Research On The Mechanism Of The Subsidy Policy To Patent Fees Implemented By Local Government

The subsidy policy to patent fees implemented by local government constitutes the content of patent fees policy in China as one part. In fact, this subsidy has been criticized by some scholars during being implemented widely, though the criticism from academic filed did not bate the trend of its implementation. This paper takes the subsidy policy to patent fees implemented by local government as the object of study, mainly including some aspects as follows:First of all, this paper has analyzed the present situation and development of the patent policy of the fee implemented in China, other countries and regions, then summarized the current situation of the subsidy policy to patent fees implemented by local government from four aspects covering the object, the scope, the amount and the procedure of the subsidy policy, exploring its developing trend. On the basis of those, this paper holds that dual enforcement impacts resulted from the benefits of both local government and social public accelerate generation and extension of the subsidy policy to patent fees through the analysis on the motivation of local government towards the patent fees. Additionally, with full analysis on the validity of the subsidy policy, this paper possesses that implementation of subsidy policy to patent fees does not infringe the rules of the international trade.Secondly, based on the study on the operating mechanism of subsidy policy to patent fees raised by local government, this paper holds that the subsidy policy should essentially and rationally exist, while it faces market and system failure. However, because of the effect of local benefit-oriented tendency, the subsidy policy has paid too much attention on the growing quantities of patent application, resulting in the lather effect on the patent and distorting effect towards the function of patent system. Furthermore, the operation of patent system has been damaged. On the basis of those, this paper has focused on patent applicants' abuse on the patent system resulted from the subsidy policy to patent fees. Additionally, this paper in details analyzes the possibility that subsidy fees to patents induce patent abuse. That is to say, the content of the analysis includes different policy factors.Thirdly, based on the study on the operating mechanism of subsidy policy to patent fees raised by local government, this paper considers that this subsidy policy brings indirect influence upon technological innovation through affecting the patent system directly. The dual external characteristics of patent application lead one phenomenon that the subsidy policy to patent fees operated by local government motivates positive external characteristic of patent application, the negative external characteristic as well. Consequently, the stimulation towards the positive external characteristic of the patent application facilitates technological innovation, to the contrary to block technological innovation.Lastly, with the research on the influence resulted from subsidy policy to patent fees raised by local government towards social welfare, this paper holds that the subsidy policy actually reduces cost the patent applicants undertake, with which the more low value items will be motivated to apply patents. In this situation, the granting time patent application will be extended. Furthermore, repulsive effect on the patent application towards high value items will be brought out. In this time, it may highly probably be that the subsidy policy will reduce the social welfare for the reason of the high value items being rejected. As to this sort of the contradiction, this paper advises some suggestions on the reform of the subsidy policy from the views of the substance and the procedure, while it raises the standard of patent fees.