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As such, we recommend that the National Development and     applicants with an expedited channel for application, nor
            Reform Commission and the Ministry of Commerce ease         established a mechanism to expedite the recognition of patents to
            restrictions set by the Negative List in relation to foreign   those already approved by the Intellectual Property Department
            capital, and allow direct entry into the Mainland market by   (IPD) of Hong Kong. Meanwhile, in Hong Kong, an original grant
            Hong Kong biotech enterprises that are registered in the    patent system for standard patents (i.e., standard patent (O)) was
            Loop and have Hong Kong permanent residents of Chinese      introduced in 2019, under which applicants may file a standard
            nationality serving as their legal person or major shareholder.   patent directly in Hong Kong, without the need to have previously
            Said enterprises should be subjected to conditions applicable to   filed it with a designated patent office outside of Hong Kong. Given
            domestically-owned enterprises, including but not limited to scope   that the NIPA provided ample assistance and technical support as
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            of business, market access conditions, investment restrictions and   the IPD established the original grant patent system,  and
            shareholding ratio. Such measures may first be piloted in the GBA,   reference was made to the experience of the NIPA while the
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            with the objective of their gradual expansion to the entire country   examination guidelines were drawn up,  Hong Kong has the need
            so that foreign and domestic capital can eventually be managed   and ability to better coordinate with the Mainland’s patent system.
            by the same principles.

                                                                        Table 11    The two standard patent systems in
              Recommendation 6.2    Coordinating the                              Hong Kong
              intellectual property regimes in Hong Kong
              and the Mainland                                                                              Standard patent (O)
                                                                          Standard patent (R) system
                                                                                                            system (since 2019)
            With regard to intellectual property (IP) regime, Hong Kong’s
            existing standard patent (R) system recognises by allowing the   Applicants may apply for “re-registration”   The IPD will conduct
                                                                          in Hong Kong on the basis of a patent
            “re-registration” of patents granted in three regions, including   already granted in one of the three   formal and substantive
            the National Intellectual Property Administration (NIPA) in China   designated patent offices (namely the   examination of the
            (see Table 11). However, the NIPA has neither provided Hong Kong   China National Intellectual Property   application. The latter
                                                                                                            includes examining the
                                                                          Administration, the United Kingdom
                                                                          Intellectual Property Office and the   patentability of the
            81   As early as 2011, the Advisory Committee on review of the patent system in Hong Kong   European Patent Office). The IPD will   underlying invention,
              already proposed that substantive examination may be taken over by the NIPA, a   not carry out substantive examination.   i.e., whether the
              suggestion subsequently endorsed by the LegCo and IPD.      More than half of standard patent (R)   invention is new,
               In formulating its Patents Examination Guidelines, the IPD made reference to examination     involves an inventive
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              guidelines then in use by the World Intellectual Property Organization and other jurisdictions,   applications received by the IPD were   step and is industrially
              including Australia, mainland China, New Zealand, Singapore and the United Kingdom.  based on patents already granted by   applicable.
            83   Of the patent applications the IPD received in 2016, 58.8% had received prior approval by   the Chinese authorities. 83
              the NIPA, 38% by the European Patent Office, and 1.8% by the United Kingdom Intellectual
              Property Office.                                          Source: Intellectual Property Department of Hong Kong
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