ARTICLE
3 February 2021

EARLY WARNING - Cancellation Of Government Subsidies May Lead To Drop Of Patent Filings

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IP March

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5 days after CNIPA released another year of amazing IP statistics, CNIPA announced cancellation of government funding for IP.
China Intellectual Property

5 days after CNIPA released another year of amazing IP statistics (note: this year CNIPA did not mention number of filings but instead used number of patent grant and trademark registration), CNIPA announced cancellation of government funding for IP.

(1) By the end of June 2021, all levels of funding for patent application stages should be completely cancelled, such as financial aid, rewards, subsidies, etc.

(2) Current government funding should be limited to granted invention patents (domestic and foreign) and should be provided only after patent grant.

(3) No subsidies should be provided for annuities or attorney fees

(4) Government funding for patent grant should be completely cancelled before 2025.

It is likely that patent filings in 2021 may drop. The question is how much. Weird activities observed among Chinese applicants may be stopped, such as huge number of filings, filing in very "unusual" jurisdictions for no business reasons, etc. It also follows that Chinese firms relying on patent filings triggered by government funding will have a hard time. Foreign associates will also see a cut-off of work of this nature from Chinese firms.

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