Asia shows great potential for innovation as, according to the World Intellectual Property Organization (WIPO), patent filings from the region accounted for more than 66% of the global total in 2020. In Asia, 92% of patent filing activities are in the People’s Republic of China, Japan and the Republic of Korea, and most of the filing activities in other countries in the region are made by nonresidents. Other countries in the region lack the R&D funding and skilled workforce.
China has laid out a very ambitious five-year intellectual property plan with the goal of being the high-value patent global leader, as the country focuses on quality over quantity. Meanwhile, the U.S. has introduced a draft policy on standard-essential patents (SEPs) to promote technology innovation. Here are a series of opinion pieces we found of interest regarding Asian patents and innovation.
Asia’s Digital Divides Mean Some Can’t Afford the Tech Upgrade They Need to Compete
In an opinion piece, “Asia’s digital divides mean some can’t afford tech upgrade they need to compete” for The Register, Laura Dobberstein examines a report that was recently published by the International Monetary Fund (IMF) that asserts the region is not digitizing fast enough to avoid a slowdown in productivity growth and the resulting economic unpleasantness. While Asia has risen to be an innovation powerhouse, she notes the report indicates that there are two digital divides—“frontier countries” such as Singapore, Korea, Japan and China that experienced a sharp increase in technology development due to access to R&D budgets and skilled researchers, and “non-frontier countries such as Indonesia, Vietnam and Bangladesh that attribute difficulty obtaining financing as a top barrier to adopting technology, along with a skills shortage.
The IMF report advises the region needs to close productivity gaps, alleviate financing constraints faced by SMEs, enhance non-frontier digital infrastructure and educate the workforce of emerging countries across Asia. Read the full article on The Register.
Biden Helping China Plunder American Tech Companies | Opinion
In an opinion piece, “Biden Helping China Plunder American Tech Companies | Opinion” for Newsweek, Gordon G. Chang, author of The Coming Collapse of China, discusses the impact of the Draft Policy Statement on Licensing Negotiations and Remedies for Standards-Essential Patents Subject to Voluntary F/RAND Commitments. According to the U.S. Department of Justice, the draft policy would lead to “widespread and efficient licensing” by holders of SEPs and thereby “promote technology innovation, further consumer choice and enable industry competitiveness.” Chang argues that the policy would make it very difficult for SEP holders to get federal court-ordered injunctions to stop the use of infringing products. He adds that the proposed change would even prevent the U.S. International Trade Commission from halting the importation of foreign infringing products.
Chang believes America’s ability to develop new technologies is only as strong as its patents, and patents are only as strong as the rights of patent holders. He argues that the unintended beneficiary will be China, as it will support Chinese efforts to dominate critical technology standards and other advanced technologies, such as 5G. Read the full article on Newsweek.
China Sets Targets for High-Value Patents in Ambitious Five-Year Plan
In an opinion piece, “China sets new targets for high-value patents in ambitious five-year plan” for Lexology, Mathys & Squire Partner Christopher Hamer and Technical Assistant and China Liaison Sally (Lingjun) Gao review China’s latest five-year intellectual property plan with new targets for high-value invention patents for the period from 2021 to 2025. According to the WIPO Statistics Database, in 2020, the China National Intellectual Property Administration (CNIPA) received 1.5 million patent applications, accounting for 45.7% of the world’s total filings. The authors note that from a quantity perspective, China has become the top filer of patent applications in the world, but the five-year plan sets new targets for high-value patents being part of the latest five-year plan for the period from 2021 to 2025.
According to the authors, the number of high-value invention patents is an objective measure of China’s innovation performance and its position in global innovation competition. By 2025, China expects the number of high-value invention patents per 10,000 people in China will reach 12, which would improve the nation’s innovation performance and provide powerful support for economic development. Read the full article on Lexology.
Disclosure: Fatty Fish is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
The Fatty Fish Editorial Team includes a diverse group of industry analysts, researchers, and advisors who spend most of their days diving into the most important topics impacting the future of the technology sector. Our team focuses on the potential impact of tech-related IP policy, legislation, regulation, and litigation, along with critical global and geostrategic trends — and delivers content that makes it easier for journalists, lobbyists, and policy makers to understand these issues.
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