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Q&A Regarding High and New Tech Enterprises (1)

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Q:
What is a high-tech enterprise?
A:
High tech enterprises refer to resident enterprises registered within the territory of China (excluding Hong Kong, Macao, and Taiwan) that continue to conduct research and development, transform technological achievements, form core independent intellectual property rights, and carry out business activities based on this within the "National Key Supported High tech Fields".

Q:
What conditions must be met simultaneously to be recognized as a high-tech enterprise?
A:
  1. When applying for recognition, enterprises must be registered and established for at least one year;
  2. Enterprises acquire ownership of intellectual property rights that play a core supporting role in technology for their main products (services) through independent research and development, transfer, donation, mergers and acquisitions, etc;
  3. The technology that plays a core supporting role in the main products (services) of enterprises belongs to the scope specified in the "National Key Supported High tech Fields";
  4. The proportion of scientific and technological personnel engaged in research and development and related technological innovation activities in the enterprise shall not be less than 10% of the total number of employees of the enterprise that year;
  5. The proportion of the total research and development expenses of the enterprise in the past three accounting years (calculated based on the actual operating period of less than three years) to the total sales revenue of the same period meets the following requirements: 1. Enterprises with a sales revenue of less than 50 million yuan (inclusive) in the past year, the proportion shall not be less than 5%; 2. For enterprises with sales revenue ranging from 50 million to 200 million yuan (inclusive) in the past year, the proportion shall not be less than 4%; 3. For enterprises with sales revenue of over 200 million yuan in the past year, the proportion shall not be less than 3%. Among them, the proportion of the total research and development expenses incurred by enterprises within China to the total research and development expenses shall not be less than 60%;
  6. The proportion of high-tech product (service) revenue to the total revenue of the enterprise during the same period in the past year shall not be less than 60%;
  7. The evaluation of enterprise innovation capability should meet corresponding requirement
  8. No major safety, quality accidents, or serious environmental violations have occurred within the year prior to the application for recognition by the enterprise.

Q:
What are the provisions for the duration of service in the conditions?
A:
"Must be registered and established for more than one year" refers to an enterprise that must be registered and established for more than 365 calendar days; The term 'current year', 'the latest year', and 'recent year' all refer to the fiscal year prior to the enterprise's declaration; The "recent three fiscal years" refer to the three consecutive fiscal years (excluding the reporting year) prior to the enterprise's declaration; Within one year before the application for recognition "refers to the period of 365 days (including the year of application) before the application.

Q:
What are the provisions on intellectual property rights in the conditions?
A:
  1. The intellectual property rights referred to in the recognition of high-tech enterprises must be authorized or approved within the territory of China, and within the effective protection period of Chinese law. The intellectual property owner should be the applicant enterprise.
  2. Enterprises without intellectual property rights cannot be recognized as high-tech enterprises.
  3. In the identification of high-tech enterprises, a classification evaluation method is adopted for the intellectual property situation of the enterprise. Among them, invention patents (including national defense patents), new plant varieties, national crop varieties, national new drugs, national first-class traditional Chinese medicine protection varieties, integrated circuit layout design exclusive rights, etc. are evaluated according to Class I; Utility model patents, design patents, software copyrights, etc. (excluding trademarks) are evaluated as Class II.
  4. Intellectual property evaluated according to Class II shall only be used once when applying for high-tech enterprises.
  5. During the application for high-tech enterprise and the validity period of high-tech enterprise qualification, if there are multiple owners of intellectual property, only one owner can use it during the application.
  6. The validity of the patent when applying for recognition shall be based on the authorization certificate or authorization notice obtained by the enterprise before the application for recognition and the payment receipt provided.
  7. The exclusive rights of invention, utility model, appearance design and integrated circuit layout design can be found on the website of the China National Intellectual Property Administration( http://www.sipo.gov.cn )Search for patent markings and patent numbers; National defense patent certificate granted by the China National Intellectual Property Administration shall be provided for national defense patent; New plant varieties can be found on the website of the Plant New Variety Protection Office of the Ministry of Agriculture( http://www.cnpvp.cn )Website of the Office of Plant New Varieties Protection of the State Forestry Administration( http://www.cnpvp.net )Query; National crop varieties refer to the crop varieties approved and announced by the National Crop Variety Approval Committee of the Ministry of Agriculture; The new drug certificate issued by the State Food and Drug Administration must be provided for the new drug; The national first-class protected varieties of traditional Chinese medicine must provide the certificate of protected varieties of traditional Chinese medicine issued by the State Food and Drug Administration; Software copyright can be found on the website of the China Copyright Protection Center of the National Copyright Administration( http://www.ccopyright.com.cn )Search for software copyright marks (also known as copyright marks).

Q:
What do high-tech products (services) and main products (services) refer to?
A: High tech products (services) refer to products (services) that play a core supporting role and fall within the scope of the "National Key Supported High tech Fields".

The main products (services) refer to the intellectual property rights that play a core supporting role in technology in high-tech products (services), and the total revenue of these products (services) exceeds 50% of the enterprise's high-tech product (service) revenue during the same period

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