Reflections on Policies to Optimize IP Rights Exchange Market

Ma WeiyeDirector of Patent Administration Dept. of SIPO, Researcher

Deputy Chairman of Executive Council of China Research Society for Development Strategies

Executive Director of China Appraisal Society

Executive Director of China Association of Inventions

Member of Economic Committee of All China Federation of Industry & Commerce

Adjunct Professor of China University of Political Science & Law, Tongji University, Central University of Finance & Economics, Northwest University, Beijing University of Chemical Technology,

Hefei University of Technology, Nanjing University of Science & Technology, and Tianjin University of Finance & Economics

Nov. 22, 2011 Shanghai

Requirements on the implementation of IP strategy

Several current factors restricting the development

Government initiatives to guide market development

Reflections on the optimization of the development of

exchange market

How to O

ptimize IP Rights Exchange M

arket

1. Requirements on the implementation of IP strategy

Give full play to the

role of technology

market,

build an IP trading

system

with sufficient

information,

active trading and good

order. Streamline trading

procedures, reduce

trading

costs, and provide quality

services.

Management

IP exchange market

A basic requirement

1. Requirements on the implementation of IP strategyCreation

Application

Fundamental function: value realization

Protection

A major tool

2. Several current factors restricting the development

2

1

3

4

5

IP Exchange Market

Absence of law Because it is new, IP exchange

market is facing a legal gap.

Survival relying on government transfusion Viewing from the establishment

of IP exchanges, many are products of government monopoly.

Bad commercial operation mode e.g. lack of fixed standards for

intangible asset evaluation, single form of trading, etc.

Inadaptability of intermediary services Qualification of IP

appraisers: no administrative penalties for intermediary agencies and personnel.

Culture of integrity is yet to be formed Bad faith is the most serious

concept obstacle to the current development of IP exchange market.

3. Government initiatives to guide market development

Policy SupportPlatform Construction

3. Government initiatives to guide market development

Seven Rules

1. In what circumstances willasset appraisal be needed?

2. Who is qualified to conduct appraisal?

3. Who will certify the qualification?

4. Who will guide the appraisal?

5. What principles will be adhered to

in the appraisal?

6. Independence of the appraisal

7. Violation process

In 2006, SIPO launched the IP Appraisal Promotion Program.

Policy Support

3. Government initiatives to guide market development

Policy Support

1st (2008)

Haidian District

Nanchang

Changchun

Xiangtan

Foshan Nanhai District

Ningxia Hui Autonomous Region

2nd Batch（ 2009）Guangzhou

Wenzhou

Dongguan

Wuxi

Chengdu

Yichang

3. Government initiatives to guide market development

Policy Support

I. Set up collaborative promotion mechanism to promote IP pledge financing

II. Innovate service mechanism for IP pledge financingIII. Establish and improve risk management mechanism for IP pledge financing

IV. Perfect appraisal management system for IP pledge financing

V. Set up management mechanism conducive to IP transfer

Policy Support3. Government initiatives to guide market development

Policy Support3. Government initiatives to guide market development

3. Government initiatives to guide market development

Platform Construction

41 national patent technology exhibition and trading centers

4. Reflections on the optimization of the

development of exchange market

1. System and mechanism

2. Element configuration3. Platform construction

4. Intermediary services

5. Culture of integrity

4. Reflections on the optimization of the

development of exchange market

System and Mechanism

Gradually break the management mode of government monopoly

Guidance of government policies

Support of state laws

Operation of market mechanism

4 2Market Elements

3

Element Configuration

A certain amount of goods available for exchange

1S

ellers providing goods to the market

Buyers demanding goods

Micro-m

arket consisting of population, purchasing pow

er and desire to buy

4. Reflections on the optimization of the

development of exchange market

4. Reflections on the optimization of the

development of exchange market

Platform Construction

Integrate existing exchange centers

Construct nationally unified platform

Intermediary Services

Qualification certification

Multiple formsPenalties in place

4. Reflections on the optimization of the

development of exchange market

Culture of Integrity

Maliciously bad faith

Well-intentioned bad faith

Har

d-to

-say

bad

faith

4. Reflections on the optimization of the

development of exchange market

Maliciously

bad faith

“News 1+1” on CCTV news channel on Apr. 13, 2011

“I will not eat these steamed breads, not even I am beaten to death, not even I am starved to death！”

Culture of Integrity4. Reflections on the optimization of the

development of exchange market

Eat to cure diseases from eating!

Eating rice is eating poisons!

“Encyclopedia” of Hunan Satellite TV

Culture of Integrity4. Reflections on the optimization of the

development of exchange market Maliciously

bad faith

Li Lianda, academician of

Chinese Academy of Engineering

Lu Jierong, Vice Li Xiaoming, Vice President of

President of Liaoning University Anhui Agricultural University

Zhou Zude, President

of Wuhan University of Technology Huang Qing, Vice President

of Southwest Jiaotong University

Culture of Integrity4. Reflections on the optimization of the

development of exchange market Maliciously

bad faith

In 132 AD, Zhang Heng of Eastern Han invented the seismograph.

The Great Wall is the only

architecture on the Earth that

can be seen from space

Liu Bao, Emperor

Shun of HanZhang Heng

Culture of Integrity4. Reflections on the optimization of the

development of exchange market Well-intentioned

bad faith

Hard-to-say

bad faith

Correct nonsense

Nice idle talk

Fashionable new words

Strict stereotyped expressions

Lies against the conscience

Leaders do not

like the truth.

Culture of Integrity4. Reflections on the optimization of the

development of exchange market

On Feb. 21, 2010 Beijing time, in the women's 1,500m short track speed skating at Vancouver Winter Olympics, Chinese athlete Zhou Yang fought alone in the encircle of three Korean athletes and broke the Olympic record with 2 minutes 16 seconds 993, being the champion of the event.

This is my dream. I think

that winning the gold medal

will make my mom and dad live

a little better.

Hard-to-say

bad faithCulture of Integrity

4. Reflections on the optimization of the

development of exchange market

Maliciously

bad faithHard-to-say

bad faith Well-intentioned

bad faith

Integrity Crisis

The biggest concept obstacle to the developm

ent independent innovation, IP protection and IP exchange m

arket

Culture of Integrity4. Reflections on the optimization of the

development of exchange market

Effect of

bad faith

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are. Without the

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ay reproduce, use and dissem

inate any part of this courseware.

The End