China E-ventions
Patent News from the Middle Kingdom
Vol. 3 , No. 6 - June 2, 2003
TOPICS THIS ISSUE:
- New Law: "Regulations on Enhancing Intellectual Property Protection on National Scientific Programs"
- Commissioner of State Intellectual Property Office warns Patents Crucial to Scientific Projects
- Chinese Mainland's Integrated Circuit Design Industries Grows Rapidly
- Beijing the Nation's Largest Technology Trading Center
- First Patent Credit Card to be Born in Shenzhen
- All the New Chip Action is in China These Days
New Law: "Regulations on Enhancing Intellectual Property Protection on National Scientific Programs"
The Chinese Ministry of Science and Technology has issued regulations urging Chinese research institutes and technological firms to set up a sound system for intellectual property rights.
Entitled "Regulations on Enhancing Intellectual Property Protection on National Scientific Programs", the regulations aim to encourage and safeguard technological innovations and accelerate the commercialization of new technology.
Research institutes and technological firms should have special departments, staff and funds for intellectual property protection when undertaking scientific projects, according to the regulations.
The regulations require research institutes and technological firms to investigate domestic and overseas technological projects to avoid duplication. They should stop or readjust their research plans if any domestic or overseas institutes have patented their projects.
Research institutes undertaking large scientific projects of international importance will receive government subsidies when applying for patents in foreign countries.
Researchers are now also required to take part in training courses on intellectual property rights before they begin technological projects, according to the regulations.
(Source: Xinhua News Agency)
Commissioner of State Intellectual Property Office warns Patents Crucial to Scientific Projects
Many academic institutes still place too much effort on publishing academic papers of new technologies instead of applying for patent protection and commercializing their research results, according to Tian Lipu, vice-commissioner of the State Intellectual Property Office.
According to Tian, domestic companies still concentrate on low-level patent applications, such as traditional Chinese medicine, soft drinks and food. They should make greater efforts to develop patented technologies in such fields as optics, information technology, wireless transmission and mobile communications, said Tian.
Since China implemented its patent law in 1985, the State Intellectual Property Office (SIPO) has received more than 1.62 million patent applications with 83% of which being domestic applications.
A total of 116 countries or regions have registered for patent protection applications in China with the majority coming for Japan last year.
(Source: China Daily)
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Chinese Mainland's Integrated Circuit Design Industries Grows Rapidly
Following the introduction of protection for Integrated Circuit layout in 2001, the Chinese mainland has witnessed a rapid growth in its integrated circuit (IC) industry.
According to US market research firm iSuppli Corp, the Chinese mainland's IC design revenues are increasing at an annual average rate of 30%.
A survey conducted by the Electronic Engineering Times-Asia (EE Times Asia), looked at 105 IC design houses in the Chinese mainland and 84 in Taiwan, and highlights how the Chinese mainland's IC industry presents tremendous potential.
Results showed that design houses in the Chinese mainland are expected to achieve average revenues of US$ 2.68 million in 2003, growing 43% annually to reach US$ 3.83 million in 2004.
The survey found that 53% of the design houses on the Chinese mainland have introduced process technology of 0.25 microns or less for digital design with communications topping the list of applications at 64% of respondents closely followed by consumer electronics at 59%.
The survey also indicated that a high percentage of the mainland's IC design houses present a broad range of services in addition to design, including intellectual property provision, testing services and electronics design automation tool rental.
(Source: Xinhua News Agency)
Beijing the Nation's Largest Technology Trading Center
The volume of technology transactions in Beijing in 2002 surpassed RMB 20 billion (US $2.42 billion), making Beijing the largest technology trading center in China, according to the administrative office of the Beijing Technology Market.
Statistics show that the total volume of business transacted for technology contracts in Beijing last year accounting for 25% of China's the total volume followed by Shanghai with RMB 10 billion (US $1.21 billion).
The sharp increase in technology trading in intellectual property rights as well as in foreign-funded research and development organizations is a feature emerging in Beijing's technology market.
According to the administrative office at Beijing's Zhongguancun Science Park, the most active area for technology trading in Beijing, technology sellers in Beijing's technology market have exceeded 4,300. The provinces which have bought technologies worth RMB 100 million and over from Beijing have increased from seven in 1994 to 25 in 2002.
(Source: China.org.cn)
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First Patent Credit Card to be Born in Shenzhen
Shenzhen Development Bank (SDB) said that it was applying for a patent for its credit card service, "pay with credit card and pin". Users of this kind of credit cards must input a pin upon making payment. If it were approved, the credit cards issued by SDB would become the first credit cards with patent in China.
Insiders said that as CITI Bank registered many patents in China last year, Chinese banks become aware of the importance of intellectual rights in its rapidly developing banking industry.
Some believe that the pursuit of banking products property rights is a sign that both Chinese and foreign banks were wrestling on a higher level of name brands, business modes, and other types of incorporeal properties.
(Source: SinoCast China Business Daily News)
All the New Chip Action is in China These Days
While global chip sales rose just 1% in 2002, China's chip sales jumped 23%. And a new generation of wafer fabs being built there will raise stakes.
Coming out of the longest slump in its 40-year history, the semiconductor industry has had little cause for cheer. But China has undeniably been a bright spot.
China has surpassed South Korea and Taiwan to become the second-largest chip manufacturer outside of the Americas, Europe and Japan. In terms of consumption, China became the largest buyer of chips last year, according to research firm IC Insights.
But all eyes are now focused on a new generation of wafer fabs being built in China by many foreign chipmakers. There are now at least 10 fabs in China, mostly in Shanghai. Taiwan Semiconductor Manufacturing Co (TSMC) is also planning to set up a plant near Shanghai, while Singapore's Chartered Semiconductor, which has a small stake in China's Semiconductor Manufacturing International Corp (SMIC), is exploring various ways of getting involved in manufacturing in China.
In particular, SMIC, primarily funded by US investment banks and venture capitalists, is raising eyebrows with its planned 12-inch or 300-millimetre fabrication line in Beijing, which will start production next year. This cutting-edge technology is being built by major chipmakers around the world, but no 300mm fab has yet gone into commercial production - making SMIC's line one of the first.
'For the longest time, the semiconductor industry in China has been 10 years behind the US,' said George Koo, director of Deloitte & Touche's Chinese Services Group. 'Today, they're only two years behind.'
China's fabs are pushing ahead despite U.S. export control laws which sees chip manufacturing equipment being subject to close scrutiny by the Defense Department, which decides whether a piece of equipment would compromise U.S. national security.
'You buy equipment from the Europeans, you can expect delivery within two weeks; from Japan, two months. From the Americans, you may have to wait six months. That makes American companies non-competitive,' said Mr. Koo.
In the meantime, while US equipment makers try to fight export controls, a group of US-based chip industry veterans are frowning at China's growing ambition. In particular, Advanced Micro Devices chairman Jerry Sanders is concerned about China's non-compliance with some World Trade Organization (WTO) rules in this area. 'There are value-added taxes and other considerations that seem to make it biased against imports. We want to have a level playing field,' said Mr. Sanders.
(Source: The Business Times Singapore)
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China E-ventions is intended to be used for news purposes only. It should not be taken as comprehensive legal advice, and Lehman, Lee & Xu will not be held responsible for any such reliance on its contents.
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