China Enterprise Confederation, China Enterprise Director’s Association held a conference on enterprise IPR protection and self-initiated innovation at the great hall of the people on February 23. The conference passed a proposal, which appeals to the enterprise to protect IRP and use authorized software, over 300 participants signed it.
Leaders from China Construction Bank, China Telecom, Lenovo, and Siemens (China) were all gave a speech separately beside vice premier wuyi

The speech of vice premier Wu Yi is as below:

Distinguished guests, Dear friends,
Ladies and gentlemen, colleagues,
Good morning!
Today, the China Enterprise Confederation and the China Enterprise Directors Association jointly organize the Conference on IPR Protection and Innovation, from which a strong call is being sent to all Chinese enterprises for protecting intellectual property and using authorized software. This demonstrates the strong determination of the Chinese government and the Chinese business community to value innovation and protect intellectual property. I believe this is an event of great significance. On behalf of the State Council, I would like to extend my warm congratulations on the Conference, and I’d also like to express my heartfelt thanks to you for your support of innovation and IPR protection through your actions.
Taking this opportunity, I would like to give you an update on China’s IPR protection efforts.
As is known to all, innovation is the soul of scientific and technological advance as well as an inexhaustible driving force behind the development of a nation. It is innovation that the resource-conserving and environmentally-friendly society we aim to build depends on. According to the 11th Five-year Development Program endorsed at the 5th plenary session of the 16th CPC Central Committee, the enhancement of innovation capability is defined as the crucial task for upgrading industrial structure and transforming the mode of economic growth. In last January, the CPC Central Committee and the State Council organized the National Conference on Science and Technology, making the important decision of building an innovative country. President Hu Jintao points out that “building an innovative nation is the glorious mission entrusted by the times and it is a historic responsibility that our generation must shoulder.” Premier Wen Jiabao said, “IPR protection is not only for the need of establishing international creditability and broadening international cooperation, but more importantly, for the need of stimulating innovation within China. The protection of IPRs is, in essence, the respect for labour, for knowledge, for talents and for creation.” Colleagues, we must genuinely understand the importance of strengthening IPR protection from the height of walking a path of scientific development and building an innovative country. The presence at this Conference of so many persons in charge from government agencies at both central and local levels, business leaders, representatives of industry associations and chambers of commerce, as well as friends from the press demonstrates that we not only concur with one another on the idea of IPR protection, but also are forming a united front in action.
The Chinese government attaches great importance to IPR protection. Since the inception of reform and opening, particularly in recent years, remarkable progress has been made in China’s IPR protection, as manifested in four areas.
I. A full-fledged legal framework has been set up and improved which conforms to international norms. We have, in succession, promulgated the Trademark Law, the Patent Law, the Copyright Law, the Law against Unfair Competition, and the Regulations for the Protection of Computer Software and have straightened out and revised relevant laws, regulations and rules in line with WTO requirements. We have joined a number of international conventions on IPR and are actively fulfilling our international obligations to protect IPR.
II. A working system and coordination mechanism with distinct features has been built up. China has specially set up the State Intellectual Property Office, the Trademark Office of the State Administration of Industry and Commerce, and the National Copyright Administration, which take respective charge of patent, trademark and copyright affairs. Meanwhile, corresponding IPR working units were set up in customs, public security authorities, procuratorate offices and courts, forming a working system liking administrative enforcement and criminal prosecution. In order to intensify the coordination and leadership over IPR protection and to be more forward-looking and proactive in the work, the State Council established in August 2004 the National Working Group on IPR Protection involving over ten departments. In January 2005, the Leading Group for Formulating IPR Strategy was set up with more than twenty departments involved. I’m heading both two groups. With a view to stepping up coordination among various departments and intensifying the crackdown on illegal and criminal IPR activities, the Supreme People’s Procuratorate, the Office of the National Leading Group for Rectifying and Standardizing Market Economic Order and the Ministry of Public Security jointly issued the Opinions on Strengthening the Working Relationship between Administrative Authorities and Public Security Organs and People’s Procuratorate in June 2004. In December 2004, the Supreme People’s Court and the Supreme People’s Procuratorate jointly issued the Interpretation on Issues of Specific Application of Laws in Handling Criminal Cases of IPR Infringement, clarifying the criteria for sentencing in IPR-related cases and substantially lowering the threshold for criminal liability.
III. Special IPR protection campaigns have been carried out and a number of significant and high-profile cases have been dealt with. Since August 2004, the State Council has deployed and carried out special IPR protection campaigns nationwide. By concentrating resources on and delivering a heavy blow on outstanding problems, these campaigns created strong effects and effectively deterred criminals. By the end of 2005, public security organs had established over 3500 cases and captured over 5900 criminal suspects. In 2005, administrations of industry and commerce across China investigated and handled a total of over 39,000 cases of trademark infringement and counterfeiting, and transferred to judicial authorities over 200 people for criminal prosecution. Prosecution authorities approved the arrest of over 800 suspects. Various courts accepted over 3500 cases in relation to IPR infringement, production and selling of counterfeited and inferior-quality products, and the crime of illegal business operation, and closed over 3500 cases. Departments in charge of affairs like IPR, drug and food administration, press and publishing, copyright, information industry, culture, and customs also carried out special operations of multiple forms in accordance with their respective jurisdiction and achieved notable results.
IV. Publicity and education efforts have been stepped up. Having the World Intellectual Property Day on April 26 every year, the State Intellectual Property Office and relevant departments have been carrying out the “IPR Protection Week” nationwide since 2004. In 2005, SIPO and the Office of the National Leading Group for Rectifying and Standardizing Market Economic Order jointly organized and engaged hundreds of national and local press agencies in the wide-reaching coverage entitled “Protecting Intellectual Property, We’re Moving”. In April 2005, the State Council Information Office released the White Paper on New Progress in IPR Protection in China in seven languages. In addition, SIPO, in conjunction with other departments, has remarkably pushed ahead the work of software legalization. All the provincial governments across China attained the objective of using legalized software in 2004 and the work was reaching to government authorities and enterprises at prefecture and municipal levels in 2005.
It is fair to say that the magnitude of human and financial input in IPR protection and the intensity of our efforts are both unprecedented and the achievements are self-evident. However, we must be soberly aware that we still have a long way to go and a more formidable mission to accomplish. In some regions and sectors, infringement still remains serious. As the Chinese economy develops into a more international and market-oriented one and the strategy of self-initiated innovation is being established, the requirements on IPR protection will be higher, responsibilities heavier and difficulties greater. There will be a larger amount of work to do. Hereby, on behalf of the Chinese government, I’m announcing to the world that the Chinese government will make unremitting efforts to bring IPR protection forward with stronger confidence and more effective measures.
---Further intensify policy support. The “Statement of Support” jointly signed by fifteen government agencies, the Supreme People’s Court and the Supreme People’s Procuratorate at this Conference is one of these important measures.
---Continue to consolidate IPR enforcement, rigorously clamp down on IPR-infringing activities in accordance with law and foster a sound environment for IPR protection. We’ll outline an action plan on IPR protection while pressing on with special nationwide campaigns on IPR protection in a well-planned and well-targeted manner, thus subjecting criminals and infringers to applicable punishments.
---Further enhance the whole society’s awareness of self-initiated innovation and IPR protection, mobilize the general public for concerted actions for prevention and treatment. We will continue to strengthen publicity and education in various forms for better awareness of IPR protection. We’ll speed up efforts to put in place a service system for IPR protection, with reporting and complaint centres in fifty major cities, thereby deploying all social resources to beef up IPR protection against any circumstances, in all dimensions and multiple areas.
Lastly, I’d like to take this opportunity to put forward two hopes on the business community in China
First, constantly improve your consciousness of IPR protection while earnestly shouldering the social responsibility of IPR protection.
Intellectual property is the wealth accrued by intelligence-engaging activities in areas such as science, technology, culture and art. It is a powerful weapon with which companies can compete in the marketplace. Companies are the main forces in a market economy, main forces in technological innovation, IPR creation, application and protection. The socialist market economy is one that is ruled by law, one based on credibility, and one featuring fair competition. Be it in China or elsewhere, right holders will have to commit a lot of manpower, physical and financial resources in order to possess a single intellectual property. But the property is being used by infringers without even breaking a sweat. It is clearly unfair. Therefore, every individual company should take it as its obligation as well as a social responsibility to protect others’ IPR. Only when everyone is respecting the IPR of others will his own IPR be shielded from violation and infringement. Companies should not be too shortsighted to infringe on other’s IPR. IPR infringement is not only a provocation against IPR laws and regulations, but also a detriment to a social ambience that respects knowledge and creation. To go one step further, it will seriously disrupt the socialist market economic order while poisoning the climate for investment and international cooperation, to the extent of smearing the whole nation’s image. In 2005, China absorbed up to 72.4 billion USD worth of FDI, ranking No.3 in the world. It is fair to say that we’re already on a new starting point in history. In our next step, we will continue to utilize foreign investment in a vigorous and effective manner, bringing new and high technologies, advanced management expertise and high-tech talents into China. All this requires that we have a better investment climate. In the past, when we talked about a good investment climate, we were mainly referring to the hard environment, meaning good infrastructure such as good transport, communication, water, power and gas supply. Now it hinges more on the soft environment side, which involves relatively sound laws and regulations, quality service, and a favourable market order. And IPR protection is one important component of creating a sound soft environment for investment. For the vast number of companies, it means they should strictly observe the Proposal of Enterprises’ Protection of IPR and the Proposal of Enterprises’ Use of Legalized Software, exercise more self-discipline and fearlessly embrace their responsibilities. Industry associations should also build platforms for businesses, guide and supervise companies for conscious IPR protection, and form a mutually supervising and facilitative mechanism.
Second, set up and improve the system for internal IPR management, and learn to leverage IPR for self-development and protection.
Economic globalization makes competition all the more intense. The competition between businesses will mainly lie in IPR in the future. To my knowledge, the number of patent applications was 93,000 in China in 2005, only about 10,000 were filed by state-owned and private companies. That was a mere fraction if compared with the size of China business community, which was populated by several million companies. Many companies are in a state of having “manufacturing” but no “creation” and having “property” but no “knowledge”. I hope that all these companies and many others will gain more new knowledge about IPR, learn more about the successes in IPR management from our international counterparts, in particular multinationals in developed countries. In this way, you will be able to set up your own management system for IPR and incorporate IPR management into the whole process of R&D, production and operation. You’re also expected to apply for corresponding IPRs of the achievement you’ve made through self-innovation, as well as the core technologies, quality brands and products in a timely fashion, with the aim of affording them effective protection. You need to come up with a system of measures for the creation, management, application and protection of your own IPR on the basis of your business’ core patented technology. When the interests of your proprietary IPR are infringed, you should already be adept at safeguarding your own rights using laws as a weapon and actively facing up to cross-border IPR disputes. And it is incumbent on relevant government agencies, various industry associations and chambers of commerce to deliver active help and support to companies in the above-mentioned areas.
Colleagues and friends, IPR protection is a systematic and long-term undertaking that calls for the concerted efforts of the whole society. It is hoped that various regions, government authorities, the large business community, social intermediaries and the media could be active, committed, united and down-to-earth when it comes to promoting China’s IPR protection and building China into an innovative country.
To conclude, I wish the Conference a complete success.
Thank you all!