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    INSIGHTS

    China's IP Service Industry Expands as High-Quality Service Capabilities Improve


    12/9/2024|INSIGHTS

     Source:China IP News

    The China National Intellectual Property Administration (CNIPA) recently released the 2024 National Intellectual Property Service Industry Statistics Report. The report indicates that in 2023, China's intellectual property (IP) service industry market grew steadily, with new business models emerging and continuous optimization of service supply structure and industry environment. Overall, the industry was showing "steady progress" and "qualitative improvement", with a solid foundation for high-quality development.

    Growth in Number of Service Providers

    As of the end of 2023, about 89,000 IP service providers were existing in China, a year-on-year increase of 2.9%. Among these were 5,269 patent agencies and 35,712 trademark agencies. In addition, around 22,000 organizations offered IP legal services, 9,000 provided IP operation services, 16,000 provided IP information services, and 58,000 offered IP consulting services.

    Stable Growth in Industry Revenue

    In 2023, China's IP service industry generated approximately 285 billion yuan in total revenue, an increase of 5.6% compared to the previous year. For institutions adhering to enterprise financial systems, the average revenue was 3,195 million yuan. Patent agencies recorded a total income of 46,26 billion yuan, with each agency averaging 9,349 million yuan. Labor productivity within the industry, defined as revenue per employee, was 289,000 yuan.

    Increased Employment Opportunities

    As of the end of 2023, around 984,000 practitioners held jobs in the IP service industry, a 1.5% increase from the previous year. This includes 34,396 registered patent agents, reflecting a 9.7% increase. In 2023, 41.4% of IP service providers recruited new staff, and 15.8% hired recent graduates, with most new employees between the ages of 25 and 30. The workforce remained well-educated, with 71.5% holding at least a bachelor's degree.

    Further Optimization of Service Supply Structure

    In 2023, China's IP service supply continued to expand. Geographic coverage improved significantly, with IP service institutions now covering 89.6% of prefecture-level administrative areas, an increase of 1.5 percentage points from the previous year and 6.2 percentage points from two years ago. Service providers became more comprehensive, with 64.9% offering at least two types of IP services and 13.4% providing more than three types of IP services. The range of service models diversified as well; large organizations constructed integrated, full-service models, while smaller ones focused on specialized services, enhancing competitiveness through niche and refined offerings.

    Continual Enhancement of Service Capabilities

    In 2023, the level of digitization and smart services in the IP industry improved further. Digital transformation was underway in 29.3% of institutions, and 82.4% used commercial databases or software to improve service quality. Additionally, 40.3% of institutions provided outbound IP services for Chinese businesses expanding internationally, and 32.2% assisted foreign businesses entering the Chinese market. IP services became more closely linked with business operations and innovation, integrating into company strategies, market competition, brand positioning, compliance reviews, and risk management. A survey found that 56.2% of respondents reported participating in formulating market competition strategies and brand positioning for enterprises.

    Greater Support for Innovation

    In 2023, patent agencies represented 90.6% of all domestic patent applications (indicating a 90.6% patent application representation rate), marking an increase of 9.1 percentage points from the previous year. The representation rate for invention patent applications reached 94.4%. The trademark registration application representation rate stood at 87.7%. Additionally, 320 trademark agencies represented collective and certification trademark registrations for use as geographical indications, filling 968 applications at a 95.8% representation rate.

    Support for Patent Commercialization

    As of the end of 2023, the percentage of IP service institutions offering patent commercialization services increased significantly to 35.8%, up 5.6 percentage points from the previous year. On the demand side, there was a clear rise in patent commercialization needs from innovators, covering IP operation, information, legal, and consulting services. On the supply side, IP service providers facilitated corporate innovation through various services such as patent valuation, commercialization matchmaking, market positioning, and brand promotion.