TechNode reported that China’s tech firms are adapting to an increasingly IP sensitive environment.

Data shows that these supporting policies have incentivized Chinese companies to create and file for IP. Chinese companies filed more than 1 million patent applications in 2015, more than one third of the total number of patents filed globally. Now China is the world’s #1 patent and trademark country, filing more than the US and Japan.

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In addition to a complete legal system, several macro-level measures are boosting the change. The Chinese government has reshaped its judicial system to increase the damages awarded via Chinese courts, which in turn adds an incentive for companies to file lawsuits in China.

While it remains hard to enforce patents in China, it is still important to have because the patents can be used as proof of IP ownership. These can be used to block shipments of copies and to get patent infringers kicked out of trade shows.