A new deal was witnessed early this year for the software industry, which had been long expected by the business circle. In addition to the six measures to encourage software and integrated circuit (IC) industry resolved by its Standing Committee, the State Council issued a Basket of Measures to Further Boost the Software and IC Industry (Guofa [2011] No. 4), to support the software and IC industry with respects to public finance and taxation, investment and financing, R&D, import and export, talents, IPRs and market policies. This Document 4, also known as the “New Document 18”, continues and supersedes a Basket of Measures to Boost the Software and IC Industry (Guofa [2000] 18), which was issued in 2000 and expired last year.

 

In the past ten years, it is certain that Document 18 has played a positive role in promoting the software industry and helping software companies grow larger and more powerful. Insiders said that the policy preference in Document 4 showed that the country intended to promote software and IC industry to further depths.

 

How should the public interpret Document 4 under the new circumstances? How will it be connected with its predecessor, Document 18? How will the preferential policies be “landed”? How will software companies view Document 4?

 

IPRs are one of the critical areas for the development of the software industry. Will the actions in Document 4 that protect IPRs and encourage innovation be meaningful to software companies in practice? How will related departments and agencies effectively take these actions into reality?