T
he IP protection in China is crucial issue for forien companies that decide to transfare their technology to China .
Since the mid-1980s, Chinese IP laws have been modeled on the IP system of German civil law. When China joined the World Trade Organization, it amended its IP laws to adhere with the requirements of the WTO. Over the last 40 years, China has developed and continues to develop a modern IP system with Chinese characteristics
Reforms:
1.In recent years, China has made corresponding modifications and amendments to its Patent Law, Trademark Law, Anti-Unfair Competition Law and other related laws and regulations to deal with other IPR infringement issues. 2.To counter bad-faith trademarks, China has passed a new law, the Trademark Law of the Republic of China (2019 amendments) 3.An application for the registration of a malicious trademark not for the purpose of use shall be rejected.."In simple terms, any bad-faith trademark applications without intent to use shall be dismissed. So why is this a ground breaking amendments?
1.China’s registered trademark protection adopts the principle of ‘first-to-file’ 2.This creates a loophole, that bad-faith applicants are taking advantage of it. 3.Bad-faith applicants in China target both domestic and international brands, seeking to extract payment to transfer mark. 4. The amendment address such issue Counterfeit:
One of the big problems that hold off foreign businesses and brand owners from reaching China. In recent years, the Ministry of Public Safety has added considerable priority to the investigation and enforcement of offences concerning intellectual property rights and the manufacturing and selling of counterfeit and defective goods. Battle against counterfeit during Covid-19:
With the outbreak of COVID-19, the Ministry of Public Security has carry out special operation and to maintain a close watch on medical equipment. As of April 15, 1153 cases of manufacture and selling of fake medical masks, medicinal alcohol and other safety materials were examined. More than 48 million false masks and shipments of medicinal alcohol, disinfectant and other products have been confiscated, with a case worth of almost 300 million yuan.
The Third Myth:
Inadequate law enforcement by the Chinese government against IPR infringements? Business after Covid
The Progress:
Over the years, China has continued to strengthen the protection of intellectual property rights, but there is still a gap between the protection effect and the expectation of the obligees, "low compensation" is one of the prominent problems.
In December 2018, the draft amendment to the patent law passed the deliberation of the executive meeting of the State Council
The Results :
For intentional infringement of patent rights, if the circumstances are serious, the amount of compensation can be determined to be more than one time but less than five times, and the legal compensation can be increased from more than 10000 yuan but less than 1 million yuan to more than 100000 yuan but less than 5 million yuan Under the new trademark law maliciously infringing the exclusive right to use a trademark from more than one time and less than three times to more than one time and less than five times, and increased the upper limit of the legal compensation from 3 million yuan to 5 million yuan
Summary:
Although there might be some flaws and problem in China's intellectual Property System. The debunking of these three misconceptions reveals that China's IP system can be much less dangerous than foreign companies have always thought.
WTOIP:
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