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Strengthen Cooperation and Facilitate Enterprise Innovation and Development——Assistant Minister Chong Quan’s Speech at China-EU High Level Forum on IPR Protection

  

Ladies and gentlemen,

It is my great pleasure to attend the China-EU High Level Forum on IPR Protection co-sponsored with the European Commission here in Brussels. Earlier at CeBIT in Hanover, Germany, I had witnessed with Director General Ewa Synowiec of the European Commission the launch of "China IPR Desk", a joint project by China and EU, together. I’m pleased to see that this project has played an active role in China-EU cooperation on IPR protection. The "China IPR Desk" provides consultation and mediation services to Chinese exhibitors, which on the one hand enable the Chinese exhibitors to know local laws and improve the IPR protection, and on the other hand enhance the communication and exchanges between foreign IPR owners and Chinese exhibitors and properly solve IPR disputes. Represented by the "China IPR Desk", a series of IPR cooperation projects have played an important role in strengthening China-EU cooperation and facilitating enterprise innovation and development. Here, I shall express my appreciation to the European Commission, the European Property Rights Bureau and the Phrase Ⅱ China-EU IPR Cooperation office for the great support.

Today, we are holding the China-EU High Level Forum on IPR protection, which indicates the great importance attached by both China and the EU to the issue of IPR protection. Protecting IPR meets the mutual interests of both sides.

Firstly, the two sides have maintained close political exchanges. Surrounding the comprehensive strategic partnership between China and EU, a multi-layered and wide-ranging mechanism for political dialogue has been established. In April, 2008, China-EU High-Level Economic and Trade Dialogue was launched in Beijing. And at the beginning of the Spring Festival this year, Premier Wen Jiabao made an official visit to the headquarters of EU, Germany, Switzerland, Spain and UK. He and President of European Commission Barroso issued the Joint Statement aimed at promoting the China-EU comprehensive strategic partnership. Twenty days after Premier Wen finished his "Trip of Confidence" to Europe, Minister Chen Deming led a buying mission back to Europe as a "Trip of Commitment", which indicates China's position of tackling the difficulties through international cooperation in face of the financial crisis, which was also a practical measure to fight trade protectionism.

Secondly, the two sides share an economic relationship featuring mutual benefit and win-win. Since 1984, China and EU has been holding ministerial-level Joint Economic and Trade Committee Meeting every year. At present, EU is China's largest trading partner, largest export market and import source, largest source of technology import and fourth largest source of actual investment, while China is EU's largest source of import, second largest trading partner and fourth largest export market. According to China’s statistics trade volume between China and EU in 2008 was USD 425.58 billion, up 19.5% from 2007, accounting for 16.6% of China’s total foreign trade. By the end of 2008, EU companies have invested in 30,253 projects in China with an actual input of USD 62.57 billion, China has imported 29,525 technologies from EU with a total contractual value of USD 120.61 billion, and Chinese companies have undertaken engineering contracting projects in Europe with a total contractual value of USD 10.28 billion and realized a total business turnover of USD 9.24 billion. The two economies are strongly complementary with each other and hence to develop the bilateral economic and trade cooperation is in the fundamental interests of both sides.

Thirdly, Protecting IPR is the common objective of the two sides. Chinese and European people are both highly creative and have created glorious history. There is no doubt about the role of IPR in advancing scientific and technological progress as well as economic development. Today, as science and technology leaps forward and the knowledge-based economy is on the upswing, intellectual property is becoming a strategic resource for national development and a core element for international competitiveness. Protecting IPR meets the common interests of China and EU.

Ladies and gentlemen:

The Chinese government has always attached great importance to IPR protection. Along with the reform and opening up, China has made remarkable progress in the field of intellectual property. In 2008, China received a total of 828,328 patent applications, up 19.4% year on year, and domestic invention application increased 27.1%; 411,982 patents were authorized, and authorized patent applications increased 17.1% year on year. In 2008, China’s application of "Patent Cooperation Treaty"(PCT) reached 6,089, up 11.9% year on year, ranking No. 6 in the world. Among all the PTC applications, 1,737 applications were submitted by Huawei Technologies alone, which make it the biggest patent applicant in the world.

Now, I would like to brief you on the main work that China has done to protect IPR in recent years.

I. The national strategy on IPR protection is being implemented effectively.

The Chinese government has always maintained that IPR protection is, first and for most, an urgent need for its own development. China has identified building an innovative country as a national development strategy. To this end, the Chinese government issued the Outline of National Intellectual Property Strategy in 2008 with the view of enhancing the capability of creating, utilizing, managing and protecting intellectual property. The Outline specifies the long-term plan for IPR protection till 2020, and stipulates the key strategy, special tasks and strategic measures for the next 5 years. The Outline is a landmark in China’s history of IPR development and opens a new chapter in its IPR protection.

To effectively implement The Outline, the State Council approved in October 2008 the establishment of an inter-ministerial meeting mechanism that involves 28 ministries, including MOFCOM, and takes charge of coordinating the implementation of national IPR strategy.

II. The legal system of IPR is being improved.

Since 1970s China has promulgated and implemented the Trademark Law, the Patent Law, the Copyright Law and laws and regulations concerning the protection of computer software, management of audio and video products, protection of new species of plants, customs protection of intellectual property, etc. In addition, these laws and regulations have been revised and improved in accordance with actual needs. The Regulations of the Copyright Collective Administration formulated in 2004 and the Regulations on the Protection of the Right of Communication through Information Network formulated in 2006 expanded the scope of copyright protection; The two Interpretations on Several Issues of Specific Application of Law in Handling Criminal Cases of Infringement of Intellectual Rights formulated in 2004 and 2007 strengthened crackdown of IPR infringement cases. In December 2008, the third revision to the Patent Law was completed. Required by the Outline of the National IPR Strategy and the needs of domestic economic and social development, to revise the Trademark Law, the Copyright Law and the Law against Competition through Inappropriate Means will also be put on the work agenda.

While improving domestic legislations, China also actively joined a series of international treaties concerning IPR protection, including the Berne Convention, the Paris convention, the Patent Cooperation Treaty, the Universal Copyright Convention, the WIPO Copyright Treaty, the WIPO Performances and Phonograms Treaty, and the Protocol on Revising the Agreement on Trade-Related Aspects of Intellectual Property Rights , etc.

At present, a full-fledged legal system for IPR protection that suits the Chinese reality and conforms to international rules has taken shape.

III. Enforcement of IPR protection is being intensified.

While improving legislation, China has continuously intensified the enforcement and built a double-track system of administrative and judicial enforcement. An IPR management and enforcement regime is set up that integrates the safeguarding the rights of IPR holders, self-discipline of industries, intermediary services and social supervision.

On administrative enforcement, the Chinese government adopted a method that combines day-to-day enforcement and special operations. On the one hand, the administrative enforcement authorities carry out day-to-day supervision in accordance with law. On the other hand, special operations are conducted targeting on the key areas of IPR protection.

On judicial enforcement, the Supreme People's Court (SPC) issued in January 2007 the Opinions on Comprehensively Strengthening the Trials of IPR Cases and Provide Judicial Guarantee for the Construction of An Innovative Country which provides a comprehensive plan for strengthening trials of IPR cases. Between 1987 and 2007, 4675 IPR-related administrative cases were accepted by courts throughout the country and 4613 cases were brought to trial and concluded. Between 2003 and 2007, local IPR offices accepted and heard 6427 patent disputes, and 919 cases of patent counterfeiting and 8152 cases of bogus patents were investigated. With regard to criminal cases, 1407 criminal cases of IPR infringement that involve 2565 persons were submitted for approval of arrest, and 1770 criminal cases of IPR infringement that involve 3482 persons were accepted and transferred for trials by procuratorial offices in 2008.

It is worth noting that law enforcement departments pay extra attention to the coordination between administrative enforcement and criminal justice in dealing with IPR cases. The Supreme People's Procuratorate has led in the introduction of the mechanism for “online coordination and information sharing” to urge the timely transfer of criminal IPR cases; the Ministry of Public Security has signed joint enforcement protocols with the General Administration of Customs (GAC), State Administration for Industry and Commerce, National Copyright Administration and other departments. Institution-wise, the GAC has set up specialized IPR protection agencies and put in place a three-layer IPR enforcement system, consisting of the GAC, its direct subsidiaries and affiliates; the SPC has designed and perfected the framework for IPR trials, and all higher courts, intermediate court, and grass-roots courts that have jurisdiction over civil IPR cases have created up to 172 ad hoc tribunals for IPR cases.

4. Supervision and coordination around IPR protection is being enhanced.

Starting in 2006, China has issued three annual Action Plans on IPR Protection, detailing 717 measures in such areas as legislation, enforcement, institutional building, publicity, training & education, international exchanges and cooperation, corporate IPR protection, services to right-holders and thematic study. All the 700-plus measures have been put into practice. In order to implement the Outline of the National IPR Strategy, the State Intellectual Property Office is now leading the effort to formulate the 2009 Implementation Plan for the National IPR Strategy.

In order to facilitate public oversight, we have set up comprehensive IPR reporting and complaint centers in 50 large and medium-sized cities across China, and opened a tip-line “12312” as well as an online IPR reporting and complaint window, forming an accessible, expeditious and effective IPR protection network.

Building and raising IPR awareness is the basis and focus of our efforts.

5. Public awareness about IPR is growing.

  

The Chinese government attaches great importance to IPR outreach and publicity. The central and local governments would organize a lot of such activities around the year. Since 2004, an IPR Protection Week has been staged around the World Intellectual Property Day (April 26) throughout the country. Relevant departments have hosted a series of outreach and educational events, such as the “Corporate Chiefs’ Seminar on IPR Protection” and the “Hundred, Thousand, and Ten Thousand IPR Talents Program”. Through a diverse range of activities such as the China IPR Achievements Show, and by means of launching the China IPR protection website, the government has been spreading the key IPR message of “respecting knowledge, encouraging innovation, honoring credit-worthiness and abiding by law”.

After three decades of reform and opening-up and through unremitting efforts, IPR protection is now gaining broader public support in China. Due to time constraints, I have to finish that overview on the current status of IPR protection in China. That being said, my summary is only part of the whole story. Next month, the 5th China-EU IPR Dialogue will take place, which is another forum for both governments to continue to in-depth experience-sharing and discussion on IPR protection.   

Ladies and Gentlemen,

IPR protection has always been one of the most important topics in China-Europe trade and economic relations, and we fully understand the concerns the two sides draw to this issue. China highly values IPR exchange, dialogue and cooperation with the EU. And to make this partnership more productive, I would like to make a few extra points.

First, China is determined to protect IPR.

IPR is playing a more salient role in promoting sustained and rapid socioeconomic development in China. IPR protection not only shows a drive to improve the investment climate and increase openness, but also caters to the need of enhancing indigenous innovation and building an innovative nation. Strengthening IPR protection serves China’s long-term interest and the strong urge for protecting innovation and R&D. In this regard, the Chinese government has unwavering determination.

Second, China has come a long way in IPR protection.

IPR protection cannot depart from China’s national conditions. Still a developing country, China faces many developmental problems. Notwithstanding that, China has committed tremendous manpower and resources to IPR protection, and has made remarkable achievements.

Third, China and the EU should strengthen IPR exchange, dialogue and cooperation.

As a developing country, China still has a lot more work to do in the IPR field. The Outline of the National IPR Strategy further defines the strategic objectives, priorities and corresponding measures in this regard. China has reacted responsibly to every issue arising on IPR. However, IPR protection is a global task. Pointing fingers at each other will not solve the problem. Cooperation and dialogue is the best solution.

Ladies and gentlemen,

In the face of the escalating financial crisis, there is an increasing international consensus on strengthening cooperation and resisting trade protectionism. IPR is a key topic of mutual interest to both Europe and China. I believe, as dialogue and communication goes deeper, IPR will become a highlight of our cooperation. I hope the EU could continue to understand, support and assist China, work with China to overcome the current difficulties, deepen IPR cooperation, and enable greater IPR protection, so as to promote the healthy and steady development of China-Europe trade and economic relations.

Thank you!

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