ZTE and Huawei, China's two largest telecommunications electronics manufacturers, topped the list of 2016 corporate patent applications compiled by the Geneva-based UN agency.
“Chinese applicants are the driving force behind the growth of a large portion of international patent and trademark applications... China continues to move from 'Made in China' to 'Created in China,'†said Francis Gurry, Director General of the World Intellectual Property Organization.
The analysis of the World Intellectual Property Organization covers international applications submitted through the Patent Cooperation Treaty, which are often of higher quality than purely domestic applications. If the current trend continues, China will surpass Japan this year and surpass the United States within two years to become a leader in the international patent system.
Chinese inventors submitted 43,000 international applications in 2016, and domestic applications have made Chinese patent institutions the world's foremost busiest patent authority, accepting more than 1 million applications each year.
Since Huawei and ZTE began applying for international patents in 2000 and 2002 respectively, their number of applications has risen rapidly, making it easy for them to occupy the top two on the global patent application list.
“The two Chinese companies are still in a large-scale catch-up match with competitors in other parts of the world,†said Frank Tietze of Cambridge University's Centre for Technology Management. “They are applying, applying, and applying to build a large patent portfolio and use it as a bargaining chip when negotiating with other companies.â€
Japan and South Korea have also increased their international patent applications faster than most European and North American companies, although not as fast as China. As a result, Asia accounted for 47.4% of all applications last year, only slightly lower than the share of Europe (25.6%) and North America (25.3%).
“Japan’s domestic applications have declined for eight or nine consecutive years, while international applications continue to grow strongly,†Gao Rui said. “Japan has a clear strategy that focuses on patent applications and makes the best possible use of the best inventions.†The United States’ share of global patent activity has been declining since 2000; that year it accounted for 34% of the total. Gao Rui does not believe that the election of Donald Trump will affect US intellectual property policy or practice.
"You might say that President Trump represents the old economic industries of real estate, manufacturing and energy, but the United States is still largely science-oriented," he said. “Even with more and more protectionism, I am surprised by the big changes.†In large industrialized countries, Canada has experienced the largest decline in patent applications in recent years. The World Intellectual Property Organization linked it to the plight of the two largest Canadian technology companies: Nortel was liquidated after its bankruptcy in 2009, and Research In Motion, behind BlackBerry, drastically cut research and development.
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