White Paper on Intellectual Property in Shanghai in 2010

In the year 2010, Shanghai Municipality comprehensively implemented the “Scientific Outlook on Development”, took the opportunity to host and organize World Expo 2010 to deepen the local intellectual property (IP/IPR) strategy, and made all-round progress in IP creation, exploitation, protection and management.

I. The capability of IP creation constantly improved.

Firstly, the number of IP applications kept rising. 
The patent applications and patents granted in Shanghai numbered 71,196 and 48,215 respectively In 2010, a growth of 14.4% and 38.1% over the year 2009, among which the number of invention patent applications was 26,165, growing by 18.9% and the number of PCT applications was 735, growing by 49.1%.
The applications for trademark registration numbered 60,243, an increase of 43.8% over the previous year. The approved trademark registrations numbered 70,417, an increase of 95.7%. 256 Shanghai Famous Trademarks and 26 China Well-known Brands were newly approved.
In 2010, Shanghai also made copyright registration of 7,905 pieces of software and 2,636 pieces of other works, an increase of 44.38% and 18.89% respectively over the year 2009. The applications for registration of IC Layout Design in 2010 reached 281, which accounted for 25.36% of the national total. And the applications for new plant variety rights numbered 12.

Secondly, the measures supporting innovation increased continuously.
The Shanghai Finance Bureau allocated about 115 million RMB yuan in special funds all year round to increase support for IP creation and brand development.
In accordance with the requirement of “Adjust Structure and Promote Transformation”, Shanghai Development and Reform Commission pushed forward high-tech industrialization, cultivated strategic emerging industries, and promoted the IP creation, exploitation, protection and management.
Relying on the national policy of interest subsidies for import and export of technologies, the business promotion funds and relevant local policies, Shanghai Municipal Commission of Commerce encouraged local enterprises to trace and introduce internationally advanced technology, to develop a number of technologies and products with independent IPR and own brands.
In light of the trend of international low-carbon economy and the national strict requirements for energy conservation and emission reduction, Shanghai Urban Construction & Communications Commission encouraged local enterprises to strengthen R&D on technologies for energy conservation and emission reduction, which led to series of IPR fruits in scientific research programs in 2010.
Shanghai Municipal Bureau of Health organized the Conference on Promoting IPR Work in the Health Department of Shanghai Municipality, trying to put the medical science and technology development onto the innovation-driven, endogenous growth track.
With focus on cultivating famous trademarks, Shanghai Municipal Administration of Industry and Commerce supported local enterprises to develop their own trademarks, especially on advanced manufacturing industry, modern service industry, high-tech industries, agricultural & sideline products, and for SMEs.
Shanghai Press and Publication Administration (also named as Shanghai Copyright Bureau), together with the Shanghai Branch of Bank of Communications, extended the intended credit limit of 10 billion RMB yuan to support the development of publishing industry and copyright industry.
Since standardization plays an important role in technological innovation and IP development, Shanghai Municipal Bureau of Quality and Technical Supervision formulated the Criterion of Informatization Application for World Expo, facilitated the construction of the National Demonstration Zone for High-tech Industries Standardization in Zhangjiang, supported key industries to participate in international standardization, and promoted advanced manufacturing industry toward standardization.
By implementing the new “Pharmacopoeia of the People’s Republic of China”, Shanghai Food and Drug Administration supported the R&D of new medicines, pushed forward the construction of “Pharmaceuticals Valley” of Zhangjiang High-tech Park, and provided green channel for patented innovative medicines with full follow-up services.

II. The IPR protection for World Expo was robust and effective.
During World Expo 2010, member units of Shanghai Intellectual Property Joint Committee performed their respective duties and jointly worked to fully implement the “Outline of IPR Protection for World Expo 2010 Shanghai China”.

Firstly, the working mechanism of World Expo IPR protection was optimized.
Local government authorities set up the team of coordinators for World Expo IPR protection with the working mechanism for information briefing and emergency management. A joint command was created to crack down on illegal acts such as selling of counterfeit franchised products of World Expo by vendors, which effectively improved IPR protection environment of World Expo Park and its surroundings. Shanghai also joined hands with neighboring provinces to set up cooperative mechanism of World Expo IPR protection in Yangtze River Delta, including protection for patents, trademarks and copyrights.

Secondly, the special IPR law enforcement campaigns were launched.
The Public Security Bureau, Shanghai Administration for Industry and commerce, Shanghai Copyright Bureau, Shanghai Intellectual Property Administration, Shanghai customs, Shanghai Culture Law Enforcement Agency, Shanghai Municipal Bureau of City Administration and Law Enforcement and other authorities in Shanghai launched law enforcement campaigns for IPR protection of World Expo 2010, which effectively reduced the infringement activities.
The local public security bureaus investigated and solved 471 criminal cases regarding infringement to World Expo IPR, captured 5,008 suspects with illegal income over 31 million RMB yuan, recovered illicit money over 20 million RMB yuan, and confiscated over 2 million pieces of infringing commodities, including the counterfeit World Expo mascots “Haibao”, World Expo souvenir badges, commemorative stamps and coins, etc.
The local administrations of industry and commerce focused on three targets as “the symbols and franchised commodities of World Expo are comprehensively protected, the trademark counterfeit acts through mainstream commerce channels are basically eliminated, and the sales of counterfeits in clothing and small commodity markets are fundamentally curbed”, together with principles of “address both symptoms and root causes, combine punishment and prevention, integrate containment and guidance”. The administrations for industry and commerce carried out trademark law enforcement campaigns for World Expo, investigated and handled 582 cases infringing World Expo symbols.
Shanghai Copyright Bureau, Shanghai Public Security Bureau, Shanghai Administration for Communications and other departments jointly launched the "Sword Net Campaign”, severely crack down on network infringement and piracy acts, including illegal dissemination of music, films, software, books, etc. in relation with the World Expo. They successfully coordinated with relevant departments to settle the copyright disputes over some pavilions, the mascots and the theme song of World Expo.
Shanghai Intellectual Property Administration formulated the emergency response plan and working team for patent disputes in World Expo. It launched the patent law enforcement campaigns entitled “Thunderstorm” and “Sky Net”, investigated and handled illegal activities as infringement of patent, and severely punishing patent frauds.
The culture law enforcement agencies at municipal and district levels concentrated on the regulating of markets with audio & video products, on the inspection of printing enterprises, on the law enforcement inspection of publications, and on the copyright protection of World Expo on net, etc, with great efforts on investigating and handling major cases.
The Shanghai Municipal Bureau of City Administration and Law Enforcement set up one law enforcement team in World Expo Park to punish illegal selling activities. It organized campaigns for IPR protection against illegal activities such as selling of counterfeit World Expo franchised commodities at stalls or by vendors.
Shanghai Customs built its World Expo IPR protection working group, formed the systems on World Expo IPR protection coordinators and 24h hotline. It finished investigation and treatment of 10 cases concerning World Expo IPR infringement, seizing about 66,000 pieces of infringing commodities worth nearly 106,000 RMB yuan.

Thirdly, the IP services provided to World Expo exhibitors were sufficient.
In accordance with the “Outline of IPR Protection for World Expo 2010 Shanghai China”, the General Office of Shanghai Intellectual Property Joint Committee coordinated with relevant departments to add the World Expo IPR report & complaint service to the National IPR Protection Aid hotline 12330, to receive complaints & reports concerning the IPR of World Expo organizers and exhibitors. During the period of the World Expo, over 500 calls were received through the hotline, among which 20 eligible reports and complaints were accepted and handled.
The Municipal Bureau of Shanghai World Expo Coordination set up the “IPR Service Center for World Expo Exhibitors”, to provide IPR consultation service to exhibitors and to solve IPR disputes concerning exhibitors in the World Expo Park. The center worked in the mode of “Service from Small Window, Support by Large Team”, directly relying on the Administration for Industry and Commerce, Copyright Bureau, Shanghai IP Administration, other competent authorities and volunteer lawyers for the World Expo. During the World Expo, about 500 IPR protection & service cases concerning the exhibitors were handled. Among these cases 118 were applications for the “Certificate of World Expo Participation”, 68 of which were finally granted with certificates. 134 cases were applications for the “Certificate of World Expo Show”, 130 of which were finally granted wither certificates. 93 cases were applications for the “Usage License for Music Copyright”, 68 of which were finally put on record. Some disputes about patent infringement such as India Pavilion were mediated under assistance of Shanghai IP Administration.
The Municipal Justice Bureau organized the Service Promotion Team of Shanghai Lawyers to World Expo headed by the chairman of Shanghai Bar Association, and the Team of Volunteer Lawyers for World Expo, to help mediate cases concerning World Expo IPR. The Bureau also set up the Legal Aid Hotline of Shanghai Bar Association for World Expo, through which 138 calls for legal consulting and help during the World Expo were answered and handled.

Fourthly, the legal remedy channel for World Expo IPR was straightway.
Courts citywide founded the collegiate panel to hear World Expo IPR cases. The collegiate panel accepted 8 civil cases concerning World Expo IPR, and closed 7 cases among them. It also heard 16 criminal cases concerning World Expo IPR and closed 9 cases.
Local procuratorates instituted public prosecution against 113 suspects involved in 63 cases concerning World Expo IPR infringement.

Fifthly, the public awareness of World Expo IPR protection was improved.
The publicity week activities with the theme of “Innovation and IPR Make World Expo Better” were launched on a citywide basis, to raise the public awareness of IPR through media report, printing materials distribution, art performance, lectures and live consultation. The special press conference for World Expo IPR protection was held, and the column “World Expo and IPR” was enabled at eastday.com, together with award-winning quiz and interview online.

Through concerted efforts of all parties, IPR protection for World Expo achieved remarkable results. In the annual working report of the local government, Mayor of Shanghai Mr. Han Zheng spoke highly of World Expo IPR protection, indicating that “the IPR protection for World Expo was potent”. A group of local organizations and individuals participating in the World Expo IPR protection were honored by the State Council and 8 national departments including the State Intellectual Property Office.

III. The IP management ability further upgraded.

Firstly, the new IP plans and strategies were drafted up and formulated.
The General Office of Shanghai Intellectual Property Joint Committee started the preparation of the “12th Five-Year Plan for IPR Development in Shanghai” and the “Outline of the IPR Strategy in Shanghai (Year 2011 to Year 2020)”. The first draft of the Plan has been completed, and the scheme of the Outline has been formed and relevant research has proceeded.
Shanghai Development and Reform Commission, Shanghai Municipal Economic and Informatization Commission, Shanghai Municipal Administration of Industry and Commerce, Shanghai Copyright Bureau respectively drafted up the “12th Five-Year Plan for the Development of Strategic Emerging Industries in Shanghai”, the “Outline of the 12th Five-Year IPR Development Plan for Local Industry in Shanghai”, the “Outline of Mid-Term and Long-Term Trademark Development in Shanghai” and the “12th Five-Year Development Plan for Copyright Work in Shanghai”.

Secondly, the IP laws, regulations and policies were modified.
Shanghai Science and Technology Commission revised the “Regulations on Science and Technology Progress in Shanghai”. The Commission worked with relevant departments to unveil a series of policies, including the “Implementing Opinions on Encouragement and Promotion to Technological Start-ups”. It took the lead in developing local regulation on sharing of large-sized scientific instrument facilities, and encouraged local enterprises to facilitate technological innovation by sharing resources of large-sized scientific instrument facilities.
Shanghai Municipal Commission of Commerce formulated the “Several Opinions on Promoting Trade Related IPR Work in Shanghai”.
Shanghai Intellectual Property Administration, together with Shanghai Municipal Finance Bureau, Shanghai Municipal Administration of Industry and Commerce, Shanghai Copyright Bureau and Shanghai Municipal Financial Service Office, issued the “Trial Measures for the Implementation of IPR Pledge Appraisal in Shanghai” and the “Trial Technical Specifications for IPR Pledge Appraisal in Shanghai”.
Shanghai Municipal Bureau of Health and Shanghai Food & Drug Administration drafted up the “Administrative Measures to Strengthen IPR Protection of Traditional Medicines”.
Shanghai Municipal State-owned Assets Supervision and Administration Commission improved the assessment system for state-owned enterprises by adding IPR index into the evaluation standards.
The High People’s Court of Shanghai and Shanghai Copyright Bureau jointly established the working mechanism of mediation for copyright disputes on entrustment, and launched the “Trial Implementation Opinions of Mediation for Copyright Disputes on Entrustment”.

Thirdly, the research and discussion on new situations and problems were valued.
Targeting the hotspots, key points and major problems in IPR work, member units of Shanghai Intellectual Property Joint Committee actively launched investigation, exchange and discussion to provide references for all major decisions on IP development in Shanghai.
For example, Shanghai Science and Technology Commission carried out series of researches such as “IPR Management of Science and Technology Projects Funded by Public Finance in Open Innovation Environment” and “Commercial Exploitation in IPR Appraisal and Pledge”.
Shanghai Municipal Commission of Agriculture comprehensively studied the application and protection situation for new plant variety rights in Shanghai.
Shanghai Municipal State-owned Assets Supervision and Administration Commission surveyed the IPR situation in the enterprises invested by its system and basically found out the overall information on IPR input & output, IPR exploitation & commercialization, and management & protection in the system, which laid a foundation for the IPR evaluation and assessment standards of such enterprises.
Member units of Shanghai Intellectual Property Joint Committee organized some influentially domestic and international IPR events, including the 7th Shanghai International IPR Forum.

IV. The IP work in enterprises and public institutions progressed steadily.

Firstly, the work for IP demonstration and experiment were advanced.
Shanghai Municipal Economic and Informatization Commission and other 5 local authorities jointly approved 20 enterprises as the 5th batch of the “IPR Demonstration Enterprises in Shanghai”.
Shanghai Intellectual Property Administration approved 147 experimental enterprises for patent work and another 37 as demonstration enterprises for patent work in Shanghai in 2010.
10 enterprises recommended by Shanghai Copyright Bureau were conferred the honor of “National Demonstration Units of Legal Software Application" by the National Copyright Administration of the People’s Republic of China.
Shanghai Municipal Bureau of Health and Shanghai Intellectual Property Administration jointly approved the first batch of 9 IPR demonstration units and the second batch of 8 experimental units in the health department of Shanghai.
The Shanghai Municipal Education Commission and Shanghai Intellectual Property Administration selected 36 local schools as IPR model and experimental units.

Secondly, the public IP services were strengthened.
Shanghai took the lead in China to establish the management system for IPR pledge appraisal, and carried out the pilot projects in Pudong District, Xuhui District, Minhang District, Yangpu District, etc. A total of 68 enterprises in Shanghai obtained 69 IPR pledge loans worth the amount of 184.9 million RMB yuan.
The regional patent information service center was established in Shanghai upon approval of the State Intellectual Property Office of the People’s Republic of China. Shanghai IPR (patent information) public service platform was visited by more than 120,000 person-times the whole year, with an increase of over 1,600 newly registered users.
The State Patented Technology Exhibition and Trade Center in Shanghai passed the examination of the State Intellectual Property Office, and successfully organized the activities of the 4th China Patent Week in Shanghai.
Shanghai Copyright Bureau firstly nationwide issued the report on the local copyright industry, and established Shanghai Copyright Service center & the Mediation Center for Copyright Disputes. Shanghai Copyright Trade Center completed copyright transactions worth 2.9 billion RMB yuan, including copyright financing, copyright transfer, and consulting services.

Thirdly, the IP education and training programs were provided.
Local authorities actively launched IPR education & training programs such as briefing of IPR policies and road show lectures for enterprises and public institutions, to raise the IPR awareness and management abilities of relevant personnel.
Shanghai Municipal Human Resources and Social Security Bureau with Shanghai Intellectual Property Administration continued to organize the IPR education programs for public demands, with 15,361 professional technicians in enterprises and public institutions attended all year round.
Shanghai Municipal Commission of Agriculture trained local breeders and seed culture enterprises with knowledge of new plant variety protection.
Shanghai Municipal Administration of Industry and Commerce ran training programs on famous trademarks building, and on trademark registration & protection overseas.
Shanghai Copyright Bureau jointly with Shanghai Municipal State-owned Assets Supervision and Administration Commission and Shanghai Banking Regulatory Bureau provided local large-sized and medium-sized state-owned enterprises and financial institutions with training courses on the use of legal software.
Shanghai Intellectual Property Administration supported the State Intellectual Property Office to set up the “National IP Training Base in Shanghai” in Tongji University. SIPA also organized the 4th qualification examination for “Patent Management Engineer”, with 103 examinees granted the certificate. It ran 18 training courses for IPR talents with trainees numbered over 1,070. SIPA also organized the Informative Seminar on European Patent System, the 5th Sino-Japan Enterprise IPR Seminar in Shanghai, and the training course on “Guide to Patent Examination” for local enterprises.

V. The IPR protection environment constantly optimized.

Firstly, the administrative IPR law enforcement was intensified.
Shanghai authorities launched law enforcement campaigns against IPR infringement and production & sales of counterfeit or inferior commodities, through which a number of IPR infringement cases were detected and handled. Efforts were made to handle IPR disputes and infringement cases in large-scaled exhibitions, with IPR legal services available for local exhibitors going abroad.
In accordance with the unified deployment of the State Council, Shanghai Municipal Commission of Commerce and relevant departments carried out campaigns with intensified publicity, inspection and supervision to strike IPR infringement and production & sales of counterfeit or inferior commodities. Meanwhile, it also put emphasis on reducing the counterfeit and infringing products exported to Africa, protecting foreign-related IPR & Chinese time-honored brands, and enhancing IPR protection in commercial distribution sector.
Local public security bureaus investigated and solved 769 IPR infringement cases and arrested over 5,500 criminals, involving over 850 million RMB yuan of total value, over 730 million RMB yuan of recovered illicit money, and over 3.4 million items of infringing commodities.
Local administrations of industry and commerce investigated & handled 3,079 cases of trademark infringement and confiscated 1.22 million items of infringing commodities & marks, with a total penalty of 26.09 million RMB yuan involved.
With the focus on finance sector, Shanghai Copyright Bureau promoted local enterprise to use legal software. It also joined hands with Shanghai Cultural Law Enforcement Agency to launch campaigns for the protection of library copyrights in some colleges and universities.
Shanghai Intellectual Property Administration dispatched patent administrative law enforcement officials of 170 time-persons to inspect 78 commercial enterprises in 2010, with inspection of nearly 1.05 million kinds of commodities and drugs. 17 patent infringement dispute cases were handled and 14 cases were closed the whole year. 3 cases in violation of the patent law were investigated and all closed. It also stationed at 29 large-sized domestic and international exhibitions, handling 170 complaints about patent infringement disputes.
The culture law enforcement agencies at municipal and district levels mobilized 75,823 person-times to the publications markets to inspect 37,557 stores & stalls and the printing & copying enterprises for 22,726 times. 2,599 stores & stalls in the publications markets and 125 illegal websites were banned or closed down. 336 cases concerning infringing or pirated publications and 58 cases of online production, sales or dissemination of harmful information were investigated and handled. 3,963,600 pieces of pirated audio & video products, 90,540 volumes of pirated books, and 20,506 volumes of pirated electronic publications were confiscated.
Shanghai Municipal Bureau of City Administration and Law Enforcement sent enforcers over 673,000 person-times for law enforcement actions in 2010. Over 1,579,000 items of infringing articles as counterfeit World Expo mascot and mobile phone pendants, over 23,000 volumes of pirated books, and over 149,000 volumes of illegal audio & video products were confiscated or detained.
Shanghai Customs kept on taking strong measures against IPR infringement, with 498 IPR infringement cases uncovered and over 13 million articles of infringing goods seized worth over 35 million RMB yuan in the year 2010.

Secondly, the judicial IPR protection was strengthened.
Shanghai local courts continuously improved the "Three-in-One" trial mode as criminal, civil & administrative IPR cases under the jurisdiction of the same IPR court, and the designated mechanism for centralized jurisdiction across districts. Courts citywide accepted 2,579 civil IPR cases of first instance and second instance, of which 2,576 were closed, growing by 27.2% and 43.5% over 2009 respectively. Among these cases, 2,131 first instance cases were accepted and 2,135 were closed, increasing by 24.9% and 43.9% respectively. The courts accepted 136 IPR criminal cases of first instance and 116 were closed, increasing by 44.7% and 31.8% respectively.
Procuratorates in Shanghai accepted 197 IPR infringement cases in 2010, involving 342 suspects, and instituted public prosecution against 234 suspects involved in 133 cases. Procuratorates also launched three joint prosecution actions to sue 94 defendants in 64 cases in the courts, which effectively deterred IPR crimes.

Thirdly, the culture environment for IPR protection was created.
The General Office of Shanghai Intellectual Property Joint Committee chose and published “10 Typical IPR Protection Cases in Shanghai in 2009”, and issued the white paper of “Intellectual Property Development and Protection in Shanghai in 2009”.
Shanghai Copyright Bureau organized well-known publishing houses to sign the “Declaration on Copyright Protection”, which was echoed from over 130 publishing houses nationwide. The bureau also organized the education program of “Green Bookmark Action 2010” with the theme of copyright protection to call on teenagers to “respect knowledge, protect copyrights, support authorized editions, and boycott pirated products”.
The Municipal Justice Bureau organized IPR protection laws publicity such as activities in the December 4th National Law Publicity Day, and the 22nd National Constitution Publicity Week in Shanghai.
Courts in Shanghai broadcast typical IPR cases by live online broadcast with video or illustration & text. Judges visited native enterprises and gave lectures on judicial protection for IPR.
Local authorities continued to promote the commitment activities in the business sector named as “Sell genuinely branded products, Protect intellectual property rights”, with 210 entities making commitment and 4,978 stores involved in total.

In the year 2011, Shanghai will continue to apply the “Scientific Outlook on Development” and implement the Strategy of “Innovation-driven Transformation and Development” required by CPC Shanghai Municipal Committee and Shanghai Municipal government. By enhancing IP creation, exploitation, protection and management in the whole city, Shanghai will make IP one major pillar for the local economic structure adjustment and transformation of economic development mode, with the target on guiding city industry upgrade, the focus on developing strategic emerging industries, the basics of serving & supporting enterprises, and the backing from IP infrastructure building.