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Chinese utility model patents: An underestimated protection weapon for IP

15 August 2025

Chinese utility model patents: An underestimated protection weapon for IP

The utility model has unique characteristics in the Chinese IP protection system. Yingying Shen explains how it is increasingly used to protect “small inventions.” 

The utility model has unique characteristics in the Chinese intellectual property protection system. Positioned as protection for “small inventions”, the utility model patent provides rapid protection for technological innovation. This intellectual property protection tool, characterized by “fast grant, low cost and enforcement effectiveness comparable to inventions,” is demonstrating its unique value in industrial environments with continuously shortening innovation cycles, becoming a strategic weapon for applicants seeking to seize market opportunities.  

Statistics show that from January to May 2025, 649,000 utility model patents were granted by the China National Intellectual Property Administration (CNIPA). However, the number of granted utility model patents for foreign entities in that period is only 1,773, accounting for just 0.3 percent of all utility model patents granted by CNIPA. This indicates that for foreign entities, utility model patent remains in a neglected position. Behind this neglect lie both deviations in institutional cognition and misunderstandings of innovation protection strategies. 

Characteristics of China’s utility model patent system 

Fast grant. The utility model undergoes a simple examination procedure without substantive examination. Grants are issued after passing preliminary examination. Preliminary examination focuses on formality issues and obvious substantive defects (e.g., the eligibility of subject matter, lack of novelty, etc.). According to 2024 statistics from CNIPA, the average examination cycle for utility models is 6.2 months, significantly faster than the two to three years usually required for invention patents to be granted. 

Low cost. Taking an application with 10 claims and 20 pages of description as an example, the mandatory official fees for utility model and invention are as follows: 

Official Fees 

Utility Model (CNY) 

Invention (CNY) 

Filing Fee 

Rmb500 

Rmb900 

Substantive Examination Fee 

Rmb2500 

Annuity (Years 1-3) 

Rmb600 per year 

Rmb900 per year 

Thus, the official fee cost for utility models is Rmb1,100 (US$153), while for inventions it isRmb4,300 (US$599). Moreover, since utility models do not undergo substantive examination, additional attorney fees arising from substantive examination are substantially reduced or avoided. The full-process cost for utility model is approximately 50 percent of that for invention patent. 

Lower grant threshold. Although according to the newly revised China Patent Law Implementation Regulations, which was taken into effect as of January 2024, examination on obvious lack of inventiveness for utility model application was introduced. However, based on nearly one year of examination practice, the proportion of examination notification involving lack of inventiveness during preliminary examination procedure remains limited. The grant rate for utility model applications is still significantly higher than that for invention patent applications. 

Furthermore, according to Article 22(3) of the China Patent Law, “[a]n invention shall possess prominent substantive features and represent notable progress. A utility model shall possess substantive features and represent progress.” The inventiveness requirement for invention patents is higher than that for the utility model. This clearly shows that the inventiveness requirement for utility model patents is markedly lower than that for invention patents. 
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Shorter patent protection term. The protection term for utility model patents is 10 years, while that for invention patents is 20 years. 

Although the protection term for utility model patents is shorter than that for invention patents, for technical fields with rapid technology iterations, such as consumer electronic devices, the 10-year protection term is sufficient to cover the economic lifespan of the majority of fast-iterating patented products. 

Protectable subject matter for utility models 

Under Article 2(3) of the China Patent Law, “a utility model refers to a new technical solution proposing practical utility for the shape, structure, or combination thereof of a product.” Therefore, innovations focusing on methods, processes, software algorithms or material formulations are excluded from utility model protection. 

However, this does not mean all inventions relating to methods, processes, computer programs, or materials are not eligible for filing utility model application. According to the China Patent Examination Guidelines, claims may use known method names or known material names to define a product’s shape or structure. For example, the following claim was granted in utility model patent CN222949393U: 

A flame-retardant impregnated paper-laminated solid wood composite floor, comprising a base material layer (1), characterized in that: a balance layer (2) is adhered to the lower surface of the base material layer (1), and a composite layer (3) is provided on the upper surface of the base material layer (1); the composite layer (3) comprises an inorganic fiberboard layer (31) adhered to the upper end of the base material layer (1), an impregnated adhesive film paper layer (32) disposed on the upper surface of the inorganic fiberboard layer (31), and a wear-resistant layer (33) disposed on the upper surface of the impregnated adhesive film paper layer (32). 

Similarly, for product claims relating to computer programs, if the computer program involved is known, it falls within utility model protectable subject matter. For example, the following claim was granted in utility model patent CN223051759U: 

A smart item custody terminal, characterized in that it comprises: an item custody cabinet provided with multiple compartment units with cabinet doors, said compartment units being used for item custody; a control terminal communicatively connected to the item custody cabinet, provided with a facial recognition camera, item photographing camera, fingerprint reader, RFID module, and input device, used to control the opening or closing of the cabinet doors in the item custody cabinet through at least one of the following methods: facial recognition, fingerprint recognition, ID card, and password; 
a backend server communicatively connected to the control terminal, provided with a backend storage unit, said backend storage unit being used to store at least one of the following user information: facial data, fingerprints, ID card data, and passwords. 

Although this smart terminal controls cabinet door operations via known computer programs (e.g., facial recognition, fingerprint recognition), it qualifies for utility model protection because these programs were known prior to the filing date of the utility model. 

This demonstrates that utility model protectable subject matter is restricted, but opportunities still exist for hardware-software hybrid inventions to obtain rapid grants through the utility model. With the development of AI technology, the iteration speed of intelligent product technology is accelerating, making rapid protection increasingly critical. Applicants may consider using utility models to rapidly construct protective barriers for intelligent products. 

Utility model patent value from the patent enforcement perspective 

From a patent enforcement perspective, utility model patent infringement cases constitute the majority of newly accepted patent infringement cases in recent years across all levels of courts in China. For example, in 2024, the Guangzhou Intellectual Property Court accepted 2,570 new technology-related cases, with utility model patent infringement litigation accounting for 50.04 percent of those cases. 

The patent enforcement practices of global EV battery maker CATL fully demonstrate the value of utility model patent. CATL initiated multiple utility model patent infringement lawsuits against competitors such as TAFFEEL, CALB (中创新航), and Zhuhai Guanyu (珠海冠珠). In CATL v. TAFFEEL, covering the infringement lawsuit of utility model patent (CN201521112402.7), CATL not only obtained an injunction against infringement but also was awarded approximately Rmb23.3 million (US$3.24 million) in damages. In another infringement lawsuit against CALB for utility model patent (CN201320059664.6), the first-instance court ruled that CALB and its affiliates shall immediately cease infringement and pay CATL Rmb58.05 million (US$8.08 million) in damages. With this award, it became clear that damages awarded for utility model patents now rival those for invention patents. 

Another critical value of utility model patent lies in its “fast grant” feature becoming a strategic weapon for enterprises to seize market opportunities. A 6-month period for grant enables enterprises to respond rapidly to infringements. Particularly in fast-iterating technology fields like consumer appliances and new energy vehicles, this allows innovators to establish legal barriers before product launches, and therefore seize market opportunities. Chinese consumer appliance enterprises and new energy vehicle manufacturers attach great importance to utility model patent portfolios. Based on publication data of the granted utility model patents, the Top 5 utility model patentees from January 1, 2024, to July 31, 2025, are as below: 

Rank 

Patentees 

Granted Utility Model Patents 

Haier Smart Home 

4,574 

BYD 

4,458 

CATL 

4,345 

Gree Electric 

2,956 

Fotile 

2,794 

Among them, Haier Smart Home, Gree Electric and Fotile are leading Chinese consumer appliance enterprises, while BYD and CATL are leaders in the new energy vehicle sector. This also reveals the value of utility model patents in these technology fields. 

Utility model filing strategies 

When formulating utility model patent filing strategies, applicants should conduct systematic evaluations across four dimensions: eligibility for a utility model patent, core technology attributes, technology iteration speed and innovation level, to align the “fast grant, low cost, lower grant threshold, shorter protection term” features of utility models with precise integration of technological protection and commercial value. 

Eligibility for utility model patents. Due to limitations on the subject matters eligible for utility model patents, innovations involving methods or materials may not be protected by utility model patents and should instead consider filing an invention patent application. Thus, for hardware-software hybrid technological improvements where eligibility for utility model protection is uncertain, applicants are advised to consult professional Chinese patent agencies. 

Core technology attributes. Applicants should establish a technology classification list to build a hierarchical protection system. For non-core technologies, a single utility model filing strategy is advisable, as lower filing, prosecution and maintenance costs better match the commercial value cycles of non-core technologies. For core technologies, filing strategies should be determined based on iteration speed and innovation level to avoid resource waste. 

Technology iteration speed. Technology iteration speed directly impacts the efficiency of utility model protection. Faster iterations require leveraging the “fast grant” feature of utility models to seize market opportunities. 

  • For high-iteration fields (upgrade cycle <2 years, e.g., consumer electronics): The pendency period of 2-3 years for an invention patent application may lead to technical obsolescence by the time the patent is granted. In contrast, the 6-month examination period for a utility model application allows for “protection upon technology implementation,” which effectively prevents imitation during the product's lifecycle.  

  • For medium-iteration fields (upgrade cycle 2-10 years): The 10-year protection term of a utility model can cover the majority of technology lifecycles in this field, while avoiding the relatively high filing, prosecution and annuity costs associated with invention patents. Therefore, utility model applications should be prioritized.  

  • For low-iteration fields (upgrade cycle >10 years): To obtain a longer protection term, filing an invention patent application is necessary. If rapid protection is additionally needed, it is recommended to adopt a dual “invention + utility model” filing strategy, i.e., filing an invention application and a utility model application on the same day. 

Innovation level. For technological improvements with lower innovation levels (e.g., localized structural optimization), filing a utility model application is a prioritized option, for purpose of rapid grants while avoiding rejection risks due to lower level of inventiveness for invention application. For highly innovative technologies, filing an invention application is suggested. Similarly, if rapid protection is needed, a dual “invention + utility model” filing strategy can be adopted. 

Notably, when a PCT international application enters the Chinese national phase, the applicant can only select either invention application or utility model application and is not able to adopt the dual “invention + utility model” filing strategy. To adopt a dual “invention + utility model” filing strategy, applicants should file a Chinese national application via the Paris Convention route within the 12-month priority period. 

Conclusion 

The utility model patent is a powerful and efficient weapon for intellectual property protection in China. If applicants can maximize the advantages of “fast grant and low cost,” formulate rational filing strategies, enable utility model patents and invention patents to complement each other and build a hierarchical IP protection system, they may finally achieve optimal integration for technological value and legal protection. 


About the author

 Yingying Shen

Yingying Shen

Yingying Shen is a senior patent attorney and qualified attorney-at-law who has been engaged in IP work since 2004. He obtained a Master’s degree in mechanical engineering from Tongji University in 2004. In 2008, Shen studied European patent law and practices at Boehmert & Boehmert Law Firm in Germany, and in 2013, he studied U.S. patent law and practices at BSKB Law Firm in the United States. In 2019, he completed a semester of intellectual property certificate training at UNH Franklin Pierce School of Law in the United States. His working languages are English, German, and Chinese. He has extensive experience in patent drafting, prosecution, reexamination, invalidation and litigation, and provides strategic IP solutions for global clients. 

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