Increase is a high-tech pharmaceutical conglomerate featuring research and development, production and sales and is headquartered in Beijing’s Zhongguancun Science Park. Under the banner of Increase, the company has three subdivisions; Beijing Increase Institute of Biological Products,Beijing Increase Medical Technology Co., Ltd.and Increase Pharmaceutical (Yingkou) Co.,Ltd. Since its establishment in 1999, Increase has always been adhered to an innovative approach to developing traditional Chinese medicine (TCM) and creating a strong platform for Chinese medicine research and development. It aims to perform with innovative excellence. Recently, Increase’s deputy general manager,Zhang Yongli, accepted China IP ’s request for an interview.

 

 

Any enterprise doing a good job in IP management has its own set of tailormade IP strategies. That is what Increase is implementing. As head of Increase, Zhang has a profound understanding of the IP management strategy. She believes that implementing an IP strategy distinguished with an overall plan is important for Increase to build its core competitiveness in both research and development as well as production and marketing.

 

“As a research-oriented pharmaceutical company, Increase is gradually establishing its IP strategy. In recent years, Increase has experienced sustainable and rapid development in terms of scale and efficiency. Due to the implementation of its innovative strategy and protection strategy, involving patent protection, Increase has applied for 236 patents, including 229 inventions and 7 designs, among which 44 patents (37 inventions and 7 designs) have been authorized,” said Zhang.

 

Zhang further illustrated in detail the patent strategy of Increase as follows:

 

(1) Basic patent strategy: Combined with Increase’s main R&D areas and R&D advantages, the basic patent strategy is targeted at core technologies and basic research. For example, Increase has adopted multiple protections to protect the various new forms of delivering TCM, such as dispersible, effervescent, and gel tablets.

 

(2) External patent strategy: Increase creates a patent net around its basic patents to prevent infringement. This net is used to protect core patents from several directions. For example, Increase formed a net of protection for a coldfighting drug by filing four patent applications, including the prescription itself and three dosage forms; lozenges, effervescent tablets and chewable tablets.

 

(3) Patent assignment strategy: For the patents obtained but not implemented, Increase actively assigns them to other companies. Increase produces a large number of new scientific and technological achievements every year. Patent assignment mainly focuses on the assignment of new drugs, e.g. Jinlian Qingre effervescent tablets, antivirus chewable tablets, Children’s indigestion chewable tablets and Tangmai Kang Tablets, just to name a few.

 

(4) Combination of patent and trademark strategy: Such a strategy is to improve the identification of the products. For example, Increase adopts a three-pronged approach of combining the design patent, prescription patent and trademark to promote its independent research product—cyclovirobuxinum-Ddispersible tablets.

 

(5) Cancellation strategy: To combat loopholes and defects in patents obtained by other companies, Increase uses such procedures as negotiation, withdrawal and invalidation. For example, before designing Increase’s IP department will retrieve and analyze the related packing design, which will prevent infringement from the beginning. If infringement does exist, Increase will actively seek evidence to reach an agreement with the other party (contract defense). Simultaneously, Increase will actively seek evidence against its opponent to prove that their patent is invalid. Such a strategy can prevent great losses.

 

 

When asked about the specific practices on IP management, Zhang said, “Since the inception, Increase has attached great attention to the operation and protection of IP. It has established a specialized agency, a comprehensive institution, an efficient processing system and an incentive pay system. Meanwhile, Increase focuses on IP training and IP asset management.” Specific practices include: Timely filing patent applications for existing scientific and technological achievements. This establishes patent networks for core technologies and products. Timely filing also applies to applications for projects under development. Protecting the fruits of research before the applications go public is a priority.

 

On the development of the patented technology: Increase adopts the strategies of “pre-investigation” and “Interim Avoidance” to develop new products with proprietary IP rights. To effectively carry out project production, Increase searches existing related technologies and patents to avoid infringement.

 

On the patent asset management: Pledging IP rights to obtain loans, attract investment and financing is important. For some projects, patent licensing or patent transferring plays a part in making money and promoting the competitiveness of enterprises.

 

On the personnel and file management: Numerous measures, such as filing management , employ ees ’ n o n - competition contracts, employees’ confidentiality contracts, IP incentives, training programs and other procedures greatly safeguard employees’ rights and obligations and form a good working mechanism.

 

On the protection and management of IP: Increase targets for a comprehensive patent strategy. This involves applying for patents in a timely and active manner to take the initiative.

 

On IP training: IP department staff personnel have attended more than 100 IP training events, including more than 50 internal training sessions. Intense IP training not only increases their field specialty and practice skills, but also enhances their awareness of IP.

 

On patent information: Increase has been able to invest resources to purchase a Hang database analysis software program, which significantly improves the analysis of patent information retrieval. Through independent learning, the patent search capabilities of personnel have been greatly improved. It provides more valuable data for research and development, production, marketing and other business.

 

On patent awards: Increase fully implements specific measures to inspire innovations. Increase clearly defines the awards available to the inventors or creators. Such a strategy gives a positive incentive for inventors and greatly boosts the staff ’s enthusiasm to create.

 

Over the last three years’ development, Increase has formed a comprehensive and systematic management mechanism featuring coverage from the creation, application, maintenance of IP to the efficient managing and transferring of IP. From an overall development viewpoint, Increase institutes and implements an IPR strategic development plan which has become an important component of the enterprise’s development strategy, establishes and completes an IP management institution and incentive mechanism.

 

 

In the interview, the reporter learned that although Increase, as an enterprise, is not large in scale, it has set up an independent IPR management team and assigns experts to deal with all IP related affairs.

 

Zhang told China IP, “In 2007 Increase established a patent management mechanism, namely, an IP department.” Based on the development of enterprise and the programming of human resource, Increase has attracted more and more specialists and talents to develop its IP cause.

 

 

For Increase, IP development is inseparable from governmental support. Zhang stated that “As a patent pilot unit in Beijing, Increase receives supports in the form of capital, policy, publicity, technology and management from Beijing municipal government, Zhongguancun Science Park and related departments.” Many rewards have been achieved and more are under exploration.

 

After a strict examination and verification, Beijing Increase Institute of Biological Products was awarded as the patent pilot enterprise in 2007 by the Beijing Intellectual Property Office. In 2008, Increase Medical Technology Co., Ltd. became a leading enterprise in patent development.

 

On April 29, 2009, Increase’s patent project “the patent database of external use gel” was approved by Zhongguancun Intellectual Property Promotion Department. This database is helpful in the technological development and market positioning for the entire pharmaceutical industry, and also plays a significant role in an economic and social sense.

 

“In the proces s of expanding independent research and development, Increase benefits from preferential policies. The heads of our enterprise pay attention and show concern for Increase’s IP development. Meanwhile, we also actively collaborate with local government to enforce IP laws and regulations. All these elements have helped us in creating a favorable external environment” said Zhang.