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Press Release for Media Briefing of the Shanghai Municipal Government on April 28, 2020

April 29, 2020

The Information Office of Shanghai Municipality held a press conference today (April 28), during which Rui Wenbiao, director of Shanghai Intellectual Property Administration, gave a briefing on the development and protection of intellectual property in the city in 2019 and the newly released “Implementation Plan on Strengthening the Protection of Intellectual Property Rights.” Liu Bo, deputy head of Shanghai Customs, Zhang Yong, head of the law enforcement corps at Shanghai Administration of Culture and Tourism, and Li Weijun, deputy chief of the economic crime investigation corps at the Shanghai Public Security Bureau, attended the press conference and answered questions from reporters.

April 26 was the 20th World Intellectual Property Day, and Shanghai held an IP protection conference to call for greater efforts to create an international highland for IP protection. Based on the goal of building itself into an Asian-Pacific hub for IP protection, and stepping up efforts to become a leading city with outstanding IP strengths, Shanghai has carried out the following tasks:

IP creation improves in both quality and quantity 

In 2019, the numbers of patent applications and grants in Shanghai were 173,600 and 100,600, respectively, of which invention patent applications and grants were 71,400 and 22,700, respectively. The number of PCT patent applications was 3,200. The outstanding number of valid invention patents was 129,800, an increase of 12.88% year on year. The number of invention patents per 10,000 residents reached 53.54, ranking second among all provinces (autonomous regions and municipalities) in the country. 

Shanghai received 438,800 trademark applications, with 361,100 new trademarks registered. The number of valid trademark registrations was 1,472,600. The number of copyright registrations in Shanghai was 291,800. So far, Shanghai has owned 16 geographical indications and trademarks and 8 geographical indication protection products. Shanghai has obtained 27 new plant variety authorizations and 14 new plant variety international registrations.

Fully promoting reform in the field of intellectual property rights

First, the city has improved the efficiency of administrative management. It has wrapped up the reform of intellectual property institutions at the municipal and district levels, so as to realize centralized and unified management of patents, trademarks and geographical indications of origin.

Secondly, the city has optimized the systems of policies and regulations. It has promoted local comprehensive legislation on intellectual property rights, and the “Regulations on the Protection of Intellectual Property Rights in Shanghai Municipality” has been listed as an official project in the legislative work plan of the Standing Committee of the Shanghai Municipal People’s Congress in 2020. The city has formulated the “Review Regulations on Transfer of Intellectual Property in Shanghai Municipality (Trial).” Shanghai also studied formulating guidelines for the protection of intellectual property in the field of e-commerce.

Thirdly, the city made efforts to serve three new major tasks. It set up a special window for Lingang New Area in the China (Pudong) Intellectual Property Rights Protection Center. The city launched a trial program with regard to registration authority of technology import and export contracts in the free trade zone. The city set up the trial station of ​​the intellectual property court of the free trade zone in the Lingang New Area. The city launched the copyright service center of China (Shanghai) Pilot Free Trade Zone. The city supported the listing of ABS, which was backed by IP assets in Pudong focusing on science and technology innovation, on the Shanghai Stock Exchange, making it the first IP-related ABS product in Shanghai. The three provinces and one municipality in the Yangtze River Delta signed a letter of intent to collaborate on optimizing the IP business environment, as well as cooperation agreements in law enforcement, judicial protection and exchange, and joint efforts to create a high-quality market for the copyright industry. The “Implementation Measures for Joint Implementation of Market Supervision in the Yangtze River Delta” was launched. The city promoted the establishment of the Yangtze River Delta Copyright Trade Base (Exchange Center) Alliance, International Trade Intellectual Property Rights Protection Alliance, and New Plant Variety Protection Technology Alliance.

IP rights protection efforts continue to strengthen

First, the city has leveraged the leading role of judicial protection. In 2019, courts throughout the city accepted 23,580 IPR cases and concluded 23,510 cases, up 3.97% and 6.28%, respectively, year on year. The city’s procuratorial organs have accepted 443 suspected intellectual property infringement cases with regard to review of arrest requests, involving 959 persons, an increase of 120.4% and 174% year on year. These organs issued 356 approvals for the arrest of 697 persons, and they accepted 479 intellectual property infringement cases with regard to review of prosecution requests, involving 1,133 persons, while concluding 340 cases involving 683 persons. The Shanghai Public Security Bureau cracked a total of 630 IPR infringement cases throughout the year and arrested 1,150 suspects, involving a total value of more than 6.8 billion yuan. Shanghai High People’s Court and Shanghai People’s Procuratorate jointly issued the nation’s first “Guidelines on Sentencing Common IP Crimes.” Shanghai People’s Procuratorate took the lead nationwide in exploring the notification system for the owners of intellectual property rights in criminal cases, and explored a reasonable compensation mechanism for defendants to right owners during the review and prosecution phase, by coordinating a total reasonable compensation of 126 million yuan.

Secondly, the city has strengthened administrative protection. In 2019, the city’s market supervision system investigated and dealt with 1,779 trademark violation cases, imposed a fine of 14.02 million yuan, confiscated various infringing trademark marks and commodities totaling more than 210,000 units (pieces), and transferred 52 cases of suspected trademark crimes. The Shanghai Intellectual Property Administration filed a total of 292 cases of patent infringement disputes and closed 280 cases. A total of 349 officials were sent to 55 large-scale international exhibitions, and 185 complaints about patent disputes were addressed on site. The city has carried out the “Iron Fist” action of intellectual property law enforcement, and handled 2,021 law enforcement cases throughout the year, involving a total value of 37.72 million yuan and 15.42 million yuan in fines. The law enforcement corps at Shanghai Municipal Administration of Culture and Tourism inspected 17,000 cultural business establishments, investigated and banned 132 unlicensed business establishments, and confiscated 370,000 illegal books and audio-visual products. They filed a total of 6 Internet infringement and piracy cases and handled 25 cases involving online video sites. A total of 13 websites involved in infringement and piracy were closed, 2,458 infringement and piracy links were deleted, and 5,623 illegal products were removed from the shelves. The Shanghai Urban Management and Law Enforcement Bureau investigated and handled 32 IPR infringement cases and seized 1,319 illegal publications. Relying on the big data platform for cross-border trade, Shanghai Customs cracked down on the import and export of goods that infringe intellectual property rights. It dealt with 381 infringement cases throughout the year, involving 7.33 million pieces of commodities with a total value of 14.07 million yuan.

Thirdly, the city has strengthened comprehensive management. The city has carried out a 100-day Action Plan for the protection of intellectual property rights during the second China International Import Expo to achieve "zero infringement" of IPR throughout the event. The city has pushed forward the establishment of a coordination mechanism on the administrative level for the protection of IPRs in twelve provinces and cities. The city has deeply promoted the work of combating infringement of IPRs and the sale of counterfeit and inferior commodities, and conducted cross-sectoral, cross-industry and cross-regional joint anti-counterfeiting campaigns. Throughout the year, 1,810 intellectual property disputes were mediated and 300 intellectual property disputes were arbitrated.

Expand the scale of comprehensive use of IPs

First, the financial service ability has been improved. The Shanghai Intellectual Property Bureau signed a strategic cooperation agreement promoting intellectual property pledge financing with 10 banks to promote the establishment of Shanghai Intellectual Property Financial Services Alliance. The Shanghai branch of the People's Bank of China led the issuance of the Comprehensive Service Plan for Financial Support to the High-quality Development of Advanced Manufacturing in the Yangtze River Delta and along the G60 Science and Innovation Corridor, which aimed to increase intellectual property credit support for small and micro enterprises in the tech field. 

Secondly, the operation and circulation of resources have been active. A total of 89 applications of patent pledge contracts were registered throughout the year, with a pledge amount of 1.358 billion yuan; a total of 157 enterprises purchased patent insurance, recording a premium of 1.6579 million yuan and a coverage worth 69.164 million yuan. The entire year has seen the completion of 85 scientific and technological achievements transactions and service projects, with the amount reaching 550 million yuan and attracting more than 90 domestic and foreign institutions to join the Shanghai International Intellectual Property Operation Alliance.

Thirdly, the city has helped enterprises innovate and develop. For the first time, the city has teamed up with the World Intellectual Property Organization (WIPO) to co-launch the Shanghai Intellectual Property Innovation Award. Nine entities, including Commercial Aircraft Corporation of China Ltd, won the award. A total of 36 projects from Shanghai won credentials in the 21st China Patent Award, including two patents that were awarded the Gold Medal. 

The IP service system has been gradually improved

First, the city has deepened the reform of “delegating power, streamlining administration and optimizing government services.” China (Pudong) Intellectual Property Protection Center has expanded its service scope to include the new generation of information technologies, with the total number of preexamined patents exceeding 1,000, and more than 300 getting authorization. The city has added the number of intellectual property acceptance and service windows citywide. Access to the Integrated Online Platform has led to 66% reduction in the time needed for intellectual property administrative approvals. Copyright workstations have been set up in various districts to provide services like copyright registration, consultation and training, and dispute mediation. For the first time, intellectual property data has been incorporated into the comprehensive data platform for Shanghai's economic and social development.

Secondly, the city has promoted the development of intellectual property service institutions. A special initiative dubbed “Blue Sky” targeting patent agencies has been conducted for the purpose of enhancing sector-wise self-disciplines and industry supervision. By the end of 2019, the city had 175 patent agencies, 1,325 licensed patent agents and 2,432 registered agencies specialized in submitting trademark licenses for records. 

Thirdly, the integration of intellectual property rights and brand development has been accelerated. The city has promoted the construction of 13 new trademark and brand guidance stations, taking the total number of such stations to 37. The fourth and fifth batches of the Shanghai Key Trademark Protection List have also been released. The city has launched a "Time-honored Brands-Baidu Brand Revival Plan." It has also unveiled the Measures to Promote the Revitalization of Time-honored Brands of State-owned Enterprises in the City.

The environment of intellectual property development has been constantly optimized

First, cooperation and exchanges have yielded remarkable results. The city has held the Intellectual Property Cooperation Conference 2019-2020, identifying six key areas of cooperation including promoting high-quality intellectual property services and economic development. The National Intellectual Property Administration, the World Intellectual Property Organization and the Shanghai Municipal People's Government co-hosted the 16th Shanghai International Forum on Intellectual Property. The operation of the arbitration and mediation center of the WIPO have been promoted in Shanghai. Two entities were respectively selected as WIPO's first batch of technology and innovation support centers and the third batch of preparatory institutions in China.

Secondly, cultural development has been continuously advanced. The city has conducted a dedicated weeklong campaign under the theme of “Strict Intellectual Property Protection and Creation of First-class Business Environment".

Thirdly, channels for personnel training have been constantly expanded. The city has enhanced international cooperation and personnel training, and supported universities to strengthen the construction of IPR-related related disciplines. For the first time, a special award dubbed intellectual property "Little Talent" was set up during the Shanghai Adolescents Science and Technology Innovation Contest, aiming to promote and popularize WIPO’s intellectual property introductory courses online for primary and secondary school students.