China set to increase patent protection by five years, according to reports

According to some reports, China is going to increase the amount of patent protection on pharmaceuticals from 20 years to 25 years, in a bid to deflect the criticism from the US over intellectual property violations.

As reported by the Nikkei Asian Review, the decision to extend drug patents in China can be attributed to the current trade frictions between China and the US. In the long-term, this decision could forge better relationships, particularly for foreign drugmakers looking to export products to China.

China’s pharmaceutical market is a multi-billion-dollar sector with substantial amounts of drugs imported. With an ageing population and Beijing also looking to remove import tariffs on commonly imported drugs, such as cancer drugs, this market is expected to grow.

However, the reports are, as of yet, unconfirmed and the new rules appear to be conditional, raising some questions over how the news will be perceived globally.

Tim Jackson— an executive (partner) and head of Patent Strategy and Development at international IP consultancy Rouse (based in the firm’s Shanghai office), commented on the news:

“There is no reference in the decision to any time frames for the introduction of the patent term extension but the removal of tariffs is said to apply from May 1. It is likely that any introduction of a patent term extension will take some time as this would require a change in the current Chinese patent law.

“If China does introduce patent term extension, it would mean that China is following countries such as Canada who have extended pharmaceutical patent terms as a result of trade negotiations. This is becoming a standard concession as the extension usually only applies to patents filed after the legislation is in force, which allows 20 years for businesses and consumers to adjust.

“However, it appears from the Chinese language report and the State Council’s decision that China intends to allow the extension to apply to existing pharmaceutical patents but on the condition that the patent owner applies for a manufacturing license in China and overseas. If the patented product is only imported into China, the extension may not be available.

“This condition is interesting as it fits with the Made in China 2025 policy to improve China’s abilities in the biomedicine area. However, it also means that issues of knowledge transfer behind the recent trade dispute between China and the United States remain alive.”