ARTICLE | Patents: Quality versus Quantity (and what about China?)
Although company shareholders may not agree, the United States Patent Trademark Office (PTO) has indicated that the quality of the patents granted is more important than quantity of patents granted.
To encourage higher quality patents, the PTO discontinued publishing its annual top ten patent holder list, "emphasizing quality over quality by discouraging any perception that we believe more is better."
This is an important about face in the field of intellectual property. Now, inventors, companies, patent attorneys, and patent law firms can be judged on the quality of the work, not quantity.
In the past, rankings (inventors, companies, patent attorneys, and patent law firms) were based solely in the number of patents produced with no consideration of quality, innovation, contribution to society, or profit.
So, should we be concerned about China?
Probably.
There is much in the headlines about China’s economic growth. In fact, Thomson Reuters’ intellectual property analysis indicates that China’s 2011 patent volume will exceed both the United States and Japan in patents.
This projection is certainly reason for further analysis, but should it cause alarm based upon the number of patents alone? Is the U.S. finally getting “it” and focusing on quality or are we falling short?
The Thomson Reuters analysis indicates that U.S. patent growth was 5.5% from 2003-2009; whereas, China’s patent growth was 26.1% from 2003-2009. That’s just shear quantity.
But, other factors were observed as well, including patent quality versus quantity, composition of patents, patent technology areas, and government/policy implications.
Other observations about China’s patents include:
· China has greatly expanded its intellectual property protection overseas. For example, China’s patents in the United States increased 14.1% from 2007 to 2008. During that same time period, in Europe, China’s patents increased 33.5%; in Japan, their patents increased 15.9%
· The Chinese government is encouraging patent development and innovation with tax deductions, a government dedicated to innovation, and the development of unique patent protection.
· China offers “utility patents” with 10 years of protection that are easier to obtain than “invention” patents
· In 2009, one – half of all Chinese patents were utility patents
· China’s high tech patents are growing exponentially
· Agricultural related patents are slowing reflecting a significant change in their society
· China’s quality of patents appears to be improving based upon analysis of the ratio of applications to full invention patents granted.
What’s this mean for the United States?
Innovation. Innovation. Innovation.
If you have been thinking of developing a product or have a product and haven’t yet moved forward with your patent application, get going! It’s your time. You’re not alone.
Where to get help
If you have questions about what it takes to develop a quality patent, hire a qualified attorney who focuses his or her practice on patent law.
We, at Cutler law firm, focus on our practice on representing people just like you. Not only do we help you to obtain your patents for your inventions, we help you protect your patents and get the compensation that you deserve.
If you have questions about patents and patent infringement or need help, our offices can be reached at 605-335-4950 or through email.