Editor’s Note: Intellectual Property Highlights and Strategies for Innovation

Welcome to the MeritsIP Newsletter. We delve into critical updates in the intellectual property landscape, providing insights and strategies to help you navigate the ever-evolving world of patents, trademarks, and copyrights. Read on to stay informed and ahead in the game of innovation.

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Quality Evaluation Metrics for Patent Agency Services

In a recent joint initiative, the China National Intellectual Property Administration (CNIPA) and the Ministry of Finance issued the Patent and Trademark Agency Service Government Procurement Demand Standard (Trial) (hereinafter referred to as the Standard). This document aims to regulate the patent agency service market by integrating a variety of indicators into the evaluation system for patent agency service quality. These indicators include the number of patent applications, grant rates, rejection rates, deemed withdrawal rates, and the success rate of patent invalidation declarations. Additional metrics such as the average number of claims, the number of independent claims, and the completeness of the specification are also considered. These indicators are scored on a scale of 0 to 15.

The primary goal of this initiative is to enhance the quality and professionalism of patent agency services, offering innovators higher-quality and more efficient intellectual property (IP) support. By clarifying evaluation criteria, the Standard encourages a shift in competition among patent agencies—from price-based to quality-based—ultimately promoting high-quality services at reasonable prices.

The Standard also emphasizes the evaluation of abnormal patent applications. If an agency is found to have more than 3% of non-normal patent applications or malicious trademark filings during the performance period—or if it has been subject to notifications, interviews, or disciplinary action—points will be deducted. This reflects NIPA’s dual focus on both service quality and regulatory compliance.

For large state-owned enterprises, private universities, listed companies, and innovative enterprises that require substantial IP agency services, the implementation of the Standard will aid in more effective selection and management of agencies, thereby improving the overall quality of patent and trademark representation.

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Confidential Patent Applications: A Strategic Safeguard for National Interests and Innovation

In the era of rapid technological advancement, confidential patent applications have become a critical tool for protecting national interests and core technologies. Recently, Shenzhen Wanwu Security Technology Co., Ltd. successfully applied for a patent related to data confidentiality and security—drawing renewed attention to the importance of confidential patent filings.

Confidential patent applications are designed for inventions involving national security or vital interests. Public disclosure of such inventions could undermine national defense, economic or political interests, or weaken technological competitiveness. Therefore, confidential patent applications serve as both a protective mechanism for innovation and a safeguard for national interests.

According to the Implementing Regulations of the Chinese Patent Law, the procedure for confidential patent applications includes the following:

• Confidentiality Review Request:Applicants must request a confidentiality review from the patent administration department under the State Council. If the invention involves national defense or is completed in China with the intent to apply abroad, a review must precede any foreign filing.
• Preliminary and Substantive Examination:Designated examiners conduct both preliminary and substantive examinations. Although examination standards are consistent with regular applications, confidential patents are not published after preliminary approval.
• Authorization Announcement:Only limited information—such as the patent number, filing date, and authorization date—is disclosed. The technical content remains confidential.

Confidential patents are applicable in the following scenarios:

• National Defense Interests: Inventions directly related to defense and security.
• National Security or Major Interests: Inventions that, if disclosed, may harm national interests.
• Domestic Inventions Intended for Foreign Filing: Inventions completed in China and intended to be filed abroad must undergo a prior confidentiality review.

A notable example is Shenzhen Wanwu Security Technology Co., Ltd.’s patent titled “Data Processing Method, Device, and Computer Storage Medium”. By incorporating the Redis observer mechanism, the invention enhances the confidentiality and security of operational data, effectively mitigating the risk of data leakage.

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PCT Applications Entering the Chinese National Phase: Issues and Guidance

As global innovation accelerates, more inventors are utilizing the PCT (Patent Cooperation Treaty) system to secure international patent protection. However, entering the Chinese national phase can present procedural challenges.

Below is updated guidance on common issues:

1. Time Limit for Entry

• Standard Time Limit: Applicants must enter the Chinese national phase within 30 months from the earliest priority date.
• Grace Period: Entry can be extended to 32 months with payment of a surcharge.

2. Fee Requirements

• Application and Related Fees:
  • If the PCT application was accepted and searched by NIPA, both the application and additional fees are waived.
  • If the entry date is after July 26, 2024, and the application was searched by the European Patent Office, all relevant fees must be paid in full.
• Substantive Examination Fee:
  • If NIPA conducted the international search and provided a preliminary patentability report, this fee is waived.
  • If the search was conducted by authorities such as the EPO, JPO, or Swedish Patent Office, the fee is not waived.

3. Required Documentation

• For Foreign Language Applications: Submit the international application number, type of protection, Chinese translations of the specification, claims, and abstract, copies of drawings, and the designated abstract drawing.
• For Chinese-Language Applications: Submit the international application number and type of protection with the declaration of entry.

4. Priority Issues

• Priority Claim Fee: 80 RMB per claim. Applicants must pay the full amount within 2 months of entry; otherwise, the claim is deemed forfeited.
• Priority Correction: If a written error exists in the priority claim made during the international stage, a correction request must be submitted either upon entry or within 2 months thereafter.

5. Fee Reduction

• Applicants experiencing financial difficulty may apply for fee reductions in accordance with official policies on patent fee relief.

6. Additional Notes

• Agency Requirement: Foreign individuals, enterprises, or organizations without a long-term residence or place of business in China must appoint a licensed Chinese patent agency.
• Entry Date Determination: The effective date of entry is based on the later of the document submission date or the fee payment date.

This guidance helps applicants better understand the procedural and regulatory requirements for a successful entry into the Chinese national phase under the PCT framework.

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U.S. ITC “337 Investigations”: Remedies and Strategic Responses

The “337 investigations” conducted by the U.S. International Trade Commission (ITC) continue to command global attention. Designed to address intellectual property infringement involving imported goods, these investigations are known for swift enforcement and impactful remedies—posing significant risks for companies engaged in international trade.

Key Remedies

• Market Access Bans

1. • Limited Exclusion Orders (LEOs): Target specific products from designated respondents, allowing U.S. Customs to block them from entry—directly impacting supply chains.
   • General Exclusion Orders (GEOs): Apply industry-wide, blocking all infringing products regardless of source—potentially disrupting entire markets.

• Market Behavior Bans

1. • These orders go beyond sales bans to restrict inventory, marketing, and promotional activities. Violations may lead to product confiscation and severe fines.

• Emergency Measures

1. • The ITC may impose temporary bans within 70–120 days of filing, supported by security deposits of up to 100% of the product value, creating a swift “freeze first, investigate later” mechanism.

Recent Developments

• Photovoltaic Sector: Investigations into cable component patent infringement, involving simultaneous exclusion and market behavior bans.
• Biopharmaceutical Sector: An ongoing case involving thyroid hormone receptor drugs has entered final review, with public consultation on potential remedies underway.

 Strategic Corporate Responses

• Establish an IP Early Warning System: Continuously monitor patent activities within your industry.
• Build a Rapid Response Team: Engage both legal and technical experts to prepare for and respond to ITC actions.
• Diversified Market Deployment: Avoiding the Risks of Over-Reliance on a Single Market
• Independent Technological Innovation: The Fundamental Strategy for Overcoming Patent Barriers

Notably, the ITC has shortened the average investigation period to 12-16 months in recent years, with the total value of goods involved exceeding USD 3.7 billion in fiscal year 2023.
In the face of an increasingly stringent enforcement environment, enterprises must incorporate a 337 investigation defense system into their global strategic planning. By leveraging innovative approaches such as patent cross-licensing and joint technology development, companies can gain the initiative in intellectual property battles.

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Complete Guide to UK Patent Applications: Procedures, Fees, and Key Considerations

Applying for a UK patent is a systematic and complex process involving multiple stages and steps. Below is a comprehensive guide to the UK patent application process, based on the latest available information:

Application Routes

Applicants can file a UK patent application with the UK Intellectual Property Office (UKIPO) via the following routes:

• Direct Application to UKIPO: Suitable for first-time applicants filing directly in the UK.
• Application via the Paris Convention: If an applicant files a patent application in China first, they can file a corresponding patent application in the UK within 12 months and claim the Chinese application date as the priority date.
• Application via the PCT Route: After submitting a PCT international application, the applicant may enter the UK national phase within 31 months from the PCT filing date (or the earliest priority date, if applicable).
• European Patent Application: Applicants may file a European patent application. Once granted, the patent will automatically take effect in the UK without the need for validation or translation.

Required Documents

To apply for a UK patent, the following documents are required:

• Specification: A detailed description of how the invention works and how it is made, to ensure it can be understood by others.
• Claims: Legal statements that define the technical features of the invention to be protected.
• Abstract: A summary of all key technical features of the invention.
• Drawings: Diagrams that help illustrate and explain the invention, where necessary.
• Inventor Statement: If the applicant is not the inventor, or if there are multiple inventors not listed as applicants (e.g., when applying on behalf of a company), an inventor declaration form is required.
• Priority Documents: If claiming priority, copies of the priority documents and relevant details must be provided.

Application Procedure

• Patent Search: Before submitting, it’s advisable to conduct a thorough patent search to ensure the invention is novel. UKIPO provides free online search tools (e.g., Ipsum) for checking prior art.
• Filing the Application: Applications can be submitted online or by post. Upon receipt, UKIPO will issue an acknowledgment letter and assign an application number.
• Search Request: Within 12 months of filing, a request for search must be made along with payment. UKIPO will issue a search report within 6 months to assess the likelihood of patent grant.
• Publication Phase: After 18 months from the filing date, the application will be published. At this stage, the public can access the application content.
• Substantive Examination: Within 6 months after publication, a request for substantive examination must be submitted with payment. UKIPO will examine the application for novelty, inventive step, and industrial applicability. This phase can take several years.
• Grant and Maintenance: If the examination is successful, a patent certificate will be issued. Annual renewal fees must then be paid to maintain the patent’s validity.

Fees

Below is an overview of key fees (in GBP):

• Application Fee: £30–£50
• Search Fee: £150 (an additional £20 per claim beyond 25 claims)
• Examination Fee: £100 (an additional £10 per page beyond 35 pages of the specification)

Important Notes

• Language Requirement: All documents must be submitted in English. If documents are in another language, a translation must be provided.
• Priority Deadline: Under the Paris Convention route, the UK application must be filed within 12 months of the first filing.
• Grace Period for Novelty: If the invention has been disclosed for special reasons before filing, a 6-month grace period may apply, subject to evidence.
• Accelerated Examination: An accelerated process may be requested via the PCT route or by declaring priority, but additional fees may apply.

This guide has provided a detailed overview of the UK patent application process, including procedures, fees, and key considerations. We hope it proves helpful to you.

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