Analysis and Suggestions on Patent Application Status for Traditional Chinese Medicine Cosmetics

Yueheng Liu, Shasha Liu, Hong Meng

China Cosmetic Collaborative Innovation Center, BTBU, China

In recent years, the Chinese cosmetics industry has developed rapidly, and the Chinese cosmetics market has become the second largest cosmetics market in the world in 2014, with annual cosmetics sales amount up to more than RMB 200 billion.[1]The cosmetics produced with traditional Chinese medicine (TCM) material added are called TCM cosmetics, generally referring to cosmetics that contain TCM extract or TCM active component.Although there is no clear definition of TCM cosmetics given in the Chinese cosmetics industry regulations, TCM cosmetics, as an important component part of cosmetics,have been greatly focused on and liked by consumers due to such features as natural, scientific, and healthy. The prosperously developing TCM cosmetic market in China has attracted numerous domestic and overseas enterprises and institutions to enter this field, and the industrial competition has become more and more fierce.

In China, TCM has been used for thousands of years in cosmetics as an important tradition that follows this theory of skin care. During the Qin and Han dynasties, the pharmaceutical monograph Shennong’s Herbal Classic had recorded a TCM beauty agent “face cream”; during the Tang, Song and Yuan dynasties, the herbal beauty prescriptions developed continuously, with such famous books as Prescriptions in Royal Drug Museum, and General Medical Collection of Royal Benevolence, appearing;Compendium of Materia Medica written by Shizhen Li during the Ming Dynasty was a comprehensive collection of beauty prescriptions in all of past dynasties, containing over 500 traditional Chinese medicines for beauty.[2,3]Half of the current Chinese cosmetics market, especially highend cosmetics market, is occupied by international brands.Exerting the advantages of TCM cosmetics of China, to thrive in fierce competition, and to obtain competitive edge in the domestic and even in international cosmetics market, is the effort target of each person in the cosmetics industry.

Retrieval was conducted for the patent opened in the Patent Retrieval and Service System of the State Intellectual Property Office of PRC, using the International Patent Classification (IPC) numbers A61K (Preparations for medical, dental, or toilet purposes), A61Q (Specific use of cosmetics or similar toilet preparations), A61K8 (Cosmetics or similar toilet preparations), and A61Q19 (Preparations for skin care), coupled with such keywords as “cosmetics”,“beauty”, “skin care”, “TCM”, and “TCM extract”. There were 11,356 patents in total retrieved; after those not containing traditional Chinese herb or traditional Chinese herb active component were eliminated, there were 3,474 TCM cosmetics patents in total containing traditional Chinese herb or traditional Chinese herb active component. The current patent application status in TCM cosmetics field was analyzed based on the data acquired from screening.

To be sure, owing to 18 months of opening delay for domestic invention patents, and the opening delay (32 months) for overseas patent application through the way of Patent Cooperation Treaty (PCT), the retrieved patent documents during 2012–2015 were not all applied patent documents, and the retrieval range covered the patent documents opened before April 27, 2015.

Different development stages and regions for patent application for TCM cosmetics in China

Different development stages

Since 1985, when the patent system was established in China, the number of patents for TCM cosmetics applied in China appeared on the rise year by year. The diagram of the patent application quantity for TCM cosmetics in China on patent application was shown in Figure 1.

Figure1. Patent application quantity for TCM cosmetics in China from 1985 to 2015

The development of patent application for TCM cosmetics in China can be divided into 3 stages:

Embryonic stage (before 1998). Before 1998, the number of patent applications for TCM cosmetics was poor,with annual patents quantity just over 10. China cosmetic industry started lately. Namely, the markets segment were not formed. The enterprises and scientific research institutions didn’t focus on TCM cosmetics field. Only a few medical institutions, pharmaceutical enterprises, scientific research institutes, and cosmetics enterprises and individuals took part in the technical research of TCM cosmetics.The applicants were from different fields or industries, and the applied patents were mostly principle-related or basic invention patents, with patent classes being relatively high.For example, in the patent CN85100318 Extraction process of total saponins in stems, leaves and flowers of Panax ginseng. The described technology can be used in both cosmetics and foods and drugs.[4]

Slow development stage (1998–2011). In 1998, Vichy entered the Chinese market, bringing the concept of“Drugstore skin care products” to Chinese consumers, and stimulating the competition and development of TCM cosmetics in China.[5]Figure 1 showed that the patent application quantity for TCM cosmetics rose steadily during 1998–2011. It indicated that the enterprises and scientific research institutions increased investment in research on TCM cosmetics, and TCM cosmetics industry was in technical development stage. In this stage, the constant progress of TCM active component preparation techniques and the gradual improvement of cosmetics efficacy evaluation laid a firm foundation for rapid development of the TCM industry.

Rapid development stage (2012 and later). In 2012,with the consumers’ recognition of health and natural property, and the development of TCM cosmetics techniques, more and more enterprises and institutions involved into the TCM cosmetics industry and the patent application quantity for TCM rose sharply. The range of technical application expanded, relating to more than 10 technical fields, such as A61 (medical or veterinary science;hygiene), A23 (foods or foodstuffs; their treatment, not covered by other classes), C11 (animal or vegetable oils, fats,fatty substances or waxes; fatty acids therefrom; detergents;candles), and C12 (biochemistry; beer; spirits; wine; vinegar; microbiology; enzymology; mutation or genetic engineering). Moreover, the concentration degree of the patent applicants decreased, and the core patent applicants (in A61 field) were up to 159. TCM cosmetics industry entered a rise stage of technical growth.

Regional composition

Figure 2 showed the regional distribution of patent application for TCM cosmetics in China. The total of patent application by Chinese was 3,327, accounting for 95.76% of patent quantity for TCM cosmetics applied in China, and there were some patent applications for TCM cosmetics applied in China by Korea, Japan, USA, France, and Germany, etc.

Figure 2. Regional distribution of patent application for TCM cosmetics in China from 1985 to 2015

Special analysis of patents for TCM cosmetics in China

Analysis of legal status

The analysis results of legal status of patents applications for TCM cosmetics in China were shown in Figure 3.The patents for TCM cosmetics in China are not optimistic in respect of maintenance strength and application success rate. The valid patent rights account for only 19.07% of the total applications, whereas patents expiration, withdrawn patents, and those rejected account for 9.61%, 19.26%, and 4.41%, respectively, and 33% accumulatively, of the total applications, reflecting that there are still difficulties and problems existing in the research and production fields of TCM cosmetics; in additional, there are 47.65% of patents under review, with pending patent rights.

The causes of the above phenomena are likely as follows: (1) the invention and novelty of patent is not strong enough; (2) turning a patent into business is not ideal and the patented product marketability is not successful, so the patent owner gave up the maintenance; (3) many good patented products cannot be continuously protected for lack of fouds, the inventors lost the intellectual property rights of some excellent products.

Figure 3. Analysis of legal status of patents for TCM cosmetics in China from 1985 to 2015

Analysis of applicants for patent

Figure 4 showed the applicants for patent for TCM cosmetics in China. As can be seen from Figure 4, the number of patents from daily chemical enterprises are the main force in the development of TCM cosmetics industry,and their research and development technical level directly influences the development level of the TCM cosmetics industry. The patent applications applied by colleges & universities, and scientific research institutions, with research and development strength, account for 9.82% and 2.13%,respectively, indicating that colleges & universities and research institutions have joined TCM cosmetics research and development team to transform scientific research achievements into patented technologies and products.

Figure 4. Applicants for patent for TCM cosmetics in China from 1985 to 2015

Guangdong Province takes the first place for patent application for TCM cosmetics in China, meanwhile Guangzhou and Shenzhen account for 7.14% and 1.44%respectively. Jiangsu Province takes the second place for patent application, and Nanjing account for 1.73% of total patent application. Ranking from the third to the tenth were Shandong, Beijing, Guangxi, Liaoning, Anhui,Henan, Shanghai, Hong Kong, Macao, and Taiwan. It indicates that TCM cosmetics industry is mainly concentrated in relatively developed regions, such as Guangdong and Jiangsu. Beijing, Shandong and Guangxi have strength in TCM cosmetics R&D, with high scientific and technological level and rich resources in TCM.

Distribution and applications of TCM cosmetics in different skin care function

The statistical analysis of skin care functions of patent applications for TCM cosmetics is shown in Figure 5.From the technology perspective, TCM cosmetics industry has started to enter function classification stage. Whitening freckle removal and moisturization are the key points of R&D, and protected by applicants, accounting for 27% and 13%, respectively. With the major concerns for consumers in China on whitening & freckle removal and moisturization, TCM skin care technologies of anti-acne,anti-aging, suncare, and anti-allergy functions have gradually developed. In addition, there are also patent applications for TCM cosmetics with such functions as weight loss, anti-redness, health care, anti-bacterial and cleaning.

Figure 5. Distribution of function types of TCM cosmetics patent applications from 1985 to 2015

Suggestions

At present, TCM cosmetics technologies in China have entered a rapid development stage. As capitals passionately focus on and actively involved in TCM cosmetic market,the market is posting growing competition. The essence of market competition is core technologies (patent technologies), with investment increasing in research and development, the TCM cosmetics technologies tend to be mature.Only enterprises with strong research capabilities can be continuously engaged in researching on TCM cosmetics,and continuously carrying out patent application and protection to obtain more profits.

Then, how can cosmetics enterprises and scientific research institutions seize the chance to improve their competitiveness at this stage, stand out and be recognized by consumers in the future competition? The cosmetics enterprises or scientific research institutions can make efforts in the following aspects:

Analysis of the functions of patented technologies showed that the patent technologies of whitening & freckle removal and moisturization are hottest areas for TCM cosmetics. Patent concentrated areas represent high technical feasibility and fierce technical competition, not necessarily indicate that there is no space for research and development or additional patent application. The enterprises should, according to their own development planning, further evaluate the technical feasibility and market demands,determine the development direction of technologies, focus on improving core technologies, and enhance technical competitiveness.

Classifying products according to market demands is the development direction and strategy for TCM cosmetics market. For example, air pollution is one of the causes of skin problems, so the researchers can develop skin care products with function to protect skin against smog harm.Out of 3,474 patents from State Intellectual Property Office of China, only 25 % relate to infant skin care products, accounting for 0.7 % invention patents for TCM cosmetics.Because the skin care products based on TCM are natural,gentle and efficient, they have advantages in the development of infant skin care products.

Patent information is comprehensive, basic and strategic resource with science & technology, law, and economy integrated,[6]playing a leading role in research and development. According to the statistics by World Intellectual Property Organization, patent documents include 95% of research and development achievements in the world; if using patent information effectively,the research time will be shortened by 60% and the cost will be saved by 40%. Patent information ensure the implementation of free production of independent innovative results, transforming technical advantages into real economic benefits, and also avoiding patent dispute and infringement risk, ensuring good development.Reasonably utilizing patent information and owning intellectual properties are important means for domestic cosmetics enterprises to actively participate in the domestic and overseas competition.

Moreover, the domestic enterprises also need to understand and grasp the intellectual property systems of countries of the world. Maybe, they can enter specific countries under patent cooperation treaty (PCT), taking advantages of health, efficiency and safety to participate in international competition and develop the overseas market.

Conclusions

A patent is one of the powerful business tools for enterprises to gain valuable exclusivity over a new product or process in fierce market competition. In particular, TCM cosmetics industry, as a rising industry, has been gradually recognized by the market. The enterprises should emphasize investment of intellectual property protection and patent information utilization. Significant progress has been made in the field of TCM cosmetics; however,facing the competition and challenges from abroad and the constantly growing market demands, the domestic enterprises should seize the opportunities, and take full domestic advantages to move toward internationalization.Meanwhile, enterpirses are supposed to classify products,focusing on special populations, on the basis of inheriting and carrying forward the ideas of TCM.

[1] F. Li; T. Wang. Development Trend of Cosmetics Industry in China. China Cleaning Industry 2014, 10,65-69.

[2] H. M. Zhang;H.H. Chang; W. L. Wei. Medicine Cosmetics:Development Direction of Cosmetics in the 21st Century.Detergent & Cosmetics 2003, 26,1.

[3] Y.T. Hu; X.J. Wang. Traditional Chinese Medicine Cosmetics:Old and Emerging Traditional Chinese Medicine Industry.Liaoning Journal of Traditional Chinese Medicine 2005, 32(2),162.

[4] Traditional Chinese Medicine Research Institute of Liaoning Province. Extraction Process of Total Saponins in Stems, Leaves and Flowers of Panax Ginseng: CN, 85100318. 1986-08-06.

[5] Y. M. Dong; YY Zheng; ZH Ma; et al. Herbal Cosmetics. Beijing:Chemical Industry Press 2010.

[6] S. N. Gan. Management and Application of Analysis of Patent Information. Beijing: Intellectual Property Publishing House 2015, 4.