Research and analysis

China: intellectual property newsletter - issue 4

Published 28 May 2014

0.1 Detail

0.2 UK-China IP Symposium: 1 Sept 2014 - Beijing

The 2nd UK-China IP Symposium will take place in Beijing on 1 September 2014. The Symposium will be opened by Lord Younger, the UK IP Minister, and Commissioner Shen Changyu of the Chinese State Intellectual Property Office (SIPO). The event will provide an opportunity for businesses from the UK and China to engage directly with government, with the panel sessions bringing together businesses, officials and senior judiciary members from both countries. A number of other UK-China IP events will be held throughout the week across mainland China and Hong Kong. More here (in English).

0.3 The revised Chinese Trademark Law comes into force

The Standing Committee of the Chinese National People’s Congress (NPC – China’s legislature) passed a comprehensive set of revisions to the Chinese Trademark Law in August 2013. The revisions came into force on May 1, 2014 and various supplementary regulations have recently been published to inform users of the Chinese trade mark system of the implementation of the new measures. These documents include updates to the Trademark Law Implementing Regulations (published on April 30 following a public consultation); separate Guidelines and Notifications issued by the Trademark Review & Adjudication Board (TRAB); a Judicial Interpretation on jurisdiction and other issues from the Supreme People’s Court; and a public consultation on the recognition of well-known trade marks. The Embassy and the China Britain Business Council (CBBC) held a series of webinars to inform businesses and trade mark professionals in the UK of the practical impact of the changes. Presentation files and recordings of these sessions are available on the CBBC website here. More here and here and here and here and here and here (in Chinese).

0.4 139 Internet companies subject to pre-emptive trade mark filing by a single company

The Chinese media has reported that the Hong Kong-registered company Qihu Venture has filed 139 trade mark applications covering the names of Chinese and international Internet companies at the Chinese Trademark Office (CTMO). Targeted companies including iQiyi.com, the Jingdong e-commerce site, Amazon and Alibaba’s Yuebao. The fillings have all been published by the CTMO and will be registered if no oppositions are filed. Qihu 360 (a Chinese Internet company listed on the New York stock exchange) is reportedly consulting legal counsel in Hong Kong over the use of their company name. More here and here (in Chinese).

0.5 Further movement on revisions to the Chinese Copyright Law

Renmin University in Beijing recently hosted a workshop to discuss the latest draft revisions to China’s Copyright Law. 80 participants joined the workshop, including representatives from the National People’s Congress (NPC), State Council Legislative Affairs Office (SCLAO), Supreme People’s Court (SPC), Ministry of Industry & Information Technology (MIIT), Ministry of Culture (MOC) and the National Copyright Administration of China (NCAC). Rights owners’ organisations, research institutes and senior lawyers also attended. Three public consultations have been held to date on the proposed changes over the past two years and a draft was passed from the NCAC to SCLAO at the end of 2012. Experts participating in the workshop said it would be unlikely that the Law would be passed from SCLAO to the National People’s Congress in 2014. More here and here and here (in Chinese).

0.6 China ratifies the Beijing Treaty

In June 2012 a World Intellectual Property Organization (WIPO) diplomatic conference concluded the Beijing Treaty on Audiovisual Performances. The Treaty has now been formally ratified in China following approval by the Standing Committee of the National People’s Congress (NPC – China’s legislature). The Treaty was signed by 48 member states of the World Intellectual Property Organization (WIPO) in Beijing on conclusion of the negotiations in 2012. The UK signed the Treaty in June 2013. The Treaty will come in to force after at least 30 member states submit ratification documents to WIPO. China is the third member to do so, after Syria and Botswana. More here (in English) and here (in Chinese).

0.7 SIPO publishes a previously unseen draft of Service Invention Regulations

The State Intellectual Property Office (SIPO) has published a previously unseen draft of proposed Service Invention Regulations. The Regulations cover remuneration for employee inventions (i.e., payments to employees that produce inventions on behalf of their employers). SIPO invited public comments on the draft regulations with no fixed deadline to submit responses. According to SIPO statistics, service inventions accounted for 88% of the 208,000 invention patents granted in 2013. More here (in English) and here (in Chinese).

0.8 Administrative enforcement of patents up 80% year-on-year

According to a recent press release by the State Intellectual Property Office (SIPO), administrative enforcement cases for patents (including invention patents, utility models and designs) totalled 16,227 in 2013, up 80% from 2012. Only 11% of cases involved invention patents. The portion of cases involving international companies increased significantly, with 362 foreign-related patent infringement cases compared to 90 cases in 2012. Administrative enforcement is carried out by local government enforcement teams within local Intellectual Property Offices (IPOs). The system is separate to the criminal and civil enforcement systems, although decisions can be appealed to administrative tribunals within the courts. Typically cases result in fines and administrative orders to cease infringing activity. Proposals to increase local government administrative enforcement powers have been hotly debated amongst government agencies and academics during ongoing revisions to the Chinese Patent Law. More here (in English) and here (in Chinese).

0.9 The Supreme People’s Court heard over 400 IP cases in 2013

The Supreme People’s Court accepted 457 civil IP cases in 2013, almost double the number of cases accepted in 2012. China’s highest court concluded 417 IP cases in 2013. The Court also released the “National Top 10 IP cases”, the “Top 50 Typical IP cases” and the “Top 10 Innovative IP cases” on World IP Day (April 26). Although previous case decisions in China are non-binding, Supreme People’s Court model cases can provide a strong indication of current judicial trends. More here and here and here and here (in Chinese).

0.10 China Customs launches special World Cup enforcement campaign

The General Administration of Customs of China (GACC) has launched the “Green Grass Campaign” to target infringement of World Cup-related IP rights. According to media reports, the first major detention included 1,020 replicas of the Jules Rimet trophy being shipped from Yiwu, Zhejiang Province to Libya. Customs documents described the goods as “Resin trophies and souvenir cards”. Customs branches across the country have since reported other World Cup-related seizures. In addition to official World Cup IP rights, special attention will also be paid to trade marks and copyrights recorded at the GACC by official World Cup sponsors. Intensified monitoring will be imposed on relevant goods exported to Brazil and other South American countries. The campaign will conclude at the end of July 2014. More here (in Chinese).

If you would like any further information on any of the above matters, please contact Shi Hui (shi.hui@fco.gov.uk). To discuss Embassy support for companies in China please contact commercialmail.beijing@fco.gov.uk.

0.11 Disclaimer

The purpose of the FCO Country Update(s) for Business (”the Report”) prepared by UK Trade & Investment (UKTI) is to provide information and related comment to help recipients form their own judgments about making business decisions as to whether to invest or operate in a particular country. The Report’s contents were believed (at the time that the Report was prepared) to be reliable, but no representations or warranties, express or implied, are made or given by UKTI or its parent Departments (the Foreign and Commonwealth Office (FCO) and the Department for Business, Innovation and Skills (BIS)) as to the accuracy of the Report, its completeness or its suitability for any purpose. In particular, none of the Report’s contents should be construed as advice or solicitation to purchase or sell securities, commodities or any other form of financial instrument. No liability is accepted by UKTI, the FCO or BIS for any loss or damage (whether consequential or otherwise) which may arise out of or in connection with the Report