Chapter I General Provisions
Article 1 To strengthen intellectual property (IP) development in Liwan District, deepen the implementation of IP strategies, promote independent innovation, and advance the comprehensive development of IP undertakings alongside economic and social growth, the Special Funds for IP work are hereby established. The funds are established in accordance with the Outline for Building an Intellectual Property Powerhouse (2021-2035) issued by the Communist Party of China (CPC) Central Committee and the State Council, the Guideline on Strengthening Intellectual Property Rights Protection jointly issued by the General Office of the CPC Central Committee and the General Office of the State Council , the Measures for the Management of Special Funds for Intellectual Property Work in Guangzhou (Sui Zhi Gui Zi [2023] No. 1), as well as relevant provincial and municipal regulations. These measures are formulated to regulate the management of the special funds, considering the actual conditions of Liwan District.
Article 2 The Special Funds for IP Work (hereinafter referred to as the “Special Funds”) mentioned in these Measures refers to funds allocated annually through the district’s fiscal budget. The purpose of the funds is to promote IP creation, utilization, protection, and transformation, as well as to support related management and service activities aimed at advancing the implementation of IP strategies in the district.
Article 3 These Measures apply to all aspects of the Special Funds’ management, including application review, budget preparation, fund disbursement, mid-term inspections, project acceptance, performance evaluations, and supervisory oversight.
Article 4 The Special Fund shall adhere to the principles of “compliance with laws and regulations, transparency and fairness, scientific allocation, standardized management, focus on practical outcomes, and strengthened supervision”. The funds shall be allocated, utilized, and managed through a project-based approach.
Article 5 The performance objectives of the Special Funds are aligned with the standards for building an IP powerhouse. These objectives aim to enhance the comprehensive IP capabilities of the district, foster new advancements in IP development, and further improve the district’s level and capacity in IP creation, utilization, protection, management, and services. The funds also seeks to ensure effective participation in the national pilot and demonstration projects for building strong IP counties, thereby driving high-quality development of the district.
Article 6 In principle, the Special Funds support projects through two funding methods: pre-funding and post-funding.
Pre-Funding: This method involves the allocation of financial resources by the District Administration for Market Regulation (District Intellectual Property Administration) (hereinafter referred to as the “District Administration for Market Regulation”) prior to project operation. Under this arrangement, the District Administration for Market Regulation and the project undertaking entity sign a contract specifying the scope of work, performance objectives, deadlines, financial input, acceptance criteria, and other related terms. Financial support is provided in advance, and upon the contract’s expiration, the project is subjected to inspection, acceptance, and performance evaluation to assess compliance and outcomes.
Post-Funding: Under this method, the project undertaking entity initially invests its own funds to achieve the specified performance outcomes. Afterward, the District Administration for Market Regulation reviews the project in accordance with prescribed procedures and provides financial support based on the verified results.
Chapter II Division of Responsibilities
Article 7 The District Finance Bureau shall review, approve, and allocate the Special Funds budget in accordance with relevant budget management regulations. It shall also organize performance evaluations related to the fund.
Article 8 The District Administration for Market Regulation shall be fully responsible for the preparation and implementation of the Special Funds budget. This includes: Budget management, project detailing, fund allocation, and performance target formulation; Issuing application guidelines, reviewing Special Fund projects, and developing detailed allocation plans; Monitoring project implementation, the usage of Special Funds, and the achievement of performance targets through activities such as mid-term inspections, project acceptance, special audits, and performance evaluations; Ensuring the public disclosure of information regarding the Special Funds; Performing other management duties related to the Special Funds.
Article 9 Entities receiving the Special Funds are responsible for the proper use of funds and project implementation. Their responsibilities include: Strict adherence to the Special Funds budget; Organizing and implementing projects as specified; Strengthening financial management; Complying with contract terms regarding acceptance evaluations, supervisory inspections, and performance assessments.
Chapter III Subsidy Scope and Standards
Article 10 Applicants for projects under the Special Funds shall meet the following criteria:
1. It shall be an enterprise, public institution, social organization, or other entity within the administrative jurisdiction of Liwan District. Certain projects may, as necessary, be extended to a national scope. For applicants involved in government procurement projects, the relevant regulations on government procurement shall apply.
2. It shall possess necessary work foundation and conditions to complete the project, including IP work experience and financial management systems.
3. If additional requirements are specified for the project, such conditions shall be detailed in the project application guidelines issued by the District Administration for Market Regulation.
4. For trademarks and patents involved in the project, they must be valid and registered with an address in Liwan District, free from ownership disputes or invalidation claims.
Article 11 Restrictions on Applications for Special Fund Projects
1. Applicants shall not submit duplicate applications or seek funding for the same project from multiple sources. In exceptional cases requiring applications for multiple Special Funds, the applicant shall indicate the reasons in the application materials and disclose any other Special Funds already received or applied for.
2. Each applicant may submit no more than three pre-funding projects under the Special Fund in a single year.
3. One-time support projects that have previously received funding under the Special Fund shall not be re-applied for.
4. Projects that have already received similar support or rewards under district-level IP policies prior to the publish of these Measures are not eligible for reapplication.
5. Where specific restrictions on applications are provided for Special Fund projects, such provisions shall prevail.
Article 12 High-value patents and trademarks that receive designated awards or meet specific criteria during the application period shall be supported through post-funding. The specific standards are as follows:
1. For patents receiving the Chinese Patent Gold Award, Silver Award or Excellence Award, a reward of not more than RMB 650,000, RMB 400,000, RMB 150,000 will be granted respectively for each project. For patents that have already received the subsidy as per the Guangdong Province Patent Award, the difference between the above subsidy standards for the Chinese Patent Award and Guangdong Province Patent Award shall be provided, not exceeding the aforementioned standards.
2. For patents receiving the Guangdong Province Patent Gold Award, Silver Award and Excellence Award, a reward of not more than RMB 300,000, RMB 150,000, and RMB 50,000 will be granted respectively for each project.
3. For trademarks receiving the China Trademark Gold Award, a one-time subsidy of not more than RMB 650,000 will be granted for each project.
4. For entities recognized by the Ministry of Commerce as holders of the China Time-Honored Brand, a one-time subsidy of not more than RMB 300,000 per project will be granted for the corresponding trademark.
5. For geographical indications registered and recognized by the China National Intellectual Property Administration, a one-time subsidy of not more than RMB 100,000 per project will be granted for each project.
6. For recipients of awards at provincial-level or above, such as the Guangdong-Hong Kong-Macao Greater Bay Area - High-value Patent Portfolio Layout Competition : Up to RMB 150,000 per project for Gold Award; Up to RMB 80,000 per project for Silver Award; Up to RMB 30,000 per project for Excellence Award.
Article 13 Subsidy will be provided to enterprises and institutions engaged in high-value IP cultivation efforts in key areas, contributing to the industrial development of Liwan District. Specific standards are as follows:
1. Enterprises and institutions focusing on high-value patent cultivation, IP industry-academia-research collaboration, and other initiatives aligned with designated key industries and distinctive advantageous industries in Liwan District will be supported through pre-funding. Each project may receive funding of up to RMB 300,000, with no more than two projects approved annually.
2. Trademark holders who achieve significant results in the transformation and utilization of collective trademarks, generating substantial social benefits and contributing to the growth of distinctive local industries, will be supported through post-funding. The maximum support for any entity within the same year shall not exceed RMB 200,000.
Article 14 Small and micro enterprises within the district that own valid invention patents and have achieved industrialization with a value of RMB 5 million or more (including RMB 5 million) are eligible for post-funding based on their industrialization value, ranked from highest to lowest. Each project may receive funding of up to RMB 200,000, with no more than ten projects approved annually.
Article 15 Subsidy will be provided through post-funding to enterprises and institutions meeting IP cultivation requirements. Specific standards are as follows:
1. Enterprises and institutions (including professional markets) that, during the application period, are recognized as IP pilot (advantageous) or demonstration entities at various levels will be supported through post-funding. Each project may receive up to RMB 200,000.
2. To encourage the introduction of R&D institutions from universities, research institutes, and enterprises outside Liwan into the district, a one-time relocation incentive of up to RMB 200,000 per entity shall be provided through post-funding. The incentive applies to those that engage in R&D activities after relocating to the district and convert their efforts into corresponding IP achievements.
3. To promote the introduction of patent agencies, comprehensive IP service providers, or their branches, a one-time relocation incentive of up to RMB 150,000 per entity will be provided through post-funding. Eligible institutions shall meet the following conditions:
(1) Operate in the district for more than one year;
(2) Employ at least 8 staff members, including at least 3 with professional IP qualifications;
(3) Demonstrate significant effectiveness in supporting the IP work of enterprises and institutions in the district.
Article 16 Support shall be provided through post-funding for IP transfers and licensing completed at IP trading venues and registered with the China National Intellectual Property Administration for authorized patents:
1. For enterprises within the district that acquire invention patent results from universities, research institutions, or other enterprises and institutions outside the district through transfers for the purpose of commercialization, subsidy will be provided at a rate of up to 5% of the actual transfer fee per patent. The maximum support for a single entity shall not exceed RMB 200,000.
2. For universities, research institutions, and hospitals within the district that transfer or license patent results to enterprises, subsidy will be provided if the number of transfers or licenses reaches 30 or more within the application cycle. A base support of RMB 100,000 will be provided, with an additional RMB 10,000 for every 10 additional transfers or licenses. The maximum support for a single entity shall not exceed RMB 200,000.
Article 17 Subsidy will be provided for the interest, appraisal fees, and other costs incurred by enterprises and institutions in IP pledge financing activities. The support amount shall be up to 1.5% of the actual loan amount secured by pledged patents, trademarks, or other IP, with a maximum of RMB 300,000 per entity per year. For the same project applying for both municipal and district-level support, the total amount of funding shall not exceed the actual costs incurred for the project.
Article 18 Post-funding support will be provided for IPR protection activities undertaken by enterprises, institutions, social organizations, or other entities:
1. For domestic litigation: Successful protection of invention patents will receive subsidy of up to RMB 200,000; Successful protection of utility models, design patents, trademarks, or geographical indications will receive subsidy of up to RMB 100,000.
2. For foreign litigation: Successful protection of invention patents will receive subsidy of up to RMB 400,000. Successful protection of utility models, design patents, trademarks, or geographical indications will receive subsidy of up to RMB 250,000. Successful responses to IP infringement investigations initiated by foreign authorities will receive subsidy of up to RMB 500,000.
For the same IP applying for both municipal and district-level support, the total amount of funding shall not exceed the actual costs incurred for protection efforts.
Article 19 Subsidy will be provided to IP service institutions, social organizations, and similar entities for offering services to small and micro enterprises. These services may include IP custodianship, IP transfer and transformation, IP protection, IP information services, and trademark brand development. The funding amount shall be determined based on the applicant’s service content and performance metrics. Subsidy will be provided on a pre-funding basis, with a maximum of RMB 200,000 per project.
Article 20 Support will be allocated to key initiatives that enhance IP protection, promote IP creation, facilitate IP utilization, improve IP services, expand IP exchanges and cooperation, and strengthen IP talent development and cultural initiatives. Major projects related to the IP focus areas identified by the CPC district committee and government for the year, or projects designated by municipal or higher authorities for local implementation, may be established under this provision. The specific project arrangements and funding amounts shall be collectively determined by the district IP administration. Subsidy will be provided on a pre-funding basis.
Article 21Other cases of utilizing the Special Funds include:
1. Covering costs for engaging various professional institutions to provide services such as project acceptance, expert evaluation, project completion inspections, special audits, project assessments, and legal consultations.
2. Funding activities necessary for implementing the IP strategy, including IP promotion, training, research, management, and enforcement.
3. Other IP-related expenditures approved by the district government.
Article 22 The scope of applications, the number of projects to be approved, specific funding standards, and application cycles for each project shall be determined by the District Administration for Market Regulation based on actual situation and the availability of financial resources.
Chapter IV Fund Budgeting and Disbursement
Article 23 The Special Funds shall be budgeted in accordance with the financial department’s regulations and the relevant provisions for managing district-level special funds. The District Administration for Market Regulation shall organize project registrations based on the development needs of IP work in Liwan District, and prepare the annual budget for the Special Funds. The Special Funds’ budget shall be incorporated into the budget of Liwan District Administration for Market Regulation.
Article 24 Financial subsidies for projects funded by the special funds may be disbursed either as a one-time payment or in installments. For pre-funding projects with installment disbursements, the payment methods and amounts shall comply with the terms of the contract.
Article 25 For pre-funding projects funded by the Special Funds, the project undertaker shall strictly comply with the contract provisions to ensure that the Fund is used exclusively for their designated purposes. The funds may cover both direct and indirect expenses incurred during project implementation, including reasonable expenditures such as meeting costs, IP-related fees, labor costs, expert consultation fees, and management fees. Specific details include:
1. Meeting Costs. Expenses incurred for academic seminars, consultations, and exchanges held during project implementation.
2. IP-Related Fees. Costs associated with publishing, material procurement, specialized software purchases, literature searches, novelty assessments, and other IP-related activities during project implementation.
3. Labor Costs. Remuneration for non-staff members of the undertaking entity and auxiliary personnel hired for the project.
4. Expert Consultation Fees. Payments made to temporarily engaged consultants. These fees must not be paid to personnel involved in project management.
5. Management Fees. Indirect costs incurred by the undertaking entity during project implementation, primarily to offset the expenses of maintaining existing equipment, consumables, and relevant administrative costs.
For post-funding projects funded by the Special Funds, the using entities and individuals shall utilize the fund in accordance with relevant national, provincial, municipal, and district financial policies.
Chapter V Project Implementation Management
Article 26 The management of projects funded by the Special Funds encompasses various stages, including project application (collection), review (evaluation), publicity, preparation of annual special fund project plans, budgeting, project approval and implementation, mid-term inspection, and project acceptance.
Article 27 The Special Funds are managed through the following procedures:
1. The District Administration for Market Regulation formulates the project application guidelines and issues an application notice, specifying the conditions, requirements, and deadlines for fund applications.
2. Applicants shall submit application materials in accordance with the notice. Late submissions or those failing to meet the guidelines will not be accepted.
3. The District Administration for Market Regulation or an authorized third-party agency reviews the application materials. Incomplete materials shall be corrected within a specified time frame. Failure to do so will be deemed as a withdrawal of the application.
4. The District Administration for Market Regulation will publicize the review results. Applications deemed ineligible will be provided with reasons for rejection.
5. For pre-funding projects and post-funding projects requiring expert evaluation, the District Administration for Market Regulation or an authorized third-party agency organizes expert reviews and publicizes the evaluation results.
6. Projects with no objections during the publicity period, or where objections are unfounded, are incorporated into the Special Fund plan after consulting relevant departments and obtaining collective approval from the District Administration for Market Regulation. These plans are then submitted to the district government for approval and included in the annual Special Fund budget.
7. Following the approval of the annual budget, the District Administration for Market Regulation issues project approval notices and funding allocation plans. Contracts are signed with project undertakers (for pre-funding projects only), funds are disbursed, and project implementation begins.
8. For pre-funding projects, the District Administration for Market Regulation or an authorized third-party agency conducts mid-term inspections in accordance with the contract.
9. Upon the completion of pre-funding project contracts, the District Administration for Market Regulation or an authorized third-party agency organizes project acceptance reviews as stipulated in the contract.
Article 28 The management of key work projects as outlined in Article 20 follows these procedures:
1. The relevant departments of the District Administration for Market Regulation propose the project needs, objectives, and tasks. After collective review by the District Administration for Market Regulation, the project is included in the Special Funds plan and incorporated into the annual Special Funds budget.
2. If the project requires public solicitation, the procedures outlined in Article 27 of these regulations will apply.
3. During the implementation of the project, the District Administration for Market Regulation or an authorized third-party agency will conduct a mid-term inspection according to the contract terms.
4. Upon completion of the project contract, the District Administration for Market Regulation or an authorized third-party agency will organize project acceptance in accordance with the contract terms.
Article 29 In the management of Special Funds, if expert evaluation is required, the District Administration for Market Regulation or its authorized third-party agency shall randomly select experts from industries such as IP, technology, management, and finance. A panel of at least three experts in an odd number shall be formed, and the evaluation will be conducted either in person or online. The results and opinions of the expert evaluation shall serve as a crucial basis for the decision-making process regarding the project’s approval and acceptance.
Article 30 In the management of Special Fund projects, if public notice is required, the District Administration for Market Regulation shall public it on the Liwan District Government official website. The publicity period shall not be less than five working days.
Any organization or individual who has objections to the funding or project results may submit a written objection to the publishing entity within the publicity period. The objection application shall clearly state the content and reasons for the objection, along with supporting materials. If an objection is already under review or processing, the publishing entity will not accept further objections from the same organization or individual regarding the same project or result within the prescribed time limit.
Upon receiving an objection application, the District Administration for Market Regulation shall review and decide whether to accept the objection within five working days, and notify the applicant in written form. If the objection is accepted, the applicant and the respondent shall be informed simultaneously.
The District Administration for Market Regulation shall make a decision on the objection within 15 working days from the date the objection application is accepted and notify both the applicant and the respondent in written form.
For projects where the decision on objections is inconsistent with the original publicized results, the revised results shall be publicized separately in accordance with the prescribed procedures.
Article 31 For projects that have been approved and publicly solicited for advance subsidies, the District Administration for Market Regulation shall sign a project contract with the project undertaking entity. For projects receiving post-funding, a project contract is not required.
Article 32 During the execution of a pre-funding project, the District Administration for Market Regulation or its authorized third-party agency shall organize a mid-term review according to the contract terms. The mid-term review will primarily take the form of a mid-term report submitted by the project undertaking entity, but the District Administration for Market Regulation may conduct on-site checks as needed.
The District Administration for Market Regulation shall promptly notify the project undertaking entity of the mid-term review results. For projects that are progressing slowly or yielding unsatisfactory results, the relevant entities shall take effective corrective measures promptly.
Article 33 After the completion of the contract term for an pre-funding project, the District Administration for Market Regulation or its authorized third-party agency will organize the project acceptance according to the contract terms. The acceptance will be based on the project contract or work plan, and will include material evaluation and meeting review.
The District Administration for Market Regulation shall promptly notify the project undertaking entity of the project acceptance results. If the project fails the first acceptance, corrective actions shall be taken within a set deadline, which shall generally not exceed one year. Once the corrections are made, the project implementation entity shall apply for a second acceptance and bear the associated costs. If the project fails the second acceptance, the contract shall be terminated.
If the acceptance needs to be delayed due to force majeure factors, the project undertaking entity shall submit a written application. If approved by the District Administration for Market Regulation, the acceptance may be postponed, and no acceptance fee will be required.
Article 34 For projects whose contracts are terminated, the project undertaking entity shall return any unused or improperly used financial funds.
Article 35 Projects solicited through government procurement shall be managed in accordance with the relevant government procurement regulations.
Article 36 Projects shall not be supported if the applicant meets any of the following conditions:
1. Fails to comply with relevant laws, regulations, or the requirements of this management guideline;
2. Has been listed as a serious credit defaulter in accordance with the law;
3. Is undergoing bankruptcy liquidation;
4. Has failed the acceptance of an advance subsidy project under the district’s intellectual property Special Funds within the past three years;
5. Engages in other illegal activities.
Chapter VI Performance Evaluation and Supervision
Article 37 When formulating the Special Funds plan and preparing the Special Funds budget, the District Administration for Market Regulation shall clearly define the performance objectives of it.
Article 38 At the end of the budget year or after the completion of budget execution, the District Administration for Market Regulation shall organize the fund-utilizing entities to conduct performance evaluations in accordance with the relevant regulations on municipal and district budget performance management. The results of the performance evaluation shall serve as an important reference for the arrangement of Special Funds budgets, policy adjustments, and fund distribution.
Article 39 The District Administration for Market Regulation shall strengthen the investigation and prevention of integrity risks in key positions and critical areas of the Special Funds management, and improve internal control mechanisms.
Article 40 If applicants or fund-utilizing entities engage in fraudulent reporting, occupation, or embezzlement of Special Funds during the application, management, or use of the fund, the District Administration for Market Regulation shall take serious legal action in accordance with the law, recover the fund, and transfer the case to judicial authorities if it involves criminal activity.
Article 41 If relevant administrative departments and their staff violate the provisions of these Measures and fail to perform their duties in accordance with the law, the competent authority shall order them to make corrections. Responsible supervisors and directly responsible personnel shall be punished in accordance with the law; those suspected of crimes, the case shall be referred to judicial authorities.
Chapter VII Supplementary Provisions
Article 42 These measures shall come into effect from the date of issuance and remain valid for five years. During the implementation period, if any new policies issued by the state, Guangdong Province, or Guangzhou Municipality that are inconsistent with these measures, the new policies shall prevail.