From Shanghai to the World

Last month an announcement attracted attention from global IP professionals. An international patent portfolio had settled in Shanghai.  According to the source, it is the first of its kind in China. 

The announcement indicates that this patent pool covers more than 50 technical fields and has an international patent portfolio of more than 12,000 patents. It targets Chinese SMEs which need to upgrade their operation with more advanced technologies but fall short of developing their own.
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The pool will operate with standardized licensing terms.  Available licensing durations are one year, three years, five years, and ten years.

NFT mania in the IP arena

Blockchain-based digital artwork has experienced a craze in western countries.  The global monetary inflation further drives investors to seek unique assets across borders, even into cyberspace.  Now the tide reaches China. According to the Financial Times, “Digital art – including NFT (Non-fungible token) – is enjoying an upsurge in Beijing.”
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However, as some mainstream fashion observers point out, Chinese regulations may stand in the way of large-scale adoption.  Numerous regulatory and intellectual property issues have not been tested in Chinese courts,  “there is simply too much unknown from the Chinese law perspective.” *

 In March 2021, the Fourteenth Five-Year Plan for National Economic  and  Social Development and the Outline of 2035 Long-Term Goals (the "Outline") by the State Council received attention in the global innovation community.  The Outline reveals a major shift in IP policy.  It affirms that funding for intellectual property applications has entered into history. In addition, the resource so saved will apply to strengthening support for IP's subsequent transformation, utilization, administrative protection, and public services in the next stage.

The affirmative position signals that China's innovation ecosystem is turning over a new leaf.

How historical trends shed light on the development of China’s cultural and creative industry under the new, global norm 

At the inauguration of US President Joe Biden, the global market saw a surprise from new media platforms leveraging IP and new technologies.  The stock price of Netflix, the leading company amongst them, soared 13% in one day.  This movement in the market reflects the positivity surrounding the cultural and creative content delivered online, especially when the pandemic may continue to lock down a hefty portion of the world for the near future.  
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Similar trends are also happening in China.  Taking a closer look at China’s cultural and creative industries – and Netflix’s counterparts – offer interesting observations. 
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Ant Group’s record-breaking IPO in A+H shares stock markets and its sudden suspension was the hottest issue in the past few weeks in global financial markets. More than three months ago, when this historical IPO was announced, the deafening "voice of freedom and wealth" was heard throughout Hangzhou. On November 3rd, Chinese securities regulators abruptly called a halt and gave tens of thousands of shareholders involved in the IPO a blow and a shout.  The sensational news had even overwhelmed the raging US presidential election across the ocean.

As an important platform for structuring IP monetization deals, an IP Exchange may facilitate IP’s circulation and value finding. A survey by SpringIP on 30 State-owned exchanges and ten private exchanges in China reveals their challenges and opportunities in the coming new era.

Foreign investors can contribute their IP as registered capital into a Foreign-invested Enterprise in China.  This is an important channel of IP monetization, but the rules used to be unclear.  Will the new Foreign Investment Law (enacted on January 1, 2020) bring new opportunities?

Government policy and social media are stimulating interest for exploring IP business models in China.  SpringIP Group conducted a survey and identified the top 3 business models with the most potential for IP monetization in China in the coming years.

AI, big data, and blockchain are changing the business norms of the world and China is leading in these areas.  How does this competitive advantage foster China’s innovation ecosystem and help to exploit the value of IPs?