SIA China IP Priorities Raised at Roundtable with China Intellectual Property Rights Center

by Semiconductor Industry Association

Last Friday, SIA and several other U.S. high tech industry association representatives participated in a roundtable dialogue with Director Zhao Tianwu and other officials from China’s Ministry of Industry and Information Technology (MIIT) Electronics Intellectual Property Rights (IPR) Center. The MIIT Electronics IPR Center is highly influential in shaping Chinese policy on matters such as the relationship between IPR and competition law, patents and standards setting, and IPR in the court system.

The roundtable served as an opportunity for a dialogue and exchange on the status of Chinese IPR draft legislation and U.S. industry priorities and concerns. Key IP issues raised during the dialogue include China’s utility model patent (UMP) system, China’s draft IPR enforcement regulations for implementing the Anti-Monopoly Law (AML), China’s draft Service Invention Remuneration (SIR) regulations, trade secrets, counterfeit semiconductors, and copyright protection.

In responding to U.S industry’s comments, Director Zhao also provided perspectives on these issues raised by Chinese industry and stakeholders. He acknowledged that much of China’s legislation regarding IP protection was enacted many years ago, and there is a strong call by Chinese industry to amend legislation to provide stronger protection for IP in the digital age, particularly in the area of patent quality and trade secret protection. Director Zhao emphasized that the Chinese government wants all amendments to IP legislation to be conducive to the development of a strong innovation system. As a result, they are considering all drafts and comments very meticulously, and will spend a lot of time deliberating before any legislation is finalized.

China is an important market for semiconductors, representing more than 50 percent of the $306 billion worldwide market in 2013.  SIA will continue to engage Chinese leaders with regard to strengthening IP protection and enforcement, and ensuring that regulations do not directly or indirectly favor specific technologies, limit market access or lead to forced transfer of intellectual property.