OVERHAUL URGED: The European Chamber of Commerce in China urged that nation to make extensive changes to a patent system it said hampers the country's ability to innovate and might hurt global companies. It issued a 210-page report with 52 recommendations for changes.

CHANGES NEEDED: The group said said China's system awards too many patents for work that is not real innovation. About one-third of those awarded by Beijing are process patents for small improvements on other products that require little proof of innovation.

BONUS SYSTEM: Communist leaders see innovation as key to transforming China from the world's low-cost factory into a creator of profitable technology. They have boosted research spending and reward companies that are awarded patents. But foreign and Chinese companies alike complain technology theft is common, and deters foreign investment in research and development.