The National Intellectual Property Administration responds to Everyman's questions: actively exploring reforms for the separate management of intellectual property rights as occupational scientific and technological achievements assets, implementing a management model for intangible assets such as intellectual property that differs from that of general tangible assets.

On March 23, the State Council Information Office held a press conference. At the conference, the National Intellectual Property Administration introduced the implementation of the special action plan for patent transformation and utilization (2023-2025) (hereinafter referred to as the “special action”).

Currently, what difficulties and blockages does our country face in patent transformation and utilization? How does this special action plan address these challenges?

When answering questions from reporters from the “Daily Economic News,” Hu Wenhui, deputy director of the National Intellectual Property Administration, stated that there are many challenges and blockages in patent transformation and utilization, mainly represented by the “five nos,” namely “cannot transfer,” “unwilling to transfer,” “dare not transfer,” “unable to transfer,” and “inconvenient to transfer.” Next, the National Intellectual Property Administration will continue to deepen the reform of the system and mechanism based on the achievements of this special action, optimize the ecosystem for transformation and utilization, further resolve these critical challenges and blockages, and enhance the efficiency and effectiveness of patent transformation.

On-site image of the press conference: Source: Daily Economic News reporter Zhou Yifei

Exploring a Duty of Care and Error Tolerance Mechanism for Patent Transformation

Hu Wenhui told reporters from the “Daily Economic News” that there are many challenges and blockages in patent transformation and utilization, mainly represented by the “five nos,” namely “cannot transfer,” “unwilling to transfer,” “dare not transfer,” “unable to transfer,” and “inconvenient to transfer.”

Specifically, “cannot transfer” is due to the disconnection between some patent applications and industrial applications in our country, a lack of prospects for transformation, and insufficient supply of high-value patents for transformation; “unwilling to transfer” is because the transformation cycle of patents is long, with high uncertainty and risk, leading to insufficient motivation for researchers to engage in transformation; “dare not transfer” is due to the inadequacy of the current duty of care and error tolerance mechanisms in our country, where personnel involved in transformation are worried about the potential loss of state-owned assets due to improper pricing in the patent evaluation process; “unable to transfer” is due to the overall lack of specialized intellectual property institutions and personnel in universities and research institutions, resulting in insufficient transformation capabilities; “inconvenient to transfer” is due to the poor connectivity between universities, research institutions, and enterprises, with an ecosystem for patent transformation and utilization that is still not robust enough.

Hu Wenhui pointed out that since the implementation of the special action, the National Intellectual Property Administration has worked together with relevant departments to take coordinated actions and precise measures to effectively resolve the issues represented by the “five nos.”

Specifically, regarding “cannot transfer,” the focus is on improving institutional mechanisms such as pre-assessment of patent applications, dynamic inventory, hierarchical management, and navigation for research and development to solidify the quality foundation for patent transformation and utilization.

Regarding “unwilling to transfer,” the focus is on deeply promoting the reform of the assignment of rights for work-related scientific and technological achievements, establishing and improving the revenue-sharing mechanism for intellectual property, and effectively stimulating the endogenous motivation and innovative vitality for patent transformation.

Regarding “dare not transfer,” efforts are being made to actively explore the reform of separate management for work-related scientific and technological achievement assets, implementing a management model for intangible assets such as intellectual property that differs from that for general tangible assets; at the same time, exploring a duty of care and error tolerance mechanism for patent transformation, wherein personnel who have fulfilled their due diligence obligations and have not sought improper benefits will be exempt from responsibility if transformation fails or does not meet expectations due to market risks or other factors, effectively alleviating concerns about “dare not transfer.”

“For example, we are implementing a reform of separate management for work-related scientific and technological achievements at a certain university in Northwest China, which has dispelled researchers’ concerns about the loss of state-owned assets, transforming ‘dare not transfer’ into ‘actively transfer.’ Currently, this university has valued over 300 patents at 630 million yuan, with transformation revenues exceeding 3.2 billion yuan,” Hu Wenhui introduced.

Regarding “unable to transfer,” the focus is on promoting universities and research institutions to establish specialized technology transfer agencies, cultivating a team of technology managers, and providing services throughout the entire process of transformation and utilization, including achievement excavation, incubation, evaluation, promotion, transaction, as well as financial and legal support.

Regarding “inconvenient to transfer,” the promotion and implementation of patent transformation models such as “open licensing,” “pay after use,” and “patent industrialization + stock options” are aimed at facilitating the interconnection of intellectual property operation platforms and accelerating the removal of barriers to “inconvenient to transfer.”

Hu Wenhui emphasized that moving forward, the National Intellectual Property Administration will continue to deepen reforms of the system and mechanism based on the achievements of this special action, optimize the ecosystem for transformation and utilization, and further resolve these critical challenges and blockages to enhance the efficiency and effectiveness of patent transformation.

Further Improve the Coverage of Paperless Online Processing for Patent Pledge Registration

Financial support is an important guarantee for patent transformation, and various regions have explored many aspects of the intellectual property financial ecosystem. What work plans does the National Financial Regulatory Administration have for promoting diversified intellectual property financial support?

Du Mo, head of the Legal Affairs Department of the National Financial Regulatory Administration, stated that in the next steps, the National Financial Regulatory Administration will continuously improve the quality and effectiveness of intellectual property financial work.

First, promote financial institutions to continuously optimize their management mechanisms. Further enhance the coverage of paperless online processing for patent pledge registration. Guide financial institutions to fully explore the financial needs of enterprises using intelligent means, intelligently match product services based on enterprise profiles, and improve financing efficiency.

Second, work with the National Intellectual Property Administration and other departments to guide local areas to continuously carry out bank-enterprise matching activities. Establish a “white list” dual-push mechanism for intellectual property enterprises, carry out intellectual property financial services for “enterprises in the park,” and host various activities such as intellectual property forums to increase policy promotion and bank-enterprise matching efforts.

Third, deepen the comprehensive pilot work for the intellectual property financial ecosystem. Timely assess the pilot effects, summarize the innovative measures and good experiences formed in the pilot work, issue and promote typical cases, and spread replicable development models. At the same time, based on the progress of the work, research will be conducted to expand the scope of the pilot.