On January 27, 2021, China National Intellectual Property Administration issued a notice on further strictly regulating the behavior of patent applications, it mentions:

Efforts should be made to guide the number and quality of patent applications to adapt to the level of regional economic development, industrial development needs and technological innovation capabilities, scientifically set various work indicators, strengthen quality guidance, and effectively play a leading role in high-quality development indicators. Moreover, adjust and improve policies such as funding and rewards, completely cancel funding for patent applications, and focus on strengthening support for subsequent transformation and application, administrative protection and public services. Clean up and standardize patent applications’ order, resolutely crackdown and effectively curb irregular patent applications that are not aimed at protecting innovation, and promote the high-quality development of the intellectual property.

Those who implement the following irregular patent applications that are not to protect innovation shall be severely cracked down and dealt with in accordance with relevant laws, regulations and policies.

(1) The six types of situations specified in Article 3 of the "Several Provisions Regarding the Regulation of Patent Application Behaviors" (China National Intellectual Property Administration Order No. 75);

(2) Institutions or individuals deliberately submit related patent applications separately;

(3) Institutions or individuals submit patent applications that are obviously inconsistent with their Research and Development capabilities;

(4) Institutions or individuals re-sell patent applications abnormally;

(5) Patent applications submitted by entities or individuals have technical solutions that implement simple functions with complex structures, use conventional or simple features to combine or stack, and other behaviors that are obviously not in line with the common sense of technological improvement;

(6) Other acts that violate the principle of good faith stipulated in the Civil Code, do not comply with the Patent Law’s relevant provisions, and disrupt the order of patent application management.

The above "institutions and individuals" include the same natural person, legal person, other organization and the same actual controller.

Adjust the patent funding policy. Before the end of June 2021, all levels of funding for patent application stages should be completely cancelled. All localities shall not provide financial support for patent applications in any form such as subsidies, rewards, subsidies, etc. The scope of existing local funding should be limited to authorized invention patents (including invention patents authorized overseas through the PCT and other channels). The funding method should be in the form of post-authorization subsidies. The total amount of funding at all levels and types of funding received by the grantees shall not exceed 50% of the official fees paid for obtaining patent rights, and shall not fund intermediary service fees such as annual patent fees and patent agency fees. For those who falsify and arbitrage patent funding, the allocated funds shall be recovered within a time limit. During the "14th Five-Year Plan" period, all localities will gradually reduce various types of financial assistance for patent authorization and cancel them all by 2025. All localities should focus on optimizing the use and management of patent funding-related financial funds, strengthen patent protection and use, and focus on increasing support for subsequent transformation and use, administrative protection, and public services.

Resolutely curb the transfer of patent application rights and patent rights that obviously do not aim at technological innovation and implementation.

Ensure that such applications are not used to defraud high-tech enterprises and other national preferential policies. For companies with no insured persons, no paid-in capital, and no R&D funds to apply for patents, the relevant information shall be promptly transferred to the local market supervision department for strict supervision.

Source: China IP Today