SAMPLE LANDSCAPE STUDY PCT PUBLICATIONS TRENDS – CHINA – 2017-2018

1. SAMPLE LANDSCAPE STUDY PCT PUBLICATIONS TRENDS – CHINA – 2017-2018

2. Contents • Introduction • Factors Governing Rise of Patent Filings in China • China - New Global Leader of Innovation? Quantity Vs Quality • Objectives for the Landscape Study • Trend Analysis and Graphical Representation • Key Technology Trends • Patent Portfolio Analysis – Analysis of Technology Domain of PCT Publications Assigned to Top Companies • Analysis of Technology Domain of PCT Publications Assigned to Top Universities and Educational Institutes • Analysis of Technology Domain of PCT Publications Assigned to Top Individuals • Summary • Appendix 1 – Sources

3. Introduction • Patent applications filed under WIPO’s Patent Cooperation Treaty (PCT) enable inventors to seek protections for their intellectual property rights in most countries. • In recent times the global trends on patent filings are beginning to see some significant changes. • Studies indicate changes in the innovation markets of China and the US suggesting that their IP systems are moving in opposite directions. • According to data released by the World Intellectual Property Organization (WIPO), China ranked secondin international patent applications in 2017 replacing Japan and is expected to overtake the US within three years. • Over the last 20 years, China has gone from the position of being largely a consumer of technologies to a producer of technologies. • The growth rate of China’s international patent applications has been consistently exceeding more than 10 percent annually since 2003. • Two China-based telecoms companies, Huawei Technologies and ZTE Corporation occupied the top two spots for PCT applications filed in 2017. For sources of information, please refer to Appendix 1

4. Factors Governing Rise of Patent Filings in China • Chinese government has been aggressively incentivizing increased patent filings including subsidizing patent filing fees, providing rewards for patent filings, and tax credits that are tied to patent output. • Science and technology policies in China have allowed domestic firms to emerge as industrial leaders - Government has relaxed examination guidelines regarding software and business method patents and streamlined the examination process for big data, cloud, Internet and other important sectors. • China has taken the global lead in the number of research and development personnel employed within the country with nearly 4 million workers in the R&D sector as of 2017 and is receiving the second-largest investment into research and development, reaching $278.5 billion USD in R&D investment and accounting for 2.12 percent of China’s gross domestic product (GDP). • China business startups are increasing - the number of daily new registered enterprises surpassed 16,000 in 2017. • Many Chinese companies are transitioning from low cost manufacturers to creators of more advanced technologies - actively seeking to build up a large patent stockpile to establish an image of innovator, and to secure an optimal competitive position in patent competition. • Global enterprises are increasingly seeking protection in China to mitigate future infringement risk, and to secure China as a consumer-rich market for the manufacture and sale of core technologies. For sources of information, please refer to Appendix 1

5. China - New Global Leader of Innovation? Quantity Vs Quality • Number of patent applications is an imperfect measure of innovation - does not measure the quality of the patent. • The ratio of patents granted to patent applications in China remained lowest amongst the top innovative countries - Between 2000 and 2016, the average share of patents granted among total applications in China was only 23.44 percent, whereas it was 43.50 percent in Germany, 44.93 percent in the United States, 45.54 percent in South Korea, and 50.50 percent in Japan. • China patent filings has seen largest increase in utility model patents, followed by design and then invention patents between 2000 and 2016. Invention patents accounted for only 19.3 percent of the total number of grants implying improvement in China is not significant compared with its skyrocketing number of patent applications. • China lags behind other innovation countries with respect to the share of patents that are filed and granted abroad. In 2016, only 4.17 percent of 1.2 million Chinese patent applications were filed overseas, and 6.31 percent of the total patents were granted in foreign countries. • One possible reason may be that the Chinese patent applications could not withstand the international evaluation because of the lower quality of its patents. • China need to sustain its large innovation investment and shifts its focus from quantity to quality to become one of the next innovation leaders. For sources of information, please refer to Appendix 1

6. Objectives of the Landscape Study • To perform detailed analysis of PCT patent publications originating from China • To understand top applicants/assignees (Companies, Universities and Individuals) and top technologies/ sub-technologies based on IPC codes • To conduct Patent Portfolio based study of Top companies, Universities and Individuals vis-a-vis technology trends • Assumptions: • The landscape study focuses on PCT patent publications originating from China and published between Jan, 2017 – Aug, 2018. • The PCT patent applications were categorized to the respective technology domains based on first International Patent Classification (IPC) classification code. For sources of information, please refer to Appendix 1

7. Trend Analysis and Graphical Representation Patent Searching | Research and Analytics | Patent Prosecution/Preparation Support | Litigation and E-Discovery | IP Valuation | Patent Portfolio Watch

8. Top Assignees – Overall and Companies Insights All the top ten assignees/applicants are companies with ZTE Corporation leading as patent applicant for PCT patent application filing through China, followed by Huawei Technologies and BOE Technology Group.

9. Top Assignees – Universities and Institutes Insights Shenzhen University is the leading university as patent applicant for PCT patent application filing through China, followed by University of South China & Technology and China University of Mining and Technology. None of the top University/Institute figure in overall Top PCT applicants.

10. Top Assignees – Individuals Insights Yang Yue is the top patent applicant among individuals for filing PCT applications through China, followed by Zhou Zhaodi and Tian Dong. The number of patent applications filed by individuals is significantly low when compared with companies and universities.

11. Distribution – Companies Vs Others Insights Majority of the PCT patent applications (83.7%) are filed by Companies while the others (including individual inventors & universities/ institutes) account for only 16.3% of the total PCT applications filed.

12. Distribution -Top 10 Companies Vs Other Companies Insights Top 10 companies account for 43.8% of total PCT applications wherein companies are applicants whereas other companies (~7000 in number) filed 56.2% of the PCT applications.

13. Key Technological Trends Patent Searching | Research and Analytics | Patent Prosecution/Preparation Support | Litigation and E-Discovery | IP Valuation | Patent Portfolio Watch

14. TECHNOLOGY DOMAIN Insights Maximum number of PCT applications (27366, 55%) published were in the technology domain of Electrical Engineering, followed by Instruments (6948, 14%)and Chemistry.

15. SUB-TECHNOLOGY - ELECTRICAL ENGINEERING Insights Maximum number of PCT applications (8338, 16.7%) published focused on Telecom (Digital Communications) while (8282, 16.6%) of applications are related to Computer Technology (IT) sector followed by Audio-Visual Technology.

16. SUB-TECHNOLOGY - INSTRUMENTS Insights Maximum number of PCT applications published related to the domain of Analysis, Measurement Control Technology, followed by Optics and Medical Technology.

17. SUB-TECHNOLOGY - CHEMISTRY Insights Organic Fine Chemistry is the top sub-technology domain receiving the highest number of PCT applications, followed by Biotechnology and Pharmaceuticals/Cosmetics.

18. SUB-TECHNOLOGY - PROCESS ENGINEERING Insights Highest number of PCT applications published in Process Engineering technology domain were related to Chemical Engineering, followed by Material Processing/Textile/Paper industry and Environmental Technology sub-technology domain.

19. SUB-TECHNOLOGY - MECHANICAL ENGINEERING Insights Maximum number of PCT applications published in Mechanical Engineering domain were focused on Transport, followed by Thermal Processes/Apparatus and Mechanical Elements.

20. SUB-TECHNOLOGY - CONSUMPTION Insights Other consumer Goods received the maximum number of PCT applications published under Consumption domain, followed by Furniture /Games and Civil Engineering.

21. Patent Portfolio Analysis – Top Companies Patent Searching | Research and Analytics | Patent Prosecution/Preparation Support | Litigation and E-Discovery | IP Valuation | Patent Portfolio Watch

22. Patent Portfolio Analysis – ZTE Corp Company Profile Overall % Share • ZTE Corporation is a Chinese multinational telecommunications equipment and systems company headquartered in Shenzhen, Guangdong, China. • ZTE operates in three business units: carrier networks (54%), terminals (29%) and telecommunication (17%), their core products being wireless, exchange, access, optical transmission, and data telecommunications gear; mobile phones; and telecommunications software. • ZTE is working towards the development of next-generation technologies including 5G, the Internet of Things, NFV, SDN, Cloud Computing and Big Data. • ZTE has been ranked among the world’s Top-3 for patent applications under the Patent Cooperation Treaty (PCT) each year since 2010. % Share Amongst Top 10 Applicants

23. Patent Portfolio Analysis – ZTE Corp Technological Trend Insights ZTE Corp. has maximum number of PCT applications focused on Electrical Engineering domain wherein Telecom sector emerging as the major sub-domain.

24. Patent Portfolio Analysis – Huawei Tech Overall % Share Company Profile • Huawei Technologies Co., Ltd. is a Chinese multinational networking, telecommunications equipment, and services company headquartered in Shenzhen, Guangdong. • Huawei is a leading global provider of information and communications technology (ICT) infrastructure and smart devices. • As of 2018, Huawei is the second largest smartphone manufacturer in the world behind Samsung. • Huawei has filed more than 4,000 international patents in 2017 and is the top PCT filer in 2017. % Share Amongst Top 10 Applicants

25. Patent Portfolio Analysis – Huawei Tech Technological Trend Insights Huawei Tech. has maximum number of PCT applications filing through China in the technology domain of Electrical Engineering further focusing on Telecom sub-domain.

26. Patent Portfolio Analysis – BOE Tech Overall % Share Company Profile • BOE Technology Group Co., Ltd., founded in April 1993, is an IoT company providing intelligent interface products and professional services for information interaction and human health. • BOE’s three core businesses are Display and Sensor Devices, Smart Systems and Healthcare Services. • According to the 2017 International PCT Applications of WIPO, BOE ranked No.7 with 1,818 applications. % Share Amongst Top 10 Applicants

27. Patent Portfolio Analysis – BOE Tech Technological Trend Insights BOE Tech. has maximum number of PCT applications filing in the domain of Electrical Engineering followed by Instruments. Optics emerged the major sub-domain under instruments.

28. Patent Portfolio Analysis – Top Universities / Institutes Patent Searching | Research and Analytics | Patent Prosecution/Preparation Support | Litigation and E-Discovery | IP Valuation | Patent Portfolio Watch

29. Patent Portfolio Analysis – UNIV SHENZHEN • Shenzhen University is founded in 1983 and located at Shenzhen, China. It perform its R&D as University-Industry cooperation with Silicon Valley to combine scientific research, teaching and internships and has published more than 100 innovative new patents. Technological Trend Insights Shenzhen University has maximum number of PCT applications filed through China focusing on Electrical Engineering domain mainly comprising sub-domain of Computer Technology.

30. Patent Portfolio Analysis – UNIV SOUTH CHINA TECH University of South China and Technology is a comprehensive public university situated in Hengyang, China. USC is one of the best university in the amount of filing patent application and had won various prestigious awards in patenting like China Patent Gold Prize, China Patent Excellent Prize etc. Technological Trend Insights University of South China and Technology has filed maximum number of PCT applications in the Chemistry domain majorly focusing on Polymer Chemistry.

31. Patent Portfolio Analysis – CHINA UNIV OF MINING & TECH CUMT has been playing an important leading role in the coal energy industry and the provincial economic and social development. It has obtained 251 provincial- and ministerial-level Science and Technology awards and 2,065 patents, including 315 invention patents. Technological Trend Insights China University of Mining and Technology has maximum number of PCT application filing in the Consumption domain focusing on Civil Engineering sector.

32. Patent Portfolio Analysis – Top Individuals Patent Searching | Research and Analytics | Patent Prosecution/Preparation Support | Litigation and E-Discovery | IP Valuation | Patent Portfolio Watch

33. Patent Portfolio Analysis – YANG YUE Technological Trend Insights Yang Yue has the maximum number of PCT patent applications focused on Mechanical Engineering domain further related to Mechanical Elements sub-domain.

34. Patent Portfolio Analysis – ZHOU ZHAODI Technological Trend Insights Zhou Zhaodihas majority of PCT applications filed the domain of Consumption focusing on Civil Engineering sector.

35. Patent Portfolio Analysis – TIAN DONG . Technological Trend Insights Tian Dong has majority of PCT applications filed in the domain of Electrical Engineering further focusing on Electrical Machinery.

36. SUMMARY • According to 2017 WIPO report, China ranked second in international patent applications in 2017 replacing Japan. • Two China-based telecoms companies, Huawei Technologies and ZTE Corporation occupied the top two spots for PCT applications filed in 2017. • Mainly these top companies are the technology consumers where the international patent applications are exceedingly increasing and is giving competition to the US based companies. • Chinese companies and business start-ups are growing with the fast pace as Chinese government is incentivizing increased patent filings including subsidizing patent filing fees, providing rewards for patent filings, and tax credits that are tied to patent output. • Quantity of international patent filings in China may be high but the granted patent applications are the lowest among top innovative countries inferring Chinese applications may not be at par in terms of quality with other global innovation leaders. • Chinese companies occupied the top spots as applicants of PCT applications filed through China and top ten companies are responsible for almost 40% of the total filings. • Some of the Chinese universities are actively engaged in filing PCT applications, however, they lag far behind Chinese companies in terms of number. • Most of Top applicant companies and universities are working in the domain of Electrical Engineering mainly in Telecom sector, barring few which are working in Mechanical and Consumption domain. US7741389B2 Resin composition containing a polyalkylene furan dicarboxylate resin and a porphyrin compound US8981037B2 PEF used in preparation of a polyester resin EP2257596B1 Resin composition containing polyethylene furandicarboxylate EP2252645B1 Polyester resin used for producing a molded article

37. APPENDIX 1: SOURCES • www.wipo.int/edocs/pubdocs/en/wipo_pub_901_2018.pdf • http://www.wipo.int/pressroom/en/articles/2018/article_0002.html • https://iprgroup.info/modern-trends-of-pct-applications/ • http://www.ipwatchdog.com/2017/10/18/u-s-skeptical-patents-china-picks-up-slack/id=89294/ • http://english.gov.cn/news/top_news/2018/03/23/content_281476087111698.htm • http://www.ip-watch.org/2018/03/21/irrepressible-rise-china-international-patent-applications-developing-countries-lagging/ • http://www.ipwatchdog.com/2018/04/18/increases-innovation-patent-boom-development-china/id=95994/ • https://research.stlouisfed.org/publications/economic-synopses/2018/05/04/what-does-chinas-rise-in-patents-mean-a-look-at-quality-vs-quantity • http://www.wipo.int/edocs/mdocs/classifications/en/ipc_ce_41/ipc_ce_41_5-annex1.pdf • https://www.zte.com.cn/global/about/corporate_information/Introduction • https://en.wikipedia.org/wiki/ZTE • https://www.huawei.com/en/about-huawei/corporate-information • https://en.wikipedia.org/wiki/Huawei • https://www.boe.com/en/about/gsjs/ US7741389B2 Resin composition containing a polyalkylene furan dicarboxylate resin and a porphyrin compound US8981037B2 PEF used in preparation of a polyester resin EP2257596B1 Resin composition containing polyethylene furandicarboxylate EP2235100B1 Resin composition containing polyethylene furandicarboxylate EP2252645B1 Polyester resin used for producing a molded article

38. Disclaimer IIPRD has prepared this sample report as an exemplary report, wherein the content of the report is based on internal evaluation of Patents and Non-Patent Literature that is conducted based on Databases and Information sources that are believed to be reliable by IIPRD. A complete list of patent documents retrieved is not disclosed herein as the report is exemplary but can be shared if desired based on terms and conditions of IIPRD. IIPRD disclaims all warranties as to the accuracy, completeness or adequacy of such information. The above sample report is prepared based on the search conducted on the IPC and other information extracted from the understanding of the Patent Analysts of IIPRD, and subjectivity of the researcher and analyst. Neither IIPRD nor its affiliates nor any of its proprietors, employees (together, "personnel") are intending to provide legal advice in this matter. Patent Searching | Research and Analytics | Patent Prosecution/Preparation Support | Litigation and E-Discovery | IP Valuation | Patent Portfolio Watch

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