The National Intellectual Property Administration responds to Everyman's questions: actively exploring reforms for the separate management of intellectual property rights as occupational scientific and technological achievements assets, implementing a management model for intangible assets such as intellectual property that differs from that of general tangible assets.

Everyday Economic News Reporter | Zhou Yifei
Edited by | Huang Bowen

On March 23, the State Council Information Office held a press conference. During the event, the National Intellectual Property Administration introduced the implementation of the Special Action Plan for Patent Transformation and Application (2023–2025) (hereinafter referred to as the “Special Action”).

What are the main difficulties and bottlenecks currently faced by patent transformation and application in China? How does this special action plan aim to address these challenges?

Hu Wenhui, Deputy Director of the National Intellectual Property Administration, responded to questions from the “Daily Economic News” reporter on-site, stating that there are many difficulties and bottlenecks in patent transformation and application, mainly summarized as the “five no’s”: “cannot transfer,” “unwilling to transfer,” “dare not transfer,” “don’t know how to transfer,” and “inconvenient to transfer.” Moving forward, the Administration will build on the成果 already achieved through this special action, continue to deepen institutional reforms, optimize the ecosystem for transformation and application, further unblock these key bottlenecks, and improve the efficiency and effectiveness of patent transformation.

Press Conference Scene Photo Source: Daily Economic News Reporter Zhou Yifei

Exploring a Due Diligence and Fault Tolerance Mechanism for Patent Transformation

Hu Wenhui told the “Daily Economic News” that there are many difficulties and bottlenecks in patent transformation, mainly summarized as the “five no’s”: “cannot transfer,” “unwilling to transfer,” “dare not transfer,” “don’t know how to transfer,” and “inconvenient to transfer.”

Specifically, “cannot transfer” is due to some patents in China being disconnected from industrial applications, lacking prospects for transformation, and insufficient supply of high-value patents that can be transformed; “unwilling to transfer” stems from the long cycle, high uncertainty, and risks associated with patent transformation, which reduces motivation among researchers; “dare not transfer” is because China’s current due diligence and fault tolerance mechanisms are not yet fully developed, and those involved worry about improper valuation during patent assessment leading to loss of state assets; “don’t know how to transfer” is because universities and research institutions generally lack specialized intellectual property agencies and personnel, resulting in limited transformation capacity; “inconvenient to transfer” is due to poor matching between universities, research institutions, and enterprises, and an ecosystem that is not yet fully developed to support patent transformation.

Hu Wenhui pointed out that since the implementation of the special action, the National Intellectual Property Administration has coordinated efforts with relevant departments, implementing targeted policies to address the “five no’s.”

Specifically, for “cannot transfer,” efforts focus on improving systems such as pre-application evaluation, dynamic inventory, graded management, and navigation R&D to strengthen the quality foundation of patent transformation.

For “unwilling to transfer,” efforts include deepening reforms to empower technological achievements from official duties, establishing and improving profit-sharing mechanisms for intellectual property, and effectively stimulating endogenous motivation and innovation vitality for patent transformation.

For “dare not transfer,” reforms are being explored to manage assets of technological achievements separately, adopting management models different from those for tangible assets; simultaneously, a fault-tolerant mechanism for due diligence in patent transformation is being developed. For personnel who have fulfilled their diligent obligations without seeking improper benefits, if failure or underperformance results from market risks, they will be exempted from liability, effectively alleviating concerns about “daring not to transfer.”

“For example, in a university in Northwest China, a reform of separate management for technological achievements has dispelled researchers’ fears of state asset loss, turning ‘dare not transfer’ into ‘actively transfer.’ Currently, this university has over 300 patents valued at 630 million yuan, with transformation revenues exceeding 3.2 billion yuan,” Hu Wenhui explained.

For “don’t know how to transfer,” the focus is on establishing professional technology transfer agencies within universities and research institutions, cultivating a team of technology managers, and providing comprehensive services such as achievement discovery, incubation, evaluation, promotion, transaction, as well as financial and legal support.

For “inconvenient to transfer,” the promotion of models like “open licensing,” “use first, pay later,” and “patent industrialization + equity subscription” is underway to connect intellectual property operation platforms and accelerate breaking down barriers to transfer.

Hu Wenhui emphasized that moving forward, the National Intellectual Property Administration will continue to deepen institutional reforms based on the成果 of this special action, optimize the ecosystem for transformation and application, further unblock key bottlenecks, and improve the efficiency and benefits of patent transformation.

Further Improving the Paperless Online Registration of Patent Pledge

Financial support is a crucial guarantee for patent transformation. Many regions have explored the development of an intellectual property financial ecosystem. What are the next steps planned by the China Banking and Insurance Regulatory Commission in promoting diversified intellectual property financial support?

Du Mo, head of the Regulations Department of the China Banking and Insurance Regulatory Commission, stated that the next step is to continuously improve the quality and efficiency of intellectual property financial work.

First, promote financial institutions to optimize management mechanisms. Further expand the coverage of full-process, paperless online patent pledge registration. Guide financial institutions to leverage digital intelligence to thoroughly explore enterprises’ financial needs, use intelligent profiling to match products and services, and improve financing efficiency.

Second, coordinate with the National Intellectual Property Administration and other departments to guide local efforts in bank-enterprise matchmaking activities. This includes establishing a “white list” of intellectual property enterprises for two-way push, conducting “entering parks and benefiting enterprises” services, and hosting intellectual property forums to enhance policy publicity and bank-enterprise connections.

Third, deepen the pilot work of the comprehensive intellectual property financial ecosystem. Evaluate the pilot effects in a timely manner, summarize innovative measures and successful experiences, publish典型案例, and promote replicable development models. Additionally, based on progress, consider expanding the scope of pilots.