Page 136 - 2019 White Paper on the Business Environment in China
P. 136
9 White Paper on the Business Environment in China
registering of trademarks must be restrained. This case Zhongzheng Company undertook the operation of Bo III
provides a good explanation and example for a judgment You 9678, Bo II You 815, Bo III You 273 and other varieties
with aspects for the improvement of protection for well- in accordance with the authorization by Zhongsheng
known trademarks, regulations on malicious previously Company and the 2007 Agreement. On November 2,
registered of trademarks, and guidance for the public to 2011, Zhongsheng Company respectively delivered a
respect intellectual property rights. letter to Zhongzheng Company and Bobai Institute,
where it decided to terminate the authorization of the
Infringement Dispute on “Bo III You” Plant Variety right of production and operation of Bo III You 9678,
Bo III You 273 and Bo II You 815 (withdrawn from the
Sichuan Zhongzheng Science and Technology Co., market) for Zhongzheng Company, since November
Ltd. (hereinafter “Zhongsheng Company”) vs. Agricultural 2, 2011, and such right was to be exclusively held by
Science Research Institute of Bobai County, Guangxi Zhongsheng Company. Zhongsheng Company was
Zhuang Autonomous Region (hereinafter, “Bobai entitled to develop Bo III You 273, but Bobai Institute
Institute”), Wang Tengjin, Liu Zhenzhuo and Sichuan shall no longer provide Zhongzheng Company with the
Zhongsheng Technology Seed Co., Ltd. regarding sterile lines and the restorer lines of Bo III You 9678, Bo III
disputes over infringement on the right of new varieties You 273, and Bo II You 815. Bobai Institute, Wang Tengjin,
of plants [(2017) Guangxi Civil Final Hearing No. 95 Civil Liu Zhenzhuo and Zhongsheng Company claimed that
Judgment issued by Higher People’s Court of Guangxi Zhongzheng Company committed infringement as it
Zhuang Autonomous Region]. had still authorized others to produce the seeds of Bo
III You 9678 and Bo III You 273 since November 2, 2011.
Case Summary: Bo III You 273 was granted the right Therefore, they filed a lawsuit. The Court of the First
to a new variety of plants which were jointly owned by Hearing held that the actions by Zhongzheng Company
Bobai Institute, Wang Tengjin, and Liu Zhenzhuo. Bo infringed on the right of the new varieties involved in
III A, the parent of Bo III You 9678 and Bo III You 273, this case; thus, Zhongzheng Company was ordered to
were also granted the right of new variety of plants cease the infringement, eliminate negative effects, and
owned by Bobai Institute. On November 2, 2003, Bobai compensate the plaintiffs for their economic losses in
Institute and Zhongsheng Company entered into the the amount of 1.8 million yuan. The Court of the Second
Agreement for Transfer of Rights to Use the Variety Hearing, however, held that Bo IIIA and Bo III You 273,
(namely, the “2003 Agreement”), where Bobai Institute were announced to be terminated on November 1, 2013
transferred the right to use “Bo II You 815” and “Bo III due to failure in payment of annual fee as required,
You 273” to Zhongsheng Company for exclusive use and their right was recovered on December 4, 2014.
and development. On November 16, 2007, Zhongsheng On November 1, 2015, they were again terminated for
Company and Bobai Institute entered into an Agreement the same reason. The judgment made by the Court of
(namely, the “2007 Agreement”), where Bobai Institute the First Hearing that the right of Bo IIIA and Bo III You
transferred the right to use Bo III You 9678 and Bo II You 273 was still effective, was contrary to the fact of this
815 to Zhongsheng Company for exclusive use and case, and thus the relevant grounds of appeal made by
development (Bo II You 815 may only be applied in the Zhongzheng Company shall be sustained. The amount
Guangdong region), Zhongsheng Company continued of compensation shall be determined by the following
to have the right to use and develop Bo III You 273, and factors: the crop yield and the sales price agreed to
Bobai Institute shall not transfer or grant variety rights of by the parties, and the production area approved
Bo III You 9678 and Bo II You 815 (only be applicable to by Zhongzheng Company; the inevitable losses of
the Guangdong region) to any third parties; otherwise Zhongzheng Company resulting from unexpected
it shall compensate Zhongsheng Company for termination of authorization by Zhongsheng Company;
relevant losses. This Agreement became effective upon the duration of the infringement; the amount of license
execution, but was terminated in 2003. On January 7, fee for the new varieties involved in this case, as well as
2008, Bobai Institute authorized Zhongsheng Company the type, time, and scope as well as other details of such
to produce and operate Bo III You 9678 and Bo III You license. As such, the Court of the Second Hearing held
273 from January 7, 2008 to December 31, 2012. During that Zhongzheng Company compensate Bobai Institute,
the time of authorization, Bo III A shall not be used for Wang Tengjin, Liu Zhenzhuo and Zhongsheng Company
any other commercial purposes, except for the purpose for economic losses in the amount of 400,000 yuan.
of matching it with Bo III You 9678 and Bo III You 273.
136
registering of trademarks must be restrained. This case Zhongzheng Company undertook the operation of Bo III
provides a good explanation and example for a judgment You 9678, Bo II You 815, Bo III You 273 and other varieties
with aspects for the improvement of protection for well- in accordance with the authorization by Zhongsheng
known trademarks, regulations on malicious previously Company and the 2007 Agreement. On November 2,
registered of trademarks, and guidance for the public to 2011, Zhongsheng Company respectively delivered a
respect intellectual property rights. letter to Zhongzheng Company and Bobai Institute,
where it decided to terminate the authorization of the
Infringement Dispute on “Bo III You” Plant Variety right of production and operation of Bo III You 9678,
Bo III You 273 and Bo II You 815 (withdrawn from the
Sichuan Zhongzheng Science and Technology Co., market) for Zhongzheng Company, since November
Ltd. (hereinafter “Zhongsheng Company”) vs. Agricultural 2, 2011, and such right was to be exclusively held by
Science Research Institute of Bobai County, Guangxi Zhongsheng Company. Zhongsheng Company was
Zhuang Autonomous Region (hereinafter, “Bobai entitled to develop Bo III You 273, but Bobai Institute
Institute”), Wang Tengjin, Liu Zhenzhuo and Sichuan shall no longer provide Zhongzheng Company with the
Zhongsheng Technology Seed Co., Ltd. regarding sterile lines and the restorer lines of Bo III You 9678, Bo III
disputes over infringement on the right of new varieties You 273, and Bo II You 815. Bobai Institute, Wang Tengjin,
of plants [(2017) Guangxi Civil Final Hearing No. 95 Civil Liu Zhenzhuo and Zhongsheng Company claimed that
Judgment issued by Higher People’s Court of Guangxi Zhongzheng Company committed infringement as it
Zhuang Autonomous Region]. had still authorized others to produce the seeds of Bo
III You 9678 and Bo III You 273 since November 2, 2011.
Case Summary: Bo III You 273 was granted the right Therefore, they filed a lawsuit. The Court of the First
to a new variety of plants which were jointly owned by Hearing held that the actions by Zhongzheng Company
Bobai Institute, Wang Tengjin, and Liu Zhenzhuo. Bo infringed on the right of the new varieties involved in
III A, the parent of Bo III You 9678 and Bo III You 273, this case; thus, Zhongzheng Company was ordered to
were also granted the right of new variety of plants cease the infringement, eliminate negative effects, and
owned by Bobai Institute. On November 2, 2003, Bobai compensate the plaintiffs for their economic losses in
Institute and Zhongsheng Company entered into the the amount of 1.8 million yuan. The Court of the Second
Agreement for Transfer of Rights to Use the Variety Hearing, however, held that Bo IIIA and Bo III You 273,
(namely, the “2003 Agreement”), where Bobai Institute were announced to be terminated on November 1, 2013
transferred the right to use “Bo II You 815” and “Bo III due to failure in payment of annual fee as required,
You 273” to Zhongsheng Company for exclusive use and their right was recovered on December 4, 2014.
and development. On November 16, 2007, Zhongsheng On November 1, 2015, they were again terminated for
Company and Bobai Institute entered into an Agreement the same reason. The judgment made by the Court of
(namely, the “2007 Agreement”), where Bobai Institute the First Hearing that the right of Bo IIIA and Bo III You
transferred the right to use Bo III You 9678 and Bo II You 273 was still effective, was contrary to the fact of this
815 to Zhongsheng Company for exclusive use and case, and thus the relevant grounds of appeal made by
development (Bo II You 815 may only be applied in the Zhongzheng Company shall be sustained. The amount
Guangdong region), Zhongsheng Company continued of compensation shall be determined by the following
to have the right to use and develop Bo III You 273, and factors: the crop yield and the sales price agreed to
Bobai Institute shall not transfer or grant variety rights of by the parties, and the production area approved
Bo III You 9678 and Bo II You 815 (only be applicable to by Zhongzheng Company; the inevitable losses of
the Guangdong region) to any third parties; otherwise Zhongzheng Company resulting from unexpected
it shall compensate Zhongsheng Company for termination of authorization by Zhongsheng Company;
relevant losses. This Agreement became effective upon the duration of the infringement; the amount of license
execution, but was terminated in 2003. On January 7, fee for the new varieties involved in this case, as well as
2008, Bobai Institute authorized Zhongsheng Company the type, time, and scope as well as other details of such
to produce and operate Bo III You 9678 and Bo III You license. As such, the Court of the Second Hearing held
273 from January 7, 2008 to December 31, 2012. During that Zhongzheng Company compensate Bobai Institute,
the time of authorization, Bo III A shall not be used for Wang Tengjin, Liu Zhenzhuo and Zhongsheng Company
any other commercial purposes, except for the purpose for economic losses in the amount of 400,000 yuan.
of matching it with Bo III You 9678 and Bo III You 273.
136
