What's Happening?
On January 4, 2026, China's National Intellectual Property Administration (CNIPA) revoked the licenses of four Chinese patent firms for filing irregular patent applications using fabricated applicants based on stolen personal data. The firms had purchased
this data from Xu XX, who was sentenced to 3.5 years in prison in May 2025 for infringing on citizens' personal information. Xu illegally acquired personal data to register accounts in CNIPA's patent system for resale and profit. The firms were allegedly seeking government subsidies through these irregular applications. Approximately 10% of Chinese patent applications in 2024 were deemed irregular. The CNIPA's decision follows an investigation revealing that the firms submitted 107 patent applications using fabricated data.
Why It's Important?
The revocation of licenses highlights significant issues within China's patent system, particularly concerning data security and the integrity of patent applications. This action by CNIPA underscores the importance of maintaining ethical standards in intellectual property practices. The case also reflects broader concerns about data privacy and the misuse of personal information, which are increasingly relevant in the global context. The crackdown on these firms may deter similar fraudulent activities and encourage stricter compliance with patent regulations, impacting international perceptions of China's intellectual property landscape.
What's Next?
The affected firms must notify clients to terminate agency contracts and handle outstanding business within 30 days. They may apply for administrative reconsideration or file a lawsuit within specified timeframes. The CNIPA's decision to include these firms in a list of serious violators will be publicized, affecting their business operations and reputation. This case may prompt further regulatory scrutiny and reforms in China's patent system to prevent future irregularities and enhance data protection measures.
