Intellectual property (IP) is an intangible asset. There are different types of IP rights in Hong Kong including trademark rights, patents, copyrights,  designs, plant varieties, the layout design of integrated circuits, trade secrets and know-how and domain names. In China, IP rights include trademark, invention patents, utility models, design patents and copyrights.

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From a business perspective, effective protection of IP rights is very important to companies or individuals, as it ensures that efforts and investments are rewarded.

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Nowadays IP is regarded as an important element of business development and a kind of intangible assets；it can be as valuable as tangible assets. In recent years, China attaches great importance to IP and encourages enterprises to protect IP rights.  On the other hand, Hong Kong is promoted as an IP trading hub to facilitate international IP trading and connection to global IP players; also encourage SMEs to seek business opportunities through intellectual property.

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China's market is huge, and there are also great opportunities for IP trading. As IP business in China continues to grow, protecting IP rights is the first step for those companies who are developing brands/ products or technology and want to expand their markets in China.

 

Intellectual property rights have important value for both individuals and enterprises:

• The intangible assets of enterprises have great commercial value.

• Having a certain number of patents can be used as an important indicator for listing and other reviews.

• Protect the due rights of the company's technology and products.

• The Government has support policies for patent applications, tax exemptions, and identification of high-tech enterprises.

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Invention Patent

The Implementing Rules of the Patent Law of the People's Republic of China state that "an invention as used in the Patent Law refers to a new technical solution proposed for a product, process or improvement thereof". The granting of an invention patent application must meet the three conditions of novelty, inventive and practicality.

• Protect inventions and monopolize the market.

• Have the necessary conditions for invention patents to apply for high-tech enterprises and apply for various scientific and technological funds.

 

Utility models

• A utility model patent is a new technical solution for the shape and structure of a product.

• Have a practical technical solution and emphasize practicality. The scheme is aimed at solid shape products, emphasizing practicality, and the technical requirements are not high.

• Utility models are sometimes referred to as small inventions because they have a relatively low level of inventive step, taking only a few months from application to grant, and protection is valid for 10 years.

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Design

According to the Patent Law in China, a design is an artistic creation which features a decorative or aesthetic exterior appearance of an article. It is completely different from the invention or utility model because the design does not involve technical solution. Therefore, the design patent should meet the following requirements:

(1) A design patent means any new design of the shape, the pattern, or their combination, or

(2) the combination of the color with shape or pattern of a product, 

(3) Must creates an aesthetic feeling.

(4) Must be suitable for industrial applications

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Trademarks Registration 

•  Trademarks are important intangible assets of enterprises and can be freely transferred, licensed, mortgaged, etc. 

•  In the China market, trademarks are the requirements for products to enter all retail channels, such as shopping malls, supermarkets, Tmall, JD, and other e-commerce platforms. Trademarks registration documents are required for launching advertising campaigns.

•  Trademarks are an important symbol that distinguishes them from similar products, which is conducive to enterprises to quickly establish a brand image. 

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