Digital News

As the digital economy grows rapidly, the economic and social value of data resources is becoming increasingly apparent.

Unlike other factors of production, data has several distinctive characteristics, including non-exclusivity, variability in value, and the capacity for multi-source integration. These characteristics pose unique challenges for data property rights registration, data circulation and transactions, and the distribution of economic returns.

The National Data Administration recently issued the Guidelines for Data Property Rights Registration (Trial) to help establish a nationally unified data property rights registration system.

Put simply, data property rights registration serves as an identity document for data as an intangible asset, clarifying who holds the rights to the data, what it can be used for, and who is authorized to use it.

What role does data property rights registration play, and what tangible benefits can it bring to businesses? What progress has been made in this area? To find out, the reporter interviewed industry representatives and officials.

Lowering Transaction Costs and Fostering a Dynamic Data Factor Market

“This smart translation ring not only translates Portuguese well, but also supports real-time translation in more than 120 languages,” said Lin Yuchu, founder and CEO of DEEPTRANXAI, as he introduced the product to the reporter.

The ring’s ability to translate more than 100 languages relies on vast amounts of language data. DEEPTRANXAI, a data provider specializing in the collection and production of high-quality multilingual datasets, supplies this essential data.

“Data is the textbook for AI,” Lin Yuchu said. “Every country has its own cultural practices and values. Only by providing high-quality corpora that reflect local languages and regional characteristics can countries develop AI technologies suited to their own needs.”

In 2024, DEEPTRANXAI completed compliance reviews and quality assessments of two high-quality datasets: multilingual text corpora spanning multiple subject areas and multilingual speech data recorded by human speakers. The data assets have gained market recognition.

“Without authoritative proof of ownership, buyers may question whether the data was obtained lawfully and whether ownership rights are clearly established. This makes it harder for both parties to build trust and creates barriers to data circulation and transactions,” Lin Yuchu said. He added that clearly established ownership rights are essential to turning the company’s data products into compliant assets. They also facilitate the efficient trading of data products and help companies unlock their commercial value.

China’s experience in reforming the market-based allocation of data as a factor of production shows that clearly defined data rights are a prerequisite for a vibrant data market.

How can registration certificates make a difference? The key is proof. In data circulation and transactions, they can serve as evidence of the parties’ respective rights to the data. When companies recognize data assets on their balance sheets, seek financing, or use data as a capital contribution, the certificates can help demonstrate their lawful ownership or control of the data. They can also serve as evidence of a company’s data assets when it applies for policy support aimed at fostering the development of data enterprises…

“Data property rights registration is playing a tangible role in stimulating market activity by helping address the difficulty of establishing clear ownership rights in data,” said Gu Liang, general manager of the Shenzhen Data Exchange. Given the non-exclusive nature of data and its replicability, disputes over data-related rights often arise in the course of data circulation and transactions. The establishment of a nationally unified data property rights registration system provides business entities with mutually recognized registration certificates. This increases data providers’ willingness to make their data available and reduces the costs data users incur in accessing and using it.

Luan Jie, director-general of the Department of Policy and Planning at the National Data Administration, said the data property rights registration system was established to implement China’s data property rights framework, provide a unified registration certificate for data circulation and transactions, reduce data circulation and transaction costs, and foster an integrated national data market.

Registration System Launched, Registration Bodies Announced, Registration Certificates Made Public for the First Time

What progress has been made on data property rights registration since the Guidelines were issued?

Registration System Launched

On September 11, the National Data Property Rights Registration Service System was launched on a trial basis.

The National Data Property Rights Registration Service System consolidates registration results from registration bodies across the country, enabling data property rights registered by a company in one locality to be recognized nationwide. This eliminates the need for duplicate registration and helps reduce the costs associated with data circulation and transactions.

“From then on, the public will be able to access nationwide data property rights registration information through the National Data Property Rights Registration Service System in one place, without having to search across different agencies and channels,” Luan Jie said. She added that it would become easier to verify the authenticity and validity of data property rights registration results. In scenarios such as data circulation and transactions, relevant parties would be able to verify the validity of registration certificates directly through official channels, helping reduce disputes over ownership rights.

Registration Bodies Announced

Following recommendation and selection in accordance with established procedures, the Beijing International Data Exchange, the Shanghai Data Exchange, and the Shenzhen Data Exchange have been included in the national directory of data property rights registration bodies.

Why were these three registration bodies selected? Luan Jie explained that Beijing, Shanghai, and Guangdong had been assigned relevant reform tasks and had a relatively strong foundation in the digital economy. They had also conducted pilot initiatives at an early stage, gaining valuable experience in registration procedures and rules, as well as in the application of registration certificates across different scenarios. These practices will help ensure the prudent and orderly implementation of the data property rights registration system.

Gu Liang said that, as one of the selected registration bodies, the Shenzhen Data Exchange will strictly adhere to nationally unified review standards, procedural requirements and management rules. It will maintain the professionalism and procedural rigor of registration reviews and ensure that the certificates issued can withstand scrutiny.

Registration Certificates Made Public for the First Time

On the first day of operation of the National Data Property Rights Registration Service System, 56 data property rights registration certificates were made public through the system. Information on applications published by the relevant registration bodies shows that they mainly relate to several sectors, including information transmission, software and information technology services; transportation, warehousing and postal services; scientific research and technical services; and health and social work. This distribution broadly aligns with the sectors where data circulation, development and utilization are currently most active, reflecting strong demand for data property rights registration in these sectors.

“Taken together, a series of developments, including the launch of the registration system and the announcement of the selected registration bodies, mark the formal implementation of a nationally unified data property rights registration system,” Luan Jie said.

Advancing the Effective Implementation of the Data Property Rights Registration System

Currently, data property rights registration still faces a number of challenges, and industry practices require further exploration.

In practice, further refinement of the rules is needed to ensure effective implementation. For example, although unified review principles have been established for cases involving the automated collection of publicly available data and derived data, more detailed review standards still need to be developed and refined through continued input from experts and scholars.

In terms of talent supply, qualified professionals with the multidisciplinary expertise required for registration reviews are in relatively short supply. These reviews involve several fields, including data technology, laws and regulations, and compliance and risk management. Qualified reviewers need a sound understanding of both business operations and the law, as well as practical experience. Such professionals are scarce, and training them takes considerable time.

Meanwhile, market awareness is still developing, and some entities remain concerned about registration costs, the legal effect of registration, and security and compliance issues. Government departments, industry associations and registration bodies need to work together to help more companies understand the practical benefits of registration and the procedures involved.

Looking ahead, how can the implementation of the data property rights registration system be further refined and strengthened to better unlock the potential of data as a factor of production?

Refining the Rules. Luan Jie said that the National Data Administration will continue to refine registration review rules and operational procedures based on feedback from registration practice. It will also improve and upgrade the national data property rights registration service system and continue to enhance the quality and efficiency of registration services to better meet the needs of different types of entities.

Expanding the Use of Registration Certificates. “We will work to secure wider acceptance of registration certificates in areas such as the judicial and financial sectors, enabling business entities to see the tangible benefits of registration and the practical value of these certificates,” Gu Liang said.

Source: People’s Daily