Building an innovative society

Bad intellectual property image clouds the country’s real progress in encouraging inventors and building an innovation-based society.

CHINA has been an easy prey worldwide as it is labelled as a country with one of the worst environments for intellectual property (IP) development.

But little has been known about the nation’s steady progress in raising a greater awareness of IP rights protection and significance to build a more innovation-based society.

Chinese State Intellectual Property Office commissioner Tian Lipu admitted that China is still full of pirated goods and copycats but he also pointed out that many more individuals and companies are turning innovators instead.

“I think the Western media has painted a wrong picture of China on its efforts to protect IP rights. China’s image has been quite bad in other countries,” he said in a recent interview in Beijing.

He acknowledged that one would be able to find pirated goods in places like Beijing’s Sanlitun and Luohu district in Shenzhen but many had overseen the fact that China had developed a comprehensive system and legal structure to protect local and foreign patents and trademarks.

“Last year, we received 526,000 applications for invention patents, accounting for 25% of the world’s total. About 110,000 local applicants were granted patents. While the number of applications reflects the level of awareness of IP protection among the public, the figures of patents granted indicate how good is the quality of the inventions.

“However, the intellectual property office is more concerned about the valid patents and to see whether these patented creations are well received by the market and how well the patent is maintained by its owner. To date, there are about 350,000 valid patents owned by locals,” he said.

In China, applicants can register patents for invention, patents for utility model and patents for design. The office processed 1.63 million applications for these three types of patents last year.

As for trademarks, China received a total of 9.71 million applications as of the end of last year, with 6.65 million of them successfully registered. Besides, some 110,000 software copyrights were registered last year.

“Not many people know that China is one the countries which pay the most royalties for patents, trademarks, copyrights and franchises and one of the world’s largest genuine software buyers.

“Government departments, banks, insurance firms and many companies are using original softwares. Many firms buy books, music, movies and TV shows through copyright trade,” Tian said.

He said foreign companies had gained huge profits in overseas markets after the production of their original equipment manufacturer (OEM) goods in China.

“I think because of the conducive environment for IP protection in China, foreign investors would have a peace of mind to entrust Chinese manufacturers to produce their OEM goods.”

Last week, the office’s patents administration department announ-ced that as of June, all the departments of the 31 provincial and municipal governments had installed genuine softwares.

By the end of next year, it said, all city and county-level governments would do the same. As of the end of October, all levels of government spent some 1.48 billion yuan (RM725mil) on 2.3 million licences for operating system, office and anti-virus softwares.

It is learnt that most of the state-owned enterprises have been equipped with proper softwares while 50% of smaller companies would be given until next year to follow suit.

Tian said China might not have a society priding itself on IP like in the United States but it would not take too long for the Chinese to catch up with the rest of the world.

“China used to be a country with the highest number of inventions during the Song dynasty – and 50% of the world’s total inventions came from China. China then laid dormant for centuries until we started educating our people on the value of IP 20 years ago. I think it may take one or two more generations for us to build a society that lives by the IP culture,” he said.

He revealed that his office, the Trademark Office under the State Administration of Industry and Commerce and the National Copy-right Administration were amending the Patent Law, Trademark Law and Copyright Law to give more tooth to enforcement and judiciary agencies to carry out their duty.

Under the amended patent law, damages will be calculated based on the illegal gains of the party which infringes the owner’s right rather than the owner’s actual loss. This is because the act of infringing one’s right is relatively easy compared to the act of protecting and maintaining it, he said.

He warned that as Chinese companies reinforce their IP development, they should be on guard to face the so-called “patent trolls” which tend to buy patents at low prices and go around taking action against those infringing their rights.

“These ‘patent trolls’ did not involve in any R&D and innovation. They are a byproduct of IP development sidetracking its real spirit.

“Piracy and IP infringement exist everywhere in the world and cannot be totally wiped out. But investors should be confident about doing business in China as its government is resolute in addressing the problem.”

MADE IN CHINA
By CHOW HOW BAN

China's New Law Enforces South China Sea

Hainan gives police power to stop illegal sea entry

Border patrol police in China's southernmost province of Hainan on Tuesday were given the power to embark on and check ships which illegally enter its waters.

Detailed Regulations

A newly revised maritime regulation was enacted by the Standing Committee of Hainan Provincial People's Congress on November 27.

★The regulation defines six practices of illegal activities of foreign ships or crews. These include illegal landing on the islands under the jurisdiction of Hainan, damaging coastal defense facilities or facilities for production and living, and carrying out publicity campaigns that endanger China's national security.

★The police can land on, check, seize and expel foreign ships illegally entering the island province's sea areas.

★Hainan border police are entitled to use these measures to stop the illegally entering ships or to force them into changing or reversing course

★According to the UN Convention on the Law of the Sea, foreign ships are only allowed to make inoffensive passage through China's territorial waters, meaning they can neither stop nor drop anchor.

★In the past, when foreign ships broke the UN convention, the best thing our patrol force could do was chase them out of China's waters. This new regulation will change that situation and grant the patrol force the legal means to actually do its job.

Source: Xinhua-Global Times

Viewpoints

"This new regulation showed that China will strengthen the construction of its maritime law in the near future. The power granted by the international convention must be reflected in the domestic legal system.  Past maritime conflicts in the South China Sea have exposed the deficiencies in China's maritime law system and the new regulation is aimed at fixing those problems,"------Li Zhaojie, a maritime law professor from Tsinghua University

"China's move to establish domestic laws and regulations in the sea will inevitably lead to resistance from countries that have disputes with China regarding related sea areas. China must be prepared for all kinds of consequences, from diplomatic spats to administrative measures, and even possible military confrontation. On the other hand, China should be more vocal in expressing its preference in solving the disputes in line with international laws and customs,"------Zhu Zhenming, deputy director of the Southeast Asia Research Institute affiliated with the Yunnan Academy of Social Sciences

South China Sea Conflict

Photo: China's National Administration of Surveying, Mapping and Geoinformation

★The South China Sea covers an area of 700,000 square kilometers, and some 200,000 square kilometers of waters are settled. The region has abundant resources of oil and natural gas, and some surrounding countries have been exploring resources there for years. ★China has declared indisputable sovereignty over South China Sea islands and their surrounding waters, but several Southeast Asian countries, including Vietnam and the Philippines, have made competing claims. ★Countries including Vietnam, Brunei, Indonesia, Malaysia and the Philippines lay claim to parts of the South China Sea, which contains important shipping routes and is also believed to contain rich oil and gas reserves. The issues in the South China Sea are not only a conflict over the islands, but also includes resources of oil and natural gas, underwater archaeology, hydrogeothermal and fishery.

China's Actions

On June 21, the State Council approved the establishment of Sansha city, the government of which is located on Yongxing Island, to manage the unpopulated Xisha, Zhongsha and Nansha Island groups and surrounding waters. The move is intended to maintain China's sovereignty over the area.
GT editorial: The idea of establishing Sansha city emerged as early as 2007, but was shelved due to protests by Vietnam. Now China has taken a concrete step, signaling its determination to administer the Nansha Islands and related sea areas. The new level of management carries more weight than the law of Vietnam.More

China issued new passports that  include a map of territories also claimed by other countries.The map lays clear claim of China to the maritime sovereignty in the South China seas.
The on-going passport row can be solved via diplomatic channels.  After all, it is not possible to suspend Sino-foreign personnel exchanges due to this episode.------Zhao Gancheng, an expert on Southeast Asia at the Shanghai Institute for International Studies

Related Reports

	Peace will be a miracle if provocation lasts The standoff over Huangyan Island in the South China Sea continues and Manila appears fully prepared to create more tensions. China's foreign ministry has noted that China is fully prepared to respond to Manila's move to escalate the situation. The remarks are seen as China sending a sign that it will not rule out the use of force.
	Deep-water drilling starts The nation's first indigenous deep-water drilling rig, the CNOOC 981, will begin operations on May 9 in an area in the South China Sea 320 kilometers southeast of Hong Kong. The move, hailed by analysts as an effective way to reinforce China's territorial claims in the region, came amid an ongoing standoff between Chinese and Philippine ships in waters near Huangyan Island.
	China de-escalates situation in Huangyan Island by withdrawing two vessels China is de-escalating the situation in Huangyan Island in South China Sea by withdrawing two law enforcement vessels, Zhang Hua, spokesman of Chinese Embassy in the Philippines said on April 23. Two Chinese vessels, a Fishery Administration ship "Yuzheng-310 " and a Chinese Maritime Surveillance ship No. 084, have already left the Huangyan Island area by April 22, Zhang said. "There is only one Maritime Surveillance ship remaining in the Huangyan Island area for its law enforcement mission."
	Sansha new step in managing S.China Sea The Chinese government has raised the administrative status of Xisha, Zhongsha and Nansha islands in the South China Sea from county-level to prefectural-level, according to a statement on June 21.
	China's new passport map riles neighbors Vietnam's immigration authorities are issuing separate visa sheets to new Chinese passport holders instead of stamping directly on visa pages, after Beijing issued new passports that  include a map of territories also claimed by other countries.

By Bai Tiantian and Liu Sha Globaltimes

How can universities powering Malaysias' ivory towers?

It is time we look at how our universities can be true to their noble calling as a mirror of humanity’s great heritage rather than be in danger of choosing show over substance.

A UNIVERSITY is a temple of learning and a storehouse of the knowledge and wisdom of the past. It is a receptacle of art, culture and science and a mir=ror of humanity’s great heritage. At the same time it is a laboratory for testing out a new vision of the future.

In more than four decades as a teacher, I have witnessed the ebb and flow of many educational movements. Some of them give me the feeling that we are choosing show over substance.

> Industrial links: In order to refute the charge that universities are ivory towers with no appreciation of societal needs, all universities have forged close relationships with the professions, industries and commerce. Curricula are devised to satisfy Qualifying Boards and potential employers. Students are required to do periods of apprenticeship. Captains of industry are often recruited as adjunct professors.

All this is laudable. At the same time it must be realised that our orientation towards industries and the professions distorts university education in some ways. A balance is needed.

> Lack of liberal education: The role of universities is to advance knowledge and build characters and not just careers. In their obsession with narrow professional goals and employability of graduates, many universities adopt curricula that are bereft of the arts and humanities. This paucity and poverty is accentuated because, unlike many countries, professional courses in Malaysia do not require a degree at entry point.

If a university is true to its worth, it must provide holistic education and produce well-balanced graduates who have professionalism as well as idealism, an understanding of the realities as well as a vision of what ought to be. Merely supplying technically-sound but morally-neutral human cogs in an industrial wheel to contribute to high production figures, will not in the long range lead to enlightened development of human capital or of society.

> Research: The crucial, core factor in a university’s eminence is qualified academicians with proven research abilities and a solid commitment to lead and inspire their wards to travel up the mountain path of knowledge.

A university cannot become an acclaimed university unless it possesses a large number of scholars who are the voice of the professions and who not only reflect the light produced by others (knowledge application) but are in their own right a source of new illumination (knowledge generation).

However, emphasis on research is leading to a number of adverse tendencies. Teaching is being neglected. Committed teachers are being bypassed in tenure and promotions in favour of entrepreneuring researchers.

Instead of singling out and supporting good researchers wherever they are found, the Malaysian approach is to anoint some universities with RU status and shower them with special grants. Innovators in non-research universities are thereby prejudiced.

> Research has various components: Capacity, productivity and utility.

The first (capacity) can be developed. Sadly, often it becomes an end in itself. The second (productivity) does not necessarily follow from the first. The third (utility) is often lacking. A great deal of research has no impact on the alleviation of the problems of society. Prestige and profit override public purpose. We need better criteria for research grant eligibility.

> Seeking best students: At the risk of sounding heretic, I wish to say that this modern obsession with seeking “the best students” is not conducive to social justice. Highly motivated, intelligent and articulate students make teaching a pleasure.

But what is even more satisfying is to take ordinary students and convert them into extraordinary persons; to mould ordinary clay into works of art.

It is submitted that entry points should be flexible. They should be based on holistic criteria. They should take note of initial environmental handicaps. They should be cognizant that equitable access to knowledge is a factor in sustainable development. They should further the university’s role to assist in social and economic progress; to cut poverty; to help the disadvantaged.

Entry points are less important than exit points. How a student ends the race is more important than how he/she began it.

All universities should be required to run some remedial programmes for under-achievers and to practise affirmative action for all marginalised sections of the population.

> Over-specialisation: Our system is committed to teaching more and more on less and less. Production of enough professionals and technocrats for the industries and the job market is an overriding role. However there is clear evidence that half or more than half of the graduates end up in roles outside of their university training.

In an age of globalisation, economic booms and busts, and high unemployment rates, there is a growing disconnect between what students study and what their subsequent careers are.

It is therefore, necessary to train students for multi-tasking, multi-disciplinary approaches; to have split-degree courses; and to produce graduates who have career flexibility and who are able to adapt to different challenges at work.

> Community service: Universities must serve society and not just by producing graduates for the job-market. All university courses must have an idealistic component and must straddle the divide between being people-oriented and being profession-oriented.

The curriculum must be so devised that staff and students are involved in the amelioration of the problems of society, in schemes for eradicating poverty, protecting the en-vironment, providing fresh water, storm control, protection from disease, adult education and free legal, medical, commercial and technical advice.

Tailor-made, short term courses for targeted groups should be devised to enrich lives. These courses should have no formal entry requirement. Town-gown relationships should extend to links with NGOs, GLCs and international groups that are involved in wholesome quests like environmental sustainability.

> Globalisation: Internatio­nalisation of knowledge is crucial for humanity’s advancement. However, to be truly global, we must not ignore citadels of excellence in Japan, Korea, China, India and Iran. It retards our progress and prevents us from addressing problems peculiar to our clime that our tertiary education suffers from a debilitating Western bias. Our course structures, curricula, textbooks, and icons are all European and American. It is as if the whole of Asia and Africa is and always was an intellectual desert. The opposite is true.

Asian universities must build their garlands of knowledge with flowers from many gardens. That would be true globalisation.

Comment
By Prof Shad Saleem Faruqi

> Shad Saleem Faruqi is Emeritus Professor of Law at UiTM 

Related post:
Form over substance in higher education and university   
China is the main show
When China Rules The World: The End Of The Western World And The Birth Of A New Global Order