual propertymanagement shall be ac

tively exerted in the promotion of standard industrialization.

Disposal of international intellectual property on digital TV terrestrial transmission

The basic principle of maximum interest of digital TV industry in our country shall be

guaranteed to well coordinate the interests among enterprises, colleges and research in

stitutions in different links of industry chains.

The practice is the beneficial exploration on the disposal mode of intellectual

propertyin standard and represents the protection and promotion to the integral

interests of industrial development.

3. Operation level

The first oneThe first one is to treat “the standard with independent intellectual properties” objectiv

ely.

The second one The second one is to design or dispose intellectual propertyin standard according to la

w.

The third oneThe third one is to prepare the layout of intellectual propertyin advance when formulati

ng standard.

The fourth oneThe fourth one is to that the disposal of intellectual propertyin standard shall refer to th

e existing practice as well as exploring the way suitable for the development of Chines

e industry.

4. Several understandings

4. Prospect on the next step

Overall direction

To focus on Outline on the Twelfth Five-year Plan and key points for industrial develop

ment

To be based on the urgent, innovation and international features of the standard

To strengthen the research on industrial standard and improve standard system

To lay emphasis on the issue on intellectual propertyin standard and focus on the foundat

ion on industrial development

To provide powerful technological support and intellectual propertysupport for the long-t

erm stable and fast development of industry and communication industry from micro, mo

derate and macro levels.

Prospect on the next step

From micro aspect: to further improve intellectual property policies and

management system of standard organization.

To standardize the procedures on the disposal of intellectual propertyduring the

process of formulating and revising standard from micro system aspect.

To encourage standard organization to formulate policies of intellectual

properties, definite the rights and obligations of members of standard organizati

on in intellectual properties, standardize obligee’s behavior and reduce the legal

risks of intellectual propertiess faced by the ones to implement the standard wh

en adopting the standard.

Moderate level: to promote the combination of standard in technological field and

intellectual property and promote the fast development of industry.

Balance mechanism and leading mechanism to technological innovation and integration

of standards and intellectual properties are researched and gradually formed by combinin

g national science and technology major project, the “Twelfth Five-year Plan” developm

ent plan and State Council’s decision on strengthening the cultivation and development o

f strategic emerging industry.

Work on the disposal of intellectual propertyinvolved in major technological standard of

strategic emerging industries such as new generation of information technology, biologic

al pharmacy, new energy and new energy automobiles are encouraged and promoted.

The industry chain integrating market demand- technological research & development- p

atent application- development standard- standard promotion- market occupation is creat

ed by combining with key filed, so as to promote the fast development of industry.

Prospect on the next step

Micro level: to encourage and lead the enterprises to grasp the practice and rule on d

isposal of intellectual propertyand actively participate in international standardizati

on work.

The enterprises shall be led to treat the relationship among technological innovation,

standards and intellectual properties objectively, and understand and research the b

asic procedures and rules for patent entry standard initiatively.

The enterprises shall be encouraged to actively participate in the work on disposal o

f intellectual propertyin technological standard, grasp the evaluation rules and dispo

sal management of intellectual propertyin the standard and explore the construction

and operation mode of patent pool in standard.

International communication and cooperation among enterprises shall be strengthen

ed to accumulate experience in participating in the activities of international standar

d organization, strengthen enterprises’ competitiveness on intellectual propertyand

expand the influence of our country on international standardization affairs.

Prospect on the next step

Division of Science and Technology of Ministry of Industry and Information Technology of the People’s Republic of China

September 2011