An intelligent strategy for exploiting one’s intellectual property as well as the cross-border in-licensing of IP in global competition can not only significantly increase the value of a company’s IP portfolio, but also comes with other benefits. For instance, a commercialization strategy can provide a solid foundation for tapping into new markets and fields of technology.
The exploitation of intellectual property has long been in the focus of the Chinese government. Chinese authorities have a good understanding of the value of importing and exporting IP. Hence, the volume of Chinese IP licensing continues to grow, with a total value of about $ 33 billion last year. In 2017 alone, the export of licenses grew by more than 300%.
Despite this sharp increase, China remains a net importer of IP royalties, with the US, Germany and Japan being the main sources. Although China is the world’s largest exporter of high-tech products, it ranks only 72nd in terms of exporting IP licenses. One reason is the complex environment of the licensing business, especially to foreign businesses. China’s regulations on the import and export of technology remain a challenge for foreign companies.
Source statistics: MOFCOM China
Picture: NOVA, Song Dynasty painting showing a dinner for scholars hosted by the Emperor