Administrative enforcement

New SAIC Draft of IP Abuse Rules to Be Released for Public Comment

According to press reports, SAIC is set to release on Wednesday June 11 a new draft of its SAIC Rules on Ceasing Abuse of Intellectual Property That Eliminate or Restrict Competition  (Draft for Public Comment)  工商行政管理机关禁止滥用知识产权排除、限制竞争行为的规定(征求意见稿).

Key components of the draft:

Refusing to license IP,  tying of intellectual property and unreasonable restrictions on IP may be deemed anticompetitive.

Certain conduct, such as are involved in patent pools, standards setting and standards implementation, collective management of copyright, and abusive mailing of IP infringement warning letters, can constitute monopolistic agreements, and/or abuse of dominance, but in most cases will be the latter.

Fines and bases for enforcement are also set forth in the draft.

This is another version of the draft of 2012 and was released for public comment on two separate occasions since 2013. The American Bar Association, as well as foreign governments and the Chinese public had all commented on prior drafts.

I hope to post more on this as further information develops.

Source: Sina.com (http://finance.sina.com.cn/china/20140610/191719370076.shtml), and other sources.

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