China’s Blockchain Patent Surge: Will It Outpace the U.S.?

The Impressive Patent Race

When the Chinese President swirled the almighty blockchain wand last month, tech pundits couldn’t help but predict an epic battle for blockchain dominance. Spoiler alert: China is already winning! At the Blockchain Center of Excellence in Arkansas, we unearthed some jaw-dropping patent stats that suggest China may soon leave the U.S. in its digital dust.

The Patent Numbers Don’t Lie

Between January 2014 and October 2019, the National Intellectual Property Administration (CNIPA) in China handed out a whopping 2,218 blockchain-related patents. In contrast, the U.S. Patent and Trademark Office (USPTO) awarded just 227 patents. Wait, what?! And before you cry foul, here’s the kicker: many of those Chinese patents were actually granted to American companies like Goldman Sachs and IBM. Talk about biting the hand that feeds you!

Patent Processing Speed: The Tortoise vs. The Hare

Now let’s talk speed. If you thought waiting in line for coffee was painful, try waiting for a blockchain patent in the U.S. It takes an average of 20 months to get a decision, while China has figured out a way to zip through that process in just six months. Not just a little quicker—a lot. For some reason, they seem to have more resources or perhaps a more lenient patent process.

Meredith Lowry, a patent attorney, succinctly put it: “The U.S. patent process is a bit like hiking through a swamp in a heavy rainstorm, while China’s feels like a Sunday stroll in the park.”

Understanding the Landscape of Blockchain Innovations

So, what are these patents for, anyway? Analyzing the data revealed the top three categories protected by these patents in both countries: Computing (G06), Electric Communication (H04), and Checking-Devices (G07).

• G06: Innovations related to computing and data processing.
• H04: Covers electronic communications and networks.
• G07: Deals with registering transactions and other verification systems.

The Patent Kings: Who’s Who?

In the grand patent royalty game, the top three patent owners in China include:

1. China Unicom: With 54 patents, they’re tracking food quality on blockchain (Patent 108537558A). Yum!
2. Alibaba: The e-commerce titan with 51 patents, including a method to analyze music originality (Patent 108595709A). Don’t ask me how that works.
3. NChain Holdings: Based in the UK, they’re in the race for 37 patents involving IoT devices (Patent 109089427A).

Meanwhile, the U.S. players are holding their own with:

1. IBM: A staggering 34 patents, including one for keeping track of multiplayer game accounts (Patent 10348487).
2. Accenture: Holding 23 patents, their innovation connects different blockchains (Patent 10298395).
3. Mastercard: With just nine patents, but one of them is a smart parking meter verification method (Patent 10198949). Yes, please!

What This Means for the Future

As November rolls in, China is signaling possible tweaks to their IP laws. With their pace for blockchain patent approvals speeding up, companies like IBM and Alibaba are filing patents in multiple regions. So while it may seem like China is sprinting ahead, the reality is a bit more nuanced—global companies play their cards in both countries.

The Final Takeaway

In the world of blockchain dominance, patents are just the tip of the iceberg. Regulatory environments, job vacancies, and entrepreneurial support systems matter too. So before we crown a “winner,” let’s keep a watchful eye on these multifaceted strategies in the ongoing blockchain saga!