The Intellectual Property Tribunal of the Supreme Peoples Court emphasizes that whether a patent application involving commercial methods is a subject of protection should be judged by overall examination

The Supreme Peoples Court Intellectual Property Tribunal has made a final judgment on an administrative dispute case involving the rejection of a patent application concerning a business method. In this case, the applicants, Beijing Jing Information Technology Co., Ltd. and Beijing Jing Trade Co., Ltd. (hereinafter referred to as "Jing Companies"), filed an invention patent application for a "shared automatic value adjustment method." This application addresses the issue that "in existing technologies, products are shared only on social platforms without tracking order functions, leading to a lack of sharing motivation among users." It proposes a targeted business model called "group buying," which achieves price changes based on the number of people through a system of advance payments plus final payments, thereby enhancing users motivation to share.

The administrative review decision was rejected on the grounds that "this application does not fall within the scope of objects protected by the Patent Law." The first-instance court held that the issue addressed by this application does not constitute a technical problem, the methods employed are not technical means, and the outcome achieved is merely through "bulk purchasing" to achieve "the more people, the cheaper prices," which merely promotes product sales and does not conform to natural laws as a technical effect. Therefore, this application does not fall within the scope of objects protected by the Patent Law.

The Supreme Peoples Court holds that commercial methods containing technical features may be protected by patent law. In specific judgments, the claims should be considered as a whole, comprehensively assessing whether they employ technical means consistent with natural laws, solve technical problems, and produce technical effects. In this process, it is not permissible to separate the technical features from the commercial features in the claims, simply because they include non-technical content and achieve beneficial commercial effects, and thus conclude that they do not fall within the scope of patent protection. From the records in the claims and the description of this application, it is evident that this application employs technical means such as information encryption and decryption, association binding storage, and data matching to address the technical issue of determining which users purchase goods through sharing information, thereby achieving the technical effect of accurately judging the usage of sharing links. Therefore, this application meets the criteria for determining the "three elements of the subject matter" and falls under the technical solution stipulated in Article 2, Paragraph 2 of the Patent Law.

The Supreme People’s Court emphasizes that adopting a moderately lenient standard for examining patent subject matter aligns more effectively with the demands of scientific and technological advancement, as well as economic and social development. When assessing whether patent applications involving business methods fall within the scope of patent protection, it is essential to consider both the technical features and commercial characteristics of the patent claims as an integrated whole. Unless it is unequivocally evident that the claims do not constitute a technical solution, it is generally inappropriate to conclude that they are excluded from patent protection solely due to the inclusion of non-technical content.

ZLWD Commentary：

The Supreme Peoples Court emphasizes that patent applications involving business methods should be comprehensively considered for both technical and commercial characteristics during examination, and should not simply exclude patent protection due to the inclusion of non-technical content. This ruling reflects a lenient review standard for the integration of technology and business models, supporting innovative technological applications, especially in the fields of the Internet and big data. The courts decision helps encourage innovation in technology-driven business models, promotes economic development, and ensures that patent law can adapt to the needs of technological progress. This move provides legal protection for innovators in related fields in the future.

The provisional Measures for Registration and Deposit of Intellectual Property Rights of Data Products in Shanghai have come into force

On November 8, 2024, the Shanghai Intellectual Property Office and the Shanghai Data Bureau jointly issued the "Interim Measures for the Registration and Deposit of Data Intellectual Property Rights in Shanghai" ("the Registration Measures"), which officially came into effect on December 8, 2024. A total of 158 data products have been reviewed and publicly disclosed, with 74 products listed for trading on the Shanghai Data Exchange. The first pledge loan, valued at 100 million yuan, has already been implemented.

The term "data product intellectual property" refers to the rights associated with data products that are formed through substantial processing and innovative labor on data resources legally acquired by individuals, legal entities, or non-legal entities. These data products, which include processed data sets, data products, and data technology algorithms, possess intellectual property attributes and commercial value.

ZLWD Commentary：

The official implementation of the Registration Measures marks an important step forward for intellectual property protection in data products in Shanghai. This the Registration Measures establishes clear procedures for the registration and deposit of intellectual property rights of data products, which helps promote the healthy development of the data industry, especially in areas such as data trading and financing. By protecting data products, Shanghai provides legal safeguards for innovators, effectively boosting the vitality of the data market.

Chinas first industry standard for digital cultural trade copyright protection has been approved

Recently, the first national intellectual property protection industry standard for digital trade in the field of intellectual property, titled "Guidelines for Foreign Protection of Digital Cultural Trade Copyrights," has been approved and initiated by the Zhejiang Data Intellectual Property Research Base (School of Management, Zhejiang University), led by the Ministry of Commerces Digital Trade Standardization Technical Committee and guided by the Zhejiang Intellectual Property Standardization Technical Committee. This standard was developed by Luo Chuanhangs research team, an expert member of the Data Intellectual Property Group of the Zhejiang Intellectual Property Standardization Technical Committee, and has been included in the Reform List of the Zhejiang Data Intellectual Property Research Plan for the 2025-2026 period.

The formulation and implementation of this standard will solve the problems of intellectual property protection management and cross-border circulation in the process of implementing Chinas cultural digitalization strategy and high-quality development of digital trade, fill the gap in top-level design, and also be a positive attempt and beneficial exploration to promote the standardization construction of data intellectual property rights and cross-border circulation of data in China.

Next, the research base will, under the guidance of the Ministry of Commerces Service Trade Department and the Zhejiang Provincial Market Supervision Administration, earnestly implement the spirit of the State Councils "Opinions on Promoting High-Quality Development of Service Trade through High-Level Opening-up" (Guo Ban Fa [2024] No.44) and Zhejiang Provinces "Opinions on Deepening Data Intellectual Property Reform to Promote High-Quality Development" (Zhe Zheng Ban Fa [2024] No.14). It will collaborate with the Ministry of Commerces Digital Trade Industry Standardization Technical Committee and the Zhejiang Provincial Intellectual Property Standardization Technical Committee to organize an industry standard launch meeting, promote research and standard pilot projects across the industry, widely solicit opinions and suggestions from experts in various regions and fields, further enhance the applicability and operability of the standards, and provide strong support for the smooth formulation of standards, exploring practical measures for the development of digital trade cross-border circulation and data intellectual property reform.

ZLWD Commentary：

The approval and establishment of the "Guidelines for the Protection of Digital Cultural Trade Copyrights" as an industry standard is a significant measure in promoting intellectual property protection in Chinas digital trade sector. With the rapid development of digital cultural trade, particularly the rise of the gaming industry and its expansion into overseas markets, copyright protection for digital content faces new challenges such as piracy, cross-border disputes, and the impact of artificial intelligence on copyright protection. The formulation of this standard fills the gap in this field domestically, providing norms for intellectual property management in digital cultural trade, which helps address issues related to copyright compliance, circulation, and cross-border protection.

The Shanghai Intellectual Property Office, together with three departments, issued a notice on several measures to carry out the work of revitalizing existing patents

On November 19, the Shanghai Intellectual Property Office, together with the Shanghai Municipal Education Commission, the Shanghai Municipal Science and Technology Commission, and the Shanghai Municipal Health Commission, jointly issued the "Several Measures for Deepening the Work of Utilizing Existing Patents in Our City." This initiative aims to thoroughly implement the State Councils General Offices issuance of the "Special Action Plan for Patent Transformation and Utilization (2023-2025)" and the "Shanghai Special Action Plan for Patent Transformation and Utilization," promoting the transition of Shanghais existing patent inventory work towards the utilization phase of existing patents.

The "Several Measures" focuses on promoting the industrialization of patents and strengthening the intellectual property chain efficiency, combining with the actual work in Shanghai, proposes 10 specific work measures including reinforcing policy guidance for patent transformation and utilization, enhancing the dissemination and utilization of patent information stored in databases, promoting the licensing transfer of existing patents, cultivating patent-intensive products, creating model enterprises for patent industrialization, advancing the strengthening of intellectual property chain efficiency in key industries, conducting patent and trademark pledge financing, optimizing the market-oriented service system for intellectual property transactions, promoting patent empowerment of trademark brand building, and implementing the patent navigation project, providing targeted and practical work measures for activating existing patent resources and improving patent transformation performance.

ZLWD Commentary：

The "Several Measures for Deepening the Work of Utilizing Existing Patents in Our City" jointly issued by the Shanghai Intellectual Property Office and three departments provides a concrete action plan to promote patent transformation and industrialization. This initiative responds to the national policy requirements for patent transformation, aiming to enhance the practical value of intellectual property through the utilization of existing patents. The measures cover multiple areas including patent information dissemination, implementation licensing and transfer, and patent pledge financing, emphasizing the deep integration of patents with industries to boost corporate core competitiveness. By strengthening policy support and optimizing service systems, Shanghai will achieve greater progress in patent chain enhancement and efficiency improvement, as well as industrialization model construction, promoting high-quality regional economic development.

Three departments in Shaanxi signed a memorandum of cooperation on collaborative protection of data intellectual property rights

On November 20, the Provincial Higher Peoples Court, the Provincial Peoples Procuratorate, and the Provincial Intellectual Property Office jointly signed the "Memorandum of Cooperation on Collaborative Protection of Data Intellectual Property Rights," aiming to further improve the connection mechanism between judicial and administrative protection of data intellectual property rights in our province, strengthen intellectual property protection throughout the processes of data production, circulation, utilization, and sharing, and contribute to the construction of a strong intellectual property province in western China.

"The protection of data intellectual property rights requires joint efforts from multiple departments and fields to build a more diversified protection system," said Hu Xiaohui, head of the third Civil Division of the Provincial Higher Peoples Court. The memorandum focuses on three aspects: consultation, sharing and governance, and puts forward 14 specific measures.

In terms of promoting consultation, the memorandum proposes to establish a coordination and consultation mechanism as well as an information exchange mechanism to advance the administrative registration of data intellectual property rights and judicial trial information exchange; deepen business research exchanges, jointly conduct studies on frontier, hot, and difficult issues related to data intellectual property protection such as systems and typical cases, and promote the improvement of the data foundation system and data intellectual property protection policies and measures.

In promoting sharing, the memorandum proposes to establish an information sharing platform, incorporating the information sharing mechanism for administrative and judicial protection of data intellectual property into the e-government construction plan, relying on the Shaanxi Province Intellectual Property Big Data Public Service Platform to achieve information interconnectivity; improving the existing technical consulting expert database and technical investigator talent pool, categorically updating and supplementing the list of key industry technical experts in the field of data intellectual property in our province, recommending relevant experts as technical investigators on a merit basis, and achieving the sharing of technical experts.

In terms of strengthening co-governance, the memorandum clearly stipulates enhancing business assistance to jointly explore and study the establishment of rules for evidence review and recognition of data intellectual property rights protection; establishing mechanisms for selecting and recommending data intellectual property authentication institutions, mutual feedback mechanisms for the professional status of authentication institutions and personnel; establishing a comprehensive standard system for data intellectual property classification protection that meets industrial development needs; constructing data intellectual property protection rules for core industries under an open innovation system; improving mechanisms for resolving disputes and further promoting mediation and judicial confirmation of data intellectual property disputes; strengthening international protection cooperation and promoting cross-border data intellectual property protection cooperation to better assist our provinces enterprises in "going global."

ZLWD Commentary：

The signed Memorandum of Understanding on Collaborative Protection of Data Intellectual Property marks a new phase of multi-departmental collaboration in data intellectual property protection. The memorandum outlines cooperative measures in three areas: consultation, sharing, and governance, covering specific initiatives such as information sharing, technical expert support, and evidence review mechanisms, promoting the improvement of the data intellectual property protection system. This cooperation will strengthen the legal and administrative connection of data protection, optimize industrial data protection rules, and promote the development of the digital economy. In particular, regarding cross-border cooperation and international protection, the proposal of the memorandum will provide more solid legal guarantees for Shaanxi enterprises going global.

The CNIPA is soliciting public opinions on the Guidelines for Patent Applications Related to Artificial Intelligence (Draft for Comments)

On December 6th, the CNIPA drafted the "Guidelines for Patent Applications Related to Artificial Intelligence" (hereinafter referred to as the "Guidelines") aimed at applicants. The Guidelines serve as a policy interpretation document to help applicants better understand the current patent examination policies. The draft of the Guidelines, along with its explanatory notes, has been published for public consultation.

The Guidelines are divided into six chapters. Chapter 1 summarizes common types of patent applications related to artificial intelligence and the associated legal issues. Chapter 2 addresses the issue of determining the identity of inventors, providing a rationale for the position that artificial intelligence cannot qualify as an inventor. Chapter 3 discusses the standards for the subject matter of the invention. Chapter 4 focuses on the issue of sufficient disclosure in the patent description. Chapter 5 examines considerations for assessing inventiveness. Chapter 6 provides guidance on the ethical issues related to artificial intelligence.

ZLWD Commentary：

The Guidelines released by the CNIPA aims to provide applicants with clearer patent examination standards, especially in the field of artificial intelligence. The release of the guidelines responds to the rapidly evolving needs of artificial intelligence technology, covering multiple important issues from identifying inventors to ethical concerns, helping applicants understand how to protect AI inventions within the existing legal framework. It particularly provides a clear legal interpretation on whether artificial intelligence can be recognized as an inventor, while also strengthening the requirements for creativity and disclosure of the patent application process.

The 21st Shanghai International Forum on Intellectual Property Rights was successfully held

On December 4, the 21st Shanghai International Forum on Intellectual Property Rights opened in Shanghai with the theme "Intellectual Property Empowering the Development of New Quality Productivity." Attending the opening ceremony were Shanghais Deputy Secretary and Mayor Gong Zheng, Director-General of the CNIPA Shen Changyu, and World Intellectual Property Organization Director-General Dun Hongson who delivered speeches via video link. At the forum, Vice Director-General of WIPO Wang Binying, Director-General of Japans Office for the Protection of the Rights and Interests of Infringers (OIPR) Kuniyoshi Ono, and Director-General of Koreas Office for the Protection of Intellectual Property Rights (OIPR) Kim Wan-ki delivered keynote speeches, engaging in discussions with attendees on topics such as promoting the development of innovative technologies represented by artificial intelligence and accelerating the establishment and improvement of intellectual property protection systems compatible with these technologies. This forum is co-hosted by the CNIPA, WIPO, and the Shanghai Municipal Peoples Government. The forum lasts for 4 days, during which Chinese and foreign guests will engage in exchanges and discussions on issues such as "High-Value Patent Operations and the Development of New Quality Productivity."

ZLWDCommentary：

This forum, themed "Intellectual Property Empowering the Development of New Quality Productivity," gathered experts from the World Intellectual Property Organization, national patent offices, and relevant industries to delve into the development of innovative technologies such as artificial intelligence and their corresponding intellectual property protection systems. The exchange and cooperation at the forum not only strengthened consensus among countries on high-value patent operations and intellectual property strategies but also provided new ideas for promoting intellectual property protection in the global digital economy and innovative technologies.

The European Patent Office has released a patent insight report on enhanced power grids

On December 10,2024, the European Patent Office and the International Energy Agency released the "Enhanced Grid Patent" Insights Report, revealing that grid technologies related to decarbonization and energy transition are experiencing rapid growth. Over the entire period under review (2001-2022), the number of international patent families related to physical grid and smart grid infrastructure increased by 8 times, with patent applications for physical grid power infrastructure remaining strong, but most of the growth over the past decade has come from smart grid technologies, which now account for more than the combined total of physical grid and storage technologies in international patent families. The emergence of policy-driven markets and standards for smart meters and electric vehicle charging infrastructure has driven innovation in smart grid technologies, with the most significant trend being the growth of AI-related solutions, which have increased sixfold since 2018.

ZLWD Commentary：

The European Patent Offices "Enhanced Grid Patent Insights Report" reveals the rapid development of grid technologies, particularly breakthroughs in smart grid technology, against the backdrop of decarbonization and energy transition. Innovations in smart grid technology have significantly outpaced the patent applications for traditional grid and storage technologies, driven by oth policy incentives and market demand, especially in areas such as smart meters and electric vehicle charging infrastructure. The introduction of artificial intelligence has become a key driver, highlighting the critical role of smart grid technology in energy transition. This report emphasizes the importance of smart grids in future energy infrastructure and provides profound insights into intellectual property protection for related technologies.

Implementation Plan for the Unified Recognition System of Geographical Indications Issued by the China National Intellectual Property Administration and the State Administration for Market Regulation

The National Intellectual Property Administration (NIPA) and the State Administration for Market Regulation (SAMR) have issued the "Implementation Plan for a Unified Geographical Indications Certification System." The primary missions outlined in this plan include: assigning NIPA the responsibility to formulate certification rules for geographical indication products, clarifying review procedures and requirements, standardizing certification elements, conducting comprehensive reviews of applications, and announcing the certification results;

simultaneously, implementing a unified official logo, strengthening technical support, formulating and revising protection standards, promoting the transition of existing agricultural product geographical indications to use the new logo, improving the acceptance platform, and enhancing information disclosure, risk monitoring, and early warning; furthermore, establishing and improving a scientific and efficient regulatory system, emphasizing administrative protection, strengthening the supervision of geographical indication names and the use of dedicated logos, and ensuring the orderly development and effective implementation of geographical indication protection efforts.

ZLWD Commentary：

The implementation of the "Implementation Plan for a Unified Geographical Indications Certification System" marks a further refinement of China's geographical indication protection system. Through comprehensive standardization in areas such as a unified certification mechanism, the use of official logos, technical support, integration, and supervision, the plan aims to elevate the level of geographical indication protection, facilitate the national and even global promotion of local specialties, enhance product competitiveness, and drive the development of related industries and rural revitalization.

Guidelines for the Negotiation Mechanism of Patent Licensing in the Consumer Electronics Field Issued by the China Video Industry Association

In order to guide patent holders and patent technology implementers in the consumer electronics field to conduct goodwill and rational negotiations for patent licensing, and to provide procedural and substantive rules for negotiating patent licensing fees, the China Electronics Chamber of Commerce (CECC) has organized relevant units to formulate and publish the "Guide on Negotiation Mechanism for Patent Licensing Fees in the Consumer Electronics Field." This guide emphasizes the basic principles of market orientation, scientific development, appropriate proportion, and overall coordination. 

It is applicable for guiding patent holders and implementers to negotiate and determine licensing fees. It recommends the use of internationally accepted pricing methods such as the "Top-Down Approach" and the "Comparable Transaction Method" to address the issues of difficult pricing and numerous disputes, thereby promoting the sharing of benefits between patent holders and implementers, safeguarding consumer welfare, and promoting the healthy development of the consumer electronics industrial ecosystem. The publication of this guide reflects China's responsibility and commitment to patent protection as a major player in the consumer electronics industry, as well as its contribution to the global governance of intellectual property rights.

ZLWD Commentary：

This guide provides a scientific negotiation mechanism, enhances the transparency and fairness of licensing fees, and reduces pricing disputes, contributing to the healthy development of the consumer electronics industry.

Eight Departments in Guangdong Jointly Introduce Measures to Advance the Construction of the Intellectual Property Protection System

Recently, the Guangdong Provincial Market Supervision and Administration Bureau (Intellectual Property Administration) jointly issued the "Task Division for Implementing the Action Plan of the Intellectual Property Protection System Construction Project" (hereinafter referred to as the "Task Division") with the Provincial Copyright Bureau, Provincial Public Security Department, Provincial Justice Department, Provincial Department of Commerce, Provincial High Court, Provincial People's Procuratorate, and Guangdong Sub-Administration of the General Administration of Customs.

The "Task Division" implements the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China, aligns with the "Notice on Printing and Distributing the Implementation Plan for the Intellectual Property Protection System Construction Project" issued by nine departments including the National Intellectual Property Administration, revolves around the national major strategies and the central work of the Guangdong Provincial Party Committee and Provincial Government, highlights the actual needs of Guangdong, and starts from the entire chain, process, and elements of intellectual property protection. It has formulated 143 specific measures for the policy and standard system, law enforcement and judicial system, authorization and confirmation system, management system, social co-governance system, national security governance system, and capability support system of intellectual property protection. The issuance and implementation of the "Task Division" will advance the detailed implementation of the construction project measures for Guangdong's intellectual property protection system, further strengthen strict, coordinated, precise, efficient, and intelligent protection, and provide strong support for accelerating the construction of Guangdong as a strong intellectual property province in the world-class bay area.

Since 2024, the Guangdong Provincial Market Supervision and Administration Bureau (Intellectual Property Administration) has deeply studied and implemented the important expositions of General Secretary Xi Jinping on intellectual property work, focused on implementing the specific "1310" deployment of the Provincial Party Committee, and worked hard with relevant departments and units on the construction project of the intellectual property protection system, achieving remarkable results.

Next, the Guangdong Provincial Market Supervision and Administration Bureau (Intellectual Property Administration) will conscientiously study and implement the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China, seize the opportunity of implementing the "Implementation Plan for the Intellectual Property Protection System Construction Project" issued by nine departments including the National Intellectual Property Administration, and work with various departments to jointly strengthen the construction of the intellectual property protection system, implement various reform tasks in the field of intellectual property, promote the high-quality development of Guangdong's intellectual property cause at a higher starting point, and serve Guangdong's accelerated development of new-quality productive forces.

ZLWD Commentary：

This "Task Division" focuses on the entire chain, process, and elements of intellectual property protection, and has formulated 143 specific measures to enhance protection efficiency, providing strong support for Guangdong to accelerate the construction of a world-class bay area as a strong intellectual property province. It also sets an example for the national intellectual property protection work.