Page 92 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China

in China have been handling cases through Law and the Trademark Law. They revised the
comprehensive law enforcement. They have Trademark Law and the Anti-Unfair Competition
investigated and issued sanctions in a total of 6,529 Law, and further added nuances to the Trademark
cases regarding patent infringement and counterfeiting, Law by drafting the Several Regulations on Actions
and 11,500 cases regarding illegal trademarks. of Applications for Trademark Registration, which
deals with trademark applications. The National
In the first half of 2019, the amount of new Intellectual Property Administration has issued
pledge financing for patents and trademarks in the Measures for Management of the List of Subjects
China added up to 58.35 billion yuan, increased Joint Punishment Objects for Serious Breach of
by 2.5% year on year. 3,086 pledged projects were Trust in the Field of Patents (Trial), supporting the
involved and increased by 21.6% year on year. Memorandum of Understanding on Taking Joint
Specifically, the patent pledge financing amounted Disciplinary Actions against Seriously Dishonest
to 40.4 billion yuan, with 2,709 pledge projects, Subjects in the Area of Intellectual Property
involving 13,000 patents. (Patents), so as to regulate the action of serious
dishonest subjects on patents. At the same time,
Recent Developments of Intellectual the government has focused on severer penalties
Property in China on infringement, significantly increasing the cost
for breach of law, and facilitating the amendment
Further improvement of legal and of copyright laws and regulations on protection of
policy system new varieties of plants.

In 2018, the executive meeting of the State Improvement of quality and efficiency
Council adopted a draft amendment of the Patent of review
Law. The Standing Committee of the National
People’s Congress finished the first review of the In the first half of 2019, the average period
draft, which promoted the establishment of a for authorization of patents with high value by
punitive compensation system on infringement, the National Intellectual Property Administration
and substantially increased the cost of breach of China was shortened to 20.9 months, and
of law on infringement. The revision of the the average period for review of trademark
Regulations on the Protection of Olympic Symbols registrations was cut down to 5 months.
has been completed, and the Work Plan for
“Internet Plus” Protection of Intellectual Property Enhancement of administrative and
Rights has been issued. Thirty-eight departments judicial protection
jointly issued the Memorandum of Understanding
on Taking Joint Disciplinary Action against Seriously In the first half of 2019, local people’s courts in
Dishonest Subjects in the Area of Intellectual Property China concluded over 150,000 civil first hearing
(Patents) to deal with serious IP infringers including cases regarding intellectual property, an increase
publishing a national list of flagrant IP offenders; of about 80% year on year. Chinese procuratorial
limiting such persons access to government organs have approved more than 1,900 cases
support and state contracts; restricting individuals of arrest of more than 3,400 people involved in
on the said list from holding positions on the intellectual property infringement. From January
board of state owned companies; restricting to May, Chinese public security organs have solved
individuals on the said list from buying property; more than 4,200 infringement and counterfeiting
prohibiting companies on the said list from issuing cases, where more than 9,900 suspects have been
corporate bonds, etc. Banks will be instructed to arrested, with more than 4.8 billion yuan involved.
be cautious in considering extending credit lines
for any company on the said list. Reform of intellectual property
institutions
In 2019, the government continued to refine
relevant laws and regulations, including the Patent The Supreme People’s Court, the Supreme
People’s Procuratorate, the Ministry of Public

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