"State Council's Major Decision: Comprehensive Optimization of the Implementation Regulations of the Patent Law, Leading a New Era of Intellectual Property Protection"

On December 11, 2023, the State Council of the People's Republic of China announced the third major revision of the "Implementation Regulations of the Patent Law of the People's Republic of China," which will come into effect on January 20, 2024. This revision optimizes China's patent system with the goal of enhancing the overall level of patent creation, application, protection, management, and services, deepening the protection of intellectual property rights, and promoting innovation-driven development.

This amendment addresses key aspects and practical issues within the current patent system. Notable changes include the digitization of the patent application process, optimization of deadline calculations, clear regulations for confidentiality review procedures, and the implementation of the principle of honesty and trustworthiness in patent applications.

1.  Digitization of Procedures

The revised regulations specify the use of electronic forms in the patent application process and document delivery, keeping pace with technological advancements. This digitization not only improves efficiency but also reduces administrative costs, accelerating the patent processing workflow.

2. Deferred Examination Request System

In 2023, the China National Intellectual Property Administration introduced guidelines for deferred examination of invention patent applications. The revised regulations legislatively confirm this practice, clearly stating that "applicants can request deferred examination for patent applications." This is a significant reform of the patent examination system, providing better protection for patentee interests.

3. Clarification of Confidentiality Review Regulations

The revised regulations set clear time limits for notifications and decisions in confidentiality reviews, aiding in the protection of national security and trade secrets.

4. Emphasis on the Principle of Honesty and Trustworthiness

An important focus of this revision is to improve the quality and efficiency of patent examinations. It stipulates that patent applications must adhere to the principle of honesty and trustworthiness, be based on genuine inventive activities, and not involve any fraudulent practices. This principle is a cornerstone for rejecting applications and declaring patents invalid.

5. Improvement of the Re-examination System

The re-examination system has been enhanced to include cases of clear violations of the Patent Law and its regulations. Decisions to maintain or partially invalidate patent rights based on amended claims will be publicly announced.

6. New Regulations of Compensation for Patent Term 

The revised Patent Law introduces a "patent term compensation" system. To implement this effectively, the revised regulations add a new chapter on patent term compensation, especially for patents related to new pharmaceuticals, significantly motivating R&D innovation in the pharmaceutical industry.

7. Open Licensing System

The revised Patent Law introduces an open licensing system. The revised regulations specify more detailed operational rules for this system, further refining the timing and requirements for open license declarations, circumstances where such declarations are not allowed to be announced, and the registration of established open licenses. This facilitates the efficient utilization of patent resources and promotes the spread and application of technology.

8. Priority Right System

The revised Patent Law extends domestic priority rights to design patent applications filed in China. In this context, the revised regulations improve the accompanying rules for the priority right system.

9. International Applications for Design Patents

To meet the operational needs of the Hague Agreement, the regulations make complementary provisions for international design patent applications regarding the date of application, priority claims, novelty grace period, divisional applications, brief descriptions of design essentials, and procedures for rights changes. These are mainly technical regulations, reflecting a consensus in design review and authorization practices.

The latest amendments to the regulations are significant for implementing the revised Patent Law and improving China's patent system. It is hoped that the revised Patent Law and its implementation regulations will provide stronger legal protection for innovators and enterprises, both domestic and international.