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Newsletter Is Intended to Provide Our Clients and Business Partners Information Only N e w s l e t t e r INTELLECTUAL PROPERTY LAW OFFICE March, 2018 Table of Contents AFD China Accredited as the AAAAA-level (Top Tier) Patent Firm in Beijing ......................................................................... 1 Amended Patent Law Draft to Be Submitted for NPC Deliberation in 2018 ............................................................................. 1 Punitive Damages to Be Awarded for Stronger IPR Protection ................................................................................................ 1 China to Restructure the State Intellectual Property Office ....................................................................................................... 2 Substantial Improvement Achieved in China’s IPR Environment ............................................................................................. 2 Chinese Companies File More Overseas Patent Applications.................................................................................................. 3 Patent Certificates No Longer Containing Patent Pamphlets ................................................................................................... 3 Cambodia to Recognize Chinese Patents in Landmark Agreement ......................................................................................... 3 SAIC: Well-known Trademarks Cannot Be Used for Company Promotion .............................................................................. 4 SIPO Ruling Could Reshape Tech Standards Policies ............................................................................................................. 5 IP Protection for Mobile Applications (APPs) ............................................................................................................................. 6 AFD China Accredited as the AAAAA-level Congress (NPC) for deliberation while 11 lower-hierarchy Regulations including the (Top Tier) Patent Firm in Beijing Patent Representation Regulation would On the capital intellectual property service commence their formulation and amendment. meeting held by Beijing Intellectual Property The current amendments specify the role of Office on March 14, 2018, AFD China administrative management over infringement Intellectual Property Law Office has been particularly willful infringements with actions accredited with the title of AAAAA-level Patent such as confiscating the infringing products Agency and awarded the certificate and and equipment, imposing fines, mediating the medal. amount of compensation (A60-61). The The AAAAA-level title refers to top tier calculation of fines and compensations for performer according to the local standard infringement has been further specified and DB22/T 2239-2015. Firms cannot receive raised (A60, 66). The administrative such accreditation at the first-time evaluation. department is also allowed to make a ruling Our level was improved after further on disputes over matter-of-course license or standardization and refining of our work flow permission of an implementer of a national in the past months from being accredited as standard to use patented technology (A84, AAAA in 2016. 85). The amendments also introduce new provisions regarding good faith principle for Through objective, fair and transparent applying for patent and exercising patent evaluation, only 14 IP firms are selected as rights (A14), joint and several liability of AAAAA-level patent agency, 25 are named indirect infringers or internet service provider lower-level patent agencies. for e-commerce (A62-63), willful infringement (A60, 67, 68), credit record on the protection http://afdip.com/index.php?ac=article&at=read&did=3 of patent rights to be setup and incorporated 189 into the national credit database (A74), and the matter-of-course license of right (A82). IP News from China's Two Sessions http://english.sipo.gov.cn/news/officialinformation/1120 Amended Patent Law Draft to Be Submitted 816.htm for NPC Deliberation in 2018 Punitive Damages to Be Awarded for Stronger The State Council Legislation Plan for 2018 IPR Protection was released recently. The Plan specified that four drafts of laws including the amended The introduction of a punitive damages Patent Law would be submitted to the system for intellectual property rights violation Standing Committee of the National People's has won huge acclaim among industry Disclaimer: AFD China Newsletter is intended to provide our clients and business partners information only. The information provided on the newsletter should not be considered as professional advice, and should not form the basis of any business decisions. 1 N e w s l e t t e r INTELLECTUAL PROPERTY LAW OFFICE March, 2018 insiders after Premier Li Keqiang proposed the registration and administrative the move in his Government Work Report for adjudication of trademarks, patents and the year. Such punitive damages would geographical indications. involve compensation that exceeds the plaintiff's actual loss, creating a greater At the same time, Shen Changyu, director of deterrence against such violations. the State Intellectual Property Office, made the remarks at the annual session of the The current compensatory damages system, national legislature that the Office will treat aims only to cover the losses of the rights domestic enterprises and international ones, owners. "We will see that the strong protection big companies and small firms, State-owned of property rights and the fluid flow of companies and private sectors, equally, to production enable a significant increase in provide protection over their intellectual market dynamism and public creativity," properties, to help create a better business Premier Li said in his report. environment. Shen also said that the Office will speed up review and protection process, Zhou Qiang, head of the Supreme People's more IPR centers will be established this year Court, said in his work report that the judicial to allow right owners to safeguard their rights authorities will use the punitive damages more efficiently with lower cost. system in future trials to resolve the problem that rights violation incurs low costs while http://english.sipo.gov.cn/news/officialinformation/1120 defending IP rights brings about high costs. 654.htm Courts nationwide have heard about 683,000 IP-related cases over the past five years. And Substantial Improvement Achieved in observer said that the compensation in China’s IPR Environment lawsuits involving IP infringement has been rising gradually in the past two years, after the Recently, U.S. Chamber Global Innovation Beijing Intellectual Property Court - the Policy Center (GIPC) released the 2018 country's first dedicated IP court - decided to International IP Index, which indicated that sharply increase compensation in 2016. China ranked 25th among the 50 economies with the score of 19.08, up two positions as http://english.sipo.gov.cn/news/officialinformation/1120 compared to the ranking in 2017. 708.htm The report believed that China is achieving China to Restructure the State Intellectual substantial progress in building the IPR Property Office environment oriented towards the 21stcentury. China plans to restructure the State In particular, first, the reform in patents and Intellectual Property Office to strengthen copyrights enhanced its protection and law protection of intellectual property rights, enforcement results; second, the according to the State institutional reform plan governments and law enforcement organs of of the State Council. various levels attached more importance to IPR; third, the awareness of research The office will incorporate part of functions of institutions and individuals in IPR protection the State Administration for Industry and and their capability in utilizing them had been Commerce (SAIC), and the General enhanced. Administration of Quality Supervision, Inspection and Quarantine, to solve problems The report also pointed out that China still has including separated administration and weakness in barriers in IPR market access overlapping enforcement. The new agency and commercialization. will be responsible for facilitating the http://english.ipraction.gov.cn/article/News/201803/201 construction of an IPR protection system, and 80300176277.shtml Disclaimer: AFD China Newsletter is intended to provide our clients and business partners information only. The information provided on the newsletter should not be considered as professional advice, and should not form the basis of any business decisions. 2 N e w s l e t t e r INTELLECTUAL PROPERTY LAW OFFICE March, 2018 Chinese Companies File More Overseas (http://epub.sipo.gov.cn) of the State Intellectual Property Office. Patent Applications The State Intellectual Property Office will Chinese companies obtained 11,241 more adjust the composition of patent certificate U.S. patents in 2017, up 28%, making China, and the duplicates thereof in the following for the very first time, a top five country in the three steps: department of owning U.S. patents. The number of U.S. patents obtained by Chinese For the patents granted during the period companies increased by ten-fold in the last from March 2, 2018 (including the day) to April decade, according to statistics issued by a 24, 2018 (excluding the day), the patent U.S. research institute. Among the 320,000 certificates will comprise the first page of the patents granted by the United States Patent certificate and the title page of the patent and Trademark Office in 2017, 3.5% of which pamphlets.
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