Utility models and collective management of rights will be among the issues of the upcoming Sino-EU efforts in intellectual property, said a senior official of the European Commission.

Utility models are a kind of intellectual property with less stringent requirements and shorter duration of protection than invention patents. In China and some European countries they can include designs and structures.

In addition, a three-year project named IP Key that began in mid-January will cover the entire IP spectrum, said Kerstin Jorna, director of Intellectual Property Directorate at the European Commission, during her visit to Beijing in late April.

China and EU members have different criteria in managing utility models, Jorna said. "We are working on better explaining to each other and trying to distill best practices."

In comparison with an invention patents, the lower threshold for approval of utility models has resulted in doubts about their quality, said industry experts.

The EU official said the evaluation criterion for IP quality is "whether it helps innovation and creates growth in employment".

She cited a study on the contribution to the EU economy from IP-intensive industries that found they generated 39 percent of GDP and created a quarter of the jobs, which are on average 40 percent better paid than others.

"They are a real driver in our economy," she noted.

Jorna also described an "inventor trail" to illustrate IP's role in innovation. "When we look at a policy for IP, we must look at what the trail that an inventor follows."

The path is "pretty universal", she said. The inventor always starts from a creative idea, then tries to gain IP protection as a patent, utility model or design, then seeks financing, a phase difficult to get through, she said, adding that in Europe only about 30 percent of patents make it to the final stage of introducing innovative products into the market.

Launching new products and ensuring respect for rights are also on the trail. Companies want to get many IP rights as quickly as possible to facilitate release of new products or services, yet granting rights without thorough research will make the IP challenged more often, she said.

Terming it a trade-off, Jorna said giving more attention to patent quality in the application process can prevent "triple losses" later - to companies for legal costs in IP disputes, to consumers struggling to recognize what is authentic and to governments to support the judicial system.

"Prevention is better than cure," she emphasized.

Another highlight of the IP Key initiative is the collective management organizations that play a crucial role in managing copyrights, especially in digital markets such as books and music.

Currently some 70 collective groups are operating actively in Europe and only five in China.

Another focus of the inventor trail is respect for rights. European actors, websites, telecom operators and rights holders have signed an agreement to fight online counterfeits.

They have to remove online fakes as quickly as possible, Jorna said.

EU policymakers are in talks with advertising agencies and financial institutions in an attempt to persuade them to refuse services to infringing websites.

"Why piracy or counterfeiting is attractive is that it is quick money," the director said. Cutting the money flow will help push potential infringers out of the illegal practice, said the director.

Jorna said she is glad to see increased international cooperation.

"It's a win-win cooperation for both the EU and China, companies and inventors," she said.

wangxin@chinadaily.com.cn

(China Daily 05/07/2014 page17)