Source:
https://scmp.com/comment/letters/article/3184152/becoming-chinas-intellectual-property-hub-holds-great-promise-hong
Comment/ Letters

Becoming China’s intellectual property hub holds great promise for Hong Kong

  • Readers discuss how Hong Kong can spearhead the creation and management of platforms to enforce and license the large volumes of China-sourced IP, and the advantages the city has for those willing to grab them
A man reads from his mobile phone in front of Huawei’s logo in Beijing on April 27. Photo: Simon Song

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Hong Kong can be China’s intellectual property (IP) hub. China has made substantial progress in IP creation. We hear about Huawei and other major Chinese companies filing the biggest number of patent applications under the Patent Cooperation Treaty.

But I would also note that Chinese residents filed more than 795,000 industrial designs in 2020, representing some 55 per cent of the worldwide total. That is a natural outgrowth of China’s rising contribution to global manufacturing value added.

From accounting for 9.8 per cent of the global manufacturing value added in 2000, just before it joined the World Trade Organization, China accounted for about 32 per cent of value added in 2020. As Chinese factories compete for new business, they innovate and come up with new designs, and the cost of procuring industrial design registrations in China remains comparatively cheap.

However, China-sourced IP punches much below its weight. You hardly ever hear about big damage awards overseas based on China-sourced IP. There is little expertise and rarely the will by small and medium-sized enterprises to enforce China-sourced IP overseas, where made-in-China products can be selling for up to 10 times the factory prices in China. That is leaving way too many chips on the table.

I have attended a number of Hong Kong Forums over the years. It was not unusual for Western presenters to recount the successes of utility patent pools and how those in the West are looking for new technologies to implement similar strategies.

It is now China’s turn. The likes of Huawei do not need Hong Kong’s help, but many small and medium-sized firms in China could benefit. Hong Kong’s legal community can spearhead the creation and management of platforms to help enforce and license the large volumes of China-sourced IP. Even if low-end manufacturing moves to India or Vietnam, foreign retailers are still likely to pay for made-in-China creations.

For a simple summary, build a platform to sell NFTs securely and confidentially in new designs to raise funds to register the IP to be placed into the pool. Use artificial intelligence to monitor infringement and automate enforcement demands. Coordinate the retention and management of contingency law firms around the globe to enforce claims where the infringers refuse to pay, bringing legal action where the damage recoveries are the highest.

The platform can also serve to mediate disputes among conflicting claims of members. When the income streams get substantial, the portfolios can even be securitised, such as by taking them public on the stock market.

All of these are well within Hong Kong’s capabilities. The opportunities are tremendous.

Danton Mak, Pasadena, California

Hong Kong is still a great place for making money

I came to Hong Kong in 2010 with dreams in my head. After spending 12 years here, I have earned myself a 500 sq ft flat to live in and a decently sized, self-owned office.

The simple truth is Hong Kong is a place full of opportunities, and I pity those who are leaving the city in search of so-called freedom. There cannot be many other places in the world where you can walk in the streets at 4am and still feel safe.

Those in the trading business in Hong Kong know it is possible to get paid in advance for a pro forma invoice because the world knows Hong Kong people are honest. It has taken a long time to gain this reputation.

Let us not ruin it. This is one of the few places in the world where importing and exporting are free of charge, so let us take advantage of it and choose a business or job that earn you lots of money. Some will claim it is the most expensive place to live, but they must also know that it is a place where earning money is easier than in many other places.

The bottom line is that there are three ingredients of a good life: learning, earning and yearning. Hong Kong has all three of them in ample quantities. Grab it with both hands.

Jain Bikash Kumar, Tsim Sha Tsui