Managing Intellectual Property

China relaxes indigenous innovation rules

20 April 2010

Peter Ollier, Hong Kong

IP practitioners in China have given a cautious welcome to a new draft of rules on government procurement policies that appears to tone down the IP restrictions

The Ministry of Science and Technology published a draft set of rules for comments on its website last week.

“Optimism, while merited, should be moderated,” said Mark Cohen, of counsel at Jones Day in Beijing.

In December last year technology companies condemned a set of rules for government procurement of technology in six categories: computers and applications, communication products, office equipment, software, new energy and equipment; and energy efficient products.

The rules were designed to encourage so-called “indigenous innovation”. One condition stated that to be accredited the products must contain “Chinese proprietary intellectual property rights” and that “the use, handling and secondary development of such intellectual property by the applicants are totally independent of overseas organisations or individuals”....



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