China's rapid rise in innovation-driven industries is being matched by steady progress in intellectual property protection, as improved legal frameworks and growing international engagement inject new momentum into the country's IP ecosystem, said Etienne Sanz de Acedo, chief executive officer of the International Trademark Association.

"China is now a powerhouse in patent and trademark activity, with a very significant percentage of trademark filings," Sanz de Acedo told China Daily, adding that the country accounts for almost 50 percent of global filings in patents — 1.8 million out of 3.7 million total patents in 2024.

However, the country's trademark evolution is no longer defined solely by scale, but increasingly by quality and institutional development, the INTA CEO said.

"What has really changed is the mindset. It is the understanding of the economic value of intellectual property," he said, adding that China's IP system has also improved through stronger legal frameworks where there lies greater consistency, more clarity and predictability, and more specialized courts.

Sanz de Acedo added that China's continued rise in global IP activity reflects a wider trend in which innovation-driven economies are placing greater emphasis on intellectual property as a foundation for long-term growth.

"The fact that China is a big player (in the global IP ecosystem) is something we think is very positive," he said.

His remarks came as INTA has been deepening its engagement with the Chinese market, including its participation in this year's China International Fair for Trade in Services (CIFTIS) in Beijing in September, where global IP governance and trademark protection are expected to be key discussion topics among international institutions and Chinese enterprises.

As Chinese companies move from exporting products to building global brands, IP is becoming less a narrow legal matter and more a core part of business governance, Sanz de Acedo noted.

"Although Chinese companies were essentially exporting products in the past, today they are building global brands, exporting their technology and know-how to make better lives for societies and populations around the world."

Sanz de Acedo also noted that the main challenges for Chinese companies going global include protecting rights upfront, enforcing those rights in global markets and preparing for possible litigation. Companies should also understand potential geopolitical challenges affecting many corporations.

"This means IP can no longer be treated only as a protection tool after a product or brand has already entered the market. It is rather a governance issue that needs to be embedded in the business chain and be considered from the very beginning," he said.

For startups and smaller companies, the challenge is similar to that faced by large businesses — they need to think early about their brands, technologies, protection strategies, commercialization paths and revenue models.

"That is what intellectual property is about," he said. "Building your IP, protecting your IP and commercializing your IP."

The senior executive also noted that "as we now enter the era of artificial intelligence, the technology is adding another layer of complexity to the IP world".

"Discussions around inventorship, authorship and ownership will become more pressing as AI is used to create patents, paintings and music.

"Should companies take advantage of AI? Yes, absolutely, but not exclusively," Sanz de Acedo said. "The human element is still very important."

Source: China Daily