Bonum Certa Men Certa

China's Self-Destructive Patent Policy Will Replace Assembly Lines of Products With Assembly Lines of Low-Quality Patents and Lawsuits

Recent: No, China Isn't Most Innovative, It's Just Granting a Lot of Low-Quality Patents

China's trolls



Summary: China's vision, as put forth by Xi Jinping (the General Secretary of the Communist Party of China and paramount leader of China), includes an unprecedented number of patents of notoriously low quality, missing the whole point of patents and neglecting to properly account for economic theories behind patents

THE Chinese patent system is a disgrace like nowhere else. SIPO is a production line or an assembly line of applications, matching perhaps the stereotypes or stigma associated with the country's manufacturing industry. We wrote a great deal about the short-sightedness of this approach; it'll jeopardise China's economic leadership, except in the litigation space, which can in turn deter/discourage companies from operating there. It's already happening; the writings are on the wall (data points).



"We wrote a great deal about the short-sightedness of this approach; it'll jeopardise China's economic leadership, except in the litigation space, which can in turn deter/discourage companies from operating there."A few days ago (3rd of January 2018) we saw this new article by Hui Wang and Xu Li from Chofn Intellectual Property. Will China be wise enough to put an end to patents on GUI designs? China, as things stand at the moment, is probably the only large country that openly and broadly permits software patents. It became even more lenient on the matter several months ago (further revisions to the guidelines). Is code becoming patentable and if so, why would companies not shift all software development to India (where such patents are banned)? Does China really want this? Patents in China have gone so awfully out of control that some people pursue patents on GUIs. What benefit would workarounds have except confusing users (inconsistent interfaces)?

The parallel universe which is the patent trolls' lobby loves China. It's the new 'darling'. For those who make a living out of litigation China is looking more and more like a paradise or greener pastures. Here's one of them writing that "China invention patent applications reached nearly 1.4 million in 2017 - 14% year-on-year increase..."

"The parallel universe which is the patent trolls' lobby loves China."A worker of a patent troll wrote: "A massive number indeed. Let's keep the "their quality is poor" rhetoric down...they will get better, faster with these kinds of numbers. The world should be on notice."

To these people (trolls and their friends at IAM) all these patents are potential profit. At whose expense? Non-trolls. China's patent bubble is going out of control. It spins out of reason. The Chinese press says this:

China made 1.38 million invention patent applications in 2017, a 14.2 percent increase year on year, an intellectual property official said here Thursday.

Of the total applications, 744,000 patents have been handled and concluded, said Shen Changyu, head of the State Intellectual Property Office, told a meeting attended by intellectual property officials from across the country.


To put things in perspective, 744,000 patents being handled in one single year is probably more than the rest of the world combined. How good an assessment can this possibly be? Does WIPO even care as long as it can boast "growth"? How many Mandarin-speaking examiners even properly assess patents from other countries in the process (at the very least in order to investigate prior art)? They probably just don't care because this gold rush, which Xi actively encourages, is all about quantity, not about quality.

"To put things in perspective, 744,000 patents being handled in one single year is probably more than the rest of the world combined.""Story also notes Shen Changyu, head of the State Intellectual Property Office, has urged strengthening of IP protection in China," Managing IP wrote some days ago. They just try to impress the world with numbers, just like Battistelli. The quality does not seem to matter. Patent scope doesn't matter either. Without speaking Mandarin it's hard to scrutinise individual patents and considering weak protections for free speech in China do not expect a Mandarin equivalent of "Stupid Patent of the Month".

Karry Lai, writing from Hong Kong for Managing IP, had this to say: (the headline states "China tipped for doubling in NPE [read: trolls] patent suits in 2018")

Non-practicing entities [read: trolls] are looking to take advantage of China’s courts, with some predicting at least a doubling of NPE patent cases in 2018. But a number of factors act as deterrents in China, meaning plaintiffs need to know how to play the game


Misguided patent policy in China has made it the 'new Texas' -- world's emergent capital of patent trolls. NPE is just a euphemism and Managing IP is on their side. Why is China doing this to its otherwise blooming industry? Local firms already complain about trolls. They cause a lot of trouble for locals. We wrote several articles about that. They're called not only "trolls" but also "cockroaches" and worse words. Chinese businessmen and businesswomen gradually come to grips with this relatively new menace.

"They're called not only "trolls" but also "cockroaches" and worse words."In some circles, China is nowadays becoming better known for patent litigation than for production/manufacturing (a shot in the foot, except for lawyers). Here's what IAM wrote some days ago :

The biggest contrast is in the damages sought. Baidu is asking the Beijing court for around $7.6 million plus legal costs, in addition to an order halting JingChi’s use of any misappropriated technology. This is not a small sum for China, where a recent World Trademark Review article pointed out that the norm in trade secrets cases is statutory damages amounting to less than Rmb 1 million ($154,000). But it pales in comparison with the amount that Waymo could be expected to recoup if it convinces a jury that Uber’s Ottomoto and Otto Trucking divisions were built on stolen technology. Given what’s at stake in China’s autonomous driving market, $7.6 million may not provide much of a deterrent to companies seeking to gain a technical edge and attract investment.


How many small firms can even shell out amounts like $7.6 million? Not many. What is China hoping to accomplish with such a transition to litigation (soaring at alarming rates in Beijing)?

Recent Techrights' Posts

IBM's CEO Roasted, Sizzled and Grilled for Dumb and Inconsistent Vapourware Promises
It looks like being a chronic liar is what it takes to lead the company once synonymous with computing
Who Imitates Who? Plagiarist as Client (From Microsoft), 'Plagiarism' at the Law Firm?
let's revisit the subject
 
Links 11/06/2025: More Vulnerabilities Found in 'Smart' Phones, China Extends Reach in the Pacific
Links for the day
Gemini Links 11/06/2025: Grain and Steam Next Fest
Links for the day
Links 11/06/2025: "Quantum" Hype From IBM, US Closer to Martial Law, and “The Nation” Celebrates Milestone
Links for the day
IBM's Goal Is Not (and Never Was) Computer Users' Freedom
More than 1.5 decades ago I found IBM to be an "ally of convenience" because of OpenDocument Format (ODF)
Wayland Shows the IBM/Red Hat Way of Doing Things
IBM is trying to 'kill' X
GitHub is Proprietary, Controlled by Microsoft, and GPL Violation Warehouse
"IRS tax filing software [will be] released to the people as free software" ... In general this is good news
Slopfarm Catastrophe
Seems like BetaNews (or BetaNoise) has just suffered a major data loss and restored the site from a week-old backup
Abuse Inside the Polish Patent Office (UPRP) - Part VIII: Illegal Working Conditions
How many people need to die for these people to get their massive salaries?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, June 10, 2025
IRC logs for Tuesday, June 10, 2025
Links 10/06/2025: Apple Hype and Physical Attacks on Bloggers
Links for the day
Gemini Links 10/06/2025: Loon Lake, Farming, and Forth
Links for the day
Links 10/06/2025: Jaws at 50 and US Democracy Crushed Very Rapidly (Martial Law Seems Imminent)
Links for the day
Abuse Inside the Polish Patent Office (UPRP) - Part VII: Washing Their Hands After Corruption and Abuse
"Tragedy or comedy?"
Culling Bad RSS Feeds of Bad Sites
Not throwing out the baby with the bathwater
If 'Microsoft v Techrights' is Dealt With by a 'Microsoft Court' (or a Court Outsourced to Microsoft)
More on that later
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, June 09, 2025
IRC logs for Monday, June 09, 2025
Gemini Protocol Turns Six in 10 Days From Now
If you haven't tried it yet, then give it a go today
Live as You Preach
technology is fast becoming dysphoric
Gemini Links 09/06/2025: Addition Addiction and Nitride
Links for the day
Links 09/06/2025: Science, Hardware Projects, and Democracy Receding
Links for the day
Computers Got Smaller, So GNU/Linux Got Bigger
Many people here recognise the lack of urgency (or need) to get expensive new laptops
BetaNews is a Plagiarism and LLM Slop Hub, the Chief Editor Isn't Addressing This Problem Anymore
SS Fagioli is basically a parasite leeching off or exploiting other people's work
Links 09/06/2025: Chaos in Los Angeles and Hurricane Season
Links for the day
GNU/Linux Grows at Windows' Expense and Microsoft Trolls Infest and Maliciously Target Articles About It
Microsoft is - and has long been - organised crime
They Say I'm Mr. Bombastic
They didn't take good lawyers
Links 09/06/2025: Windows TCO and Many Data Breaches
Links for the day
Abuse Inside the Polish Patent Office (UPRP) - Part VI: Political Stunts by Former President Edyta Demby-Siwek and the Connection to Profound Corruption at EUIPO
it's like a money-laundering operation where one politician rewards another at taxpayers' expense
Gemini Links 09/06/2025: Pipelines and Splitgate
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, June 08, 2025
IRC logs for Sunday, June 08, 2025