Catalog
Catalog
Catalog
A Hot Market______1 A Complete Explanation of the 5G industry in the Greater Bay Area______2 The Greater Bay Area Innovation Policy Focus______27 Innovation Policy Monitoring in the Greater Bay Area______47 Priority Case Monitoring in the Greater Bay Area______60 Internet Business Innovation Patent Trends Watch Report (2019 Edition) ______64 Report on Traditional Chinese Medicine Patents in Guangdong, Hong Kong and Macao ____ 75 Highlights of the IPIP's Activities______87
Editorial Board
Chief Editor：Zhang Ping
Executive Editor：Joshua Y. Chang
Editor： Liang Xinran, Xie Yang, Xiong Shimin, Yan Wenguang
Translator：Jui-Wen Ho Page 01 BAY AREA IP WATCH
Editor's Words A Hot Market Joshua Y. Chang
In the process of 5G technology development, the Greater Bay Area has policies and measures to optimize the institutional design and business environment, and has been fostering a number of industry-leading institutions, thereby creating a unique advantage in influencing the world. This time, we will share with you “A Complete Explanation of the 5G industry in the Guangdong-Hong Kong-Macao Greater Bay Area”.
In “Guangdong-Hong Kong-Macao Greater Bay Area Innovation Policy Focus”, we collated specific industrial policies that mainly focused on artificial intelligence, 5G, specialty finance, medicine and health, aerospace and other areas, including the introduction of talent for specific fields.
We selected 21 companies involved in the internet technology sector that are most active in the Chinese market, and observed their patent application status and innovation capabilities from different perspectives. “Internet Business Innovation Patent Trends Watch Report” is worthy of your review in understanding the current issues.
If you want to know more about the traditional Chinese medicine’s patent situation in Greater Bay Area, including a review of the past, a look of the future, and a comprehensive analysis of the all the related topics, you must read our “Report on Traditional Chinese Medicine Patents in Guangdong, Hong Kong and Macao”.
In Guangdong-Hong Kong-Macao Greater Bay Area, the summer can be blazingly hot. Although we are not so sure when the global pandemic will be over, we surely expect that the market in the Greater Bay Area will become sizzling hot in the near future. Page 02 BAY AREA IP WATCH
A Complete Explanation of the 5G industry in the Greater Bay Area
The official entry of 5G technology into the public eye began in 2013, and after 2017, the 5G technology system and application ecology has continued to mature. In 2019, 5G opened the road to commercialization, and this year also became the first year of 5G commercialization. Since its development, the application scenarios of 5G have mainly focused in the fields of smart cities, telemedicine, digital government, smart transportation, smart home, smart manufacturing, and cloud VR/AR areas that cover every aspect of life. In the future, 5G will continue to develop in the direction towards instantaneity, high-bandwidth, integration, and intelligence, leading the world into the new era of digital economy with the internet for everything.
In the field of science and technology, the Guangdong-Hong Kong-Macao Greater Bay Area is home to a number of world-leading high-tech companies, universities and research institutions. In recent years, the Guangdong-Hong Kong-Macao Greater Bay Area has increased its technological influence, concentrating nearly one-fifth of the country's technology industries. 1 In the process of 5G technology development, the Greater Bay Area has continuously implemented complementary policies and measures to optimize the institutional design and business environment, and it has fostered a number of industry-leading institutions, creating a unique advantage in influencing the world.
1. Industry Landing
In the practical application of 5G, the Guangdong-Hong Kong-Macao Greater Bay Area has the advantages of wide geographic coverage, strong economic strength and technology industry cluster effect. On October 31, 2019, the three major operators
1 IPIP: "Report on the Development of Patent Trends in the Guangdong-Hong Kong-Macao Greater Bay Area (20 16-2018)", Bay AreaIP Watch(2020), p.18. Page 03 BAY AREA IP WATCH
provided a list of the first batch of 5G cities. Among the country's first 50 5G commercial cities, there were 5 cities in the Greater Bay Area, namely Guangzhou, Shenzhen, Foshan, Dongguan and Zhuhai.
1.1. In Terms of 5G Technology and Infrastructure Support
First, base station construction. Focusing on base stations that are considered key prerequisite and safeguard for the construction of 5G networks, the Office of the Communications Authority of Hong Kong(OFCA) launched a pilot program in March 2019 to initiate opening of approximately 1,000 suitable government sites for the installation of base stations by operators, and streamline the application process for shortening the time required for approval and installation of base stations. By the end of December 2019, Guangdong Province had completed more than 30,000 5G base stations, ranking first in the country in terms of quantity. In Guangzhou, the three major telecom operators have taken the lead in completing nearly 100 5G base stations in 2019. In Shenzhen, more than 15,500 5G base stations will be completed in 2019, accounting for 40% of the province. In 2020, Shenzhen will build 45,000 5G base stations, the first to achieve full coverage of the city's 5G network and the nation's leading density of 5G base station construction.
Second, technical support. In terms of technical support, Guangdong has a deep foundation and strength in network bandwidth, bands and site opening. In October of 2017, China Telecom successfully deployed the country's first 5G trial site in Shenzhen. In late October of 2019, Guangdong Unicom and Huawei completed aggregation test on world's first 5G NSA network in Guangzhou with 3.5GHz, 200MHz spectrum bandwidth for dual carriers. In November of 2019, Guangdong Unicom and Guangdong Telecom jointly completed the transformation and opening of the country's first 5G shared carrier base station. The peak internet speed for the 5G users on both ends are close to 1Gbps.
1.2. In the Construction of Industrial Centers and Parks On April 10, 2019, Guangdong Province 5G Medium and High Frequency Devices Innovation Center settled in Shenzhen, focused on weak links in the 5G industry and Page 04 BAY AREA IP WATCH
the Key core technology research. In addition, Zhuhai has a strong foundation in the information technology and digital economy, which gives it an advantage in promoting the development of the 5G industry and innovative applications. Obviously, a number of key companies have emerged in the wireless communication chip design, RF device R&D and manufacturing, communication network operation and maintenance system R&D and manufacturing, intelligent terminal manufacturing, and ICT system integration and other fields. 1 At the present, some companies have carried out research and development of 5G-related technologies and products, such as Meizu Technology's 5G smartphone research and development, Eastcompeace Technology's 5G SIM card research and development, Century Dingli's network test instrument research and development, and etc.
On April 26, 2019, China Telecom's 5G Innovation and Cooperation Conference kicked off in Shenzhen, which will strengthen policy coordination in standard-setting, security and resource allocation, accelerate the pace of 5G commercialization, and actively promote the interconnection and interoperability of 5G and other information infrastructures in the Guangdong-Hong Kong-Macao Greater Bay Area.
On December 17, 2019, the list of 5G industrial parks in Guangdong Province (the first batch) was published on the website of the provincial Department of Industry and Information Technology. There is a total of three 5G industrial parks in Guangdong Province, which are located in Guangzhou, Shenzhen and Shantou. 2 The 5G industrial parks will give full play to the leading edge of 5G technology and accelerate the development of 5G industry clusters.
In March of 2020, China Telecom Guangdong Branch and the Conghua District Government of Guangzhou launched the "Guangdong-Hong Kong-Macao Greater Bay Area 5G Cloud Computing Center" project. As a national data center, China
1 Zhuhai Special Economic Zone Daily: “Zhuhai accelerates the application of new 5G technology to help build a trillion-dollar industry cluster in the Guangdong-Hong Kong-Macao Greater Bay Area", http://www.zhuhai.gov.c n/ywdt/ztjj/ygadwqfzghgyzl/content/post_1777542.html. Last visit date: 2020.04.14.
2 People’s Posts and Telecommunications News: "China Telecom Launches "Guangdong-Hong Kong-Macao Gre ater Bay Area 5G Cloud Computing Center" Project", http://www.c114.com.cn/news/117/a1120310. html, Last vi sit date: 2020.04.14. Page 05 BAY AREA IP WATCH
Telecom's "Guangdong-Hong Kong-Macao Greater Bay Area 5G Cloud Computing Center" can cover most of the "Guangzhou-Shenzhen-Hong Kong-Macao ". Science and Technology Innovation Corridor, will serve the entire Guangdong-Hong Kong-Macao Greater Bay Area, radiating to the Southeast Asian market and fully meeting the needs of the 5G era. The requirement of high reliability and low latency of data transmission ensures that all kinds of domestic and international communications remain efficient and smooth. 1
Dongguan has been vigorously supporting and developing 5G-related companies, and has already formed a large scale. The ratio of 5G industry in the city's industrial system is increasing, more than 63 of the top 100 industrial companies have carried out or are likely to conduct 5G services in 2018. 2 Dongguan's 5G industry formed a relatively complete industrial chain in four modules: base station systems, network architecture, 5G terminals, and 5G applications. The application field covered industrial Internet, smart city and other representative companies, especially in the terminal field which is actively deployed in the 5G field.
1.3. On Scenario-based Applications
First, the 5G+ communication. On April 14, 2019, the first 5G phone call in the Greater Bay Area was made at the exhibition hall of Science Square in Huangpu District Within successful dialing. Macao completed the first phase of 5G testing in 2018, with the first 5G calls available in May of 2019 and deployment in the second half of the year 5G network will be available to residents by 2020, with full coverage by the end of the year. On April 1, 2020, China Mobile's 5G network in Hong Kong was officially launched, with the first phase covering all districts in Hong Kong, including all mainstream infrastructure, landmarks & malls.
1 "China Telecom Launches "Guangdong-Hong Kong-Macao Greater Bay Area 5G Cloud Computing Center" Pr oject", The People's Post and Telegraph, 2020/3/26. http://www.c114.com.cn/news/117/a1120310. html, last acce ssed April 14, 2020.
2 Dongguan Time Network: "Dongguan City Accelerated 5G Industry Development Action Plan (2019-2022)", ht tp://www.timedg.com/2019-11/04/20930205.shtml, Last visit date: 2020.04.15. Page 06 BAY AREA IP WATCH
Second, the 5G+ smart grid. In March of 2019, the country's first 5G smart inspection drones were unveiled at Guangdong Nansha Bridge's Power supply security. In March of 2019, the first batch of smart street lights have been put into use on Tianhe Road 2 in Guangzhou, these street lights were independently developed by the Guangzhou power supply bureau, it also has functions such as video surveillance, signal base station, road signs and charging stations, and can become a 5G micro Base station, providing carrier, power supply, communication and other basic support for the 5G network. 1
Third, the 5G+ intelligent transportation. In March of 2019, Zhuhai Telecom and Huawei started the 5G network construction in the Zhuhai Highway Crossing of the Hong Kong-Zhuhai-Macao Bridge in order to build the country's first 5G test operation port, which includes the "intelligent parking", "unmanned ferry", "smart robot", "AR smart robot" and "smart luggage cart". 2 On April 2, 2019, the Nansha Bridge was officially opened to traffic, achieving full coverage of the 5G network for the first time among domestic super bridges. On June 24, 2019, the construction of 5G Smart Port was launched, which will explore the potential of 5G in the port industry and the global supply chain, thereby becoming a benchmark for port construction in the Greater Bay Area. On June 24, 2019, Hong Kong Airport Authority (AA) said that the Hong Kong International Airport will vigorously promote the application of 5G technology to build a "smart airport", which will be made possible through the use of robotic technology and "Smart Airport" automation to improve efficiency.
Fourth, the 5G+ smart healthcare. In April of 2019, Zhuhai People's Hospital signed a strategic cooperation with Zhuhai Unicom and Huawei Corp. Agreement to jointly build the country's first 5G smart hospital, which marks Zhuhai Medical's official entry into the 5G era. In November of 2019, Huizhou Hospital of Guangzhou
1 Sohu.com: "Two smart light poles on Tianhe Road 2 can charge electric cars", https://www.sohu .com/a/300871 102_119890, Last visit date :2020.04.16.
2 GangaoNet: “Accelerate the construction of facilities to enrich application scenarios Zhuhai 5G construction pre sses 'acceleration key'", http:// www.gangaonet.com/zhusanjiao/2020/0414/ 165778.html, Last visit date: 2020.04. 15. Page 07 BAY AREA IP WATCH
University of Traditional Chinese Medicine (Huizhou Hospital of traditional Chinese Medicine) opened an internet hospital, thereby launching Huizhou's first internet hospital. The "5G Joint Innovation Center" promotes the deep integration and development of the hospital artificial intelligence and Internet of Things.
Fifth, the 5G+ smart government. On June 11, 2019, the Municipal Government Affairs Data Administration of Guangzhou Nansha District went online to implement a pilot 5G network coverage at the Nansha Government Service Center, becoming the first government center in the country to apply 5G on governmental applications. On July 6, 2019, Guangzhou Haizhu District and Guangzhou Unicom signed the "5G Intelligent Government Framework Cooperation Agreement", setting up the province's first 5G Intelligent Government Innovation Lab, to build the province's first 5G full-coverage government service center, and take the lead in promoting research, development, and application of the 5G technology onto smart governmental affairs.
Sixth, the 5G+ intelligent justice. On April 2, 2019, Guangzhou Intermediate People's Court established the 5G smart court joint laboratory. In addition, the 5G technology is promoted to integrate with court litigation services, court hearings, enforcement and security, and enabled time-lapse-free and real-time remote court hearings, remote command, remote office case handling, and VR intelligent security. On June 19, 2019, Guangzhou Judicial Bureau, together with Guangzhou Unicom, signed the "Guangzhou 5G Smart Justice Strategic Cooperation Agreement", and provided the "Guangzhou Public Legal Service 5G Application" and "Guangzhou Intelligent Drug Rehabilitation of 5G Application” to both parties. The incubation lab was unveiled, which marked the official start of the construction of the first "5G Intelligent Justice" in China. 1
Seventh, the 5G + smart city. In 2019, Tangtou Street in Bao'an District of Shenzhen successfully used the 5G network to achieve a drone patrol, achieving the
1 The country's first "5G smart justice" lab opened in Spike", Southern Daily News 2019/04/21:http: //epaper.southcn.com/nfdaily/html/2019-04/ 21/content_7795160.htm, last accessed April 14, 2020. Page 08 BAY AREA IP WATCH
world's first integrated ground and air 5G joint defense system. Huizhou, by using 5G as a foundation, cooperating with Huawei, Ericsson, ZTE and Hikvision, and deploying drones, VR, AR and other related technologies, applied 15 methods of social governance through 5G technology, including smart city construction, centralized power grid patrol, smart policing, identity recognition, smart tourism, law enforcement drones, remote signature, and safe driving.
2. Current State of the Policy
On February 18, 2019, the Central Committee of the Communist Party of China and the State Council issued the “The Development Plan for Guangdong-Hong Kong- Macao Greater Bay Area” (hereinafter referred to as “The Development Plan”), which formulated the strategic plans for the Greater Bay Area. In terms of the development of 5G technology, the Development Plan points out that the Greater Bay Area will focus on the development of 5G emerging technologies, promote the development and growth of new generation information technology and other new pillar industries, and cultivate a number of major industrial projects in key areas such as 5G and mobile Internet. In response to the central government's policy and summon, Guangdong, Hong Kong and Macao have implemented relevant supporting policies and measures to promote 5G and mobile internet along with R&D and applications.
2.1. Hong Kong and Macao
In December of 2018, based on extensive consultation with the industry, the Office of the Communications Authority of Hong Kong(OFCA), in conjunction with the HKSAR Government Business and the Economic Development Administration (EDA), announced a 5G spectrum plan and spectrum use billing methodology involving spectrum resources of approximately 4500 MHz bandwidth to build networks with high transmission capacity and wide area coverage. 1 In addition, the HKSAR Government further proposed “The Chief Executive's 2019 Policy Address”
1 China Radio Management Network: "Direct Line to WRC-19: Leung Chung-yin: Unlocking more spectrum res ources for Hong Kong's 5G development", http://www.srrc.org.cn/article23911.aspx, Last visit date: 2020.04.14. Page 09 BAY AREA IP WATCH
to adopt a "demand-led" approach to assist operators in using suitable government premises. At the same time, the Office of the Communications Authority discussed with relevant government departments to implement the opening up of public facilities and to formulate relevant guidelines and related details on the use of public facilities. The application and approval process of 5G is to help mobile network operators effectively use these public facilities to lay 5G networks. 1 According to the Vice-Chairman of the Federation of Communications Industry of Hong Kong, Mr. Wing Lam, 5G will be an important technology foundation for Hong Kong to become a world class smart city. 2
On December 19, 2018, in order to prepare for the launch of 5G services, the Macao Post and Telecommunications Office released the 5G services that can be used as the radio spectrum, 3 creating the conditions for the launch of 5G services and promoting the development of mobile telecommunications services in Macao. On November 12, 2019, the Chief Executive's Office of Macao released "The Government of the Macao Special Administrative Region Policy Address for the Fiscal Year 2019". The Address mentioned that the Macao Special Administrative Region will vigorously promote technological innovation in 2019. In order to develop the research, apply the 5G technology, and build a safe and stable smart city, the Macao Special Administrative Region will implement the “Telecommunications Network and Service Convergence Systems” to improve regulatory management and business models, promote the sharing of access to the telecommunications infrastructure, and protect users’ rights and interests.
2.2. Guangdong Province
1 XinhuaNet: "China Mobile's 5G network launches in Hong Kong on April 1", http://www.locpg. gov.cn/jsdt/202 0-04/01/c_1210539479.htm, Last visit date: 2020.04.14
2 Science and Technology Network: "Gathering of big names in a technology event to discuss 5G development - 2019 Guangdong-Hong Kong-Macao Greater Bay Area 5G Innovation Forum", https://www.scimall.org.cn/articl e/detail? id=428434, Last visit date: 2020.04.14.
3 "Macao Special Administrative Region: “Macao's 5G Spectrum Plan", https://www.gov.mo/zh-hant/news/26715 3/, Last visit date :2020.04.16. Page 10 BAY AREA IP WATCH
Guangdong Province has always attached great importance to the construction and application of 5G, and is committed to building a digital economy through 5G to promote the coordinated development of the various regions in the province, improve the quality of life of residents through further integration, and reduce the cost of social governance. By the end of February of 2020, China's provinces and cities have issued a total of more than 200 5G policy documents, and in particular, Guangdong has implemented, at various levels, more than 20 5G policies. 1 They are related to 5G infrastructure construction, technology research and development, industry clustering, application promotion, park construction, regional cooperation, financial support, talents, project incubation, and so forth. From the provincial level to the district level, a phased strategic plan for 5G development in the region is progressively formulated.
2.2.1 At the Provincial Level
The Work Report of Guangdong Provincial Government in 2019 proposed to launch 5G network deployment in the Pearl River Delta city cluster and accelerate the pace of 5G commercialization.
In April of 2019, “The Action Plan for Cultivating World-Class Electronics and Information Industry Clusters in Guangdong Province (2019-2022)” was released. There are 20 references to “5G” in the text, and it is clearly stated that "5G network deployment will be launched in the Pearl River Delta city cluster to speed up 5G commercialization". The pace will turn the Greater Bay Area into a trillion-dollar 5G industry cluster." 2
In May 2019, "The Guangdong Provincial Action Plan for accelerating the Development of 5G Industry (2019-2022)” was released. According to the plan, by
1 CICT: "5G leads new infrastructure, policy environment is key - Analysis of China's local 5G policy environme nt," https://tech.sina.com.cn/roll/2020-03-10/ doc-iimxxstf7760946.shtml, Last visit date： 2020.04.15.
2 Southern Network: "Here comes 5G! The Guangdong-Hong Kong-Macao Greater Bay Area is to create a trillio n-dollar 5G industry cluster", http://kb.southcn .com/m/content/2019-04/16/content_186701484 .htm, Last visit d ate:2020.04.14. Page 11 BAY AREA IP WATCH
the end of 2020, continuous coverage and commercialization of 5G networks will be basically achieved in the central city of the Pearl River Delta, and by the end of 2022, the Peral River Delta will build a 5G broadband city cluster. On January 14, 2020, the Development and Reform Commission of Guangdong Province formulated “The Report on the implementation of Guangdong's National Economic and Social Development Plan in 2019 and the draft Plan for 2020" which proposed that Guangdong will, in 2020, vigorously develop the digital economy, the implementation of the accelerated development of the 5G industry. On March 7, 2020 in the Guangdong Province, “The key Construction Project Plan of Guangdong Province for 2020” was initiated. According to the plan, the provincial government will support municipalities to implement supportive policies to accelerate the construction of 5G base stations, in terms of policy innovation, resource guarantee, and financial support and other aspects of financial support for the development of the 5G industry.
2.2.2. At the Local and Municipal Levels
As the two central cities in the Greater Bay Area , Guangzhou and Shenzhen are at the forefront of supporting the 5G industry in China. In addition, other prefecture- level cities in the Greater Bay Area have also issued their own specific implementation rules and regulations based on the 5G development plan of Guangdong Province. Planning schemes to promote the application of 5G, with Dongguan, Zhuhai, and Foshan being the most prominent.
2.2.2.1. Guangzhou
As the capital of Guangdong Province and one of the core cities in the Greater Bay Area, Guangzhou is uniquely positioned for the 5G development. The related industries and technologies have also received strong support from the local government. Currently, Guangzhou's 5G-related policies and strategic planning have been refined down to the district level. For example, Huangpu District issued the country's first district-level 5G policy in 2019. Page 12 BAY AREA IP WATCH
On May 15, 2018, the "Three-Year Action Plan for Guangzhou's Information Infrastructure (2018-2020) (Draft for Comments)” announced that the designated work target is to build 2,000 5G base stations by 2020. On June 5, 2019, Guangzhou City released the "Work Plan for Guangzhou 5G Network Construction in 2019", again specifying the construction of 10,000 units of 5G macro base stations in 2019 to achieve continuous coverage of 5G networks in the main city and key areas. On September 6, 2019, Huangpu District of Guangzhou City released the “Measures to Promote 5G Industrialization Development in Huangpu District”, which set forth a number of measures in 5G network construction, technology and industrial development, becoming the first county-level 5G development policy in the country. In October of 2019, the Guangzhou Huangpu District published “The Action Plan for the Development of 5G industrialization in Guangzhou Huangpu District (2019- 2022).” According to the action plan, by 2022, the output value of 5G and related industries in Huangpu District will exceed 30 billion yuan, and strive to become a national 5G innovation model city. On October 10, 2019, Guangzhou issued the “Three-year action plan to accelerate 5G development in Guangzhou (2019-2021)”, indicating that in three years, building Guangzhou into a leading 5G city at the forefront of the country with complete network facilities, rich application scenarios, and concentrated industrial clusters. On December 4, 2019, The detailed rules for the implementation of measures for promoting 5G industrialization in Huangpu District of Guangzhou" was released, proposing a number of support and encouragement measures for the development of the 5G industry. On January 11, 2020, Guangdong Province released "The overall Plan for the Construction of Guangzhou artificial Intelligence and Digital economy Experimental Zone", which will build a 5G smart government Innovation Lab to promote the research and application of new 5G technology in the field of government services. On February 21, 2020, Guangzhou City will officially approve "The revision of the controlled detailed Planning of the DC0304 Planning and Management Unit of Qingsheng Hub Block”, to be constructed in Nansha New District, Guangzhou. National-level automated driving test base to promote the integration of 5G and smart cars and intelligent transportation. Page 13 BAY AREA IP WATCH
2.2.2.2. Other Municipalities
On August 18, 2019, the Central Committee of the Communist Party of China and the State Council issued the "Opinions on Supporting Shenzhen to Build a Pilot Demonstration Zone of Socialism with Chinese Characteristics", supporting Shenzhen's development of technologies such as 5G and artificial intelligence, exploring the securitization of intellectual property, and building an intellectual property trading center.
The Shenzhen government has been attaching importance to the development of emerging technology industries such as smart manufacturing, digital economy, big data, cloud computing, artificial intelligence and 5G. It has successively issued the “Shenzhen Action Plan for promoting the Development of Cloud Computing (2018- 2017)”, the “Shenzhen Action Plan for promoting the Development of big data (2016-2018)”, the “Shenzhen Action Plan for ‘Made in China 2025’", the “Shenzhen Action Plan for promoting the Innovation and Development of Fifth Generation Mobile Communications (5G) (2018-2020)”, and other policy documents that have achieved rapid development in the strategic emerging industries and other fields.
On September 29, 2019, the Shenzhen government issued “Some Measures for Shenzhen to Take the Lead in Achieving Full Coverage of 5G Infrastructure and Promoting the High-Quality Development of 5G Industry". The document established a 5G industry development work coordination group, and clearly stated that at the end of August of 2020, the first 5G will be achieved in Shenzhen comprehensively. In April of 2020, the People's Government of Bao'an District, Shenzhen, and China Mobile Shenzhen Branch, signed a 5G strategic cooperation framework agreement to accelerate the deployment of 5G infrastructure construction, and promote 5G application as well as industrial transformation and upgrading. 1
1 Guangdong-Hong Kong-Macao Metropolis Network: "Accelerate the layout of 5G construction in the Guangd ong-Hong Kong-Macao Greater Bay Area, Bao'an accelerates the layout of building a pioneer model city for 5G construction", https://www.ygacity.com/news/20200407/4631 .html, Last visit date: 2020.04.15. Page 14 BAY AREA IP WATCH
As the city with the most innovation vitality and capacity, Shenzhen has strong technical and policy environment advantages in the construction of 5G. With the government's continuous advancement of 5G construction, Shenzhen's 5G technology research and application will be rapidly developed while a large number of 5G technology patents, supporting policies and measures, concrete application examples, demonstration parks and platforms will be rapidly emerged. This will greatly drive reform and progress in the Greater Bay Area and its surrounding cities, and thus becoming a benchmark for at least the Greater Bay Area, if not for the whole country.
2.2.2.3. Other Municipalities
In addition to the two core cities of Guangzhou and Shenzhen, other cities within the city cluster belonging to the Greater Bay Area have successively implemented a number of policies and measures to promote the development of the 5G industry in the region, and steer the local transition to a digital economy.
On July 10, 2017, the Zhuhai Municipal Government released the “Zhuhai Smart City Action Plan (2016-2020)”. According to the plan, Zhuhai will proceed to deploy the development and application of 5Gnetworks in 2020, striving to achieve more than 70% of the manufacturing companies above the designated size in carrying out smart transformation, smart monitoring and sensing coverage of key companies’ pollution emissions when the rate reaches 80%, thereby reaching the goal of a real-time road traffic speed collection rate of 60%.
On September 26, 2019, the Jiangmen Municipal Government issued the "The Action plan for promoting 5g industry development in Jiangmen City (2019-2022)". According to the program, by the end of 2020, the main city of Jiangmen will basically have a continuous coverage of 5G networks, with the city's 5G base stations reaching a cumulative total of 2,404. By the end of 2022, the city will basically have built a 5G broadband city, with continuous coverage of 5G networks in the main urban areas, as well as industrial parks in all areas of the city, with the total number of 5G base stations in the city reaching 8,891. Page 15 BAY AREA IP WATCH
In November of 2019, Dongguan City issued the "The Dongguan action plan for accelerating the development of 5g industry (2019-2022)”. This document served as a programmatic document for the development of 5G in Dongguan, and actively promoted the future integration of 5G and industrial Internet applications. Additionally, through the preliminary analysis by the Industry and Information Technology Bureau of Dongguan City, there are more than 120 companies related to the 5G industry chain in Dongguan, including three major 5G mobile phone manufacturers of Huawei, OPPO, Vivo. The "Dongguan 5G Industry Research and Analysis Report (2019)", issued by the Dongguan High-Tech Industry Association, further showed that there are more than 120 5G-related companies within the Dongguan's 5G industry chain.
On February 24, 2020, the city of Foshan released the "action plan for accelerating the development of 5g in Foshan (2019-2022)". According to the action plan, by the end of next year, Foshan will have 7,727 5G base stations and 400,000 5G subscribers, Foshan It will achieve a level of 5G network development that is among the most advanced in the country. In addition, Foshan will also promote the development of 5G industry clusters and speed up the construction of unmanned vehicle test sites.
On March 20, 2020, Zhaoqing City released the "The implementation plan for accelerating 5g development of Zhaoqing City (2020-2022)”. According to the Plan, Zhaoqing will accelerate 5G network construction, promote 5G technology innovation, vigorously develop related industries, and promote demonstration work in key areas. In addition, Zhaoqing will also strengthen 5G construction in rural areas and increase financial expenditure to support the development of 5G-related technology industries.
3. Status of Intellectual Property Rights Page 16 BAY AREA IP WATCH
Strengthening intellectual property protection is the premise of 5G technology development. In the field of 5G communication, patenting of technological innovation—standardization of patents— monopolization of standards are the prerequisites for companies to control technology dominance, occupy industrial chain, and seek optimal path to the top. Among these, standardizing patents and becoming standard essential patents (SEPs) is the most important aspect. As the name implies, standard-essential patents are the patents necessary to implement a certain technical standard, such as 1G-era frequency division multiple access technology, 2G-era frequency division multiple access technology. Technologies such as Time Division Multiple Access (TDMA), Code Division Multiple Access (CDMA) for 3G technologies and W-CDMA. Since SEPs are different from ordinary patents and companies cannot bypass them in following the standards and entering the market, the communication standards' competition is the core battlefield of national scientific and technological progress and enterprise development, and control of communication standards can control this communication field. In the 3G era, for example, the U.S. company named Qualcomm charged other manufacturers a high patent licensing fees for its patents that monopolized the code division multiple access (CDMA) technology.
As one of the four core cities in the Greater Bay Area, Shenzhen has continued to invest in innovation in the field of 5G communications technology in recent years, with successive Huawei, ZTE and other leading 5G companies were born, and a large number of 5G technology standards were obtained. In 2018, Shenzhen had 163 5G patent publications, ranking first among all major cities in China, and its cumulative patent volume reached 476, surpassing Beijing and ranked as first among major cities across the country. 1 According to national media reports at the World 5G Conference held on November 20, 2019, in view of the number of patents required for the global 5G standard (SEP) statement, Chinese companies had the largest share with 34%, ranking first in the world, which cannot be separated from
1 Central Government website: "Guangdong-Hong Kong-Macao Greater Bay Area Innovation Report Released", http://www.gov.cn/xinwen/2019-12/24/content_5463729.htm, Last visited date: 2020.04.14. Page 17 BAY AREA IP WATCH
the strong support of the Greater Bay Area cities such as Shenzhen, Guangzhou and Hong Kong.
3.1. Companies
In the development of the 5G standard, China's three major operators and the two equipment giants Huawei and ZTE are actively involved. In the 5G technology, the number of patents filed by Shenzhen's two giants, Huawei and ZTE, has increased year by year, and with their international voice growing, they have strongly promoted the Chinese standard to become an international standard. Statistics showed that as of March of 2019, 25 companies have disclosed more than 13,000 family patents considered as standard essential patents in 5G, with 20% of them coming from Huawei, which is ranked first among global companies, and ZTE, which is ranked fifth.
In February of 2020, IPLytics, a leading international patent data company, released its latest patent report on the 5G industry – “Fact finding on patents declared to the 5G standard". The report showed that as of January of 2020, the global 5G patent declaration reached 95,526, along with 5G patent family declaration of 21,571. Among them, Chinese companies declared 32.97% of 5G patents, with Huawei ranking first with 3,147, and ZTE, with 2,561 cases, jumped from fifth to third. Chinese companies OPPO and China Academy of Information and Communications Technology are ranking 11th and 12th, respectively. There are also Vivo, Lenovo, FG Innovation, Unisoc and other enterpriseson the list.
Thereof filed Number of 5G Thereof at at least the at Declaring company patent families least granted the USPTO, (INPADOC) in one office EPO or PCT Huawei Technologies (CN) 3,147 2,342 1,274 Samsung Electronics (KR) 2,795 2,633 1,728 ZTE Corporation (CN) 2,561 1,878 837 LG Electronics (KR) 2,300 2,236 1,415 Nokia (incl, Alcatel-Lucent) (FI) 2,149 2,074 1,584 Page 18 BAY AREA IP WATCH
Ericsson (SE) 1,494 1,461 768 QUALCOMM (US) 1,293 1,210 831 Intel Corporation (US) 870 855 148 Sharp Corporation (JP) 747 706 449 NTT Docomo (JP) 721 642 346 Guangdong Oppo M, Telec, (CN) 647 612 36 China Aca, Of Telec, Tech, - 570 353 71 CATT (CN) InterDigital Technology (US) 486 455 299 Vivo Mobile (CN) 238 168 0 BlackBerry (CA) 139 136 132 NEC Corporation (JP) 122 115 82 ASUSTeK Computer (TW) 111 102 34 Lenovo Group Limited (CN) 97 97 22 HTC Corporation (TW) 93 94 43 KT Corporation (KR) 85 74 15 Apple (US) 77 72 48 ETRI (KR) 61 48 20 Fujitsu (JP) 58 18 54 Motorola Mobility (US) 55 54 49 MediaTek (TW) 38 38 29 WILUS Group (KR) 33 20 2 Panasonic (JP) 32 30 8 FG Innovation (CN) 30 30 4 Sony Corporation (JP) 17 17 18 ITRI (TW) 14 13 12 SK Telecom (KR) 11 8 0 Spreadtrum Communications 10 8 5 (CN) Figure 1: Global 5G Patent Declaration Companies and Their Number
(as of January of 2020)
Huawei, ZTE, OPPO, Vivo and FG Innovation are all high-tech companies from the Greater Bay Area, and they have become the leading players in the 5G industry in China and even the world. This to some extent reflects the huge number of patents Page 19 BAY AREA IP WATCH
and intellectual property rights in the 5G field in the Greater Bay Area and their unshakeable right to speak, demonstrating their strong strength and gradually becoming the intellectual property repository of 5G construction in China and the world.
3.2. Universities and Research Institutions
Although the companies in the Greater Bay Area have shown bright performance in the field of 5G intellectual property rights, universities and research institutes have certain shortcomings in this field. According to “The Global Patent Ranking of 5G Technology Inventions (TOP 10) “jointly published by the IncoPat Innovation Index Research Center and TD Industry Alliance, in the global statistics of the number of patents published for 5G technology inventions as of December 6, 2019, China's Southeast University ranked first in the university category with 268 patents, and XIDIAN University ranked second with 220 patents. Beijing University of Posts and Telecommunications ranked third with 218 patents. In the category of research institutes, Datang Telecom Technology & Industry Group (a subsidiary of China Information Communication Technologies Group Corporation) ranked first with 948 patents. 1
Top 10 Universities and Colleges Number of 5G Technology Patents Published Worldwide as of December 6, 2019 Number of Global 5G Ranking Patentee Country/Area Technology Patents/Units 1 Southeast University China 268 2 XIDIAN University China 220 Beijing University of Posts and 3 China 218 Telecommunications University of Electronic Science and 4 China 201 Technology of China
1 Iprchn: "Global 5G Technology Universities and Research Institutes Invention Patent Ranking Released", http: //www.iprchn.com/Index_NewsContent.aspx? NewsId=120256, Last visit date: 2020.04.16. Page 20 BAY AREA IP WATCH
5 Tsinghua University China 168 Korea Advanced Institute of Science and 6 Korea 162 Technology Chongqing University of Posts and 7 China 146 Telecommunications Industry Academic Cooperation 8 Korea 134 Foundation Yonsei University Nanjing University of Posts and 9 China 129 Telecommunications 10 Harbin Institute of Technology China 68 Figure 2: Global 5G Technology Invention Patent Ranking - Top 10 Universities
Top10 Research Institutes Number of 5G Technology Patents Published Worldwide as of December 6, 2019
Number of Global 5G Ranking Patentee Country/Area Technology Patents/Units Datang Telecom Technology & 1 China 948 Industry Group Electronics and Telecommunication 2 korea 490 Research Institute Industrial Technology Research 3 China Taiwan 103 Institute Fraunhofer-Gesellschaft zur 4 Förderung der angewandten Germany 102 Forschung e.V Research Institute 54 of China 5 Electronic Science and Technology China 37 Group Corporation Xi'an Electronic Technology Research Institute (The Tenth Research Institute 6 China 33 of China Electronics Science and Technology Group Corporation) Xi'an Institute of Space Radio 7 China 26 Technology 8 Shanghai Institute of Microsystem China 26 Page 21 BAY AREA IP WATCH
and Information Technology, Chinese Academy of Sciences The 41st Research Institute of China 9 Electronics Science and Technology China 25 Group Corporation China Academy of Information and 10 China 25 Communications Technology Figure 3: Global 5G Technology Invention Patent Ranking - Top 10 Research Institutes
As one can see, neither the top ten rankings of universities nor the top ten rankings of research institutes contain any institutions from the Greater Bay Area, which to a certain extent reflects the unreasonable IP structural arrangement in the Greater Bay Area. According to statistics on the number of patent applications filed by companies and universities/institutes from 2016 to 2018, the Greater Bay Area in the past three years, the total number of patent applications filed by companies as applicants was 1,016,304, which accounts for 73% of the total number of patent applications. By contrast, the number of patents filed by universities or research institutes as applicants averages only 4% per year, and the total number of patents filed in the past three years was only 57,190. Such phenomenon stemmed from the impact of three factors concerning industrial structure, policies, and the demand for productive output. Therefore, it is necessary to vigorously promote the output and transformation of intellectual property rights in the 5G field in universities and research institutions, and develop relevant promotion and stimulus measures to enhance the overall strength of the Greater Bay Area's IP layout.
3.3. Summary of Recommendations
3.3.1. Strengthen 5G Standard Construction
Whether at the Greater Bay Area level or the national level, in order to continue to maintain a leading position and absolute voice in the 5G field, it is necessary to continuously increase the investment in the formulation and application of relevant technical standards, speed up technical innovation and progress, and give full play to the impact of standardization and patenting on the development and application of Page 22 BAY AREA IP WATCH
new technologies, particularly on the multiplier effect of economic and technological development. First of all, we should continue to strengthen investment in research and development and master the latest technologies. Secondly, we need to ensure that new technologies can enter the international standard system, which requires upgrading our own capabilities in all aspects, including improving IPR layout, strengthen international exchange capacity, gaming capacity and understanding of international standards. Finally, the government should pay attention to standardization and provide legal protection for the intellectual property rights.
3.3.2. Enhancing the Conversion and Trading of Intellectual Property
According to the data, Guangdong has a relatively good ability to absorb and export technology, but the conversion rate of scientific and technological achievements is only slightly above 10%, far below the rate of developed countries and 40 per cent of the regional level. Therefore, accelerating the construction of innovation markets and increasing the rate of technology transfer requires model innovation. In this regard, the establishment of a market-driven patent trading and licensing platform related to 5G can facilitate the transfer and licensing of 5G technology, and the licensing of core technologies can play a key role in the rapid and cost-effective development of mobile communications technologies. 1 A more reasonable direction of development is the IP conversion trading platform similar to the Shenzhen Nanfang International Technology Exchange Market, Shenzhen United Property and Share Rights Exchange, and China (Southern) Intellectual Property Center.
4. Legal Disputes
4.1. 5G Patent Disputes
In June of 2013, in response to US IDC's abuse of its market dominance in the area of patents essential to wireless communications standards, Huawei issued a statement to the National Development and Reform Commission (NDRC) to initiate an antitrust investigation, which culminated in IDC's promise to eliminate the high
1 National Center for International Economic Exchanges, "2020 China 5G Economic Report," p. 93. Page 23 BAY AREA IP WATCH
royalties charged from domestic companies. In May of 2019, Qualcomm and Huawei began settlement talks over a previous patent dispute case, and if the settlement is successful, Huawei may have to pay more than $500 million a year in patent fees. In fact, prior to the settlement talks, Qualcomm had already signed a short-term licensing agreement with Huawei that would require Huawei pay a quarterly amount of 150 million USD in patent fees (about 1 billion RMB). With the advent of the 5G era, the industry landscape and ecology will undergo significant changes. Major telecommunications giants have launched patent wars, using their patents and standards to occupy positions in the 5G market. In addition to the patent dispute between Huawei and Qualcomm, patent disputes have also occurred between Huawei and Samsung, and between Apple and Qualcomm.
In recent years, Huawei, ZTE and other Chinese companies have significantly increased their number of patents in the 5G field, and their industry status and voice have become far greater as compared to the 3G and 4G eras. Therefore, during negotiations between Huawei and Qualcomm, Huawei was able to significantly reduce its core licensing royalties through cross-licensing of patents with Qualcomm. However, we should also soberly recognize that at present, China's communication companies still have shortcomings in patent quality, patent and standard application, and core patents. The 5G standards that Huawei has obtained mainly focused on the short code part. In the overall development of 5G, there is still a certain gap with Qualcomm that still cannot be reached with respect to the leading 5G technology. Governments at all levels, companies, research institutions and other parties in the Greater Bay Area still need to continue to invest more in technology development and intellectual property layout, improve the number of core patents and the overall quality of patents, actively participate in the formulation of 5G standards, and promote the application of our own patents on a global scale.
In addition, 5G will greatly facilitate the integration of digital, networked and intelligent communication systems with vertical industries. In the process, disputes and intellectual property lawsuits that used to be part of the communications industry will become more common with the introduction and diffusion of 5G technology, Page 24 BAY AREA IP WATCH
thereby gradually penetrating into different vertical industries. Additionally, the Greater Bay Area should explore the establishment of new business opportunities in key areas such as image recognition, automated driving, smart robotics, smart home, and Internet, including the system of intellectual property protection and comprehensive administrative enforcement adapted to the characteristics of the industry. 1
4.2. 5G Security Controversy
In the era of 5G, the data and information of the whole society will be transmitted rapidly over the bridge of 5G, and this data is related to a large amount of economic and political interests. This inevitably brings with it a range of security issues, including national security, data security, network security, personal information security, etc. In August of 2018, Australia unilaterally banned Huawei's 5G technology and the use of its 5G chips on the grounds that "Huawei's electronic products have hidden security risk". In September of 2018, South Korea and Japan publicly stated that Huawei and ZTE are officially considered "problem companies", and refused to allow Huawei's 5G enter their domestic markets. In addition, the United Kingdom, India and New Zealand have all banned Huawei 5G from their markets, and the German government is also actively considering China's Huawei has been excluded from the construction of 5G mobile networks by establishing stricter security requirements and other methods. Overall, the reasons for banning Huawei from 5G in the above-mentioned countries focused on the security of 5G, arguing that Huawei will endanger national security.
Specifically, the security risks to 5G technology include the following three aspects: First, 5G products can exploit the connectivity between the internet and the manufacturer, including the provision of after-sales maintenance, upgrades and status reports. This is a "double-edged sword" that can improve service and but also provide an advantage in the collection of intelligence in communications, leading to
1 The official website of the Guangdong-Hong Kong-Macao Cooperation Promotion Association: “The Guangdo ng-Hong Kong-Macao Greater Bay Area released the ‘No. 1 Document’ in 2020, and the future of this experimen tal area in Guangzhou is expected.”, http://www.ygahzcjh.gd.gov.cn/Item/1624.aspx, Last visit date:2020.04.14. Page 25 BAY AREA IP WATCH
coercive interference or risk of espionage. Second, based on 5G’s low latency, high bandwidth, and massive connectivity, virtualization of network functions, network slicing, and edge computing can be realized. Network nodes can be divided into different blocks and deployed simultaneously to perform different computational tasks. However, the above techniques require extensive adoption of open source and third-party software. When deployed without quality isolation measures or in high- risk environments, they are highly vulnerable to attacks which can trigger a chain effect. A block application affects the security of the entire system, such as the cloud core and the eventual loss of data. Third, the network capacity open access interface adopts the internet common protocol to transfer users' personal information, network data and business data from a closed platform inside the network’s operator to the open access interface. Such will further introduce the existing security risks of the internet into the 5G network, thereby bringing the risk of data leakage.
The development of the technology can only be carried out under the legal framework, which is conducive to the long-term and sustainable development of the industry. Currently, the existing laws and regulations in China that can regulate 5G security include the following types: First, in terms of network security, the “National Security Law of the People's Republic of China”, “Cybersecurity Law of the People's Republic of China” and “Telecommunication Regulation of the People's Republic of China”. Second, in terms of protection of personal information, the “Civil Code of the People's Republic of China”, “Decision of the Standing Committee of the National People's Congress on Strengthening Information Protection on Networks”, “Law of the People's Republic of China on the Protection of Consumer Rights and Interests”, “E-Commerce Law of the People's Republic of China”, and etc. Third, in terms of 5G infrastructure planning, construction and operation, there are relevant provisions in the critical infrastructure protection laws relating to, for instance, “Cybersecurity Law of the People's Republic of China”, “The basic requirements of Information Security Technology”, “Network Security level Protection”, and “The regulations on the Security Protection of critical Information Infrastructure” (draft for soliciting opinions). Fourth, in terms of Page 26 BAY AREA IP WATCH
intellectual property rights, the 5G-related technologies and developments are governed by the intellectual property laws and regulations, such as “Copyright Law of the People's Republic of China”, “Patent Law of the People's Republic of China” and “Trademark Law of the People's Republic of China”.
It can be seen that China currently has no specialized, systematic and concrete institutional design for 5G security regulation, which cannot effectively guarantee the safe development of 5G. In order to better handle the risks and challenges brought by 5G, China should next take the following measures: First, build a reasonable top-level design as well as strategic planning. Emerging technologies such as 5G will also impact areas such as power structures, state institutions, and values. As such, the country should not only see 5G as a new technology, but also see 5G as a top-level design from the perspective of the country’s fate in basing international competition to allow a phased strategic planning for the future. Second, it is necessary to formulate specialized legal norms and build a systematic legal regulatory system. For example, it is necessary to formulate a higher-level “Telecommunications Law” in designing judicial and other systems to comprehensively sort out the healthy development and security of 5G, rationalize the system design of legislation, law enforcement, and other legal regulations, and seek balance between industrial development and security. Thirdly, the rights and obligations of all parties in the 5G industry chain should be reasonably defined and distributed, and the main responsibilities should be implemented, such as the rights and obligations of operators, regulatory authorities, and other stakeholders.
（Compilation and Writing: Yan Wenguang 1）
* Research Assistant of IPIP. Page 27 BAY AREA IP WATCH
The Greater Bay Area Innovation Policy Focus
1. Introduction
Against the background of the construction of the Greater Bay Area, cities in the Greater Bay Area such as Guangzhou and Shenzhen have implemented relevant industrial policies. In terms of the content covered in the policy documents, such can be broadly divided into three types: The first type is programmatic documents issued by the central government, such as the “Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area”, “the Opinions of the CPC Central Committee and the State Council on Supporting Shenzhen to Build a Demonstration Pilot Zone for Socialism with Chinese Characteristics”, “Framework Agreement on Deepening Guangdong-Hong Kong-Macao Cooperation in the Development of the Greater Bay Area”. These documents have planned the overall development of the Greater Bay Area or the Guangdong-Hong Kong-Macao Greater Bay Area. The development path of a region plays a leading role in the industrial development of each region. The second type of documents is the series of policies issued by cities in the Guangdong-Hong Kong-Macao Greater Bay Area in response to the aforementioned documents, such as the “Notice on the Issuance of Certain Policies for Further Promoting Scientific and Technological Innovation in Zhuhai City”, the “Division of Work Plan of the People's Government of Guangdong Province for Issuing Certain Measures to Support the Pilot Free Trade Zone to Deepen Reform and Innovation”, and “Foshan City's Comprehensive Construction of a National Innovation City to Promote Scientific and Technological Innovation and Promote High-Quality Development”. This type of documents is characterized by a further refinement of the content of the programmatic documents, with clearer requirements and specific measures for local industrial development, but without planning for specific industries. The third type of documents is a policy guideline for the development of a particular industry based on the implementation of the Page 28 BAY AREA IP WATCH
relevant documents or spirit, taking into account the development of the economy and industry in each region.
This publication collated the specific industrial policies that have been implemented in each region since June of 2019 (i.e., the third category of documents mentioned above). These policies are mainly focused on artificial intelligence, 5G, specialty finance, medicine and health, aerospace and other fields, including the specific fields of special financial support and introduction of talents. It is noteworthy that with the "new coronavirus pandemic" sweeping across the world, and in the face of this scientific and technological challenges against the "pandemic", certain cities in the Guangdong-Hong Kong-Macao Greater Bay Area held a special research conference on the pandemic to promote the development of the region's pharmaceutical and health industry. Although the content of the meeting has not yet formed a specific official document, the spirit of the meeting has followed for implementing the relevant programmatic documents and providing functional guidance that are in line with the spirit of General Secretary Xi Jinping when investigating the scientific research on the prevention and control of new coronavirus pandemic in Beijing.
2. Document Introduction
2.1. Artificial Intelligence
Guangdong Leading Group of Guangdong Province to Promote the Construction of the Greater Bay Area issued the notice on "Overall Plan for the Construction of Guangzhou Artificial Intelligence and Digital Economy Pilot Zone". Guangdong Greater Bay Area [2020] No. 1, issued on February 21, 2020, Guangdong Promoting the Guangdong-Hong Kong-Macao Greater Bay Area Construction Leading Group.1
On February 21, 2020, the Leading Group of Guangdong Province to Promote the Construction of Guangdong-Hong Kong-Macao Greater Bay Area officially issued
1 The Guangdong-Hong Kong-Macao Greater Bay Area Portal: http://www.cnbayarea.org.cn/ policy/policy%20re lease/files/content/post_ 231037.html, last accessed on April 15, 2020. Page 29 BAY AREA IP WATCH
the “Overall Plan for the Construction of Guangzhou Artificial Intelligence and Digital Economy Pilot Zone” (hereinafter referred to as the “Overall Plan”), which closely links the development of the digital economy with the construction of the Guangdong-Hong Kong-Macao Greater Bay Area, and explores a mechanism for the efficient allocation of innovative elements of the digital economy, which is conducive to fostering the development of new technologies, new industries, new formats and new models, and plays an important role in forming new kinetic energy for economic development.
With 2022, 2025 and 2030 as the time points, the “Overall Plan” focuses on the policy system, institutional environment, and the development of the digital economy. Key technological innovations, artificial intelligence and the basic theory of the digital economy set out the goals for the three phases of development, and established four main tasks and three safeguards. The “Overall Plan” also focuses on four fields of "internet and cloud computing", "big data", "artificial intelligence", "new-generation information technology", and "new-age information technology", and is committed to forming a number of original technical achievements with international impact in the above-mentioned fields, and in the basic theory of artificial intelligence, with core algorithms, key technologies and devices, industrial applications and other aspects of a number of key core technologies, building artificial intelligence and digital economy demonstration areas for development.
In addition, the “Overall Plan” intends to create a “Guangzhou Artificial Intelligence and Digital Economy Pilot Zone (hereinafter referred to as "Guangzhou Pilot Zone") with Pazhou as the core, the Pearl River as the link, and the development of industrial integration in the surrounding areas, forming a spatial pattern of "one river, two banks and three areas". Among them, the Guangzhou International Financial City Area will grant a full play to the resource advantages of the modern service industries in, e.g., finance and trade, provide empowering role to the new-generation information technology, and promote the modern service industry to new excellence. In the Yuzhu area, new types of international information infrastructure, such as top- level nodes for industrial internet identification and analysis will be deployed to Page 30 BAY AREA IP WATCH
strengthen the in-depth integration of new technologies, such as artificial intelligence, 5G, and blockchain with the real economy, and to create a well-known Chinese software city featuring blockchain demonstration area.
Artificial intelligence technology is widely used in various fields, and the "new coronavirus pandemic" in 2020 has opened up a huge demand for the application of artificial intelligence. According to Liu Ruopeng, chairman of the board of directors of KuangChi Science Limited, "the weight of (the smart helmet N901 developed in- house) is less than 1,200 grams, and has a range of up to 8 hours. A third-class hospital can achieve full coverage of the inspection with 10 units...since the resumption of work, the series of products have been into application for the first line in highway intersections, subways, airports, supermarkets, office buildings, and etc. 1 It is conceivable that the “Overall Plan” will be a breakthrough in the transformation of Guangdong's manufacturing economy. The Guangdong-Hong Kong-Macao Greater Bay Area is at the forefront of the country's digital economy innovation and development, and the “Overall Plan” will be instrumental in building the Guangzhou Pilot Zone and implementing the national digital economy development strategy that is of great significance in promoting the integration and development of the digital economy as well as the real economy in the Greater Bay Area of Guangdong, Hong Kong and Macao.
Measures to Promote the Development of Artificial Intelligence Industry Support in China Guangdong Pilot Free Trade Zone Nansha Area of Guangzhou, Sui Nankai Administrative Regulation [2019] No. 5, implemented on September 10, 2019, Nansha District People's Government, Administration of Guangzhou Nansha Economic and Technological Development Zone.2
Implementation Rules of the Support Measures to Promote the Development of
1 Fengxiang Li and Lin Peng: "Guangdong Guangzhou Artificial Intelligence and Digital Economy Pilot Zone Ac celerates Construction" http://www.cac .gov.cn/2020-04/10/c_1588065687567957.htm. Last accessed on April 15, 2020.
2 People's Government of Guangzhou: http://www.gz.gov.cn/gfxwj/qjgfxwj/ nsq/qfb/content/post_5489020.html, date of last visit. April 15, 2020. Page 31 BAY AREA IP WATCH
Artificial Intelligence (AI) Industry in China Guangdong Pilot Free Trade Zone Nansha Area of Guangzhou, Sui Nankai Business Regulation (2019) No. 6, implemented on November 1, 2019, The Nansha Commerce Bureau.1
The "Measures to Promote the Development of Artificial Intelligence Industry Support in China Guangdong Pilot Free Trade Zone Nansha Area of Guangzhou" (hereinafter referred to as the "Supporting Measures") and the "Implementation Rules of Measures to Promote and Support the Development of Artificial Intelligence Industry in China Guangdong Pilot Free Trade Zone Nansha Area of Guangzhou" (hereinafter referred to as the "Implementation Rules") are to implement the State Council's "Development Plan for a New Generation of Artificial Intelligence" and the "Guangzhou Five-Year Action Plan to Accelerate the Development of IAB Industry(2018-2022)" (hereinafter referred to as the "Guangzhou Five-Year Action Plan to Accelerate the Development of IAB Industry") and the "Three Year Action Plan for the Development of Artificial Intelligence Industry in Nansha, Guangzhou (2018-2020)" to further promote the development of Nansha's artificial intelligence industry in the relevant spirit of the document issued.
The "Supporting Measures", which consists of fourteen articles, stipulates the support issues for the development of the artificial intelligence industry in terms of award recipients, award criteria, research subsidies and financial support. The "Implementation Rules", on the other hand, contain thirteen chapters with forty-five articles, further clarifying the specific content and operation of the relevant articles in the "Supporting Measures". According to the two aforementioned documents, in order to receive government support, an enterprise must be an artificial intelligence company that has been identified by Nansha as having AI-related products and technologies as its main business, meeting the direction and needs of the development of the artificial intelligence industry in Nansha, and satisfying the relevant conditions. The enterprise may receive start-up incentives, talent incentives, research and construction subsidies, R&D investment subsidies, technology support
1 People's Government of Guangzhou: http://www.gz.gov.cn/gfxwj/qjgfxwj/ nsq/qbm/content/post_5487028.html, date of last visit. April 15, 2020. Page 32 BAY AREA IP WATCH
incentives, application promotion incentives, and financial support. If the enterprise settles in Nansha for four years, it can receive a very generous reward of 95% of its economic contribution to the Nansha District.
"In the future, Nansha will continue to focus on strategic emerging industries such as IAB and NEM, accelerate the development of industries such as advanced manufacturing, innovative financial industry and modern service industry, actively cultivate and introduce leading projects and core platforms with strong driving ability and good growth prospects, and promote the formation of a full ecological industry chain value chain that promotes industrial development." Nansha District's relevant officials announced. 1 It can be seen that Nansha District of Guangzhou City attaches great importance to the development of the artificial intelligence industry, and the implementation of the “Supporting Measures” and “Implementation Rules” is of great significance to the formation of a leading model city in artificial intelligence.
Guangzhou Action Plan on Promoting the Development of a New Generation of Artificial Intelligence Industry (2020-2022), February 27, 2020, Guangzhou Municipality Industry and Information Technology Bureau.2
In 2018, Guangzhou issued the "Guangzhou Five-Year Action Plan to Accelerate the Development of IAB Industry (2018-2022)" (Sui Fu [2018] No. 9), defining the key development areas and directions of artificial intelligence. In order to further accelerate the development of the new generation of artificial intelligence industry in Guangzhou, Guangzhou Municipality Industry and Information Technology Bureau released the "Guangzhou Action Plan on Accelerating the Development of the New Generation of AI Industry (2020-2022)" (hereinafter referred to as the "Action Plan") on February 27, 2020 to contribute to the further promotion of Guangzhou as a world-class demonstration zone for artificial intelligence applications.
1 Nansha, Guangzhou to Build a Billion Dollar Artificial Intelligence Cluster, http://www.gz.gov.cn/zfjgzy/gzsswj 18/ggfw/zsyz/gqfz/nsq/content/post_2987398.html, last accessed on April 15, 2020.
2 Guangzhou Nansha District Bureau of Industry and Information Technology: http://www.gzns.gov.cn/gznskgx/g kmlpt/content/5/5723/post_5723011.html#9176, last accessed on April 15, 2020. Page 33 BAY AREA IP WATCH
The “Action Plan” focuses on 5G, Internet of Things (IoT), Industrial Internet, and Blockchain, and includes three parts: work objectives, key tasks, and safeguard measures. The document proposes that by 2022, the scale of Guangzhou's AI industry will exceed 120 billion yuan, and create 8 industrial clusters, build 10 AI industrial parks, cultivate more than 10 industry leaders, advance the formation of 50 smart economy and smart society application scenarios, promote the implementation of 100 application demonstration projects, and strive to create a national artificial intelligence innovation pilot zone and artificial intelligence pilot zone.
Accordingly, the “Action Plan” identifies five key tasks and five safeguards for implementation. Eighteen specific tasks are included in the five key tasks, which mainly include basic innovation promotion, industrial cultivation and development, enterprise attraction and development, industrial ecological construction and application scene expansion. The five safeguards are carried out from organizational safeguards, financial support, talent training, promotion, and governance systems.
2.2. Semiconductors and Integrated Circuits
Notice on the Issuance of Certain Opinions on Accelerating the Development of the Semiconductor and Integrated Circuit Industry in Guangdong Province, Issued by the General Office of the People's Government of Guangdong Province, No. 2, February 20, 2020.1
On February 13, 2020, the General Office of the People's Government of Guangdong Province issued the "Notice of Certain Opinions on Accelerating the Development of Semiconductor and Integrated Circuit Industry in Guangdong Province" (hereinafter referred to as the "Opinions"). The Opinions state that the PRD region will actively develop major projects in the semiconductor and IC industry, enhance R&D and innovation capabilities, expand openness and cooperation, and build the PRD region into an internationally influential semiconductor and integrated circuit industry cluster.
1 Guangdong Provincial Government: http://www.gd.gov.cn/zwgk/wjk/qbwj/yfb/content/post_2894098.html, last accessed on April 15, 2020. Page 34 BAY AREA IP WATCH
The “Opinions” include a total of 20 specific contents in eight areas, and clarify the division of responsibilities for key tasks. According to the “Opinions”, the enhancement of industrial advantages will start from chip design, focusing on breakthroughs in storage chips, processors and other high-end general chip design, vigorously develop the third-generation semiconductor chips, and build a globally competitive chip design and software development zones in the Pearl River Delta region. In addition, to compensate the industrial short comings and improve the industrial chain, the “Opinions” put forward measures such as focusing on promoting the analog and digital-mode hybrid chip production and manufacturing, giving priority to development of chip manufacturing with process characteristics, the vigorously introducing advanced packaging and testing of production lines and technology research and development centers and other similar measures.
It is worth noting that the “Opinions” also clarify the investment of special funds to encourage the strengthening of talent team support in order to enhance the R&D and innovation capacity of the Pearl River Delta region. At the same time, a series of specific safeguard measures are proposed in four aspects, including strengthening organizational leadership, financial support, and support for the construction of parks and major projects, to provide strong support for promoting the high-quality development of the manufacturing industry in the Pearl River Delta region.
2.3. Cross-border E-commerce
Notice on the Issuance of the Implementation Plan for the China (Foshan) Cross-border E-commerce Integrated Pilot Zone, Guangdong Provincial Government Letter [2020] No. 26, March 7, 2020.1
On March 7, 2020, the People's Government of Guangdong Province issued the “Implementation Plan for China (Foshan) Integrated Pilot Zone for Cross-border E- commerce” (hereinafter referred to as the "Implementation Plan"), in order to implement the major strategic initiatives of the Central Committee of the Party and
1 The People's Government of Guangzhou: http://www.gd.gov.cn/zwgk/wjk/qbwj/yfh/content/post_2923564.html, last accessed on April 15, 2020. Page 35 BAY AREA IP WATCH
the State Council to deepen reform, expand opening up and accelerate the construction of a new open economy system.
The “Implementation Plan” indicates that the China (Foshan) Integrated Pilot Zone for Cross-border E-commerce (hereinafter referred to as "Foshan Integrated Pilot Zone") will improve Foshan's comprehensive regulatory service environment for cross-border e-commerce, and build a model city for cross-border e-commerce comprehensive regulatory service. To achieve this goal, Foshan Integrated Pilot Zone will strengthen the construction of online public service platform and offline "integrated park" platform to support the development of cross-border e-commerce through six major initiatives. In addition, Foshan Integrated Pilot Zone will establish an online cross-border e-commerce platform cluster, actively guide companies to carry out technological innovation and establish their own brands, and drive companies to carry out cross-border e-commerce business-to-business (B2B) business.
In fact, back in 2016, the People's Government of Guangdong Province issued the “Implementation Plan for China (Guangzhou) and China (Shenzhen) Cross-border E-commerce Integrated Pilot Zone” (“Implementation Plan”), and related policies have been published since then. So far, a total of six cities in Guangdong (Guangzhou, Shenzhen, Zhuhai, Dongguan, Shantou and Foshan) have been approved to set up a cross-border e-commerce integrated pilot zone, except for Shantou, the other five cities are part of the city cluster for the Guangdong-Hong Kong-Macao Greater Bay Area. According to the relevant data, Foshan's cross- border e-commerce has been developing rapidly in recent years. In 2018, Foshan's cross-border e-commerce import and export was 3.38 billion yuan, a sharp increase of 3.7 times. In the first three quarters of this year, the city's cross-border e- commerce trade mode import and export was 5.02 billion yuan, up 88.5 percent. 1 It can be foreseen that the “Implementation Plan” will help promote the high-quality development of Foshan's trade, thus boosting the economic development of the
1 Shantou-Foshan Approved to Establish Cross-Border E-Commerce Comprehensive Pilot Zone, http://www.gd.g ov.cn/gdywdt/dsdt/content/post_2727019.html, last accessed April 15, 2020. Page 36 BAY AREA IP WATCH
Guangdong-Hong Kong-Macao Greater Bay Area.
2.4. Biomedicine
Thematic Working Conference on Building a Strong Biomedical Province, People's Government of Guangdong Province.1
Research and Deployment of Research and Development of Scientific Research on Pandemic Prevention and Control, Guangzhou Municipal Committee of the Communist Party of China.2
On March 24, 2020, Zhang Shuofu, the Secretary of Guangzhou Municipal Committee of the Communist Party of China presided over a special meeting to study and plan the next step in the research and development of the prevention and control of coronavirus disease (COVID-19). The meeting stressed that Guangzhou should make full use of the city's advantages in biomedical research, clinical application and industry chain, and focus on promoting the clustering of key institutions and core elements in life sciences and basic biomedical research, explore the implementation of a "carte blanche system" for top talents, further improve the development planning and policies of the biomedical industry, promote the development of more biomedical industries, and convert the scientific and technological achievements into real productivity.
On March 30, 2020, Ma Xingrui, the governor of Guangdong Province, chaired a special working meeting on the construction of a strong biomedical province to study and promote the high-quality development of the biomedical industry in Guangdong Province. The meeting stressed the need to deepen cooperation among Guangdong, Hong Kong and Macao in the biomedical industry, create a high ground for the development of the biomedical industry in Guangzhou and Shenzhen, accelerate the cultivation of leading backbone biomedical companies, and build the
1 Guangdong Provincial People's Government: http://www.gd.gov.cn/gdywdt/zwzt/yqfk/gdzxd/content/post_2962 100.html, last accessed on April 15, 2020.
2 Guangdong Provincial Government: http://www.gd.gov.cn/gdywdt/zwzt/yqfk/gdzxd/content/post_2950096.html, last accessed on April 15, 2020. Page 37 BAY AREA IP WATCH
biomedical industry in Guangdong into an emerging pillar industry with international competitiveness.
The challenge of the pandemic is not to be feared. Under the current domestic and international situations, the development of the traditional Chinese medicine industry has become a major trend. In 2020, the cities in the Guangdong-Hong Kong-Macao Greater Bay Area are bound to put forward more industrial development policies in response to the "new coronavirus epidemic".
2.5. Financial Services
Certain Measures of China Guangdong Pilot Free Trade Zone Nansha Area of Guangzhou on Supporting the Development of International Financial Island, October 14, 2019, Guangzhou Nansha Development and Reform Bureau.1
On October 14, 2019, the Nansha District Government of Guangzhou released the "Certain Measures of China Guangdong Pilot Free Trade Zone Nansha Area of Guangzhou on Supporting the Development of International Financial Island" (the "Certain Measures"), which is based on the “Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area" on Building an Important Platform for Financial Services in Nansha”. It is formulated in accordance with the spirit of the Guangdong Provincial Government and Guangzhou Municipality's "Opinions on Implementing the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area" on "Promoting the Experimental Demonstration of Financial Services Innovation and Building Nansha International Financial Island with High Standards", and provided a basic guarantee for accelerating the construction of Guangzhou Nansha International Financial Island.
The “Certain Measures” included general requirements, incentives for industries and talents, public support, legal services, financial innovation, safeguards, and etc., integrated policies on financial services, science and technology, modern service
1 China (Guangdong) Pilot Free Trade Zone, http://ftz.gd.gov.cn/jrl/content/post_2651874.html#zhuyao, last acce ssed on April 15, 2020. Page 38 BAY AREA IP WATCH
industry, and etc., and proposed a number of policies and related support measures to attract Hong Kong residents and companies.
The issuance of the document is conducive to unifying the understanding of all departments of the region on the construction of the International Financial Island, and making the construction of the International Financial Island a key task to be jointly promoted by all departments of the region, so as to facilitate the attraction of investment and the promotion of the overall work of the International Financial Island.
Notice of the Administration of Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in Qianhai, Shenzhen on the Issuance of the Implementation Rules for the Special Fund to Support the Development of the Financial Industry (Trial), Shenzhen Qianhai Regulation [2019] No. 11, August 20, 2019.1
On August 20, 2019, the Administration of Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in Qianhai, Shenzhen announced the Implementation Rules (Trial) for Special Funds to Support the Development of the Financial Industry in Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in Qianhai, Shenzhen (hereinafter referred to as the "Implementation Rules"). The “Implementation Rules” are made in accordance with the relevant Shenzhen financial industry support measures, and are seamlessly connected with the identification of headquartered companies and support policies in Qianhai, taking into account the actual development of the financial industry in Qianhai.
The “Implementation Rules” are divided into five chapters and 25 articles, among which articles 4 to 16 are specific policies and measures to support the development of the financial industry, including types of financial enterprises, basic conditions for application and approval, and compliance restrictions. In addition, the implementing rules propose supportive policies including financial incentives, support for issuance costs and subsidies based on the types of companies. It is noteworthy that the
1 Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in Qianhai, Shenzhen: http://qh.sz.gov.cn/syg nan/xxgk/xxgkml/zcfg/gfxwj/201908/t20190823_18174985.htm, last accessed on April 15, 2020. Page 39 BAY AREA IP WATCH
implementing rules came into effect on a trial basis on August 20, 2019 and are valid until December 31, 2020.
Interim Measures of Hengqin New Area of Zhuhai to Support the Development of Guangdong-Macao Demonstration Zone for Cross-border Financial Cooperation (Zhuhai).1
The Interim Measures of Hengqin New Area of Zhuhai to Support the Development of Guangdong-Macao Cross-border Financial Cooperation (Zhuhai) Demonstration Zone was officially issued on August 5, 2019. These measures propose to promote the Guangdong-Macao cross-border financial cooperation in the Hengqin New Area of Zhuhai (“Zhuhai”). The construction of the demonstration zone is a new attempt by Zhuhai to support Guangdong-Macao cross-border financial cooperation and accelerate the development of special financial industries. The document specifies the types of companies that can move into the demonstration zone, proposing to provide certain rental support and subsidies for the purchase of office space for their own use. The measure is also limited in duration, i.e., it will be implemented from August 5, 2019, and will be valid for three years.2
Implementation Opinions of the General Affairs Office of Guangzhou Municipal People’s Government on Promoting Green Financial Reform and Innovation Development in Guangzhou, Suifu Office Letter [2019] 103, July 16, 2019.3
On July 16, 2019, the General Affairs Office of Guangzhou Municipal People’s Government issued the “Implementation Opinions on Promoting Green Financial Reform and Innovation Development in Guangzhou” (hereinafter referred to as the “Implementation Opinions”). Based on the implementation of the "Overall Plan for
1 Zhuhai Hengqin New District Government Portal: http://www.hengqin.gov.cn/hengqin/xxgk/201908/53986fffb 0e84464923e5a9da85a4030.shtml, last accessed on April 15, 2020.
2 Zhuhai: Partnering with Hong Kong and Macao to Sail Away with Internationally Competitive Modern Industri es, http://www.cnbayarea.org.cn/news/focus/content/post_180547.html, last accessed April 15, 2020.
3 People's Government of Guangzhou: http://www.gz.gov.cn/zwgk/fggw/sfbgtwj/content/post_4435518.html, last accessed April 15, 2020. Page 40 BAY AREA IP WATCH
the Construction of Green Financial Reform and Innovation Pilot Zone in Guangzhou, Guangdong Province" and the "Implementation Rules for the Construction of Green Financial Reform and Innovation Pilot Zone in Guangzhou, Guangdong Province", the "Implementation Opinions" investigated the development of the Guangzhou Green Financial Pilot Zone and the development of green financial business and pilot projects, and was formulated in the light of the actual development of green finance in Guangzhou.
The Implementing Opinions set out 22 specific tasks in four major directions. First, deepening green finance reform and innovation. Second, implementing key tasks. Third, exerting the leading role of green finance demonstration in the Guangdong- Hong Kong-Macao Greater Bay Area. Fourth, strengthening the prevention of green finance risks and enhance policy matching and coordination.
2.6. Aerospace
Notice of the Shenzhen Maritime Safety Administration of P.R.C on the Issuance of Certain Measures for Serving the Greater Bay Area Construction and Optimizing the Business Environment to Promote Shipping Development, July 25, 2019.1
On July 25, 2019, the Shenzhen Maritime Safety Administration of P.R.C issued a Notice on "Several Measures for Serving the Greater Bay Area Construction and Optimizing the Business Environment to Promote Shipping Development" (hereinafter referred to as "Several Measures"), proposing a total of 32 measures in four areas, basically covering all areas of maritime regulatory services. The “Several Measures” cover four areas of enhancing the efficiency of government services, innovating post-event supervision, continuously optimizing public services, and supporting the development of the Greater Bay Area, which are conducive to playing a greater role in the construction of industries with distinctive characteristics and advantages in the Greater Bay Area, safe and green development, and
1 Guangdong-Hong Kong-Macao Greater Bay Area: https://www.bayarea.gov.hk/sc/resource/mainland-policies-m easures-20190725b.html, last accessed on April 15, 2020. Page 41 BAY AREA IP WATCH
international maritime influence.
In addition, a number of policies stipulated in the “Several Measures” are closely related to Hong Kong, such as promoting the effective implementation of yachts’ unencumbered visitation in the Guangdong-Hong Kong-Macao region, simplifying immigration procedures for yachts, and exploring a free travel port for yachts in support of international tourism.1
Guangzhou Initiative for the Development of the Airport Economy, signed on November 28, 2019, the development and reform commissions of the provinces (cities) where the 14 airborne economic demonstration zones are located and the administrative agencies of the airborne economic demonstration zones nationwide.2
On November 28, 2019, the National Joint Meeting on the Construction of Airborne Economic Demonstration Zone was held in Guangzhou, which was co-hosted by Guangdong Provincial Development and Reform Commission, Guangzhou Municipality Development and Reform Commission and Guangzhou Airborne Economic Demonstration Zone, and the representatives of each region considered and signed the Guangzhou Initiative on Airborne Economic Development (“Initiative”).
According to the Initiative, each region will seize the important opportunity of the golden age of the development of the airport economy, promote high-quality economic development based on the principles of innovative development, openness and cooperation, mutual benefit and win-win, and reach consensus on strengthening the construction of aviation network hubs, building an industry-city integrated airborne economic zone, promoting the formation of a new pattern of comprehensive openness, deepening reform and innovation of institutional mechanisms, and
1 Shenzhen Maritime Administration Press Conference on Several Measures to Serve the Bay Area Construction and Optimize the Business Environment to Promote Shipping Development, http://www.sznews.com/zhuanti/con tent/2019-11/22/content_22650967.htm, last accessed April 15, 2020.
2 The Guangdong-Hong Kong-Macao Greater Bay Area Portal: http://www.cnbayarea.org.cn/news/focus/content/ post_227359.html, last accessed on April 15, 2020. Page 42 BAY AREA IP WATCH
improving the operation mechanism of cooperation platforms.
The launch of the “Initiative” will help to intensify the exchange, and interaction, and cooperation in the development of the various airborne economic demonstration zones, and will promote Guangzhou as the main external channel of the Guangdong- Hong Kong-Macao Greater Bay Area and the aviation gateway of the 21st Century Maritime Silk Road, making it an international aviation industry city with international competitiveness and a world hub port.
First Plenary Session of Council for Cultural Industries Fund of Macao, April 7, 2020, Social Affairs and Culture of the Macao Special Administrative Region Government.1
On April 7, 2020, the Council for Cultural Industries Fund of the Macao Special Administrative Region Government held its first plenary meeting of 2020. The Secretary for Social Affairs and Culture of the Macao Special Administrative Region Government, Ao leong U, said that since the outbreak of the coronavirus epidemic, the Social Affairs and Culture and the Council for Cultural Industries Fund of the Macao SAR Government have been paying continuous attention to the situation of Macao's cultural and creative industries, and have introduced support measures and schemes to encourage the procurement of cultural and creative products and services, as well as support cultural and creative companies, so as to help each other in overcoming the difficulties together.
It is reported that in response to the impact of the epidemic, the Council for Cultural Industries Fund will defer repayment for one year for 75 funded projects of cultural and creative companies involving a total of MOP 36 million. At the same time, Macao plans to launch a number of special funding schemes, including cultural tourism, community cultural and creative activities, and the promotion of cultural exhibitions and performances in the Greater Bay Area and foreign markets, to assist companies in exploring markets after the epidemic.
1 Guangdong-Hong Kong-Macao Greater Bay Area Portal: http://www.cnbayarea.org.cn/news/focus/content/post _255749.html, last accessed on April 15, 2020. Page 43 BAY AREA IP WATCH
2.7. Other
Huizhou City 2019 Government Work Report, January 13, 2019, People's Government of Huizhou City.1
On January 13, 2020, the People's Government of Huizhou City made public the “Report on the Work of the Huizhou City Government” (hereinafter referred to as the “Work Report”), which reviewed the achievements of Huizhou City in 2019 and made the work arrangements for 2020.
According to the “Work Report”, Huizhou builds high-level industrial clusters with core competitiveness, that is, promoting the construction of clusters in the petrochemical and energy new materials industry, electronic information industry, and life and health industry. Specifically, Huizhou will build a world-class green petrochemical industrial base, refine and deepen the petrochemical and energy in the middle and lower reaches of the industrial chain, promote the application of blockchain technology, the development of big data and new generation of artificial intelligence, and the integration of real economy to make full use of Huizhou's Chinese herbal medicine types, which accounted for one-fifth of the country's resource advantages to gain international influence for the “Huizhou Bay" brand.
In addition, the “Work Report” proposed that the transportation should be used to drive the industry, and that the industry should support the city. Huizhou's emphasis on the development of local industries that will push Huizhou to a new stage in building a first-class city in China.
Notice of the Operational Procedures for Shenzhen's Industrial Internet Development Support Plan (Shenzhen Industrial and Information Technology
1 Shenzhen Government Online: http://www.sz.gov.cn/szzt2010/zdlyzl/jjshzc/content/post_1381122.html, last acc essed on April 15, 2020. Page 44 BAY AREA IP WATCH
Regulation [2019] No. 8), July 15, 2019.1
Following the release of the "Shenzhen Industrial Internet Development Action Plan (2018-2020)" and "Several Measures of Shenzhen on Accelerating the Development of Industrial Internet", the Shenzhen Industrial and Information Technology Bureau of issued the "Operational Procedures for Shenzhen Industrial Internet Development Support Plan" (hereinafter referred to as the "Operational Procedures") on July 15, 2019, to contribute to the promotion of a new round of technological transformation to accelerate industrial transformation and upgrading, and further promote the integration of information and industrial management system.
In recent years, the industrial internet has risen to become a national development strategy and the main direction for implementing the requirements of "promoting the deep integration of the Internet, big data, artificial intelligence and the real economy". As a product of the deep integration of new generation information technology and manufacturing industry, industrial internet is an important foundation for promoting the construction of a strong manufacturing and network nation. On the basis of the "Notice on the Issuance and Distribution of the Shenzhen Industrial Internet Development Action Plan (2018-2020) and Supporting Policies and Measures of the General Office of the People's Government of Shenzhen Municipality" and other documents, the “Operational Procedures” focused on the development of industrial internet as a special support. Specifically, the support plan will focus on industrial internet applications, platform construction, service system, testing and verification environment, service provider cultivation, and etc.
3. Summary and Evaluation
In accordance with the provisions of the Framework Agreement on Deepening Guangdong-Hong Kong-Macao Cooperation in the Development of the Greater Bay Area, the development of the Greater Bay Area should give full play to the industrial advantages of different cities in the Greater Bay Area, promote collaborative
1 Shenzhen Government Online: http://www.sz.gov.cn/szzt2010/zdlyzl/jjshzc/content/post_1381122.html, last acc essed on April 15, 2020. Page 45 BAY AREA IP WATCH
industrial development, and improve the pattern of industrial development. The “Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area” also requires the Greater Bay Area to build a modern industrial system with international competitiveness: Advanced manufacturing, emerging industries, modern service industry, and marine economy.
Accordingly, various cities in the Greater Bay Area have actively implemented relevant policies to promote the development of industries in their own regions, and have achieved remarkable results. For example, Huizhou is accelerating the construction of a "2+1" modern industrial system, while striving to cultivate and expand the Chinese medicine and health industry. In 2018, R&D in Huizhou accounted for 2.3% of GDP. High-tech companies reached 1,108, an increase of 40%. The number of PCT applications reached 360, and the number of 10,000 people owning patents reached 13, and the "Pearl River Talent Plan" innovation and entrepreneurship team increased to 6. 1 Shenzhen has made certain achievements in the electronic information industry, 5G industry, artificial intelligence industry, emergency response industry, according to public data, there are 73,000 companies involved in the IOT businesses, including more than 26,000 IOT companies in Guangdong Province, and 11,000 in Shenzhen alone, with the number of similar companies owned by a single city accounting for more than 14% in the country. Between 2014 and 2015, the growth rate of Shenzhen's IOT industry was close to 90%, and the annual scale growth in 2018 also exceeded 50%. 2 Hengqin's land space, government industrial funds, and other resources are tilted towards Macao's special financial, medical and wellness services, science and innovation industries, and other emerging industries. 3 All these measures are conducive to nurturing
1 Xu Huoqiang: Huizhou will promote the development of "2+1" industrial clusters to provide important support for the Greater Bay Area to build a modern industrial system, Guangdong-Hong Kong-Macao Greater Bay Area Portal: http://www.cnbayarea.org.cn/news/focus/content/post_ 169992.html, last accessed on April 16, 2020.
2 How to transform and upgrade Shenzhen's industries under the background of "dual-district driving"? The Guan gdong-Hong Kong-Macao Greater Bay Area Portal, http://www.cnbayarea.org.cn/news/voices/content/post_2264 13.html, last accessed on April 16, 2020.
3 Zhuhai Hengqin Launches Four Initiatives for Industrial Cooperation with Macao, Guangdong-Hong Kong-Ma cao Greater Bay Area Portal: http://www.cnbayarea.org.cn/news/focus/content/post_165876.html, last accessed o n April 16, 2020. Page 46 BAY AREA IP WATCH
strategic emerging industry clusters and building a platform for industrial cooperation and development.
The industrial policies of cities in the Greater Bay Area focus on areas such as medicine and health, artificial intelligence, e-commerce, specialty financial industries, and aerospace. E-commerce is one of the traditional key development areas in Guangdong Province, while artificial intelligence and 5G are emerging industries. Against the backdrop of economic development and the requirement of implementing the central government's documents, the cities in the Greater Bay Area will pay more attention to the development of these industries. At the same time, with the development of the epidemic, in addition to artificial intelligence technology, medical and health industries and emergency response industries will also become one of the key development fields in the region.
Moreover, in addition to specific industrial policies and corresponding programmatic documents, the establishment of relevant supporting measures are also of concern to the authorities. For example, policies on human and social services have been initiated in various places, such as the "Jiangmen Municipal Human Resources and Social Security Bureau on Several Measures to Support the Employment and Entrepreneurship of Hong Kong and Macao Residents in Jiangmen City" and the "Implementation Measures of the Guangzhou High-level Financial Talent Support Project (Second Revision)".
In general, the industrial development of the cities in the Greater Bay Area should give full play to the advantages of each region, join hands with Hong Kong and Macao, aim at the advanced international standards to improve the level of industrial development, promote complementary advantages, close cooperation and joint development of industries, and strive to cultivate world-class industrial clusters.
（Arrangements and Writing: Xiong Shimin1*）
* Research Assistant of IPIP. Page 47 BAY AREA IP WATCH
Innovation Policy Monitoring in the Greater Bay Area
Opinions of the People's Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Financial Support for the Construction of the Greater Bay Area of Guangdong, Hong Kong and Macao.1
On May 14, 2020, the People's Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange jointly issued the “Opinions on Financial Support for the Construction of the Greater Bay Area of Guangdong, Hong Kong and Macao”. The document, based on the implementation of the “Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area”, emphasizes further promoting financial liberalization and innovation, deepening financial cooperation between the mainland and Hong Kong and Macao, and increasing financial support for the construction of the Guangdong-Hong Kong- Macao Greater Bay Area.
According to the document, the Greater Bay Area should adhere to the four general principles in serving the real economy, cooperating for mutual benefit in a win-win situation, adhering to market orientation, and preventing systemic financial risks, thereby promoting the facilitation on cross-border trade, investment, and financing in the Greater Bay Area, and expanding the opening up of the financial sector. At the same time, the document encourages the launch of equity investment pilots and promote the interconnection and interoperability of financial markets and financial
1 Opinions of the People's Bank of China, China Banking and Insurance Regulatory Commission, China Securitie s Regulatory Commission, State Administration of Foreign Exchange on Financial Support for the Construction o f the Greater Bay Area of Guangdong, Hong Kong and Macao, link: http://www.cnbayarea.org.cn/policy/policy% 20release/ policies/content/post_258474.html, last accessed June 18, 2020. Page 48 BAY AREA IP WATCH
infrastructure. The document further proposes a series of measures that will be conducive to enhancing the supportive and leading role of the Greater Bay Area in the country's economic development and opening up to the outside world.
Notice of the People’s Government of Guangdong Province on the Replication and Popularization of the Sixth Batch of Reform and Innovation Experiences in the China (Guangdong) Pilot Free Trade Zone.1
On May 8, 2020, the People's Government of Guangdong Province issued the Notice of the People's Government of Guangdong Province on the Replication and Popularization of the Sixth Batch of Reform and Innovation Experiences in the China (Guangdong) Pilot Free Trade Zone, which intends to promote the implementation of 11 reform and innovation achievements in the Guangdong Pilot Free Trade Zone in Guangdong Province.
According to the documents, the 7 reform achievements will be replicated throughout the province, covering four areas: Investment facilitation, trade facilitation, transformation of government functions and rule of law, including the establishment of a one-stop service window for international talents, the construction of a joint punishment mechanism for intellectual property infringement, and the promotion of case-handling models that are simple and streamlined, and intensive enforcement in sections. In addition, the 4 reform achievements will be replicated throughout the province except for Shenzhen, including the opening of "Guangdong tax" WeChat tax (fee) services, the promotion of Hong Kong and Macao companies and residents of overseas taxes and fees online processing, thereby allowing the "micro-police" identity authentication platform to be complimentarily connected, and a new model of tax reduction policy inquiry service to be promoted.
1 Notice of the People’s Government of Guangdong Province on the Replication and Popularization of the Sixth Batch of Reform and Innovation Experiences in the China (Guangdong) Pilot Free Trade Zone, link: http://www. cnbayarea.org.cn/policy/policy%20release/policies/content/post_258939.html. Last accessed on June 18, 2020. Page 49 BAY AREA IP WATCH
Guangdong Provincial Party Committee and the People’s Government of Guangdong Province Issues Several Measures for Establishing and Improving Institutional Mechanisms and Policy Systems for Integrating Urban and Rural Development in Guangdong Province.1
On May 8, 2020, in order to implement the spirit of the Central Government's “Opinions on Establishing and Improving Institutional Mechanisms and Policy Systems for the Integrated Development of Urban and Rural Areas”, promote the acceleration of the establishment of a new type of industrial-rural urban-rural relationship in Guangdong Province, and realize rural revitalization and the modernization of agriculture and rural areas, Guangdong Provincial Party Committee and the People’s Government of Guangdong Province issued “Measures for Establishing and Improving Institutional Mechanisms and Policy Systems for the Integrated Development of Urban and Rural Areas”.
According to the document, the reform mainly involves six areas: Urban-rural spatial integration and development; rational allocation of urban and rural elements; equalization of basic public services and infrastructure integration in urban and rural areas; diversified development of the rural economy; rural governance; and sustained growth in farmers' income. At present, on the basis of actively promoting the construction of a national pilot zone for integrated urban-rural development in the Guangzhou-Qingdao junction area, Guangdong Province will select one to two cities and counties to carry out pilot work on integrated urban-rural development at the provincial level, in accordance with the development stages and characteristics of the Pearl River Delta and the eastern, western and northern regions of Guangdong Province, so as to summarize and disseminate typical experiences in a timely manner.
1 Guangdong Provincial Party Committee and Provincial Government Issues Several Measures for Establishing a nd Improving Institutional Mechanisms and Policy Systems for Integrating Urban and Rural Development in Gua ngdong Province, link: http://www.cnbayarea.org.cn/policy/policy%20release/policies/content/post_258104.html and finally Date of visit: 18 June 2020. Page 50 BAY AREA IP WATCH
Notice of Department of Industry and Information Technology of Guangdong Province on Organizing and Promoting "5G + Industrial Internet" Application Demonstration Park Work.1
On April 29, 2020, in order to implement the Ministry of Industry and Information Technology's "5G+Industrial Internet 512 Project Promotion Plan", the Department of Industry and Information Technology of Guangdong Province released the "Guangdong 5G+Industrial Internet Application Demonstration Park Pilot Program (2020-2022)" (hereinafter referred to as the "Pilot Program"), which aims to accelerate the construction of "5G+Industrial Internet" internal and external networks of industrial companies, and deepen the exploration of 5G application scenarios in industrial fields.
According to the “Pilot Program”, the Department of Industry and Information Technology of Guangdong Province will organize the establishment of relevant collaborative work mechanisms to accelerate the construction of the first batch of Guangdong "5G + Industrial Internet" demonstration parks, and at the same time launch the demonstration park construction for the second batch of Guangdong "5G + Industrial Internet" demonstration parks. Industrial internet, as the main scenario for 5G commercial use, is an inevitable way to empower the industrial economy with 5G and the demand for wireless network technology. The “Pilot Program” is conducive to accelerating the transformation and upgrading of traditional industries and the rapid growth and development of new industries in Guangdong Province, and accelerating the digital and intelligent transformation of the industrial economy.
1 Notice of Guangdong Province Department of Industry and Information Technology on Organizing and Promot ing "5G + Industrial Internet" Application Demonstration Park Work, link: http://www.cnbayarea.org.cn/policy/p olicy%20release/policies/ content/post_258055.html, last accessed June 18, 2020. Page 51 BAY AREA IP WATCH
Notice on the Issuance of the Implementation Rules of the Measures to Promote Mutual Recognition and Exchange of Intellectual Property Rights of Guangdong, Hong Kong and Macao in Guangzhou Huangpu District, Guangzhou Development District (Trial) by the Intellectual Property Office of Guangzhou Development District.1
On April 14, 2020, the Intellectual Property Office of the Guangzhou Development District issued the Notice on the Issuance of the “Implementation Rules of the Measures for Promoting Mutual Recognition and Interoperability of Intellectual Property Rights of Guangdong, Hong Kong and Macao (Trial) in Guangzhou Huangpu District Guangzhou Development District” (the "Implementation Rules"). This document is to implement the “Outline Development Plan for the Guangdong- Hong Kong-Macao Greater Bay Area”, the “Three-Year Action Plan (2018-2020) for Promoting the Construction of the Guangdong-Hong Kong-Macao Greater Bay Area in Guangzhou Development District”, and the “Measures for Promoting Mutual Recognition and Exchange of Intellectual Property Rights of Guangdong, Hong Kong and Macao (Trial Implementation) in Guangzhou Huangpu District, Guangzhou Development District”, to better guide the implementation of the policies, and to help companies, individuals and organizations to correctly understand the measures, and grasp the relevant provisions.
The “Implementing Rules” covered the general provisions, service organization settlement awards, intellectual property practitioner qualification awards, intellectual property arbitration funding, arbitration mediator awards, dispute mediation organization funding, intellectual property rights protection funding, intellectual property financial supermarket funding, intellectual property rights guarantee financing subsidies, and intellectual property finance leasing subsidies, intellectual securities financing subsidies, and intellectual property thematic activity support, and
1 Notice on the Issuance of the Implementation Rules of the Measures to Promote Mutual Recognition and Excha nge of Intellectual Property Rights of Guangdong, Hong Kong and Macao in Guangzhou Huangpu District, Guan gzhou Development Zone (Trial) by the Intellectual Property Office of Guangzhou Development Zone, link: http: //www.cnbayarea.org.cn/policy/policy%20release/policies/content/post_ 256626.html, last accessed on June 18, 2 020. Page 52 BAY AREA IP WATCH
made detailed provisions in terms of achieving equivalence recognition. The purpose is to establish a channel for the recognition of the intellectual property rights of Hong Kong and Macao or Singapore, clarify means of implementation and conditions of support for the various supporting policies of the Measures, and ensure that the Measures can truly play a role in the mutual recognition and interoperability of intellectual property rights of Hong Kong and Macao or Singapore.
Bureau of Science, Industry and Information Technology of Guangzhou Tianhe District on the issuance of Guangzhou Tianhe District Trial Measures for the Creation of Technology Achievement Transformation Base.1
On April 8, 2020, the Bureau of Science, Industry and Information Technology of Guangzhou Tianhe District issued the “Notice on the Publication of the Trial Measures for Building a Technology Achievement Transformation Base in Tianhe District, Guangzhou” ("Trial Measures").
The “Trial Measures” will come into effect from the date of promulgation and will be valid until December 31, 2023. The content of the support is mainly grouped into five areas: Office rent subsidy, event venue rent subsidy, performance assessment incentives, referral incentives, and industry-university-research incentives. Tianhe District will build an international base for the transformation of scientific and technological achievements, technology business incubation, technology finance and human resources services." 2
1 Bureau of Science, Industry and Information Technology of Guangzhou Tianhe District on the issuance of Guan gzhou Tianhe District Trial Measures for the Creation of Technology Achievement Transformation Base, link: htt p://www.cnbayarea.org.cn/policy/policy%20release/policies/content/post_256549. html, last accessed on June 18, 2020.
2 Zhu Hanbin Fu Feng: "Guangzhou Holds 2020 Baytron Cloud High Enterprise Policy Explanation Service Acti vity", link: http://news.sciencenet.cn/htmlnews/2020/4/438826.shtm, last accessed on June 18, 2020. Page 53 BAY AREA IP WATCH
Notice of the People's Government of Guangzhou Municipality on the Issuance of Several Measures to Accelerate the Creation of a Digital Economy Innovation-Leading City in Guangzhou.1
On April 2, 2020, the People's Government of Guangzhou Municipality issued the “Notice on the Issuance of Several Measures to Accelerate the Creation of a Digital Economy Innovation-Leading City in Guangzhou” ("Several Measures"), which aims to fully implement the important speeches and instructions of General Secretary Xi Jinping on accelerating the construction of a digital China, advancing the innovative development of the digital economy, and building a new ecology of the digital economy with data as the key element.
The "Several Measures" put forward 22 policies and measures in seven areas, including national positioning, future technologies, key carriers, improved facilities, industrial support, international opening and key elements. The proposed measures are conducive to the sustained economic growth of Guangzhou in the prevention and control of the current pandemic and its future development, and will accelerate the development of Guangzhou into a testing ground for the circulation of digital elements in Guangdong, Hong Kong and Macao, a national source of core digital technologies, and a new benchmark for the transformation of the global digital industry.
Notice on Several Policies and Measures to Promote Innovation and Development of Biomedicine from Nine Departments Including Department of Science and Technology of Guangdong Province (“Notice”).2
On April 3, 2020, nine (9) departments, including the Department of Science and Technology of Guangdong Province, jointly issued the “Notice on Certain Policies
1 Notice of the People's Government of Guangzhou Municipality on the Issuance of Several Measures to Acceler ate the Creation of a Digital Economy Innovation-Leading City in Guangzhou, link: http://www.cnbayarea.org.cn /policy/policy%20release/policies/content/post_256546.html, last visited date: June 18, 2020.
2 Notice on Several Policies and Measures to Promote Innovation and Development of Biomedicine from Nine D epartments Including Guangdong Provincial Science and Technology Department, link: http://www.cnbayarea.or g.cn/policy/policy%20release/policies/content/post_257180.html, last accessed on: 18 June 2020. Page 54 BAY AREA IP WATCH
and Measures to Promote the Innovative Development of Biomedicine”, aiming to use the biomedicine industry to promote the high-quality development of the biomedicine industry in Guangdong Province, with the original innovation capacity and international competitiveness of biomedicine as the focus.
The “Notice” aims to coordinate the layout of biomedical innovation and development, strengthen the supply of key core technologies, accelerate the construction of major biomedical research and experiment platforms, foster the development of biomedical industrial parks and backbone enterprises, actively connect with domestic and foreign high-end biomedical science and technology innovation resources, promote the efficient cross-border flow of biomedical innovation elements, improve the incentive mechanism for biomedical product research and development and clinical trials, optimize the development of pharmaceutical products, and promote the development of the biomedical industry in Guangdong Province. In addition, the government is committed to promoting the registration and application of biomedical devices, strengthening the protection of high-level biomedical talents, strengthening the ethics of science and technology and biosafety management, and emphasizing that the biomedical industry should improve its biosafety governance capacity to protect people's life safety and health.
Biomedicine is one of the key strategic emerging industries in Guangzhou. At present, Guangzhou biomedical industry has an obvious gathering trend, forming a "three centers and multiple regions" with Guangzhou Science City, Sino-Singapore Guangzhou Knowledge City and Guangzhou International Bio-island as the core, and health medical center, international health industry city, international pharmaceutical port and other industrial characteristics parks developing in a coordinated manner." In the past few years, Huangpu District and Guangzhou Development District have become the "main battlefield" of the biomedical industry in Guangzhou. 1
1 Xu Jing: "Guangzhou biomedical industry innovation kinetic energy sufficient development momentum", link: http://www.gd.xinhuanet.com/newscenter/2020-01/10/c_1125447016.htm, last accessed on 2020 18 June. Page 55 BAY AREA IP WATCH
Notice of the Leading Group of the Shenzhen Municipal Committee of the Communist Party of China for Promoting the Construction of Guangdong- Hong Kong-Macao Greater Bay Area on the Issuance of the Opinions on Strongly Supporting the Participation of Social Forces in the Construction of Guangdong-Hong Kong-Macao Greater Bay Area and the Demonstration Pilot Zone for Socialism with Chinese Characteristics.1
On March 31, 2020, the Leading Group of the Shenzhen Municipal Committee of the Communist Party of China for Promoting the Construction of the Greater Bay Area issued the “Opinions on Strong Support for the Participation of Social Forces in the Construction of the Greater Bay Area and the Demonstration Pilot Zone for Socialism with Chinese Characteristics” (hereinafter referred to as "Opinions"). The “Opinions” emphasize that the decisive role of the market in allocating resources and the guiding role of the government should be fully brought into play, so as to stimulate the vitality of various market players, unleash the "dual-zone driving effect" and provide greater support for various market players to actively participate in the construction of the "dual-zone".
Establishing the Greater Bay Area and supporting Shenzhen in building a demonstration pilot zone for socialism with Chinese characteristics is a major national strategy personally promoted by General Secretary Xi Jinping. The “Opinions” will implement the guiding ideology and basic principles of the “Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area” and the “Opinions on Supporting Shenzhen in Building a Demonstration Pilot Zone for Socialism with Chinese Characteristics”, emphasizing the investment of social forces in deepening reform and widening liberalization, devoting to the development of higher standards of scientific and technological innovation, participating in the construction of infrastructure interconnection and intercommunication, developing
1 Notice of the Leading Group of the Shenzhen Municipal Committee of the Communist Party of China for Prom oting the Construction of Guangdong-Hong Kong-Macao Greater Bay Area on the Issuance of the Opinions on St rongly Supporting the Participation of Social Forces in the Construction of Guangdong-Hong Kong-Macao Great er Bay Area and the Early Demonstration Zone of Socialism with Chinese Characteristics, link: http://www.cnba yarea.org.cn/policy/policy%20release/policies /content/post_258940.html, last accessed June 18, 2020. Page 56 BAY AREA IP WATCH
strategic emerging industries, participating in financial innovation and development, deepening cooperation with international and regional organizations, engaging in the “the Belt and Road Initiatives” and other aspects, and actively supporting youth exchanges between Shenzhen, Hong Kong and Macao, as well as innovation, entrepreneurship and employment among young people from Hong Kong and Macao.
Notice on Foreign Exchange Management to Support the Development of the Guangdong-Hong Kong-Macao Greater Bay Area and the Shenzhen Demonstration Pilot Zone.1
On April 24, 2020, the Guangdong Branch of the State Administration of Foreign Exchange and the Shenzhen Branch of State Administration of Foreign Exchange issued the “Notice on Foreign Exchange Management Support for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area and the Shenzhen Demonstration Pilot Zone”. The document points out that the Guangdong- Hong Kong-Macao Greater Bay Area and the Shenzhen Demonstration Pilot Zone will carry out pilot reform of external debt registration and management, pilot transfer of domestic credit assets, allow companies to adjust the selected external debt management model, and at the same time relax the requirement that the contract currency, withdrawal currency and repayment currency of cross-border financing of non-financial enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area must be consistent. In addition, eligible companies in the Greater Bay Area may pilot the facilitation of payment of foreign exchange income from capital projects, and the procedures for payment of domestic funds under capital in the Greater Bay Area will also be simplified.
By the end of March 2020, a total of 77 companies in Guangdong Province (including Shenzhen) had registered for one-time foreign debt, integrating foreign funds totaling US$884 million; 276 companies had facilitated the payment of foreign exchange income from capital projects, amounting to US$3.62 billion; and banks
1 Notice on Foreign Exchange Management to Support the Development of the Guangdong-Hong Kong-Macao Greater Bay Area and the Shenzhen Demonstration Pilot Zone, link: http://www.cnbayarea.org.cn/policy/policy% 20release/policies/content/post_257098.html, last accessed on June 2020 Month 18. Page 57 BAY AREA IP WATCH
had facilitated five payments of funds under capital by simplifying payment procedures, amounting to a total of US$82.521 million.1
Bureau of Science and Technology of Guangzhou Municipality and Bureau of Science and Technology of Foshan Municipality issued the Notice on Promoting the Work Plan of Guangdong-Foshan Science and Technology Innovation Cooperation.2
On March 26, 2020, Bureau of Science and Technology of Guangzhou Municipality and Bureau of Science and Technology of Foshan Municipality formally signed the "Work Plan on Promoting Guangdong-Foshan Science and Technology Innovation Cooperation" (hereinafter referred to as "Plan").
The “Plan” proposes seven tasks, namely, exploring the establishment of a special zone for Guangdong-Foshan cooperation in science and technology, building a number of trillion-dollar industrial clusters, exploring the joint establishment of the Guangdong-Foshan Science and Technology Fund, promoting the cooperation between Guangdong and Hong Kong universities in running schools in Hong Kong and Macao, building the Guangdong-Foshan Science and Technology Achievement Transformation Ecosystem, and promoting scientific and technological financial exchanges and cooperation. According to the “Plan”, the two cities will actively explore new paths and new modes of urbanization development to build Guangdong- Foshan into a national demonstration zone for urbanization development, a core hub for cooperation among Guangdong, Hong Kong and Macao, and a national highland for services and advanced manufacturing.
Judging from the series of cooperation items proposed in the “Plan”, these measures will provide residents of Guangzhou and Foshan with a more livable and workable
1 "Notice on Foreign Exchange Management to Support the Development of the Guangdong-Hong Kong-Macao Greater Bay Area and the Shenzhen Pilot Demonstration Zone", link: http://m.cnr.cn/news/20200424/t20200424_ 525067042.html, last accessed on 2020 June 18, 2010.
2 Bureau of Science and Technology of Guangzhou Municipality and Bureau of Science and Technology of Fosha n Municipality issued the Notice on Promoting the Work Plan of Guangdong-Foshan Science and Technology Inn ovation Cooperation, link: http://www.cnbayarea.org.cn/policy/policy%20release/policies/content/post_256548.h tml. Last accessed on June 18, 2020. Page 58 BAY AREA IP WATCH
model for urban development in the Greater Bay Area. As an important pole of the Greater Bay Area, Guangdong, Hong Kong and Macao, Guangzhou and Foshan will also drive the joint development of the surrounding cities.
Notice of People's Government of Dongguan Municipal on the Issuance and Distribution of the Outline of the Medium- and Long-term Development Plan for the Modern Industrial System in Dongguan (2020-2035).1
On March 27, 2020, the General Affairs Office of the People's Government of Dongguan City issued the "Notice of the People's Government of Dongguan City on the issuance of the medium- and long-term development plan outline of the modern industrial system of Dongguan City (2020-2035)".
The document summarizes the current foundation and environment of Dongguan's industrial development from three aspects: Overall characteristics, major problems, and the situation facing the city. The document points out that Dongguan will vigorously develop new industries in 2020-2035 in the field of new-generation information technology, high-end equipment manufacturing, new materials, new energy, life sciences and biotechnology, and accelerate the development of modern financial, science and technology services and other modern service industries, as well as advance the layout of new concepts of materials, quantum information, brain-like intelligence, general aviation and aerospace four types of future industries.
At the same time, the People's Government of Dongguan City will build a modern industrial system of "three levels and three zones" in the overall layout, and focus on upgrading the "seven industry-bearing areas", with emphasis on the construction of three major support systems, the implementation of five upgrade projects, and the construction of three major cooperation mechanisms.
1 Notice of People's Government of Dongguan Municipal on the Issuance and Distribution of the Outline of the Medium- and Long-term Development Plan for the Modern Industrial System in Dongguan (2020-2035), link: htt p://www.cnbayarea.org.cn/policy/policy%20release/policies/content/post_256555.html. Last visit date: June 18, 2 020. Page 59 BAY AREA IP WATCH
（Organized by Xiong Shimin1*）
* Research Assistant of IPIP. Page 60 BAY AREA IP WATCH
Priority Case Monitoring in the Greater Bay Area
Ali Literature and Shenma Search jointly infringed on Xuan Ting's information network communication rights.
I. Summary of the Facts
In 2016, the operator of the original literary portal in "Starting Point Chinese Website", Shanghai Xuan Ting Entertainment Information Technology Co., discovered that internet users can log into the Shuqi Novel’s Mobile APP and through Shenma’s APP search, read Xuan Ting's novels online, including "Three Realms Blood Song", "Nine Heavy Purple", "School Flower's Personalized Expert", and etc. Additionally, through the Starting Point Chinese Website, users can download Xuan Ting's novels into the mobile phones for offline reading by in the form of "caching all". As a result, Xuan Ting filed a lawsuit for infringement of the right of information network dissemination of works against Guangzhou Alibaba Literature Information Technology Company Limited ("Ali Literature"), the operator of Shuqi Novel, and Guangzhou Shenma Mobile Information Technology Company Limited ("Shenma Search"), and the evidence was preserved.
In 2018, the case was transferred from the Haidian District People's Court of Beijing City to the Tianhe District People's Court of Guangzhou City (hereinafter referred to as the Tianhe Court) for trial. The Tianhe Court found that the defendants' actions infringed Xuan Ting's information network communication rights, that Ali Literature and Shenma Search had a common meaningful contact and committed infringement together, and that they should be held jointly liable for infringement. The two defendants did not accept the first instance judgment and appealed to the Guangzhou Intellectual Property Court.
In November of 2019, the Guangzhou Intellectual Property Court rendered a final Page 61 BAY AREA IP WATCH
judgment, finding that the defendants Ali Literature and Shenma Search jointly infringed the plaintiff Xuan Ting's right to enjoy the information network distribution of the works, and ruled that the appeal was rejected and the original judgment was upheld, requiring Ali Literature and Shenma Search to stop the infringement, and to compensate the plaintiff for the economic loss and its related reasonable expenses of maintaining the rights.
The case found that the platform and the search engine jointly infringed and bore joint and several liability, which was called by the media as the first case in the field of information network dissemination right dispute in which the client platform and the search engine jointly infringed.
Ⅱ. The Focus of the Case
There are two main points of contention in this case. The first point is whether the browsing or caching of the novels provided by the Shenma Search constitutes a direct infringement. The second point is whether Ali Literature and the Shenma Search constitute a joint infringement. 1
On the first point of contention, Shema Search argued that it only provides automatic storage service, denied the works in question stored in the servers of the Shema Search, and used "safe harbor principle" and other reasons for the defense. The Tianhe court held that the works in question could be read normally in the Shenma Search, and after clicking on the third-party website marked in the works in question, the website of the jumping page was inconsistent with the source website marked, and the page or display error, or display the novel did not exist, or the jumping page was not the novel reading interface, which was inconsistent with the technical characteristics of search, link, real-time transcoding and system cache. Therefore, according to Article 3 of the “Provisions of the Supreme People's Court on Several Issues concerning the Application of Law in Hearing Civil Dispute Cases Involving
1 Guangzhou Intellectual Property Court Finds Ali Literature and Sleipnir jointly infringed Xuan Ting's Informati on Network Dissemination Right--The Pain of Online Literature Industry Piracy Needs to be Solved, China IP N ews/China IP News, Link: http://www.cipnews.com.cn/Index_ NewsContent.aspx?NewsId=122521, last accesse d May 20, 2020. Page 62 BAY AREA IP WATCH
Infringement of the Right of Dissemination on Information Networks”, Shenma Search provided the works in question to users through the information network without the permission of Xuan Ting, which constituted an infringement of Xuan Ting's information network dissemination rights.
On the second point of contention, the Tianhe court held that, subjectively, the Shenma search engine is the only search engine embedded with Shuqi Novel’s APP, and such search should know or should have known that users can be provided with online reading and downloading of the works in question, and therefore found that there is a common meaning contact. Objectively, first, the novel APP directly provides users with online reading of novels, and can jump to a third-party service according to the user’s choice and use Shenma Search, yielding a search result that shows “Shenma novel”, that indicates an in-depth cooperation between the two parties. Second, the Shuqi novel APP uses Shenma Search to broaden the source of users and improve the number of visits, thereby sharing benefits with Alibaba Literature as a result. According to Article 4 of the “ Provisions of the Supreme People's Court on Several Issues concerning the Application of Law in Hearing Civil Dispute Cases Involving Infringement of the Right of Dissemination on Information Networks”, the court found that Ali Literature constituted common infringement.
Ⅲ. Impact of the Case
The Chinese Academy of Social Sciences released the 2019 Online Literature Development Report, based on data from the Reading Group, which shows that online literature users have reached 455 million and domestic online literature creators have reached 17.55 million. However, according to the latest accounting data from iResearch's China Online Literature Piracy Loss Model, the overall piracy loss scale of China's online literature in 2019 was 5.64 billion yuan. It can be seen that the online literature industry has a huge volume of reader groups and creative groups, with huge market capacity and development potential, but it is plagued by infringement and piracy.
The case, which was the first of its kind in China, found that the client platform and Page 63 BAY AREA IP WATCH
the search engine jointly infringed and bore joint and several liability, and effectively cracked down on the industry's illegal behavior of infringing intellectual property rights under the "safe harbor principle". Zhu Ruilong, legal counsel of the Reading Literature Group (a subsidiary of the Xuan Ting Company), said that winning the case is not only an individual victory, but also beneficial to the healthy development of the online literature market, and has a guiding and reference significance for future rights holders to carry out their rights protection work and the trial of other similar cases. 1
（Organized by Liang Xinran 2*）
1 First Case: Client Platform and Search Engine Constitute Joint Infringement, China Intellectual Property, link: h ttp://www.chinaipmagazine.com/news-show.asp?24825.html, last accessed May 20, 2020.
* Director, Administrative Office of IPIP. Page 64 BAY AREA IP WATCH
Internet Business Innovation Patent Trends Watch Report (2019 Edition) 1
1. Background of the Report
The “Patent Trend Observation Report on Internet Technology Innovation (2019)” is an annual report on patent observation of internet companies jointly published by the Internet Law Center of Peking University and Northwestern University School of Law/Institute of Intellectual Property, which mainly analyzes the active areas of corporate technology innovation by observing the trend of changes in the patent data of internet companies.
The first issue of this report was released on April 26, 2014, followed by the 2015 edition of the report, 2016 edition of the report, and 2017-2018 edition of the report. The 2019 edition of the report formed a more comprehensive conclusion based on the previous data. The report selects 21 companies involved in the internet technology sector that are most active in the Chinese market, and observes their patent application status and innovation capabilities from different dimensions. The report focuses on the trends of patent application, patent layout and innovation capability of the companies. The deadline for data retrieval in the main report and appendix of this report is December 26, 2019.
The full text of the report was first published online for the first time in April of 2020. A brief summary of the report is set forth below.
1 Institute of Intellectual Property Development in the Guangdong-Hong Kong-Macao Greater Bay Area, Beijing University. Observation Report on Innovation Patent Trends of Internet Companies (2019 Edition) [R]. Guangzhou, 2020. Page 65 BAY AREA IP WATCH
2. Summary of the Report
The survey of 21 companies: Baidu, Google, Facebook, Qihoo 360, Tencent, Xiaomi, Alibaba, Amazon, Youku, Hon Hai Precision, Huawei, Lenovo, Microsoft, Nokia, ZTE, IBM, TCL, Samsung, Sony, Qualcomm, and Jingdong. Samsung, Qualcomm and Huawei, from South Korea, the United States and China, respectively, are among the top three companies in terms of patent applications.
In the field of artificial intelligence, the layout for Microsoft, IBM, Samsung and Sony is strong. Among the Chinese companies, Baidu, Huawei and Tencent continue to invest, but the number is relatively small.
The trade secret system in the Sino-US trade war has become a focus of attention for both sides. According to the trade agreement, China's trade secret system will be more inclined to protect rights holders in the future. In the internet field, considering that the proper mobility of inventors is conducive to the innovation dynamism of the internet industry, future modifications to the Chinese trade secret system should consider preventing rights holders from abusing their rights and hindering the innovation of the internet industry.
In some cases, patent applications are not directly proportional to business operations. With the development of Nokia and other companies whose core business is patent licensing, companies in the field of communications, that is, those involved in technical standards, will maintain a relatively stable patent application behavior, regardless of their business conditions, in order to prepare for the unexpected.
The impact of product patents on the Internet industry is mainly reflected in the impact on the persistence and industry strategy of corporations. That is to say, companies that need lasting innovation and have the potential to become industry giants need patents more. However, for some emerging internet companies, the importance of traffic and user viscosity is much higher than the number of patents. Page 66 BAY AREA IP WATCH
Still, there will be other IP issues involved, such as the copyright of short videos and live broadcasts.
There are two main reasons for foreign companies filing patent applications in China, which account for about 10% of the total number of patent applications in the world. From this point of view, the "withdrawal of foreign companies from the Chinese market" may not have much impact on local innovation activities.
As more and more companies began to focus on overseas patent layout, the traditional ICT companies of Huawei and ZTE pay more attention to foreign markets, the global patent layout of Alibaba, Tencent and Xiaomi is gradually strengthening, and the overseas patent layout of Jingdong and 360 still need to strengthen. In terms of data performance, the most direct demand for Chinese companies’ overseas patent layout comes from litigation rather than sales.
3. Basic Conclusions
This report examines the opportunities and risks facing China's Internet industry from a macro perspective of industry development by taking into account the product innovation, economic volume, and the direction of development of companies, and draws the following conclusions based on the data observed over the years.
Viewpoint 1: In the field of artificial intelligence, Microsoft, IBM, Samsung and Sony have a strong presence, and among Chinese companies, Baidu, Huawei and Tencent are also continuing to invest in it, but in relatively small numbers.
The International Classification of Patent Applications G06F and H04L are two categories of core technology in the field of interconnection, which mainly relate to electronic data processing technology and digital information transmission technology, of which the broad group "G06F 17/00" relates to digital computing devices or data processing devices or data processing methods that are particularly suitable for specific functions, while the large group "H04L 29/00", which deals with devices, equipment, circuits and systems for the transmission of digital information, Page 67 BAY AREA IP WATCH
have become core technologies for internet companies. The gradual increase in the proportion of patent applications filed by internet companies in these two categories also reflects the layout of technological innovation in the direction of artificial intelligence, voice interaction, and data processing.
A honeycomb chart shows the distribution of patents by technology topic, with each small honeycomb cell indicating one or more patents related to a technology topic. Under the topics of neural networks, machine learning, cognition, and natural language themes, the top five companies have a large number of related patents. Under the subject of machine learning, Microsoft leads in the number of relevant patents. Under the subject of cognitive and natural language, IBM dominates with significantly more relevant patents than any other company. In addition, Microsoft focuses on researching the application of artificial intelligence technology in user interface, while Samsung focuses on researching the application of artificial intelligence technology in wireless communication and communication base station. In terms of the number of patents and the litigation situation, IBM, Microsoft, Page 68 BAY AREA IP WATCH
Samsung, Sony and Google are in the leading position in the market. The Chinese companies, Huawei, Baidu and Tencent have a certain number of patent layouts, but there is still a gap compared to the aforementioned dominant companies.
Viewpoint 2: The trade secret system in the Sino-US trade agreement will affect the talent flow and innovation dynamics of Internet companies.
China's trade secret system has become the focus of attention for both sides in the Sino-US trade war. According to the first phase of the Sino-US trade agreement, China's trade secret system will change in the future in terms of burden of proof and scope of rights holders. In general, China's trade secret system will be more inclined to protect the rights holders, that is, when an employee quits in favor of another opportunity, the employee has a higher obligation to protect the company's trade secrets. In other words, the rights holder only needs to submit basic evidence in court proceedings, and the employee who quits in favor of another opportunity needs to prove that he or she did not infringe on the trade secrets. If the employee is ultimately found to have infringed on the trade secrets, he or she may face tougher penalties.
Considering such changes, this report has conducted statistics and analysis on the core inventors of the 21 companies, and excluded any disclosure related to the personal privacy as well as the trade secrets of the companies. However, it can be seen that among the top-ten inventors from the 21 companies, about 50% have left their respective company. This data only reflects the mobility of core technical staff within the internet companies. Still, the mobility of ordinary technical staff within the internet companies is much higher than this percentage. According to the "2018 Young White Collar Job-hopping Research Report" released in September 2018 by 58 Tongcheng, the highest job-hopping rate in the administrative, internet and sales industries, accounting for 16.4%, 14.8% and 12.2% respectively. Computer/internet/communications are high-frequency job-hopping industries, with the frequency of job-hopping rate as high as 33.3% in less than a year of work.
The above data can be seen that the mobility of employees in Internet companies is Page 69 BAY AREA IP WATCH
very high, and in fact this high mobility is in line with the characteristics of internet companies with fast renewal and fierce competition. In the “2016 Internet Technology Innovation Patent Observation Report”, it was pointed out that internet companies have a technology update cycle of about every 3 years, and this report even pointed out that with the development of artificial intelligence technology, technologies such as neural networks and deep learning will bring a new round of development to the internet industry. In fact, an overly strict trade secret protection system is not necessarily conducive to the development of the internet industry. A trade secret protection system that is too biased in favor of the rights holder will likely make companies abuse that right to prevent the normal flow of employees and hinder normal market competition behavior. This kind of behavior has actually appeared in the current practice, because China's trade secret system has both civil and criminal protections. Theoretically, a small amount of loss is part of the civil case, but in practice companies will take different calculation methods, or other unreasonable means, to deliberately raise their own losses to achieve the use of criminal protection route in combating job-hopping employees and competitors, namely the unreasonable protection method of “criminal before civil” in the field of trade secrets. One should consider that the excessive levels of trade secret protection may be inversely proportional to the turnover of a firm's employees, and that the mobility of technical employees in the Internet industry is directly proportional to the Internet industry's ability to innovate. Therefore, from the available data, it is observed that, with the changes in China's trade secret regime following the Sino-US trade agreement, technical staff in the internet sector are likely to generate more trade secret disputes.
Viewpoint 3: Analysis of the Impact of the Patent System on Companies.
(1) Patent application is not directly proportional to enterprise operation. With the development of patent licensing as the core business of NPE and Nokia, companies in the field of communication, that is, companies involved in technical standards, regardless of their business conditions, will maintain a relatively stable patent application behavior in case of emergencies. Page 70 BAY AREA IP WATCH
This is reflected in the data for three Chinese companies, ZTE, TCL, and Lenovo. These three companies from China have seen little change in the number of patent applications per year since observation, which on the one hand indicates that they have a more stable internal research effort, and on the other hand, indicates that these companies have suffered some recent setbacks in their business activities, especially after ZTE was sanctioned by the US government in 2018 which greatly impacted its business activities, but yet the number of patent applications is unaffected.
Such is more pronounced in the communications sector, which involves technical standards, with a classic illustrated case involving Nokia. Nokia sold its entire mobile phone business to Microsoft in 2012 due to its mismanagement, retained only its patents, and continued to file patent applications in the communications field, thus becoming a company with managing patents as its core business. With the development of companies like Nokia, there will be more companies in the future with protection, litigation and licensing rights as the core profit model in the field related to technical standards. Then, patents will no longer be an indicator to evaluate the innovation ability of the companies, but rather as an indicator of corporate profitability.
(2) Litigation may become the core factor affecting the layout of a company's patent.
There is a certain connection between the market layout of the company and the country where the patent application is filed. The company will usually first choose the head office of the registered country for the patent layout, followed by the production, manufacturing and sales of its products. Still, the region involved in a patent litigation is becoming a focus in a company’s patent layout. But for the large Internet companies, their production, manufacturing and sales are basically at a more stable state, and therefore their patent litigation locations have a greater impact to their respective patent layout. Among the 21 companies observed, the patent layouts of Chinese and American companies fully reflect the influence of their respective patent litigations. Page 71 BAY AREA IP WATCH
First of all, the companies from China, based on the analysis of the comparison between the companies' international application volume and China's application volume, can see that although China is the main patent application country, with the development of the internationalization of companies, the proportion of its Chinese patent application volume gradually decreases, especially overseas companies with patent litigation, the number of overseas patents is significantly higher than the similar companies with similar degree of internationalization. Data in recent years showed that within Chinese companies, Huawei and ZTE gave more attention to their foreign markets, whereas Alibaba, Tencent and Xiaomi have gradually strengthened their patent global layouts, and Jingdong and 360 still need to strengthen their overseas patent layout.
Secondly, in the case of companies from the United States, there is no clear relationship between the degree of corporate internationalization and the number of patents. Although the foreign companies in this report, especially those from the US, have applied for patents in China, the number of patent applications in China has remained relatively stable and low over the past six years. Although these firms have been active in China, there is no corresponding "active" patent data. There are two possible reasons in view of the patent litigation data: First, because of their strong industry positions and legal teams, most of these companies are reluctant to initiate litigation in China's litigation environment because they adhere to the "peace and harmony" competition strategy. Next, there are no strong NPEs in China yet. Although there are some NPEs in China that have initiated litigation, compared to the litigation initiated by NPEs in the US, local NPEs in China are still trying to survive. That is, there is not yet a large-scale and well-disciplined litigation, and no NPEs have emerged that can challenge large corporations. It is common for local Chinese NPEs to engage in behaviors such as issuing extensive infringement letters, lower claim amounts, easy settlements, and using criminal cases to force rivals to settle. It is noteworthy that with the refinement and improvement of China's IP judicial system, Chinese NPEs will gradually develop into a group of companies with scale, and as these companies continue to initiate infringement lawsuits, they Page 72 BAY AREA IP WATCH
will give rise to an increase in the number of patent applications filed by foreign companies in China.
(3) There are two main reasons why foreign companies' patent applications in China account for about 10% of their global applications. First, their major research and innovation activities are located in their home countries. Second, the cost of patent litigation in China is much lower than that in the United States. From such point of view, the "withdrawal of foreign companies from the Chinese market" has little impact on local innovation activities.
Looking at six years of data, foreign companies account for about 10% of patent applications in China, which is reflected in the data of Samsung, Apple, Qualcomm, Amazon, and Microsoft. There are two main reasons for such. On the one hand, although these companies have corresponding companies and some R&D centers in China, their core R&D work is mainly concentrated in their home countries, rendering sales and manufacturing activities as their main focus in China. On the other hand, as mentioned above, since these companies do not encounter more patent disputes initiated by the NPEs in China, they do not apply for a large number of patents in China, and it appears that the roughly 10% application quantity is a defensive strategy to only pursue core patents.
In recent years, with the escalating trade friction between the US and China and the global economic downturn brought about by the pandemic, there have been reports of "US companies withdrawing from the Chinese market". On the one hand, the withdrawn companies themselves do not have much research and innovation work in China. On the other hand, the withdrawal of these companies will lead to a higher demand for innovation in China, which may bring more innovation opportunities for local companies.
(4) The impact of patents on the Internet industry is mainly reflected in the impact on the persistence of companies and industry strategy.
Through the analysis and observation of patent data of key Internet companies for Page 73 BAY AREA IP WATCH
six consecutive years, it has been found that not all internet companies have a large number of patents, and often emerging internet companies that are developing rapidly do not have many patents, indicating that the demand for patents is low in the internet field. The early success of these companies is often based on the innovation of business models or the traffic brought by user viscosity, so it can be said that patents are not the basic elements of the survival for internet companies, but traffic is the law of survival of internet companies. This is more evident in the internet companies that have not been observed in this report. As shown in the chart below, a few rapidly developing internet companies that have not been included in the previous reports due to their small numbers have been selected for patent analysis. Nonetheless, their financing and development were not impacted. Such indicated that the technological innovation is not the basis for these companies’ survival.
Global application Application No. Company volume volume in China 1 DIDI 1928 949 Pin DuoDuo 2 Shanghai dream seeking information 0 5 technology 3 Ctrip 790 747 4 Bilibili 109 94
5 BEIJING BYTEDANCE NETWORK 1715 1411
6 THREE FAST ONLINE 1049 1048
WUHAN DOUYU NETWORK 7 2531 2262 TECHNOLOGY CO., LTD.
However, in line with the survival of the fittest among internet companies, the need for enduring innovation for companies with potential of becoming industry giants means that they need more patents. It can be seen that not all of the companies selected for previous years' reports are technology-based companies, such as e- Page 74 BAY AREA IP WATCH
commerce companies in Jingdong and Alibaba. As seen in the past data, these companies are not technology-based companies, but their patent numbers are actively rising during companies’ later periods of rapid development, such as listing in the United States and entering overseas markets. Such increase in the number of patents is due to both internal and external reasons. The internal reason on the one hand is that the innovation of the business model means that the business model needs to be constantly combined with the development of new technologies in order to have lasting innovation, and the combination with new technologies has led to an increase in the number of patents. The external reason on the other hand is that the companies are facing patent disputes, whether from NPEs or from competitors. Patent lawsuits, companies that become industry giants need enough patents to deal with these patent disputes that can hinder the company's growth. Therefore, as internet companies mature and develop, patents will become more and more important to them. Finally, it is worth mentioning that although traffic and user viscosity are far more important to emerging Internet companies than the number of patents, emerging internet companies are often involved in other intellectual property concerns, such as the copyright issues faced by short videos, live streaming and other apps.
Report prepared by the Institute for the Development of Intellectual Property in the Guangdong-Hong Kong-Macao Greater Bay Area, Peking University, School of Law/Institute of Intellectual Property, Northwestern University.
This report was co-authored by Prof. Zhang Ping and Dr. Xu Zimiao from Peking University Law School, and Ms. Huang Jingru and her team of students He Zeyu He and Xi Fei from Northwestern University.
Special thanks to CPA Global for using Innography database to support this report.
First release date: April 26, 2020. Page 75 BAY AREA IP WATCH
Report on Traditional Chinese Medicine Patents in Guangdong, Hong Kong and Macao 1
1. Background of the Report
As an important part of traditional Chinese culture, Chinese medicine has played an important role in South of the Five Ridges area since ancient times. From the "Little Immortal" Ge Hong to the "Medicine Man" Wang Zebang, from "Chen Li Ji" to "Po Chi Lin", the traditional Chinese medicine industry in the Guangdong-Hong Kong- Macao region has been developing and growing continuously in a long-term and sustainable manner. In the process of the gradual growth of the Chinese medicine industry, intellectual achievements related to traditional Chinese medicine have sprung up. The skillful use of intellectual property rights and the proper protection of these results can stimulate the innovation enthusiasm of relevant subjects and promote the continuous development of traditional Chinese medicine.
As pointed out in the Opinions of the Central Committee of the Communist Party of China and the State Council on Promoting the Inheritance, Innovation and Development of Chinese Medicine, "the inheritance, innovation and development of Chinese medicine is an important element of socialism with Chinese characteristics in the new era and a major event for the great rejuvenation of the Chinese nation.” The Intellectual Property Protection Working Committee of the World Federation of Chinese Medicine Societies, jointly issued a Report on Traditional Chinese Medicine Patents the Guangdong-Hong Kong-Macao region (2020 simplified version), which analyzes the traditional Chinese medicine patent situation in the Guangdong-Hong Kong-Macao region, reviews the past, looks forward to the future, and provides a
1 Institute of Intellectual Property Development in the Guangdong-Hong Kong-Macao Greater Bay Area, Beijing University. Report on Traditional Chinese Medicine Patents in Guangdong, Hong Kong and Macao (2020 Simplified Edition) [R]. Guangzhou, 2020. Page 76 BAY AREA IP WATCH
comprehensive analysis of the traditional Chinese medicine patent situation in the Guangdong-Hong Kong-Macao region. 1 Chinese medicine improves inheritance, innovation and development to provide data support and decision support.
The full report was first published online in April of 2020, and the Institute will continue to focus on intellectual property and legal issues of traditional Chinese medicine in the future. The following is the full content of the short version of the 2020 report.
2. Summary of the Report
By the end of 2019, the cumulative number of applications for traditional Chinese medicine in the Guangdong-Hong Kong-Macao region was 10,679, which is 62.52% higher than the average level of provincial administrative units nationwide. The proportion of authorized patents is also relatively high.
The number of traditional Chinese medicine patent applications in the Guangdong- Hong Kong-Macao region has been on the rise overall for many years, and has advanced by leaps and bounds in recent years.
Basically, all cities in the Guangdong-Hong Kong-Macao region have applied for traditional Chinese medicine patents, but the regional distribution is quite different, with Guangzhou, Foshan, Shenzhen, Dongguan and Shenzhen having a higher number of patent applications.
The patent applications of traditional Chinese medicine mainly come from individuals, companies, universities and research institutes, hospitals and other types of subjects, among which, the number of patent applications from individuals and companies accounts for 84.22%.
A total of 562 traditional Chinese medicine patent rights were transferred in the
1 In this report, "Guangdong-Hong Kong-Macao Region" refers to Guangdong Province, Hong Kong Special Ad ministrative Region and Macao Special Administrative Region; "Guangdong-Hong Kong-Macao Greater Bay Ar ea" refers to Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen and Zhaoqing, a s well as Hong Kong Special Administrative Region and Macao Special Administrative Region, and cities in the northwestern part of Guangdong are not included. Page 77 BAY AREA IP WATCH
Guangdong-Hong Kong-Macao region, with a fluctuating trend in recent years, but the overall development trend was similar to that of patent licensing.
The primary reason for the termination of traditional Chinese medicine patent rights was the non-payment of annual fees during the patent validity period. In addition, 2,640 patent applications were denied.
3. Data Analysis
3.1. Overall Quantitative Analysis
Since January 1, 1985 and up to December 31, 2019, the cumulative number of applications for the traditional Chinese medicine patents in the Guangdong-Hong Kong-Macao region is 10,679. Among them, the number of applications in the nine cities and two regions of the Greater Bay Area of Guangdong, Hong Kong and Macao is 9,203, accounting for 86.18% of the total number of applications in the Guangdong-Hong Kong-Macao region. In comparison, the average number of patent applications filed by provincial administrative units in China is 6,570, which is 62.54% higher than the average number of patent applications filed in the Guangdong-Hong Kong-Macao region. Only the number of patent applications filed in the nine cities and two regions of the Greater Bay Area is at 40.08% higher than the average number of patent applications filed in the Guangdong-Hong Kong- Macao region. The details are shown below in Figure 1. Page 78 BAY AREA IP WATCH
Figure 1: Number of Traditional Chinese Medicine Patent Applications (1985-2019)
Among patents in the Guangdong-Hong Kong-Macao region, 2,431 patent applications have been granted with an authorization rate of 22.76%. The authorization rate of patent applications in the nine cities and two regions of the Greater Bay Area has been as high as 23.18%. The average number of patent applications authorized by provincial administrative units nationwide is 1,159, and the authorization rate is about 17.64%. Although the authorization rate of patent applications for the traditional Chinese medicine in the Guangdong-Hong Kong- Macao region is higher than the national average, there is still much room for improvement. The details are shown below in Figure 2.
Figure 2: Number of Traditional Chinese Medicine Patent Applications Granted
(1985-2019)
3.2. Analysis of the Time Period on Patent Applications
Based on the year of the patent application as a group, the following conclusions can be drawn when dividing the patent applications at different times. The patent application for the preparation process of Chinese patent medicine for gastrointestinal dissolving pills filed by the Guangzhou factory of Chen Li Ji Pharmaceutical is the first patent application for traditional Chinese medicine in the Page 79 BAY AREA IP WATCH
Guangdong-Hong Kong-Macao region. From 1985 to 2002, the number of patent applications was relatively small and the annual number of patent applications did not exceed 100. From 2003 to 2009, the number of patent applications steadily increased. After 2009, the number of patent applications showed a clear upward trend. In 2015, the number of patent applications nearly doubled from 2014, reaching 1,447, and the number of patent applications in the following years remained at more than 1,000 pieces. The details are shown below in Figure 3.
Figure 3: Patent Applications and Trends of Traditional Chinese Medicine in the Guangdong- Hong Kong-Macao Region by Year
3.3. Regional Analysis
In terms of data, Guangdong, Hong Kong and Macao have all filed traditional Chinese medicine patent applications. However, the distribution of patent data among different regions is extremely uneven when viewed on a city-by-city basis. Generally speaking, the Peral River Delta region accounts for the vast majority of patent applications, while the number of applications in the northwestern part of Guangdong Province is relatively small. Guangzhou has the largest number of applications, with 3,737, accounting for 35.16% of the total number of applications Page 80 BAY AREA IP WATCH
filed in the Guangdong-Hong Kong-Macao region. Foshan City, Shenzhen, and Dongguan City followed closely behind. In contrast, Yangjiang City, Shanwei City, Yunfu City and Macao Special Administrative Region all have a relatively small number of patent applications. The details are shown in below Figures 4 and 5.
Figure 4: Number of Patent Applications by City in Guangdong, Hong Kong and Macao Page 81 BAY AREA IP WATCH
Figure 5: Color-coded Map of the Number of Patent Applications Filed in Various Cities of Guangdong, Hong Kong and Macao
3.4. Analysis of the Types of Applications
Dividing the subject of application into individuals, companies, universities and research institutes, hospitals and others, it can be found that traditional Chinese medicine patent applications with individuals or companies as the subject of application accounted for 84.22% of the total number of applications in the Guangdong-Hong Kong-Macao region, while the number of patent applications of other subject categories was much smaller than these two. It is noteworthy that there were 353 patent applications with hospitals as the subject of application. The details are shown below in Figure 6.
Figure 6: Total Number of Patent Applications Filed by Different Types of Filers Page 82 BAY AREA IP WATCH
In terms of filing period, business entities filed certain number of patent applications every year except for the three-year period from 1989 to 1991. Individuals are similar to businesses, but the number of patent applications declined in the period of 2017 to 2018. Universities and research institutes have had a small number of patent applications perennially since 1993. Since 1999, hospitals have also applied for traditional Chinese medicine patents. The details are shown below in Figure 7.
Figure 7: Historical Patent Applications by Type of Applicant
3.5. Analysis of the Transfer of Patents
After searching, there are 562 traditional Chinese medicine patents in the Guangdong- Hong Kong-Macao region related to the transfer of rights. It can be found from the line graph that the trend of patent rights transfer has similarities with the trend of patent applications being granted, but there is a certain lag. The details are shown below in Figure 8. Page 83 BAY AREA IP WATCH
Figure 8: Transfer of Patents
Compared with the transfer of patent rights, the number of patent implementation license filings is small, with a total of 58 cases in all previous years, and fluctuates greatly from year to year. As many subjects in practice did not go through the filing procedures with the relevant departments when they signed the patent licensing contract, the query data can only reflect a part of the traditional Chinese medicine patent license. The details are shown below in Figure 9.
Figure 9: Patent Enforcement License Filing Status Page 84 BAY AREA IP WATCH
5.6. Analysis of the Termination of Patent Rights
As caused by various reasons, the total number of patent terminations in the field of traditional Chinese medicine in the Guangdong-Hong Kong-Macao region is 741, of which only 8 cases are due to the expiration of patent rights. The number of terminations due to non-payment of annual fees during the patent validity period is 688. The reasons for this phenomenon may include the negative impact of the evaluation criteria of patent quantity index, the low value of the patent itself, or the difficulty of patent enforcement. The details are shown below in Figure 10.
Figure 10: Patent Terminations and Reasons for the Termination
3.7. Analysis of Unlicensed Patents
In the patent application process of traditional Chinese medicine in the Guangdong- Hong Kong-Macao region, the number of applications withdrawn was 279, the number of applications rejected was 789, and the number of applications deemed withdrawn due to various circumstances was 1,572, making a total of 2,640 patent applications not granted. The details are shown below in Figure 11. Page 85 BAY AREA IP WATCH
Figure 11: Failure to Obtain Patent Grants and the Reasons Thereto
4. Development Prospects
Through people's increasing attention to traditional knowledge, along with further improvements from a series of policies and laws and regulations related to intellectual property rights in traditional Chinese medicine, such as the State Intellectual Property Office's "Guidelines for Examination of Invention Patents in the Field of Traditional Chinese Medicine", the protection of traditional Chinese medicine can be optimized.
With the continuous inheritance, innovation and full use of traditional Chinese medicine as a valuable asset, the intellectual achievements related to traditional Chinese medicine are bound to increase day by day, and more and more new patents are bound to be issued.
In order to better utilize and implement the achievements of traditional Chinese medicine, the transfer, transformation, value assessment and intellectual property finance of traditional Chinese medicine will need be developed, strengthened and allowed to mature.
In the future, due to the need to utilize, manage and apply for a large number of traditional Chinese medicine patents, high quality of talents in people with both Page 86 BAY AREA IP WATCH
traditional Chinese medicine and intellectual property knowledge and background will play a greater role.
Statistical period: January 1, 1985 to December 31, 2019
Statistical content: Traditional Chinese medicine patents
Project leader: Zhang Ping
Geographical scope: Guangdong Province, Hong Kong Special Administrative Region and Macao Special Administrative Region
Data support: Beijing Oriental Linden Science and Technology Co., Ltd. (World Traditional Medicines Patent Database)
Analytical support: World Federation of Chinese Medicine Societies Working Committee on Intellectual Property Protection
Written by: Xie Yang
First release date: April 26, 2020 Page 87 BAY AREA IP WATCH
Highlights of the IPIP's Activities
The Second North Bay Area Salon Tour: The Day After COVID-19
On the evening of March 27, 2020, the second North Bay Area Circuit Salon hosted by the Institute was successfully held online. The theme of this salon was "The Day After COVID-19", which was hosted by Mr. Joshua Y. Chang, Director of the Center for Corporate Law and External Cooperation of the Institute of Intellectual Property Development of the Greater Bay Area, Beijing University. More than ten legal or IP professionals from companies, organizations and universities, including Xiaopeng Auto, Duoyi Network, Midea Real Estate, Baiyun Procuratorate, Yingke Law Firm and Beijing University, participated in this salon, and they chatted about certain new ideas that emerged because of the pandemic on the last Friday evening of March.
The Third North Bay Area Circuit Salon: From Trade Secret Cases to View
Corporate and Intellectual Property Protections
On the evening of April 24, 2020, the third Bay Area Circuit Salon "From Trade Secret Cases to View Corporate and Intellectual Property Protections" was successfully held online. The conference was hosted by Mr. Joshua Y. Chang, Director of the Center for Enterprise Law and External Cooperation of the Academy, and invited Mr. Chen Guanghui, Deputy Director of the Intellectual Property Office of Guangzhou Development District to deliver an opening speech. The issues Page 88 BAY AREA IP WATCH
related to trade secrets were explained and shared in detail. In the final review session, Zhang Ping, Executive Vice Dean of Beijing University Law School/IP School and Executive Director of the Institute, was present as the guest of honor.
Launch of the Study on World Intellectual Property Day 426
On the evening of April 28, 2020, the research report conference on "426 World Intellectual Property Day", which was hosted by the Institute of Intellectual Property Development in the Greater Bay Area of Guangdong, Hong Kong and Macao of Beijing University, and co-sponsored by the Intellectual Property Protection Working Committee of the World Federation of Chinese Medical Associations and the Law School of Northwestern University, was successfully held online. The meeting was hosted by Mou Jinjun, assistant director and researcher of the Institute, and Chen Huiling, deputy director of the Intellectual Property Office of Guangzhou Development Area, made a speech. In the meeting, Xie Yang, a researcher of the Institute for the Development of Intellectual Property in the Greater Bay Area of Guangdong, Hong Kong and Macao of Beijing University and a doctoral student of Sun Yat-sen University School of Law, released the "Search Report on Traditional Chinese Medicine Patents in Guangdong, Hong Kong and Macao (2020 Simplified Version)", which was jointly released by the Institute and the World Federation of Chinese Medical Associations. Huang Jingru, a researcher of the Institute and an assistant professor of the School of Law/Institute of Intellectual Property of Northwestern University, released the "426 World Intellectual Property Day" research report. The 2019 Innovation Patent Watch Report for Internet Companies, which was jointly released by the Institute and Page 89 BAY AREA IP WATCH
Northwestern University's School of Intellectual Property/Law School. Finally, Yu- Shu Zhang, Director of the Institute's Center for Corporate Law and External Cooperation, released the fifth issue of Bay Area IP Watch and the first issue of Bay Area IP Watch (English Quarterly), the English quarterly Bay Area IP Watch, which will provide a window for the world to know and understand the Guangdong-Hong Kong-Macao Greater Bay Area, strengthen exchanges among the international Bay Area, and enhance the international influence of the Greater Bay Area and the Academy.
Expert seminar on "Special event on games for the month of knowledge and property - Consideration of factors for damages in game infringement cases”
On the evening of April 29, 2020, the Institute and Netease Game Law Research Center co-hosted an expert panel discussion on "Special Game Sessions for the Month of Intellectual Property - Considerations for Damages in Game Infringement Cases". Zhang Ping, the executive director of the Academy, presided over the meeting, and invited Yang Dejia, the president of Minwu Division of Beijing Haidian District People's Court, Li Yang, the professor and doctoral supervisor of Sun Yat- sen University Law School, Han Shuai, the secretary-general of Shanghai Online Game Industry Association, and Sun Lei, the senior consultant of Beijing Towan Law Firm, as the guests to discuss the standards and factors for calculating damages in game infringement cases, and to discuss the legal issues from the spirit of legislation and the legal issues from the perspective of the legal issues. The policy of judicial protection of intellectual property rights is aimed at providing feasible recommendations for practical operation. Page 90 BAY AREA IP WATCH
Bay Area Salon IV: The Copyright Amendment (Draft) Act and the Class of Game Works Issue
On May 29, 2020, the "Fourth Bay Area Circuit Salon: Copyright Law Amendment (Draft) and Game Work Categories" hosted by the Academy was successfully held online. The conference was chaired by Mr. Joshua Y. Chang, Director of the Center for Corporate Law and External Cooperation of the Academy, and invited Mr. Liu Xiaochun, Executive Director of the Internet Rule of Law Research Center of the Chinese Academy of Social Sciences University, Mr. Deng Danyun, Second President of the Comprehensive Trial Court of Guangzhou Internet Court, Mr. Tian Zijun, Director of Guangdong Stride Law Firm and Director of the Copyright Law Practice Committee of Guangzhou Lawyers Association as the guest speakers. Professor Zhang Jin of the School of Civil and Commercial Economics Law and Executive Director Zhang Ping of the Academy were the guest critics. The guest speakers and critics elaborated and discussed their own understanding of the categories of game works in the Amendment (Draft) of the Copyright Law, and shared their understanding from the perspectives of legislation, judiciary and legal services, focusing on the hot issues of the Amendment (Draft) of the Copyright Law. Page 91 BAY AREA IP WATCH
The Fifth Northern Greater Bay Area Salon: Focus on the Protection and Application of Geographical Indications to Help Poverty Alleviation and Rural Revitalization
On June 12, 2020, the Academy, together with the China Geographical Indications Alliance for Rural Revitalization and Beijing Haizhong Intellectual Property Consulting Company Limited, hosted the "Fifth North Greater Bay Area Tour Salon: Focus on Geographical Indications Protection and Application to Help Poverty Alleviation and Rural Revitalization". More than 100 representatives from government, universities, industry associations, companies and service organizations participated in this salon. The salon was hosted by Mr. Zeng Zhihong, Minister of Guangzhou Development District Intellectual Property Association, and Ms. Chen Huiling, Deputy Director of the Intellectual Property Office of the Development District, introduced the two geographical indication protected products of Luogang Glutinous Rice Patty and Luogang Sweet Orange, and personally endorsed the products. The salon speakers included Huang Xiantao, General Manager of Beijing Haizhong Intellectual Property Consulting Co., Ltd., Li Jing, Associate Professor of the Department of Social Sciences of Jinan University, Season, General Manager of Page 92 BAY AREA IP WATCH
Hengqin International Intellectual Property Trade Center Co. Xu Yanyan, General Manager of Nongliangpin Technology Co., Ltd.; Wang Yu, General Manager of Urban Agricultural Institute (Beijing) Agricultural Investment Co., Ltd.; Professor Shen Zorui, Professor of China Agricultural University, former Dean of the School of Plant Protection and former Assistant to the President; and Mr. Joshua Y. Chang, Director of the Center for Enterprise Law and External Cooperation of the Research Institute, discussed how to play the proper role of geographical indications under the new situation to promote rural revitalization and the development of specialty industries in the Bay Area. Page 93 BAY AREA IP WATCH
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北京大学粤港澳大湾区知识产权发展研究院 The Intellectual Property Development Research Institute of Peking University in the Guangdong-Hong Kong-Macao Greater Bay Area Address：Room601, Building C2, No.182 Kexue Road, Huangpu District, Guangzhou, PRC Tel：+86 (020) 8985 3585 E-mail：[email protected] Postcode：510670 Website：www.ipip-gba.cn