Although the country has made significant progress in patent protection since it implemented the Patent Law in 1985, some companies and research institutes still desist in making patent applications.

Yuan De, director with the patent examination division under the State Intellectual Property Office (SIPO), said: "Meeting requirements of intellectual property rights within WTO are crucial to China.

"To escort domestic enterprises into the heat of global competition, we must help them know how to combine intellectual property rights protection with technology development.''

The Switzerland-based Lausanne Institute of Management and Development -- which publishes the world rankings for scientific development each year -- has listed the amount of patent holding as a criterion to test a nation's technological innovation.

Intensifying competition among enterprises and research institutes is the key to get them to treasure intellectual property rights, which have been regarded as an intangible asset by many firms in developed countries, said Yuan.

Companies in better developed eastern areas, such as Shanghai Municipality and Guangdong Province, are performing well in putting new technologies under the patent system umbrella.

Yet the driving force of market competition plays little role in industrial firms of the military and large State-owned academic institutions, said Yuan.

Researchers in these sectors -- which enjoyed governmental funds under the planned economy -- just rely on publishing theses. They care little about commercializing technological discoveries.

"We must encourage them to develop patented technology in parallel with a more marked awareness of market competition. Regional intellectual property administrations will be mobilized to offer corresponding training programs regularly among these sectors,'' he said.

China's legislation on intellectual property rights has met the standards set in the WTO and the most important thing now is enforcement, said Yang Guochang, an official with the Ministry of Foreign Trade and Economic Cooperation.

Regional governments have realized that counterfeiting will damage the image and interests of local industries. Only patented products can sustain the development of regional economy, said Yang, who has completed inspections for patent and trademark protection in companies in eastern and western areas.

(China Daily October 30, 2001)