Shuwen Chairman and CEO Participates in US-China IP Cooperation Dialogue

Shanghai, China – On January 17, 2018, the annual US-China IP Cooperation Dialogue was held in Shanghai.  Mr. Jay Z. Zhang, the founder of Shuwen Biotech Co., Ltd. and a noted patent attorney, was invited to participate in the dialogue. The US-China IP Cooperation Dialogue is a forum for IP dialogue between China and US experts.  The forum was established jointly by the Intellectual Property Center of the US Chamber of Commerce and Renmin University of China. It aims to exchange views on IP protection, and provide constructive input for the formulation of government IP policy, US-China IP negotiations and improvement of IP protection.

The IP experts from China and US in the Dialogue included Liu Chuntian, professor of the Renmin University of China; Gao Lulin, former Director of the State Intellectual Property Office (SIPO); Cheng Yongshun, former Deputy Presiding Judge of the IP Division of Beijing High People’s Court and Chief IP Judge; Ma Yide, director of Zhongguancun Intellectual Property Strategy Research Institute; David Kappos, former Director of the U.S. Patent and Trademark Office; Judge Randall Rader (ret.), former chief judge of the US Court of Appeals for the Federal Circuit and former chief counsel for the Subcommittee on Patents, Trademarks and copyrights for the U.S. Senate Committee on the Judiciary; Mark Cohen, Director of Asian IP Program at the Berkeley Center for Law and Technology, and former Senior Counsel for China at the U.S. Patent and Trademark Office and as the first U.S. IP Attaché in China; and Tony Chen, partner at Jones Day in Shanghai.

In this dialogue, Chinese and US IP experts conducted extensive discussions on issues such as drug patent linkage system, supplementary data of
drug patents and patent
for in vitro diagnostics. The drug patent linkage is a new initiative in the China Food and Drug Administration’s
public notice on policies to encourage innovation in medical devices (consultation draft ) (55th of 2017 ), which draws on the Hatch-Waxman Act in the US.  In his talk, Mr. Zhang pointed out that when introducing the patent linkage system, China should aim to encourage drug innovation, and must provide sufficient drug data protection (administrative protection) for new compounds and new uses of innovative drugs to ensure that pharmaceutical companies can recoup their substantial investment in research and development

On diagnostic patents, based on his experience in leading the gene patenting litigations in the US and in establishing and leading innovative diagnostic ventures in China, Mr. Zhang pointed out that for innovation in diagnostics, China has the unique advantage. The discovery and application of new diagnostic markers and diagnostic technologies depend on the availability of relevant clinical samples.  China has a population advantage, and patients are highly concentrated in large tertiary hospitals, making significant amount of clinical sample resources readily available.  In this regard, China sits on the greatest treasure troves in the world in terms of diagnostic biomarker discovery and development of innovative diagnostic products.

With weak IP protection in this area, there is insufficient incentive for investment and innovation and these competitive advantages have not been fully made use of.  Therefore, Mr. Zhang called on the Chinese government to strengthen patent protection for diagnostics, provide administrative protection for new biomarker-based diagnostic products. “In diagnostics, China does not need to follow the steps of the Western countries.  Instead, China should lead the world in experimenting innovative protection mechanisms to provide strong patent and administrative protection for in vitro diagnostics, and become a global leader in innovative diagnostics and precision medicine.”