China’s life sciences market is brimming with opportunities, but the unique challenges in the market make it critical for companies to have a robust IP strategy. Here are key strategies and practical advice life science companies can adopt to secure and leverage their IPs in China.
Ting Zhang, Crayfish.io Founder & CEO, joined a panel to discuss IP protection and commercialisation in China at a Santander Navigator seminar on China’s life sciences market in October 2024.
Secure a Chinese Patent for Stronger IP Protection
For companies whose business models depend on licensing patents, having a Chinese patent is essential. Although IP enforcement has improved dramatically over recent years, IP infringement is still a risk. However, the stakes have shifted: compensation for IP misuse is significantly higher today than it was when China joined the WTO over two decades ago.
China’s commitment to IP protection has also led to regular amendments to its patent law, which has spurred rapid growth in local patent filings, giving China the highest patent submission rate worldwide. Thanks to these reforms, a new wave of specialised IP service firms has emerged in China to help foreign companies manage their patents across the entire IP lifecycle.
💡 Tip: Connect with trusted local IP service firms, like our strategic partner Sinofaith IP Group, to support your patent filings and monitor for potential infringements. Local experts can be invaluable allies in navigating the specifics of the Chinese IP landscape.
Consider Cost-Effective Patent Filing Options
Patent filing can be costly in China, but companies have options that can streamline the process. For instance, you can file patents directly in China or go through the Patent Cooperation Treaty (PCT), which is especially useful for companies with operations in multiple countries.
For companies with high-tech innovations recognised by the National Medical Products Administration (NMPA), there’s a faster route into the Chinese market: the Patent Prosecution Highway (PPH). This pathway significantly accelerates the patent process, often cutting processing times in half.
💡Strategy: Assess your patent filing options early, and consider whether PPH could be a viable route if you’re in a high-tech, high-priority field. The upfront investment in IP protection is worthwhile for a secure long-term presence in China.
Partner with Caution to Safeguard Your IP
China offers excellent licensing opportunities for companies with innovative IP that are at the right stage of development. However, Ting emphasised that choosing local business partners requires extra diligence, particularly around IP.
💡 Guidance: Conduct thorough due diligence on potential partners, especially regarding their reputation and track record in IP. Additionally, safeguard any sensitive information—unlike in many Western markets, China’s NDAs may not be as strictly observed, as information-sharing within personal networks is more relaxed.
 | Read more: Commercialising your IP in China |
Establish a Local Entity to Better Control Product Registration
For foreign life sciences companies, setting up a local company is often one of the best ways to protect IP and maintain control over product registration. This approach keeps your company independent of distributors or OEMs during the registration process and helps minimise the risk of disclosing proprietary information, which is often required by the NMPA.
💡 Advice: Setting up your own company in China can provide stronger control over your IP and allows for a more streamlined approach to regulatory requirements.
Register Trademarks Early – Even if Entry Isn’t Immediate
China’s trademark system operates on a “first to file” basis, so even if you’re not ready to enter the Chinese market immediately, early trademark registration can prevent future headaches. China’s first-to-file approach means that if your trademark gains visibility, such as through international exhibitions, Chinese competitors could preemptively register it.
💡 Pro-Tip: Register your trademark as early as possible to prevent unauthorised use. Even if China is only a future market for your business, having trademarks filed ensures your brand remains secure.
 | Check out our Fixed-priced eService: Trademark Registration in China |
Tailor Your IP Strategy for China from the Outset
Creating a China-specific IP strategy should be the foundation of any expansion plan. From selecting the right patent filing pathway to establishing local partnerships and brand protection, taking a proactive approach to IP in China can significantly improve your chances of long-term success.
China’s business environment is unique, and so are its IP regulations. With informed, careful planning, companies can navigate these challenges, confidently commercialise their IP, and make the most of the vast opportunities in China’s life sciences sector.
Back to the fundamental question: should concerns over IP protection stop tech companies from doing business in China? Crayfish.io Founder and CEO Ting Zhang once put the question to venture capitalist and entrepreneur Hermann Hauser. Here’s his answer:
In summary, China offers both significant potential and unique challenges for life science companies. With an approach that emphasises securing patents, exploring efficient filing pathways, safeguarding critical IP, and forming strategic partnerships, life science companies can succeed in protecting, enforcing, and commercialising their IP in this complex market.