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5 White Paper on the Business Environment in China
damages are being considered in patent proceedings. Liability Law and Regulations on the Protection of the
Right of Communication through Information Networks. A
3. Strengthening Administrative Law Enforcement draft regulation proposed to increase the maximum amount
ere are continual problems in China of repeated of statutory damages for copyright infringement to RMB
1,000,000.
infringement of patents, and even group infringements of
patents. While patents have the shortest duration of most e Status of the Administrative Protection
intellectual property rights, and relatively high costs, they and Judicial Protection of Intellectual Prop-
are di cult to protect. Furthermore, the time period for erty in China from 2013 to 2014
application of a patent to its approval is much longer and
more di cult than for copyright and trademarks. Proposed In 2013 the Courts improved their ability to protect intel-
amendments to the Patent Law are considering this problem. lectual property rights and some intellectual property cases
increased throughout the country compared to last year, rst
Proposal for the ird Amendment to the instance IP cases that were accepted grew by 1.33% and those
Copyright Law disposed of grew by 5.29% to 88,583 new cases and 88,286
that were adjudicated by rst instance courts. Of these cases
is Session of the National Peoples’ Congress has one 9195 were patent cases, 5.01% less than last year; 23272 cases
of its rst priorities the signi cant revision of the Copyright were trademark cases with an increase of 17.45% compared
Law, to assist in promoting innovation pursuant to the re- with 2012; 51,351 were copyright cases decreased by 4.64%
quirements of government plans. compared with 2012; technology contract cases increased
substantially and there were 949 cases; and unfair competi-
e key points of this revision are as below: tion cases also increased by 15.94% of which there was 1,302
cases, (among which 72 cases were rst instance antitrust civil
1. Copyright Objects: Generalization and Enumeration cases). As to foreign related cases, 1,697 rst instance civil
Stipulations IP cases were adjudicated, an increase of 18.75%; and Hong
Kong, Macau and Taiwan cases amounted to 483. Second
A key element of this proposed revision of the Copyright instance civil IP cases improved substantially to 11,957 that
Law is a change in description of works that may be were accepted and 11,553 that were adjudicated. Rehearings
copyrighted, for example: cinematographic works are to be of civil cases remained very low of new received cases being
classi ed as “audio-visual works”. Computer software has 75 and adjudicated cases being 96, a substantial decrease by
been de ned as “computer programs”, all to more accurately more than 50% since 2012. However, IP cases at the Supreme
de ne what is the right subject in copyright. Peoples’ Court, though small in number, grew substantially to
457 new cases and 417 that were adjudicated. In summation
2. Copyright Content: Separate Stipulations on Personal Rights civil adjudication of IP cases remains very signi cant.
and Property Rights
As for administrative cases accepted by the courts in 2013,
Personal rights to copyright are reduced by the proposed as a rst instance, 2,886 new cases were accepted and 2901
changes to the right of publication, right of authorship and were disposed of. Of the new cases accepted, 697 cases were
right of integrity. ese revisions are in accordance with patent administrative cases, decreased by 8.29% compared
international conventions. e revisions extend the scope of with that of 2012; 2,161 cases were trademark administra-
the right of reproduction by incorporating digital forms into tive cases, increased by 0.51% compared with that of 2012; 3
the scope of reproduction. Other revisions include revising cases were copyright administrative cases, remaining the same
the rights of radio broadcasting, to the right of broadcasting. as that of 2012; 25 cases were other administrative cases, in-
creased by 66.67% compared with that of 2012. A signi cant
e proposed revisions includes the rights of secondary portion of these cases were foreign related, and Hong Kong,
remuneration and related rights, which provides that Macau or Taiwan, namely 1,312 cases, amounting to 45.23%
broadcasting and television stations shall pay remuneration of the rst instance administrative intellectual property cases.
to a performer if they broadcast recordings containing their
performance. Intellectual property appeal cases were few and far be-
tween, with new cases numbering only 117 and those adju-
3. Protection of Copyright: Added Stipulations on Punitive dicated numbering 104. Most appeals were rejected, namely
Damage 76.92%. ere are also a few cases that the Supreme Court
heard on the equivalent of a writ of certiorari. Interestingly
e Copyright Law provides for tortuous liability of
network service providers and users based on the Tort
78
damages are being considered in patent proceedings. Liability Law and Regulations on the Protection of the
Right of Communication through Information Networks. A
3. Strengthening Administrative Law Enforcement draft regulation proposed to increase the maximum amount
ere are continual problems in China of repeated of statutory damages for copyright infringement to RMB
1,000,000.
infringement of patents, and even group infringements of
patents. While patents have the shortest duration of most e Status of the Administrative Protection
intellectual property rights, and relatively high costs, they and Judicial Protection of Intellectual Prop-
are di cult to protect. Furthermore, the time period for erty in China from 2013 to 2014
application of a patent to its approval is much longer and
more di cult than for copyright and trademarks. Proposed In 2013 the Courts improved their ability to protect intel-
amendments to the Patent Law are considering this problem. lectual property rights and some intellectual property cases
increased throughout the country compared to last year, rst
Proposal for the ird Amendment to the instance IP cases that were accepted grew by 1.33% and those
Copyright Law disposed of grew by 5.29% to 88,583 new cases and 88,286
that were adjudicated by rst instance courts. Of these cases
is Session of the National Peoples’ Congress has one 9195 were patent cases, 5.01% less than last year; 23272 cases
of its rst priorities the signi cant revision of the Copyright were trademark cases with an increase of 17.45% compared
Law, to assist in promoting innovation pursuant to the re- with 2012; 51,351 were copyright cases decreased by 4.64%
quirements of government plans. compared with 2012; technology contract cases increased
substantially and there were 949 cases; and unfair competi-
e key points of this revision are as below: tion cases also increased by 15.94% of which there was 1,302
cases, (among which 72 cases were rst instance antitrust civil
1. Copyright Objects: Generalization and Enumeration cases). As to foreign related cases, 1,697 rst instance civil
Stipulations IP cases were adjudicated, an increase of 18.75%; and Hong
Kong, Macau and Taiwan cases amounted to 483. Second
A key element of this proposed revision of the Copyright instance civil IP cases improved substantially to 11,957 that
Law is a change in description of works that may be were accepted and 11,553 that were adjudicated. Rehearings
copyrighted, for example: cinematographic works are to be of civil cases remained very low of new received cases being
classi ed as “audio-visual works”. Computer software has 75 and adjudicated cases being 96, a substantial decrease by
been de ned as “computer programs”, all to more accurately more than 50% since 2012. However, IP cases at the Supreme
de ne what is the right subject in copyright. Peoples’ Court, though small in number, grew substantially to
457 new cases and 417 that were adjudicated. In summation
2. Copyright Content: Separate Stipulations on Personal Rights civil adjudication of IP cases remains very signi cant.
and Property Rights
As for administrative cases accepted by the courts in 2013,
Personal rights to copyright are reduced by the proposed as a rst instance, 2,886 new cases were accepted and 2901
changes to the right of publication, right of authorship and were disposed of. Of the new cases accepted, 697 cases were
right of integrity. ese revisions are in accordance with patent administrative cases, decreased by 8.29% compared
international conventions. e revisions extend the scope of with that of 2012; 2,161 cases were trademark administra-
the right of reproduction by incorporating digital forms into tive cases, increased by 0.51% compared with that of 2012; 3
the scope of reproduction. Other revisions include revising cases were copyright administrative cases, remaining the same
the rights of radio broadcasting, to the right of broadcasting. as that of 2012; 25 cases were other administrative cases, in-
creased by 66.67% compared with that of 2012. A signi cant
e proposed revisions includes the rights of secondary portion of these cases were foreign related, and Hong Kong,
remuneration and related rights, which provides that Macau or Taiwan, namely 1,312 cases, amounting to 45.23%
broadcasting and television stations shall pay remuneration of the rst instance administrative intellectual property cases.
to a performer if they broadcast recordings containing their
performance. Intellectual property appeal cases were few and far be-
tween, with new cases numbering only 117 and those adju-
3. Protection of Copyright: Added Stipulations on Punitive dicated numbering 104. Most appeals were rejected, namely
Damage 76.92%. ere are also a few cases that the Supreme Court
heard on the equivalent of a writ of certiorari. Interestingly
e Copyright Law provides for tortuous liability of
network service providers and users based on the Tort
78
