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

Richard Stallman About to Give More Talks in Europe, Some Confirmed Already
In Göteborg
Justice for Wildlife
animals cannot speak to humans who hate animals
GNU Was Right 42+ Years Ago
Since then the abusive, user-hostile technology has spread like mushrooms
Almost Half of the FSFE's Money (the Fake 'FSF', Misusing the Brand) Comes From Vodafone
That money always comes with strings, even if they're invisible to most of us
 
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, September 30, 2025
IRC logs for Tuesday, September 30, 2025
Clerical Aspects of Publishing and Development
In Free software, the management aspects are considerably reduced
Slopwatch: Fake Articles and Google News Promoting "Linux" Spam or Bot-Generated Fear, Uncertainty, Doubt (FUD)
These slopfarms help misplace blame
Third Wave of Microsoft Layoffs in September, This Time Many in Liverpool Affected
Be ready for more waves of layoffs ahead of the so-called "results" in late October
Gemini Links 30/09/2025: Motorcycling in Central Oregon, Protocol Styles and the Flag of Sark
Links for the day
Links 30/09/2025: Death Sentences, Internet Censorship, and Internet Shutdowns
Links for the day
Gemini Links 30/09/2025: Social Control Media and ROOPHLOCH
Links for the day
Links 30/09/2025: CERN in "Have I Been Pwned" and More Windows TCO Blunders
Links for the day
Microsoft Canonical is Selling Mass Surveillance and Back Doors as "Security for Ubuntu"
If you are looking for a GNU/Linux distro to use, just remember that Microsoft has Ubuntu in the bag
Cowboys Gonna Be Cowboys (on the Internet, They're Not a New Problem)
Boys will be boys
Cowboys of the "Left" and Cowboys of the "Right"
Don't believe the lie that this is some "leftist" thing
When Codes of Conduct Serve to Protect Criminals From Much-Deserved Scrutiny
CoCs are typically unfit for purpose because enforcement lacks context and suitable understanding of the full background (the "full story")
It Took the Open Source Initiative (OSI) 4+ Years to Address the 'Data Breach' or Data Protection Violation Reported to the California Privacy Protection Agency (CPPA) in March 2025
We may never know the dialogue or its nature
Even Microsoft's Biggest Boosters (and Media Operatives) Are Turning Against Microsoft
Expect many more layoffs before the fake "results" next month
Old Isn't Always Inadequate
How many gadgets manufactured today (in 2025) will still work in 2075?
The Monkey Business of Rust People
Compatibility won't matter
Microsoft Lunduke Spreads Deliberate Lies to Incite Online Mobs
Has he lost his reading comprehension skills?
Our 19th Birthday (in Just Over 5 Weeks From Now)
We meanwhile have ongoing, solid plans to cover patent-related issues when the FSF turns 40
British GNU/Linux Distro FydeOS Tops DistroWatch
That seems like a decent site and decent effort to keep an eye on
We'll Soon Have 75,000 GemText Pages
avoid many perils of today's Web
Google Used Free Software to Build a Monopoly. Now Google Kicks Free Software to the Curb
The "G" in "Google" does not stand for GNU. It never did. It's just another greedy company.
Gemini Links 30/09/2025: Retro Hardware, Federated Fragmentation, and Nex Server Written in C
Links for the day
4 More Days Till "4 decades, 4 freedoms, 4 all users"
We are now just 4 days away from the rare anniversary
Two Months After Merging to Hide GitHub Losses Microsoft is Doing It Again (This Time Windows)
Merging those two together is not a sign of strength but a tightening of budget
Speculations About the Next Large Wave of IBM/Red Hat Layoffs
the mass layoffs are likely to happen on week 3 or 4 in October
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, September 29, 2025
IRC logs for Monday, September 29, 2025
Links 29/09/2025: Opposition to Surveillance Giant Google and Conflicts Worldwide (Moldova Sides With EU)
Links for the day
Why the EPO Never Managed to Silence Us (After Over a Decade of Trying)
Firms like Mishcon de Reya and Brett Wilson LLP contribute to a bad stigma, staining the entire occupation
Links 29/09/2025: Datacenter Fires and "Too Much Internet Use Is Changing Teenage Brains"
Links for the day
Almost a Couple of Years After Microsoft Hijacked the Name 'Sudo' (to Describe Unrelated Windows Stuff) Microsoft Canonical Breaks Sudo in Ubuntu
These are vandals in "goodwill" or "security" clothing
Does the Good Law Project (GLP) Know the Director of Brett Wilson LLP Deems It OK to Endorse Violent Actions Against Trans People?
We were miffed to see this morning's report
Names Are Not Unique IDs and the UK Government's "Digital ID System" Would be a Nightmare
Digital surveillance, "apps", and worse (all the time)
What is Roy and Rianne's Righteously Royalty-free RSS Reader?
A news reader that uses OPML files and parses RSS feeds
The Free Software Foundation (FSF) Turns 40 in 5 Days
We should be talking about software freedom, not "Open Source"
It Feels Like Brett Wilson LLP Has Just Tacitly Admitted That It Defamed Me
It arguably admitted many other things by refusing to deny or address them (altogether)
Stefano Maffulli's Front Page Mentions "AI" 11 Times
They're more focused on slop (plagiarism) than sharing or Software Freedom
CMS Rot
With "modern" (bloated) content management systems (CMSs) there is a long chain of dependencies
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, September 28, 2025
IRC logs for Sunday, September 28, 2025
Slopwatch: Fake Articles About Linux 6.17 and Microsoft Meddling in Linux Development
today's Slopwatch is short because the picks are from Sunday
Gemini Links 29/09/2025: The Labor Wars and Retro
Links for the day