Chinese Companies Start to Utilise the Full Potential of their Innovative Products. By Peter Horn Møller, COO, Partner at Plougmann & Vingtoft a/s

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China's many new technology based companies are spending time, effort and money on developing new and innovative technologies that are unique and key selling points for the companies. These high-tech companies are of course highly interested in having the 20-years monopoly for their own top-products that a good patent can provide. These companies are now beginning to obtain commercial benefits by using patent and design rights to ensure that their technologies are not copied by competing companies.

The result of this development can easily be identified. We have over the last years seen a dramatic increase in the number of design and patent filings made by Chinese companies. However, the vast majority of these filings take place only in China and only 7% of the total number of filed Chinese patent applications are being filed outside China. In comparison, 73% of patent applications filed in Denmark are also filed outside Denmark

China's low number of foreign filings has had its consequences on the Chinese companies and these companies have not been able to utilise the full potential of their innovative products in the foreign markets. One simply cannot get the full commercial benefit  of even unique products on the European market without European patent rights.
 
At Plougmann & Vingtoft, we have specialised in identifying and protecting commercial valuable technologies and products. For the last 40 years we have worked together with our clients to ensure the optimal IPR conditions for our client's commercial success. Our more than 40 attorneys have in depth knowledge within a number of technical disciplines, such as biotechnology, food and ingredients, electronics and nanotechnology.

To assist Chinese companies we have established close relationships with Chinese patent attorneys, and lately we have seen a significant increase in the Chinese companies’ interest in securing European Intellectual Property Rights. There is no doubt that within a very short time we will see the percentage of Chinese patent applications being filed outside China increase dramatically.

From our point of view, there is every reason to believe that the Chinese focus on IPR will boost the share of value added along the value chain in China and to its economic development in general. In areas where China enjoys a comparative advantage, such as agriculture, biotechnology and electronics, we will from now on see the Chinese companies utilise their full potential by using IPR much more actively in their export markets.

For further information please contact Peter Horn Møller at phm@pv.eu

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