China applying for more patents than ever before as companies push to innovate, protect brands

The French Revolution may seem remote to the current development of the Chinese innovation economy, but the famous opening line of Charles Dickens’ A Tale of Two Cities may sum up how many Chinese companies are managing and enforcing their global IP rights.

As more and more Chinese companies are relying on technology innovation to fuel their growth and profitability than ever before, it’s important that they possess a clear strategy for managing and protecting their intellectual property rights as they expand overseas.

Some successful companies in China, despite already being leaders in their respective markets, are actively pursuing patent protection of their technology as part of their plan to expand outside of the Chinese market. They recognise the importance of IP protection and understand the urgent need to develop an effective patent strategy to protect their core technologies, arming themselves with both a sword and a shield to compete with global companies.

They often proactively seek counsel from experienced patent lawyers to steer away from infringement lawsuits through early analysis before product launches. Some also gain a competitive advantage through laying down a patent picket fence before entry into overseas markets.

A proper patent strategy can help establish market advantage and improve a company’s financial performance. However, each company must take care to establish a patent strategy that is custom tailored to their unique business goals and markets.

As Chinese companies innovate to increase productivity and fatten the new product pipeline, and as they export products that require an investment in R&D, it’s important to recognise China’s IP landscape in terms of the volume of IP filings, the trend of filings, and worldwide enforcement.