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Bayer:"We are not only witnesses,but also beneficiaries"
Release Time:
2024-11-27
"Bayer first entered China in 1882 and has witnessed the establishment and continuous improvement of its in-tellectual property right(IPR)system since the founding of the People's Re-public of China,"said Liu Hongqiang,Vice President of Intellectual Proper-ty at Bayer China."The progress of China's IPR industry is evident.We are not only witnesses,but also bene-ficiaries."
Growing together with China's IPR system
Bayer's relationship with China's IPR system began in 1985.On April 1 of that year,the day China's Patent Law took effect,Bayer filed its first patent application in the country,which was granted in April 1989.
The research and development(R&D)of new drugs demands high levels of scientific research and sub-stantial,long-term investments."The average R&D cost for a new drug is around $2.6 billion,meaning the'first pill'costs $2.6 billion to produce,while subsequent pills cost mere cents.Therefore,IPR protection is crucial for pharmaceutical companies.In markets lacking strong IPR protec-tion,companies may opt out,hinder-ing cost recovery,profitability,and pa-tient access to medicines,"Liu ex-plained.
"From the enactment of China's Patent Law in 1984,to the extension of patent protection on drugs in 1992,and the 2021 amendments introduc-ing drug patent term compensation,the patent linkage system,and puni-tive damages,Bayer has witnessed China's determination to safeguard IPRs and has correspondingly intensi-fied its investments in the country.China is now a key hub in Bayer's global IPR strategy and second-larg-est individual market worldwide,"Liu noted.After introducing innova-tive products,Bayer promptly secures patent protection in China through mechanisms like the Paris Conven-tion for the Protection of Industrial Property and the Patent Cooperation Treaty(PCT),ensuring swift market entry.
In practice,Bayer's robust IPR strategy in China has effectively safe-guarded its lawful interests.In one in-stance,a patent infringement dispute over a disposable syringe product led to a 2018 court ruling awarding Bayer 1.32 million yuan in damages,includ-ing attorney fees.This dispute aroused wide concern.When infring-ing activities continued,Bayer initiat-ed a second lawsuit in 2019.Finally,under the active mediation of the court,the infringing company paid Bayer a settlement amount of 24.3 million yuan.
"Currently,Bayer has about 1,600 patent grants and applications in Chi-na.In the 2023 fiscal year,Bayer em-ployed nearly 8,000 people in China,generating sales of 3.524 billion eu-ros.As of February,19 of Bayer's in-novative drugs had entered the Chi-nese market,with 36 new indications or formulations approved,"Liu stated.
Accelerating development through IPR protection
China has consistently emphasized IPR protection,offering robust sup-port for innovators to safeguard their rights."China's administrative IPR protection mechanism is notably effi-cient and mature.It is characterized by fast speed and low costs.In some provinces,the market size is compara-ble to that of entire countries,and swift administrative enforcement can help companies mitigate substantial economic losses,"said Liu.
This perspective stems from Bay-er's active use of administrative pro-tection mechanisms.In a previous case,Bayer discovered that some companies were offering infringing products for sale online.Without a drug patent linkage system in place at the time,relying on judicial processes could have caused delays.Once sus-pected infringing products are launched,they will cause significant market losses.Bayer quickly assessed the situation and sought administra-tive protection from IPR authorities in provinces with substantial sales shares.Prompt and effective respons-es prevented further losses and pro-tected Bayer's rights.
Bayer's successful application of administrative IPR protection has set a positive example for China's phar-maceutical industry.Several of its cas-es have been recognized as top ten cases of the year regarding patent ad-ministrative protection.
"We hope China continues to en-hance its pharmaceutical patent term compensation system and early resolu-tion mechanisms for pharmaceutical patent disputes to further strengthen pharmaceutical companies'confi-dence in investing in China,"Liu said."Bayer will continue to explore the potential of China's market,drive innovation and collaboration,and le-verage its strengths in healthcare and agricultural technology to contribute to building a Healthy China and ad-vancing rural revitalization."(by Zhao Junxiang)
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