SIPS Commentary on New TM Law Implementing Regulations

Simone IP Services (SIPS) has graciously made available their Memo on the PRC Trademark Law Implementing Regulations . The Implementing Regulations were adopted by the State Council on April 29, 2014 (国令第651号).

Among other notable provisions, the memorandum notes that the Regulations codify existing case law on contributory liability for landlords whose tenants sell counterfeit goods (Art. 75). ISP’s are also included on the list of targets for contributory liability. More specific guidelines are provided for calculating fines based on “illegal business amounts” for sales of counterfeit goods (Art. 78). These guidelines, along with the increased level of fines, may help to provide greater deterrence. However, the method of calculation for fines still remains different from the method of calculating relevant trademark criminal thresholds.

The Regulations also make adjustment to a number of filing guidelines and procedures. Although deadlines have generally been shortened, the revised Regulations maintain the three month period for filing supplemental submissions. An earlier draft had shortened this period from 90 days to 30 days, which would have been particularly burdensome for foreign rights holders. However, other shortened deadlines are maintained, including a 15 day time period to respond to requests from the CTMO for modifications or clarifications of applications (the previous time frame had been 30 days).

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