426,000 Patent Applications Filed in China During First Half of 2009

The Chinese government’s emphasis on boosting innovation might be proving fruitful. According to the latest statistics from the State Intellectual Property Office (“SIPO”), the government entity responsible for prosecuting patents, there were 426,000 patent applications filed and 252,000 patents granted in China during the first half of 2009. Compared with the first half of 2008, patent filings are up 31.3 percent and patent grants are up 23.1 percent.

China’s patent system allows for three types of patents: invention patents, utility model patents, and design patents. China invention patents are similar to utility patents in the United States. The patent term for invention patents is 20 years from the filing date. Patents for invention are substantively examined. It typically takes two to five years for an invention patent to issue.

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China Enhances Supervision of Cross-border Related Party Transactions

On July 6, 2009, the China State Administration for Taxation (“SAT”) issued a Notice Regarding Enhancement of Supervision and Investigation of Cross-border Related Party Transactions (the “Notice”). The Notice aims at preventing overseas companies from shifting losses to their related-parties in China against the backdrop of the financial downturn.

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