China publishes new IP rules for small businesses

China’s IP office has announced new policies aimed at helping small businesses and supporting innovation.

The measures, published by the State Intellectual Property Office (SIPO), will focus on improving public services, and will help start-ups and small businesses increase their capabilities in innovation through using IP, specifically patents.

The office will prioritise patent filings by small companies for core patents and help them get applications accepted overseas, according to the new policies, which were published on the China IPR government blog last week.

IP authorities will also increase financial aid for patent applications by small companies to help finance their industrialisation.

Speaking at a press conference to announce the plans, He Hua, deputy commissioner at SIPO, said IP was an “engine” that powers the fast growth of small tech firms and can earn them more profit margin than businesses without IP protection.

He said a survey conducted by SIPO in the city of Chongqing found that small businesses with an IP edge generated seven times more profits than those without it.

The new policies also call for increased cooperation with research institutes and colleges, and encourage state-owned enterprises to license idle patents to small businesses.

Fan Jianyong, an official at SIPO's patent administration department, said the new policies provided a “framework and direction” for the central government's efforts to support small businesses.

Fan said a series of specific initiatives and further details of the measures would be announced soon.

According to China IPR, the number of small and-medium-sized enterprises has grown by around 20% percent annually in recent years.