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Insights: China IP Management Standard

March 13, 2014
Categories: Intellectual Property, Intellectual Property Protection

This post continues insights into the China IP Management Standard, a topic covered in an earlier CREATe blog post.  The post outlines how companies across China are seeking certification in IP Management after the March 1, 2013 launch of the Norms for Enterprise Intellectual Property Management. While it is still too early to discern potential impact of the standard, the launch of the Chinese IP Management Standard and the exposure it has received among Chinese companies reinforces the development of an IP culture in China. National Framework for IP Management The standard represents the government’s trend toward providing a national framework to help domestic companies improve their ability to better create, manage, protect and market IP, and related risk control. It has the potential to act as a major catalyst for the improvement of the IP environment in China. China has a goal of becoming a country of innovation by 2020, and the implementation of an effective IP management strategy under which the full potential and maximum value of its IP can be realized, is an important element of the 2020 goal. Additionally, adopting a systems management approach to IP protection and compliance reduces an enterprise’s risk of infringing IP rights of others while providing support in achieving the enterprises own operational goals. Widespread Adoption According to publicly available information, more than 1800 companies across 14 provinces have sought certification for IP Management from the government.  While the certification achievement rate is not known, Chinese enterprises recognize the importance of effectively managing intellectual property and adopting an enterprise-wide management systems approach. By incorporating Chinese IP management principles into company culture, the IP management system can evolve from one of risk management to one closely aligned with the overall operations of the enterprise. Structure of the Standard: The IP management standard reflects China’s efforts to provide a framework to improve its domestic enterprises’ capability in IP management and related risk control. A key component of the new standard is the inclusion of the Plan-Do-Check-Act cycle, which consists of 4 primary activities:

  • Plan: Identify an improvement area and develop a plan
  • Do: Implement the plan
  • Check: Measure the performance and analyze the results
  • Act: Identify and implement corrective action.

The strong focus on the National IP Management Standard points to a rising interest in innovating and protecting IP. This is mirrored in CREATe.org’s work in China, where a broad range of Chinese companies participated in the pilot program of CREATe Leading Practices for IP Protection to assess and improve systems for better managing Intellectual property. CREATe.org will continue to follow progress on the National IP Standard. Check back for the latest updates.

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