PATENT ISSUES IN CHINA: ENTRY DECISIONS IN A DYNAMIC LEGAL AND COMPETITIVE ENVIRONMENT

The People’s Republic of China has long craved advanced technologies, and has undertaken an overwhelming number of changes in its intellectual property laws in order to foster domestic innovation and to encourage foreign investment. China implemented its first patent law in 1985. However, implementation and enforcement of this law and its amendments have been difficult, such that many foreign firms are reluctant to invest in Chinese markets. This paper describes the many changes that have been made to Chinese patent laws, and then illustrates patent activity in China as those changes have been implemented. Managerial issues are discussed in detail.