Reflections on Policies to Optimize IP Rights Exchange Market

1. Reflections on Policies to Optimize IP Rights Exchange Market Ma Weiye Director of Patent Administration Dept. of SIPO, Researcher Deputy Chairman of Executive Council of China Research Society for Development Strategies Executive Director of China Appraisal Society Executive Director of China Association of Inventions Member of Economic Committee of All China Federation of Industry & Commerce Adjunct Professor of China University of Political Science & Law, Tongji University, Central University of Finance & Economics, Northwest University, Beijing University of Chemical Technology, Hefei University of Technology, Nanjing University of Science & Technology, and Tianjin University of Finance & Economics Nov. 22, 2011 Shanghai

2. Requirements on the implementation of IP strategy How to Optimize IP Rights Exchange Market Several current factors restricting the development Government initiatives to guide market development Reflections on the optimization of the development of exchange market

3. 1. Requirements on the implementation of IP strategy Give full play to the role of technology market, build an IP trading system with sufficient information, active trading and good order. Streamline trading procedures, reduce trading costs, and provide quality services.

4. 1. Requirements on the implementation of IP strategy Creation Application Fundamental function: value realization Protection A major tool Management IP exchange market A basic requirement

5. 2. Several current factors restricting the development Absence of lawBecause it is new, IP exchange market is facing a legal gap. 1 Survival relying on government transfusion Viewing from the establishment of IP exchanges, many are products of government monopoly. 2 IP Exchange Market Bad commercial operation modee.g. lack of fixed standards for intangible asset evaluation, single form of trading, etc. Inadaptability of intermediary services Qualification of IP appraisers: no administrative penalties for intermediary agencies and personnel. 3 4 Culture of integrity is yet to be formed Bad faith is the most serious concept obstacle to the current development of IP exchange market. 5

6. 3. Government initiatives to guide market development Policy Support Platform Construction

7. Policy Support 3. Government initiatives to guide market development Seven Rules 1. In what circumstances will asset appraisal be needed? 2. Who is qualified to conduct appraisal? 3. Who will certify the qualification? 4. Who will guide the appraisal? 5. What principles will be adhered to in the appraisal? 6. Independence of the appraisal 7. Violation process In 2006, SIPO launched the IP Appraisal Promotion Program.

8. Policy Support 3. Government initiatives to guide market development

9. Policy Support 3. Government initiatives to guide market development 1st (2008) HaidianDistrict Nanchang Changchun Xiangtan FoshanNanhai District Ningxia Hui Autonomous Region 2nd Batch（2009） Wuxi Chengdu Yichang Guangzhou Wenzhou Dongguan

10. Policy Support 3. Government initiatives to guide market development I. Set up collaborative promotion mechanismto promote IP pledge financing II. Innovate service mechanism forIPpledge financing III.Establishandimprove risk management mechanism for IP pledge financing IV. Perfect appraisal management system for IP pledge financing V. Set up management mechanism conducive to IP transfer

11. Policy Support 3. Government initiatives to guide market development

12. Platform Construction 3. Government initiatives to guide market development 41 national patent technology exhibition and trading centers

13. 4. Reflections on the optimization of the development of exchange market 1. System and mechanism 5. Culture of integrity 4. Intermediary services 2. Element configuration 3. Platform construction

14. System and Mechanism 4. Reflections on the optimization of the development of exchange market Gradually break the management mode of government monopoly Guidance of government policies Support of state laws Operation of market mechanism

15. Element Configuration A certain amount of goods available for exchange 1 4. Reflections on the optimization of the development of exchange market Micro-market consisting of population, purchasing power and desire to buy Sellers providing goods to the market Market Elements 3 4 2 Buyers demanding goods

16. Platform Construction 4. Reflections on the optimization of the development of exchange market Integrate existing exchange centers Construct nationally unified platform

17. Intermediary Services  4. Reflections on the optimization of the development of exchange market Qualification certification   Multiple forms Penalties in place

18. Culture of Integrity 4. Reflections on the optimization of the development of exchange market Hard-to-say bad faith   Maliciously bad faith  Well-intentioned bad faith

19. Culture of Integrity 4. Reflections on the optimization of the development of exchange market Maliciously “I will not eat these steamed breads, not even I am beaten to death, not even I am starved to death！” bad faith “News 1+1” on CCTV news channel on Apr. 13, 2011

20. Culture of Integrity 4. Reflections on the optimization of the development of exchange market Maliciously Eating rice is eating poisons! “Encyclopedia” of Hunan Satellite TV Eat to cure diseases from eating! bad faith

21. Culture of Integrity 4. Reflections on the optimization of the development of exchange market Maliciously bad faith Zhou Zude, President of Wuhan University of Technology Huang Qing, Vice President of Southwest Jiaotong University Li Lianda, academician of Chinese Academy of Engineering Lu Jierong, Vice Li Xiaoming, Vice President of President of Liaoning UniversityAnhui Agricultural University

22. Culture of Integrity 4. Reflections on the optimization of the development of exchange market Well-intentioned bad faith The Great Wall is the only architecture on the Earth that can be seen from space Liu Bao, Emperor Shun of Han Zhang Heng In 132 AD, Zhang Heng of Eastern Han invented the seismograph.

23. Culture of Integrity 4. Reflections on the optimization of the development of exchange market Correct nonsenseNice idle talkFashionable new wordsStrict stereotyped expressionsLies against the conscience Leaders do not like the truth. Hard-to-say bad faith

24. Culture of Integrity 4. Reflections on the optimization of the development of exchange market On Feb. 21, 2010 Beijing time, in the women's 1,500m short track speed skating at Vancouver Winter Olympics, Chinese athlete Zhou Yang fought alone in the encircle of three Korean athletes and broke the Olympic record with 2 minutes 16 seconds 993, being the champion of the event. Hard-to-say bad faith This is my dream. I think that winning the gold medal will make my mom and dad live a little better.

25. Culture of Integrity 4. Reflections on the optimization of the development of exchange market Effect of bad faith Maliciously bad faith Hard-to-say bad faith Well-intentioned bad faith Integrity Crisis The biggest concept obstacle to the development independent innovation, IP protection and IP exchange market

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