Software Patents In China's e-Commerce Marketplace

Patenting computer software inventions makes sense for the Chinese e-commerce industry for three reasons. First, the Chinese government wants more businesses to patent their technological innovations. This policy is supported at the national level and the central government pays for inventors to apply for patents. Second, e-commerce is very important in China. One quarter of all consumer purchases in China are done on-line. And that number is unlikely to get smaller. Third, today's Chinese consumers have many options and they have grown to expect quality products, quick service and reasonable prices.

For most active businesses, the third reason is the key. Finding an edge in meeting those consumer expectations has made for a fiercely competitive marketplace. Protecting process innovations that involve software improvements is, as it is everywhere, problematic. How are computer software inventions protected in China as a matter of law?