Huangpu district's IP administration discusses preliminary mediation efforts in administrative rulings on patent infringement disputes. [Photo/People's Daily Overseas Edition]
Shanghai is strengthening its intellectual property (IP) protection for foreign businesses as their presence in China grows. Local governments are actively addressing concerns from these companies to foster a fair and international business environment.
Recently, Shanghai's Huangpu district settled a patent dispute between a multinational pharmaceutical company and a domestic firm in just three months. After several rounds of negotiation and collaboration across departments and regions, the two companies reached an agreement through administrative mediation.
The head of intellectual property at the multinational pharmaceutical firm stated, "Administrative decisions are handled efficiently and professionally, usually resolving cases within four months. This significantly cuts enforcement costs and helps maintain smooth business operations."
Gu Huirong, who leads the IP Protection Division at the Shanghai Intellectual Property Administration, stressed the need to adhere to international standards to foster trust.
"Shanghai is often the first stop for many foreign enterprises entering China. Establishing headquarters or R&D centers here reflects trust in Shanghai's IP protection and sets high expectations," she remarked.
"Our IP protection needs to align with international standards. Only fair, accurate, and professional administrative decisions can earn the trust of enterprises, which is reflected in every hearing, mediation, and administrative decision."
In another case, a German industrial company reported a domestic firm for patent infringement related to automotive-grade chips. Pudong New Area's IP administration quickly mediated the dispute, resolving it in less than three months. The quick resolution impressed the company's headquarters in Germany.
"Both parties were open to mediation but couldn't agree on patent licensing fees. Our neutral position and solid expertise in mediation helped build trust," Gu said.
From 2020 to August 2025, Shanghai handled 87 foreign-related patent disputes, with 98 percent resolved without litigation. This has boosted foreign companies' trust in Shanghai's IP protection ability.
