As an important part of the global economy, China has significantly improved its intellectual property protection system alongside its rapid technological development. The following are some of the key steps and strategies for laying out patent applications in China, taking into account legal, market, technological and competitive factors.

Determining the objectives of the patent application

Before planning a patent application, it is first necessary to clarify its objectives. These may include the following:

• Protecting core technologies: Ensuring that the enterprise’s core technologies are not easily copied and imitated by competitors.
• Market coverage: Determining regions or countries in which to file patents based on the enterprise’s market strategy.
• Defensive layout: This involves an advanced patent layout in areas where potential competitors may create technological barriers.
• Patent licensing and assignment: Laying a foundation for future patent licensing or assignment to obtain more economic benefits.

As the most complete product manufacturing centre of global industry, China needs to protect the commercial interests of rights holders through effective patent planning in the upstream, midstream and downstream sections of the industrial chain.

Protecting an enterprise’s core technologies through patent layouts is a common practice in the modern business environment. However, using patent layouts to control the entire industrial chain to some extent can enhance an enterprise’s market control and competitive advantage, and ensure the long-term high added value of products. A patent application strategy aims not only to protect an enterprise’s own technologies and products but also to garner patents for the technologies of upstream, midstream and downstream companies. In this way, an enterprise can obtain patent rights at important points of the whole industrial chain, and thus achieve control over the entire chain. The following are some possible layout strategies.

Upstream of the industrial chain: raw materials and basic technologies

Protection of technology and products 

• Objective: To protect an enterprise’s unique technologies and products in the field of raw materials.
• Strategy: Filing patents for the composition, synthesis process, purification techniques and applications of the raw materials developed by the enterprise. For example, if an enterprise has a unique preparation method for a special synthetic material, it should protect this with a detailed patent.

Controlling upstream companies’ technologies

• Objective: To control key technologies of upstream companies through patent applications.
• Strategy: Targeted filing of patents and obtaining of patent rights to control the technologies used and the commercialisation of the product by conducting in-depth research on technologies that may be adopted upstream. For example, patents can be laid out in advance for widely used raw material technologies so that upstream suppliers will need the enterprise’s permission to use these technologies.

Midstream of the industrial chain: production processes and core products

Protecting own technologies and products

• Objective: To protect an enterprise’s technical advantages in production processes and core products.
• Strategy: Lay out patents for key steps in the production process, equipment designs, control methods, and the structures, functions and uses of core products. For example, the enterprise should document and file patents for its unique manufacturing processes to prevent imitation by competitors.

Controlling midstream companies’ technologies

• Objective: To control midstream companies’ production processes and technologies as well as product components and/or modules through patent applications.
• Strategy: Research the production technologies and products that midstream companies may use and file patents in advance for these technologies to form technological barriers. For example, patents may be laid out for unique production automation technologies so that midstream manufacturing companies will require permission to use these technologies.

Downstream of the industrial chain: applications and extended technologies

Protecting own technologies and products

• Objective: To protect the realisation and innovation of the enterprise’s core technologies in specific applications.
• Strategy: Lay out patents for the realisation methods, optimisation solutions and specific applications of the core technology in different scenarios. For example, for the application of a particular technology developed by an enterprise in a medical device, detailed patent applications should be filed to ensure the exclusivity of the applications of the technology.

Controlling downstream companies’ technologies

• Objective: To control downstream companies’ application technologies and markets through patent applications.
• Strategy: Analyse potential application technologies that downstream companies may develop and file related patents in advance to restrict these companies’ market promotion and technology applications. For example, patents may be laid out for applications of specific technologies in a specific field so that downstream companies will need the enterprise’s patent licence to apply the technologies in that field.

Comprehensive management and strategic implementation

Patent portfolio management

• Objective: To build a comprehensive patent portfolio covering the industrial chain to form strong technical control.
• Strategy: Regularly review and update the patent portfolio to ensure that all aspects and links of core technologies are covered. Establish a special patent management team responsible for patent applications, maintenance and operations.

Patent licensing and cooperation

• Objective: To enhance the economic value and technical control of the patent portfolio through licensing and cooperation.
• Strategy: Develop flexible patent licensing and cooperation strategies for different companies in the upstream, midstream and downstream sections of the industrial chain. Obtain economic benefits through licensing while strengthening technical control through cooperation. For example, sign patent licensing agreements with upstream raw material suppliers to ensure stable raw material supply and technical control.

Patent monitoring and enforcement

• Objective: To promptly identify and respond to potential patent infringement to maintain technological control.
• Strategy: Establish a patent monitoring mechanism to regularly monitor competitors’ patent activities and market dynamics. For identified infringement cases, take legal actions to enforce patents and ensure that the patent rights of core technologies are not infringed.

Conclusion

Comprehensive patent planning in the upstream, midstream and downstream sections of the industrial chain can not only protect the core technology of the enterprise itself but, through patenting the technology of other companies, also contribute to technical control of the whole industrial chain. This strategy not only effectively prevents the imitation and market intrusion of competitors’ technology but also maximises the value of patents through licensing, enhances the enterprise’s market competitiveness and innovation abilities, and promotes its sustainable development.