When to Apply the First Patent for Tech Startups in China?



Though it’s hard to make decision, before a tech startup starting business in China, they have to decide whether to protect their technology achievement by patents that open their technologies, or trade secrets. There are quite a lot Chinese and foreign cases and studies on this topic,below are some common situations.

1. If tech startups are about to negotiate of financing, or are likely to be acquired by big companies, they should apply for patents as soon as possible to prove their technological capabilities and increase the bargaining weight.

2. Whether to protect their technology achievement by patents or trade secrets depends on the technical complexity, the requirements of the production process of the startup industry. If your competitors can easily copy, or surpass your ideas or products simply by looking at your patent specification, you should consider more seriously. After all, patent infringement litigation takes time and money. The market share is likely to be occupied before the lawsuit wins. On the contrary, if your technology is complex enough, since competitors are not easy to copy, you should apply the patent as soon as possible.

3. If the technology is fundamental, meaning that it can affect the industry competition, and can be continuously improved, they should apply for patents as soon as possible. In the future they can even make a profit by licensing their tech to large companies.

4. If your technology is easily cracked by the "reverse engineering" method, you should still apply for a patent because it’s difficult to keep the technology secret. Even though you can’t stop your competitors from using your technology immediately, holding the patent is always justified and is good for marketing.

5. It tech startups fail to submit the application on time, they will always lose the opportunity to get protection. Once the technology or invention are made public, they can no longer apply for a patent in China. Especially before launching a new product, they must think about whether it’s worth of a patent.

6. Financial factors such as special innovation fund, government subsidies, innovation park incentives also worth attention. Sometimes these financial supports can help you go through the difficult period.


In general, patents should still be applied as early as possible in most cases. Although this does not have much effect on the establishment of technical barriers in China, it outweighs the disadvantages. If a technology-based company does not even own a few patents, it will not be convincing enough to negotiate with customers. WTOIP Global, a world’s leading entrepreneurial resource-sharing platform with a focus on IP, helps foreign tech startups to start business in China with one-stop intellectual property solution.If you want to expand the China market and safeguard your technology and innovation, just contact us.

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