Page 116 - 2017 White Paper
P. 116
7 White Paper on the Business Environment in China
infringement. It is currently exploring means to establish of invention applications, utility models and industrial
a punitive compensation system for the infringement designs, invalid requests for patent re-examination, and
of intellectual property rights, will impose punitive establish channels that can issue appraisal reports on
compensation towards wilful infringement with severe patent rights of utility models and industrial designs.
circumstances, and increase the costs for infringement
of intellectual property rights by requiring infringers to Significant IPR Laws and Regulations in
pay the reasonable expenses incurred by right’s holders 2016
for impeding infringing acts. The revised drafts of the
Patent Law, the Copyright Law, the Law of Promoting Introduction of Revision of the Anti-
the Transformation of Scientific and Technological Unfair Competition Law
Achievements, and the Regulations on Patent
Commissioning, etc. published in 2015 and the revised On 25th February 2016, the Office of Legislative Affairs
draft the of the Anti-Unfair Competition Law published of the State Council published the Draft of the Anti-
in 2016 in China helped improve the legal amount of Unfair Competition Law of the People’s Republic of China
compensation for infringing acts of intellectual property (hereinafter“Draft”). The Draft has 35 articles in total and
rights in the law, showing that China attaches great the revised contents involve 30 of the 33 articles of the
importance to the protection of intellectual property current law, deleting 7 articles and adding 9.
rights. In addition, the Opinions of the Central Communist
Party of the Party of China and the State Council on 1. Expand the Regulatory Scope Generally and
Protecting Intellectual Property Rights According to through Specific Clauses
the Law by Improving the Intellectual Property Right
Protection System introduced in November 2016 further (1) Clauses 2 and 3 of Article 2 of the current law reads
shows that China will establish a working mechanism that,
to collect information on the origins of fake products,
incorporate infringing upon intellectual property rights “‘unfair competition’ in this Law means the operators’
into the credit records of enterprises and individuals, activities of damaging the legal rights and interests of
further promote the disclosure of the information on cases the other operators and disturbing the order of social
involving administrative punishment for infringements economy in violation of the provisions of this Law.
of intellectual property rights, and protect the rights and
interests of the right holder. On 18th November 2016, the ‘Operator’ in this Law means the legal person, the
Intellectual Property Court in Beijing finally adjudicated a other economic organisations and individuals who
case where damages and reasonable expenses exceeded deal with commercial businesses or profitable services
10,000,000 yuan involving the unlawful use of a registered (commodities in this Law hereinafter include services)”.
trademark. This case remains highest compensation
ordered since the Court’s establishment. In the Draft, the above clauses were amended to:
“‘Unfair competition’ in this Law means the operators’
As to the problem of the slow response in cases activities of damaging the legal rights and interests of the
involving infringements of intellectual property rights other operators or consumers and disturbing the order of
in 2016, the SIPO released the Notice on Carrying out social economy in violation of the provisions of this Law.
Quick and Collaborative Protection Work of Intellectual ‘Operator’ in this Law means the natural persons, legal
Property Rights. The Notice indicates that the SIPO will person, and the other economic organisations who deal
quickly carry out review, and a determination of rights with or participate in commercial businesses or profitable
and the protection of those rights in the industry. The services (commodities in this Law hereinafter include
Intellectual Property Rights Protection Centre will open services)”.
the intellectual property rights complaint hotline 12330
and log information to assist the platform. In addition, the This clause incorporates infringement upon the
Intellectual Property Rights Protection Centre will gather legal rights and interests of consumers by operators
online patent protection cooperation mechanisms and into the provision of Anti-Unfair Competition Law. The
actively promote online consulting work. The SIPO definition of “Operator” was revised to make it basically
will comprehensively conduct internal quick review consistent with the relevant provisions in Antitrust Law,
thus expanding the regulating scope of Anti-Unfair
116 Competition Law.
infringement. It is currently exploring means to establish of invention applications, utility models and industrial
a punitive compensation system for the infringement designs, invalid requests for patent re-examination, and
of intellectual property rights, will impose punitive establish channels that can issue appraisal reports on
compensation towards wilful infringement with severe patent rights of utility models and industrial designs.
circumstances, and increase the costs for infringement
of intellectual property rights by requiring infringers to Significant IPR Laws and Regulations in
pay the reasonable expenses incurred by right’s holders 2016
for impeding infringing acts. The revised drafts of the
Patent Law, the Copyright Law, the Law of Promoting Introduction of Revision of the Anti-
the Transformation of Scientific and Technological Unfair Competition Law
Achievements, and the Regulations on Patent
Commissioning, etc. published in 2015 and the revised On 25th February 2016, the Office of Legislative Affairs
draft the of the Anti-Unfair Competition Law published of the State Council published the Draft of the Anti-
in 2016 in China helped improve the legal amount of Unfair Competition Law of the People’s Republic of China
compensation for infringing acts of intellectual property (hereinafter“Draft”). The Draft has 35 articles in total and
rights in the law, showing that China attaches great the revised contents involve 30 of the 33 articles of the
importance to the protection of intellectual property current law, deleting 7 articles and adding 9.
rights. In addition, the Opinions of the Central Communist
Party of the Party of China and the State Council on 1. Expand the Regulatory Scope Generally and
Protecting Intellectual Property Rights According to through Specific Clauses
the Law by Improving the Intellectual Property Right
Protection System introduced in November 2016 further (1) Clauses 2 and 3 of Article 2 of the current law reads
shows that China will establish a working mechanism that,
to collect information on the origins of fake products,
incorporate infringing upon intellectual property rights “‘unfair competition’ in this Law means the operators’
into the credit records of enterprises and individuals, activities of damaging the legal rights and interests of
further promote the disclosure of the information on cases the other operators and disturbing the order of social
involving administrative punishment for infringements economy in violation of the provisions of this Law.
of intellectual property rights, and protect the rights and
interests of the right holder. On 18th November 2016, the ‘Operator’ in this Law means the legal person, the
Intellectual Property Court in Beijing finally adjudicated a other economic organisations and individuals who
case where damages and reasonable expenses exceeded deal with commercial businesses or profitable services
10,000,000 yuan involving the unlawful use of a registered (commodities in this Law hereinafter include services)”.
trademark. This case remains highest compensation
ordered since the Court’s establishment. In the Draft, the above clauses were amended to:
“‘Unfair competition’ in this Law means the operators’
As to the problem of the slow response in cases activities of damaging the legal rights and interests of the
involving infringements of intellectual property rights other operators or consumers and disturbing the order of
in 2016, the SIPO released the Notice on Carrying out social economy in violation of the provisions of this Law.
Quick and Collaborative Protection Work of Intellectual ‘Operator’ in this Law means the natural persons, legal
Property Rights. The Notice indicates that the SIPO will person, and the other economic organisations who deal
quickly carry out review, and a determination of rights with or participate in commercial businesses or profitable
and the protection of those rights in the industry. The services (commodities in this Law hereinafter include
Intellectual Property Rights Protection Centre will open services)”.
the intellectual property rights complaint hotline 12330
and log information to assist the platform. In addition, the This clause incorporates infringement upon the
Intellectual Property Rights Protection Centre will gather legal rights and interests of consumers by operators
online patent protection cooperation mechanisms and into the provision of Anti-Unfair Competition Law. The
actively promote online consulting work. The SIPO definition of “Operator” was revised to make it basically
will comprehensively conduct internal quick review consistent with the relevant provisions in Antitrust Law,
thus expanding the regulating scope of Anti-Unfair
116 Competition Law.
