Intellectual Property in China:Part 2

Here are some little known China IP Facts:

• During the period 2002-2006, courts in China accepted a total of 54, 321 cases of IP suits. The courts heard and passed sentences on 52, 437 cases with an annual increase of 17.1% and 19.3% respectively for the same period.
• In 2006, courts across the country accepted 1,396 IP administrative cases of first instance. Of these, 36.7% were patent cases with an increase of 36.72% compared to the previous year and 235 were trademark cases, an increase of 12.44% over the previous year.
• From 2005 to 2006, 505 and 769 infringement cases were concluded. The increasing number of IP cases in an indication of growth in China's IP protection system.

STATUS OF IP PROTECTION IN CHINA

China's IP Law includes provisions for a 'dual-track protection system"- Judicial and Administrative. When an IP is infringed the owner may either apply for mediation through a relevant administrative agency or directly initiate a suit in the People's Court.

In case one of the two parties, either owner of alleged infringer is not satisfied with the decision of the agency, he/she may take the court action. Judicial enforcement is the final resort for the protection of IP. Related Civil cases, whether administrative or criminal, are handled by the People's Court according to China's Civil Procedure Law, Administrative Procedure Law, and Criminal Law. Any person intentionally infringing the IP rights of others will be convicted and sentenced and may be ordered to pay fines and make compensation.

Such is the judicial protection against IP infringement in China. Furthermore, according to the provisions of IP laws in China, the alleged infringer could be prosecuted for criminal liability. The Criminal Law which took effect October 1, 1997 has set forth provisions against IP infringement, including:

1. Counterfeiting registered trademarks

2. Selling goods with counterfeit trademarks

3. Unauthorized manufacturing of identifications of registered trademarks or selling of the same

4. Unauthorized passing off of patents

5. Copyright infringement

6. Selling unauthorized reproductions for profit

7. Trade secret infringement and other related offenses