Chinese Junk Patents Flood Into Australia

Discussion in 'China' started by Daredevil, Feb 28, 2013.

  1. Daredevil

    Daredevil On Vacation! Administrator

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    Chinese Junk Patents Flood Into Australia, Allowing Chinese Companies To Strategically Block Innovation

    Techdirt has been writing for a while about China's policy of providing incentives to file patents -- regardless of whether those patents have any worth. That's led to a naïve celebration of the large numbers now being granted, as if more patents corresponded to more innovation.
    Until now, this problem of junk patents has been confined to China, and the companies that operate there. But last year China went even further with its subsidy system, offering to pay the fees for filing overseas, presumably to encourage Chinese companies to build up patent portfolios in foreign markets that can be used for defensive or even offensive purposes. We're now beginning to see the effects of this further distortion to the patent system, as Australian businesses struggle with the flood of new patents there.

    This is a perfect example of how granting more patents actively harms innovation. Thanks to China's incentive scheme, which encourages patent quantity rather than quality, Australian businesses must now spend more time searching through them all to see if they are likely to affect their own products, deciding if they are a threat, and what to do about it. All that costs money that could have been spent on real innovation, developing new products. Thanks to the patent system, and China's new incentives, that money will now go to the lawyers.

    Chinese Junk Patents Flood Into Australia, Allowing Chinese Companies To Strategically Block Innovation | Techdirt
     
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  3. Daredevil

    Daredevil On Vacation! Administrator

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    Another form of economic terrorism.
     
  4. roma

    roma NRI in Europe Senior Member

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    can they be brought to court under WTO rules - or if they are not a wto member then can't they be selectively banned from the aus market ?
     
  5. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    Isn't it the job of the patent office to sort through junk filings? What do they do? Rubber stamp anything?
     
  6. no smoking

    no smoking Senior Member Senior Member

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    Finally, Chinese learned Japanese Patent Strategy - use Junk Patents to beat Patents. Let's see what happend next to those multi-national companies!
     
  7. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    Why not? It doesn't cost China anything and they might just get away with IP theft in other countries because lazy patent offices are too lazy to review them.
     

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