China's environmental tech companies should increase investment in scientific research and international patents developed by their own team of engineers and attorneys, said Tony Chen, a senior lawyer who represents technology and life science companies in intellectual property issues both at home and in the United States.

Chen made the comments at an intellectual property roundtable held in Beijing last Wednesday.

Co-hosted by Chen and senior attorney Mark Cohen, who has worked in intellectual property and Chinese law for more than 25 years, the forum discussed how to help green technology companies develop and leverage intellectual property in China.

"We have seen more and more cases related to green technology in the last two years," Chen said. "More investment is flowing into the industry."

Venture capital firm Khosla Ventures, which offers funding and advice to US entrepreneurs, believes green tech is the most promising for venture capital, Chen said.

Chen used Huawei Technologies as an example for green-tech companies noting that the Chinese telecommunication giant invests more than 10 percent of its annual revenue in research and development.

Huawei has long known the crucial need for technological innovation and expanding its pool of patented technologies, Chen said. In 2008, the company ranked No 1 worldwide in international patent applications.

"Companies should make good use of the intellectual property rights for long-term development and gains in their markets," Chen said.

Many Chinese companies are focusing on production at the expense of intellectual property development, he said, noting that overcapacity is a common problem in China.

If a company does not have intellectual property rights for its products, other companies may produce the same goods and the market will be flooded with similar products due to excessive capacity.

"On the contrary, if the company effectively protects its intellectual property rights, it will make more profit and continue to invest in new technology development.

"Green-tech companies in China should build long-terms success on strong intellectual property rights and not simply look for quick results.

"Some companies tried to scout out the other companies' employees who can reveal trade secrets," Chen said. "That will have a negative effect on the development of companies and eventually lead to very serious consequences."