January 12, Lexology - The People’s Congress of Jiangxi Province has recently issued the Patent Promotion Regulations of Jiangxi Province, which shall take effect on 1 January 2010.

The Regulations authorize the People’s governments above the county level in Jiangxi province to establish diversion capital in support of patent activities such as patent implementation, protection and training.

Patent development expenses of an enterprise may enjoy a tax preference according to laws. The regulations encourage and support the launching of patent rights pledge business by borrowing (lending) institutions and guarantee agencies, and credit support shall be firstly granted to implementation projects of patented technologies with great potential for development and promising market prospects.

Borrowing (lending) institutions and guarantee agencies which meet the conditions may obtain certain risk subsidies from the provincial government. In addition, the Regulations also govern patent protection, administration and legal liabilities.    

Mr. Edward Lehman, managing director of LEHMAN, LEE & XU Law Firm, regarded the Patent Promotion Rules as extraordinary achievement in patent system in purpose of building an innovation-oriented country and implementation of national IP strategy, which is destined to write a glorious chapter in the history of reform.

He also noted that: “since the establishment of patent system more than 20 years ago, China has shaped a patent administration and enforcement system efficiently supported by dual track enforcement of administrative and judicial, which plays a significant role in encouraging innovation and improving environment, further, it helps for reducing patent disputes.”