On the morning of
today (April 25), the Information Office of Shanghai Municipality held a press
briefing. Rui Wenbiao, director of the Shanghai Intellectual Property
Administration, presented the ongoing efforts to foster high-quality
development of intellectual property in Shanghai, highlighting the
“Implementation Plan of the Special Action for the Transformation and
Utilization of Patents in Shanghai.” Cao Jie, deputy head of the Shanghai High
People’s Court, Cai Tian, deputy head of the Shanghai Municipal Bureau of
Public Security, and Li Xiaomeng, chief economic planner of the Shanghai
Municipal Administration for Market Regulation, attended the briefing and
answered questions from reporters.

In
2023, Shanghai embarked on a comprehensive implementation of the roadmap for
establishing itself as a robust intellectual property hub as well as its
relevant 14th Five-Year Plan to bolster the development of its “Five Centers”
initiative. On the institutional front, the city issued the “Guiding Opinions
on Further Strengthening the Intellectual Property Rights Work of Small and
Medium-sized Enterprises” and the “Implementation Opinions on Strengthening the
Protection of Intellectual Property Rights in Pharmaceutical Procurement.” To
fortify protection mechanisms, Shanghai intensified both judicial and
administrative measures safeguarding intellectual property rights, with Pudong
New Area and Xuhui District designated as national demonstration zones for
intellectual property protection. To foster innovation application, the
completion of the National Patent Transformation Special Plan and the
introduction of “pre-compensation” measures mitigating risks associated with
intellectual property pledge loans marked significant milestones. Notably, the
registration of patent and trademark pledge financing projects surged to 22.76
billion yuan, reflecting an 87% increase year on year. Efforts to enhance
service quality included the launch of the inclusive intellectual property
public service initiative and the advancement of standardized urban
construction for public services. A milestone achievement was the establishment
of comprehensive intellectual property service windows at government service
centers across all 16 districts in the city. Shanghai deepened its
collaborative ties by convening a conference to foster synergy between the
municipal government and the National Intellectual Property Administration,
aimed at elevating the city’s status as a pinnacle of reform and opening-up.
Additionally, the successful organization of the 50th anniversary exhibition of
China-WIPO cooperation in Geneva and the hosting of the 20th Shanghai
International Intellectual Property Forum demonstrated Shanghai’s commitment to
global engagement. The memorandum of understanding was also renewed between the
Shanghai Municipal Government and the World Intellectual Property Organization.

In
2023, Shanghai witnessed significant strides in its intellectual property
landscape, boasting remarkable achievements across various indicators. The city
recorded 241,400 valid invention patents, marking a 19.53% increase compared to
the previous year. Notably, the prevalence of high-value invention patents
surged to 50.2 per 10,000 people, reflecting a rise of 9.3 patents year on
year. Moreover, Shanghai made substantial strides in the international arena,
with PCT international patent applications reaching 6,185, signaling a 10.62%
year-on-year growth. The city also witnessed a surge in valid trademark
registrations, totaling 2.6135 million, a 7.66% increase. Similarly, copyright
registrations for creative works surpassed 410,000, demonstrating an 8% uptick.
Additionally, Shanghai boasts 18 geographical indication trademarks and secured
183 new plant variety authorizations. The city’s efforts garnered global
recognition, with Shanghai ascending to the fifth position in the “Science and Technology
Cluster” category of the WIPO’s “Global Innovation Index 2023.”

On
the legal front, Shanghai’s courts handled a total of 66,000 intellectual
property cases throughout the year, successfully concluding 59,000 cases with a
first-instance settlement rate of 97%. Meanwhile, the city’s procuratorial
organs rigorously pursued intellectual property crimes, accepting 425 arrest
cases, approving the arrest of 397 individuals, and initiating 785 public
prosecutions. The public security organs remained vigilant in combating
intellectual property infringements, detecting 1,398 criminal cases and
apprehending 4,266 suspects, with a cumulative involvement of over 5.29 billion
yuan. Additionally, Shanghai’s administrative law enforcement agencies
diligently tackled over 1,600 illegal cases spanning patents, trademarks,
copyrights, geographical indications, and seed industries, resulting in fines
and confiscations totaling nearly 16 million yuan.

Recently,
Shanghai has curated a selection of the top 10 exemplary cases of intellectual
property protection, embodying three distinct characteristics. Firstly, these
cases wielded considerable social impact. Following the issuance of the
“Several Provisions on Establishing a High-Level Intellectual Property
Protection System in Pudong New Area of Shanghai,” the Pudong Court adjudicated
a case resulting in the highest punitive damages ever recorded, totaling over
9.55 million yuan. Additionally, Shanghai saw the pioneering prosecution of a
criminal case under the purview of the Eleventh Amendment to the Criminal Law, marking
the first instance nationwide where the deliberate circumvention of technical
measures within medical equipment software was deemed a criminal act of
copyright infringement. Secondly, these cases hold profound guiding
significance. They serve as invaluable benchmarks, offering insights into the
intersection of enforcement and the safeguarding of time-honored traditions
within Chinese medicine enterprises. Moreover, they exemplify the implementation
of a “double penalty system” aimed at rectifying improper commitments made by
intellectual property agencies. Lastly, these cases wield a potent deterrent
effect. Notably, instances involving penalties for trademark squatting related
to the names and nicknames of Olympic champions underscored the resolute stance
against such infringements, thereby significantly dissuading similar
transgressions. (For details of the cases, please refer to the top 10 case
materials)

The
theme of this year’s National Intellectual Property Publicity Week underscores
the pivotal role of intellectual property in fostering high-quality
development, aligning with Shanghai’s recent initiatives in this domain.
Recently, the city unveiled the “Implementation Plan for the Special Action on
the Transformation and Utilization of Patents in Shanghai,” a strategic
blueprint reviewed and approved during the municipal government’s executive
meeting on April 22, and subsequently issued by the municipal government’s general
office. This comprehensive plan, tailored to Shanghai’s specific needs while
aligning with national objectives, delineates a multifaceted approach across
six key areas. It includes strategies to optimize the quality of patent supply,
enhance the alignment between patent supply and demand, facilitate the
industrialization of patents among small and medium-sized enterprises, leverage
patents to bolster key industries to fortify supply chains and boost
efficiency, refine the intellectual property operational framework, and foster
intellectual property finance. With 30 targeted measures outlined, the plan
sets a robust trajectory for advancing quality and efficiency in intellectual
property management. In the forthcoming phase, Shanghai will concentrate its
efforts on four pivotal fronts.

1.
Advancing patent transformation: A concerted effort will focus on servicing
small and medium-sized enterprises while bolstering key industries to enhance
supply chains and bolster efficiency. Initiatives include facilitating patent
product registration, fostering patent-intensive product identification,
establishing key industry intellectual property operation centers and
innovation consortia, and promoting the industrial planning patents navigation
project. By 2025, the city aims to achieve an annual output value of
approximately 70 billion yuan from registered and recognized patent-intensive
products, with patent-intensive industries contributing around 20% to GDP.

2. Enhancing
patent quality: Embracing the ethos of optimizing increments and converting
existing stocks, Shanghai will conduct comprehensive inventory-counting of
patents held by universities, research institutions, and medical
establishments, culminating in the establishment of a robust patent conversion
resource library. The implementation of a high-value patent cultivation project
aims to surpass 60 high-value invention patents per 10,000 people by 2025,
alongside approximately 7,000 PCT international patent applications.

3.
Accelerating patent transfer: Efforts will be intensified to fortify the
functional infrastructure of the city’s intellectual property trading
institutions and operating systems. The city targets an over 20% annual
increase in patent transfers, licensing, and patent-for-equity investments,
with technology contract turnover involving patents expected to exceed 150
billion yuan by 2025.

4. Highlighting
financial empowerment: Shanghai seeks to synergize intellectual property and
financial resources, primarily through the promotion of intellectual property
pledge financing. This initiative aims to alleviate financing challenges faced
by asset-light and startup technology-based SMEs. By 2025, the city aims to
surpass a patent and trademark pledge financing registration scale of 30
billion yuan, benefiting over 2,000 small and medium-sized enterprises.