January 30-February 12, 2018 Updates

Here are some updates on IP developments in China from prior two weeks.

  1. China’s tough cyber rules raise risk of infiltration US business group says In a report released on Monday, the US-China Business Council urged Beijing to loosen limits on data flow and storage that raise the risk of security breaches for foreign companies. The council said China should follow best international practice by opening access to cloud computing services, levelling the playing field in technology procurement and allowing foreign firms to send copies of data abroad for analysis and processing. The Council’s report also recommended that foreign partners in joint ventures be allowed to own and control software and other technology licensed to the joint ventures.
  2. MIIT Chief says China does not force foreign enterprises to transfer technology, says MIIT chief China did not and cannot force foreign enterprises to transfer technology to the country, and any cases of technology transfers are enterprises’ own choices driven by the market, Miao Wei, head of the Ministry of Industry and Information Technology (MIIT), said at a press conference on Tuesday, adding that China has been taking steps to better protect intellectual property rights.
  3. .The Supreme Court of China Issued Seven Typical Cases on Property Rights Protection最高法发布7起保护产权典型案例 on “property rights protection” last Tuesday. Among those seven cases, two focused on intellectual property rights, with one on trademark infringement and unfair competition, and the other on criminal trade secret protection in an employment context. Details of those typical cases are available here.
  4. FTC, Justice Department Officials Meet in China On Antitrust Enforcement The head of the Federal Trade Commission (FTC) and a representative from the Justice Department met with Chinese officials from NDRC, MOFCOM and SAIC in Beijing this week to discuss efforts to ensure effective antitrust enforcement and increased interagency cooperation. This is the U.S. delegation’s fourth meeting in China since the between the countries signed an antitrust memorandum of understanding on July 27, 2011.
  5. Baidu Accused of Not Playing Fair by Popular News Aggregator Beijing ByteDance Technology, which runs the Jinri Toutiao app that had 232 million monthly active users as of December last year, said on Tuesday that it filed the lawsuit against Baidu at the Haidian District People’s Court in the Chinese capital. In a post on its official WeChat account, ByteDance said Baidu used its “monopoly advantage” to mislead users and damage Toutiao’s reputation, the details of which it has filed in court. Ahead of the ByteDance filing on Tuesday, Baidu issued a statement that described ByteDance’s lawsuit, like its public relations efforts, as reflecting “anxiety over its own challenges in development”.
  6. China sees robust growth in technology transactions More than 367,000 technical contracts were signed in China in 2017, up 14.7 percent from the previous year, according to the Ministry of Science and Technology. The transaction value of the contracts totaled 1.34 trillion yuan (213 billion U.S. dollars), with a year-on-year increase of 17.7 percent. Electronic information, urban construction and social development, and transportation are the top three fields that gained the most value.  Among four types of technical contracts, technical service contracts (技术服务合同) and technological development contracts (技术开发合同) had strong growth. However, technology licensing contracts (技术转让合同) and technical consulting contracts (技术咨询合同) in fact had a decline.  Over 40 percent of transactions were contracts involving intellectual property rights. Biotechnology and pharmaceutical contracts had a strong growth of 62.94%, with a total overall transaction value of 1.19 billion yuan. The transaction volume of invention patents grew by 19.2 percent in overall transaction value year on year.    IP utilization has been a focus of China’s IP efforts since the third plenum of the Communist Party in 2014. However, foreigners continue to view China as very challenging licensing environment. In the US Chamber’s recently released IP Index, it was noted that IP commercialization in China was hampered by “[s]ubstantial barriers to market access and commercialization of IP, particularly for foreign companies.” China received zero points for “Regulatory and administrative barriers to the commercialization of IP assets”  Here is a link to the discussion of Chinese licensing practices. The US Chamber’s conclusion is not unlike that of the Global Innovation Index (2016) which, as we previously reported, scored intellectual property payments according to a formula as a percentage of total trade. China came out at 72nd place, while it ranked number 1 in high tech exports.
  7. The rise of Chinese groups applying for US patents The breakdown of patents granted in the U.S. per country changed little in 2017 from previous years, with China the glaring exception, according the analysis by patent service and analytics company IFI CLAIMS.  China’s overall slice of the pie remains relatively small. Just 11,240, or 3.5%, of the 320,003 utility patents granted in the U.S. last year went to Chinese companies, compared with 31% to other Asian businesses. But it is the pace at which certain Chinese tech companies have risen in the rankings that will have rivals from the U.S. and elsewhere taking note. For instance, BOE Technology Group (京东方科技集团股份有限公司), whose core business centers on display sensor technology and the Internet of Things, was granted 1,414 patents during the year, compared with 19 in 2013.  
  8. Guangdong’s accumulated invention patents top China Guangdong Province topped the country in the number of valid invention patents granted over the past eight years, according to local authorities. By the end of 2017, the accumulated number of valid invention patents in the province reached 208,500, said He Jufeng, deputy director of the Guangdong Intellectual Property Office. Note that although Guangdong has the most accumulated patent grants, in recent years Guangdong has met some competition.  Jiangsu Province, for example, was the No.1 for invention patent application in 2015, while Guangdong was No. 2, based on data from SIPO for 2015. Meanwhile, in 2014, Jiangsu was the No.1 for invention patent application and Guangdong was No.3. Guangdong has also been a source of many of China’s PCT filings, from companies like Huawei and ZTE.   
  9. Conference proposes int’l e-commerce cooperation An e-commerce conference held in Beijing called for coordinated regional cooperation on areas including supervision and standard setting to promote sustainable development of the emerging sector. The first global regulatory framework for e-commerce was put forward during the conference. Proposed by Chinese customs, the document listed eight core principles in e-commerce management including clearance procedures and the role of online retailers.
  10. New Intellectual Property initiative extends Berkeley Law’s reach in Asia China’s push to create a dynamic economy with innovative companies is creating opportunities for new academic, commercial, and government partnerships. Eager to maximize those opportunities—and to deepen its foothold overseas—Berkeley Law has launched the Asia IP Project.  Led by Professor Mark Cohen, and powered by the school’s Berkeley Center for Law & Technology (BCLT), the initiative seeks to enhance existing collaborations and develop new ones with academic institutions and other partners in Asia. Center leaders will bring together Chinese and U.S. academics, government officials, and practicing lawyers to better understand Asia’s intellectual property law issues through research, workshops, conferences, and other eventst. The program had its first US meeting on February 9, 2018.

We hope to be providing more updates in the year ahead from the Berkeley Center for Law and Technology. As usual the information contained herein does not necessarily represent the opinion of any government agency, company, individual or the University of California.

 

By Berkeley staff.

January 16 – 29, 2018 Update

Jan 16 – 29, 2018 

Here are some updates on IP developments in China from past two weeks.

  1. China criticizes US moves on intellectual property 商务部:缺少确凿证据无可信度 China on Thursday criticized recent moves by the U.S. targeting the sale of fake goods and Chinese telecoms equipment, saying Washington lacked “objectivity” in its approach to Chinese businesses. Commerce Ministry spokesman Gao Feng told reporters the U.S. Trade Representative lacked direct conclusive evidence and supporting data in listing three Chinese online commerce platforms and six physical bazaars within China as “notorious markets” engaging in commercial-scale copyright piracy and trademark counterfeiting. Meanwhile, Alibaba Group recently released a series of initiatives to strengthen its intellectual property rights protection. The event happened days after Taobao was put listed as notorious market. The ecommerce giant intends to gather as much information as they can and use the expertise of both brands and rights holder to create a much stronger database. It should effectively improve the algorithm that Alibaba uses to counteract the fakes and even gather evidence for offline investigations. Moreover, Preempting the 2017 USTR report’s publication by one day, the company has released the 2017 Alibaba Intellectual Property Protection Annual Report (in Chinese).
  2. Google announces patent agreement with Tencent amid China push Alphabet Inc’s Google has agreed to a patent licensing deal with Tencent Holdings Ltd as it looks for ways to expand in China where many of its products, such as app store, search engine and email service, are blocked by regulators. The agreement with the Chinese social media and gaming firm Tencent covers a broad range of products and paves the way for collaboration on technology in the future, Google said on Friday, without disclosing any financial terms of the deal. Additional articles are available here and here.
  3. China Publishes More Scientific Articles Than the U.S. For the first time, China has overtaken the United States in terms of the total number of science publications, according to statistics compiled by the US National Science Foundation (NSF). According to the report, China published more than 426,000 studies in 2016, or 18.6% of the total documented in Elsevier’s Scopus database. That compares with nearly 409,000 by the United States. India surpassed Japan, and the rest of the developing world continued its upward trend.
  4. SIPO Released Statistics Data on Major Work for 2017国家知识产权局公布2017年主要工作统计数据 SIPO recently released detailed breakdown of statistics on its work for 2017. Government data show that the number of annual applications for invention patents filed in the country topped 1.38 million in 2017, a 14.2 percent rise on the previous year. Beijing, Shanghai and Jiangsu are the top 3 provinces for number of patents per 10,000 people. State Grid Corporation of China, Huawei, and Sinopec are top companies with most patents granted.
  5. China’s trademark applications hit record high in 2017 China’s trademark applications exceeded 5.7 million last year, up 55.7 percent year on year, both setting record highs. At the end of 2017, China had 14.92 million qualified registered trademarks, the most of any country worldwide.
  6. “Jianwang [Swordnet] 2017” closed 2554 Pirated Websites“剑网2017”关闭侵权盗版网站2554个National Copyright Administration, State Internet Information Office, MIIT and Ministry of Public Security jointly held a conference on “Jianwang” special campaign recently. Since this special act being implemented in July 2017, 63,000 websites have been investigated and 2554 infringing websites have been closed. According to officer from National Copyright Administration, this special act had a focus on videos, news, mobile Internet applications (APP) and e-commerce platform.
  7. China Will Take the Lead in Promoting IP Protection Mechanism in Pilot Area我国将在全面创新改革试验区域推进知识产权保护改革率先突破 NDRC recently issued a notice to promote reform on IP protection mechanism in eight pilot areas, including Jing Jin Ji, Shanghai, Guangdong, Anhui, Sichuan, Wuhan, Xi’an, Shenyang. The government intends to promote integrated management of IP rights, explore new mechanism of IP protection, and establish a new mechanism to link administrative and criminal enforcement.
  8. U.S.-China IP Scholar Dialogue was Held中美知识产权学者对话举行 The Fourth U.S.-China IP Scholar Dialogue was held in Shanghai, China from January 17 to 18. Intellectual property is a key issue in the development of U.S.-China economic and trade relations. To increase cooperation and understanding, IP experts from both countries created this dialogue mechanism since 2013. This year’s dialogue emphasized on AI, biomedical innovation, technology licensing, trade secret law reform, IP judiciary protection and dispute settlement mechanism.
  9. US Commerce Secretary Ross says Beijing’s technology strategy is a “direct threat”; China demurs.  US trade authorities are investigating whether there is a case for taking action over China’s infringements of intellectual property, Commerce Secretary Wilbur Ross said. China responds that it did not expect more trade disputes.
  10. China Customs reports seizing infringing goods worth 552 mln yuan in past three years.   China has seized infringing goods worth 552 million yuan (86.06 million U.S. dollars) in the past three years driven by a special act called “Qingfeng” (“Clear Breeze”), according to the General Administration of Customs of China (GACC). The three-year crackdown on intellectual property rights infringement discovered about 120 million infringing items, according to the General Administration of Customs.  Compare prior discussion on previous reports of GACC hereand here.
  11. Beijing to set up IPR center to better serve high-tech firms.  Beijing will establish a center this year dedicated to providing services to high-tech companies on intellectual property rights (IPR), officials said. The center will offer fast-track services for patent applications to companies in information technology and high-end equipment production, two areas with the highest demand.  This is part of an existing SIPO effort to fast track areas of concern to industrial development.  Compare, however, article 27 of TRIPS Agreement – patents shall be available and patent rights enjoyable without discrimination as to the place of invention, the field of technology and whether products are imported or locally produced.
  12. SIPO released a directory of industries that need IP support.  SIPO recently released the 2018 Intellectual Property Supporting Industries Directory (知识产权重点支持产业目录(2018年本)), which identified 10 industries where IP will be key. The government asked for efficient allocation of IP resources within these industries to promote industrial restructuring and upgrading.
  13. China’s Sinovel Convicted in U.S. of Stealing Trade Secrets.  A Chinese wind turbine maker, Sinovel Wind Group Co. was found guilty of orchestrating the theft in a rare trial in Wisconsin that continues to raises doubts over China’s commitment to fighting infringement of intellectual property and corporate espionage.  The case is U.S. v. Sinovel Wind Group Co. Ltd., 13-cr-00084, U.S. District Court, Western District of Wisconsin (Madison). The conviction was against Sinovel Wind Group.  Previously a former employee of the victim had been found guilty of theft of trade secrets in a criminal case in Austria. In addition, there are in total five civil cases in China between Sinovel and AMSC, with one closed and four pending. AMSC filed one separate trade secret case in China plus two copyright cases and an arbitration.
  14.   Five New Guiding Cases (English translation available).  Of the five newly released GCs, four are administrative cases and one centers on a dispute over the infringement of rights related to a new plant variety (Case No. 92). English translation of those guiding cases are made available by the China Guiding Case Project of Stanford Law School. More information about previous guiding cases available here and here.

We hope to be providing more updates in the year ahead from UC Berkeley.  As usual, the information herein does not necessarily represent the opinion of any government agency, company, individual or the University of California.

Updated: February 13, 2018

January 1 – 15 2018 Updates

Here are some updates on IP developments in China from past two weeks.

1.2017 USCBC Annual Member Survey (English) ­­­­­American companies have seen improved sales performance in China over the last year, but full market access continues to be a challenge for many American companies, according to the US-China Business Council’s (USCBC) most recent annual member survey. Among the top 10 challenges, four focus on technology related issues, which are: (2) Licenses and approvals, (5) IPR enforcement, (6) Cybersecurity, and (9) Data flow barriers.

In addition, tech transfer requirements to gain access to the China market is an acute issue for those who face it; nearly 20 percent of companies in the survey have been asked to transfer technology during the past three years. JV requirements and government approvals provide leverage to China. The request most frequently comes from a Chinese partner, rather than a government entity. Half of the companies surveyed considered this request unacceptable and mitigated the request, but still ended up transferring some technology. Tech transfer itself is not listed among the top ten challenges for 2017, but was ranked 11th in 2014’s survey.

IPR enforcement climbed the ranks to number 5, which was the number 8 challenge in 2016. It was a top tier concern in 2014.  Trade secret, trademark, and patent are the greatest concerns for respondents for IP infringement. Fifty-two percent respondents think that China’s IP protection over the past year remains unchanged.

Related:    State Council cuts red tape for businesses (English); 国务院开年第一会:进一步优化营商环境! (Chinese).  China will work to improve the business environment with measures that further streamline administration and reduce corporate burdens, under a decision made at a State Council executive meeting chaired by Premier Li Keqiang on Wednesday. To further improve the business environment, the government will prioritize cutting red tape, taxes and fees.  Enterprises of various ownership structures will be treated the same way in qualification and approval, government procurement, major projects in science and technology and standards setting. Properties of various types will receive equal protection, and more efforts will be made to protect intellectual property rights.

2.  China Sees Double-Digit Increase in Invention Patent Applications (English).  2017年知识产权事业发展量质齐升 (Chinese).  China made 1.38 million invention (utility) patent applications in 2017, a 14.2 percent increase year on year. Of the total applications, 744,000 patents have been examined and concluded, said Shen Changyu, Commissioner of the State Intellectual Property Office. Under the Patent Cooperation Treaty, a total of 51,000 international patent applications were received in 2017, up 12.5 percent from the previous year. The number of invention patents on the Chinese mainland reached 1.35 million, meaning that for every 10,000 people there are 9.8 patents on average. It’s getting closer to the goal set by the 13th Five-Year National Intellectual Property Protection and Application Plan, which is 12 patents every 10,000 people by 2020. About 67,000 administrative patent cases were handled last year, increasing by 36.3 percent on a yearly basis.  Related:  Head of SIPO Shen Changyu delivered a work report on 2018 National Intellectual Property Office Heads meeting 申长雨在2018年全国知识产权局局长会议上的报告(摘编) (Chinese).

3.SIPO and Ministry of Education Jointly Released Notice on “Construction of Colleges and Universities Intellectual Property Information Service Center” 国家知识产权局办公室 教育部办公厅关于印发《高校知识产权信息服务中心建设实施办法》的通知 (Chinese).    Colleges and Universities in China are encouraged to establish intellectual property information service center. Those centers will collect and analyze information on intellectual property for a university, build an IP information sharing platform, and advise on IP related matters. SIPO and Ministry of Education will provide guidance and support for the construction and operation of those centers.

4.China Beefs Up Cyber Defenses with Centralized Threat Database. China said on Wednesday it will create a national data repository for information on cyber attacks and require telecom firms, internet companies and domain name providers to report threats to it.

5.ZTE Settles in Multi-Defendant Cellphone Patent Suit(English), 中兴与NPE和解;韩国法院将可用外语审理知产案件 (Chinese).  Chinese telecom company ZTE Corp. is settling in a consolidated IP suit from a licensing company that also accuses Apple, Motorola and other mobile heavyweights of infringing on data transfer patents, according to dismissal papers filed in Texas federal court on Wednesday.   Related:  ZTE: NPE Battleground Moving from US and Europe to China! (English).

6.Ford China Fails TM Lawsuit, Changes Mustang Brand Chinese Name.  Recently, Intermediate People’s Court of Chengdu City of Sichuan Province adjudicated in the first trial that Ford Motor (China) Ltd. (Ford China) should cease further infringing the trademark Yema owned by Sichuan Yema Automobile Co., Ltd.  Yema means wild horse (mustang) in China.

7.China Becomes One of the Top 5 U.S. Patent Recipients for the First Time. Chinese inventors received 11,241 U.S. patents last year, a 28 percent increase over the same period in 2016, according to a report released Tuesday by IFI Claims Patent Services. That propels the nation into the top five recipients for the first time, behind the U.S., Japan, Korea and Germany, but ahead of Taiwan.

8.Alibaba Listed as Notorious Market, Hits Back over Blacklist. The Office of the US Trade Representative has blacklisted Alibaba’s popular online shopping platform Taobao again this year over its problem with fake goods. According to USTR’s 2017 Out-of-Cycle Review of Notorious Market, Alibaba presented its  considerable efforts to address many concerns identified in the 2016 List, but important unresolved concerns remain. Alibaba was requested to take more effective means to address the full range of U.S. business concerns.  Related:  Notorious Markets, Alibaba and the JSP (Comments on 2016 list of notorious market), US blacklist of e-commerce sites ‘protectionism’. 

9. SAIC investigated 21,000 infringement and counterfeiting cases工商总局查处1万假冒案件 (Chinese). SAIC has prosecuted 21,000 trademark infringement and counterfeiting cases in the first 11 months of 2017. This number went down comparing to prior year, which was 25,000 in the first 11 months of 2016.

10. China customs pushes int’l rules on cross-border e-commerce (English), 我国将推动制定世界海关跨境电商国际规则 (Chinese). China’s General Administration of Customs (GAC) is helping to draw up a standard framework for cross-border e-commerce to regulate the sector. The GAC is pushing for the formulation of international rules on cross-border e-commerce of the World Customs Organization (WCO), according to GAC official Zhao Ruxia.

MIIT interviewed three companies including Alipay 工信部约谈支付宝等三家企业 (Chinese). MIIT interviewed Baidu, Ant Finance (Alipay) and toutiao.com regarding their reported violation of user privacy. MIIT found that all three companies had not adequately informed users on use of personal information and rules of collecting personal information and requested those companies to address those issues immediately.

12. Huawei defeats Samsung in patent battle (English), 华为vs三星,华为胜!(Chinese). Chinese tech giant Huawei won a patent infringement lawsuit against South Korea smartphone rival Samsung on Thursday, according to information released by a Chinese court. The court ruled in the Chinese company’s favor over two standard essential patents involving fourth generation phone technology. The judge ordered Samsung Electronics to immediately stop selling or manufacturing products using the technology and to pay a small court fee. The ruling did not cite specific phone models.  Related:  Samsung Liable for Infringing Huawei Patents After Maliciously Delaying Negotiations,  Shenzhen Court Enters Injunction Against Samsung for Infringement of Huawei SEPs.

13. Micron the target of a $42m patent suit as trade secrets row spills into Chinese litigation. A month after finding itself on the receiving end of a trade secret lawsuit from Micron, Taiwan’s UMC has asserted patents in China against the US chip major. The suit asks Micron subsidiaries in Xi’an and Shanghai to pay $42 million in damages for infringing patents related to DRAM DDR4 technologies, solid state drives and graphics cards. UMC is also seeking an injunction.

We hope to be providing more updates in the year ahead from the Berkeley Center for Law and Technology.  As usual the information contained herein does not necessarily represent the opinion of any government agency, company, individual or the University of California.

By Berkeley staff.

December 2017 Update

 

Here are some updates on IP developments in China from this past December 2017:

1.  Xi Jinping: China must accelerate implementation of big data strategy (English) 习近平:实施国家大数据战略加快建设数字中国 (Chinese).  Xi Jinping, during a collective study session of the Politburo on December 8th, has urged the country to accelerate implementation of its big data strategy to better serve social and economic development and improve people’s lives. Xi said efforts should be made to advance national big data strategy, improve digital infrastructure, promote integration and sharing of digital resources, and safeguard data security.

2.  Legal Daily on December 5, 2017 notes that leakage of private data from government  websites is getting attention, all local governments start rectification and protection mechanism  政府网站泄露隐私问题受关注,各地整改升级保护机制 (Chinese)

3.  Ministry of Education, Department of Human Resources and Social Security, and Ministry of Finance regulated information disclosure of private information 教育部人社部财政部三部委规范信息公开 保隐私信息安全自查工作要不留死角(Chinese).  This appears to be related to the developments described in the Legal Daily article described above.  Note that unauthorized disclosure of confidential information of foreigners had been a concern during prior meetings of the bilateral Joint Commission on Commerce and Trade.   Compare 2014 and 2016 U.S.-China Joint Commission on Commerce and Trade (JCCT).   From 2014 JCTT: The United States and China confirm that trade secrets submitted to the government in administrative or regulatory proceedings are to be protected from improper disclosure to the public and only disclosed to government officials in connection with their official duties in accordance with law.  Each side will further study how to optimize its respective relevant administrative and regulatory procedures within its legal system, where appropriate, including by strengthening confidentiality protection measures, limiting the scope of government personnel having access to trade secrets, limiting the information required from companies to include only information reasonably necessary for satisfying regulatory purposes, and stipulating that any requirements on government agencies to publicly disclose information appropriately allow for the withholding of trade secrets.  Government officials who illegally disclose companies’ trade secrets are to be subject to administrative or legal liability according to law.  The United States and China agree to exchange information on the scope of protection of trade secrets and confidential business information under their respective legal systems.  China acknowledges that it is to conduct a legislative study of a revised law on trade secrets.  The United States acknowledges that draft legislation proposing a Federal civil cause of action for trade secrets misappropriation has been introduced in the U.S. Congress.  From 2016 JCCT: Both sides confirm that, in those cases in which a judicial or administrative enforcement authority requests the submission of confidential information in conjunction with a trade secret enforcement matter, such requests will be narrowly tailored to avoid putting at risk sensitive business information and will be subject to appropriate protective orders to control additional disclosure and ensure that information is not further misappropriated and that any decision that is made publicly available in conjunction with a trade secret enforcement matter will have all confidential information appropriately redacted. The United States and China confirm that trade secret investigations are conducted in a prudent and cautious manner.

4.  Overview of China’s intellectual property protection: 32000 suspected criminal cases have been transferred since 2011.  中国知识产权保护状况全景式展示  2011年以来移送涉嫌犯罪案件3.2万起(Chinese).  Note: This is data on referrals from administrative to criminal enforcement. The transfer from admin to criminal seems like part of overall efforts that China took to improve IP protection. The article mentioned that three agencies: National Copyright Administration, SAIC and SIPO, all enhanced IP protection enforcement. For instance, National Copyright Administration, through “Jian Wang” (Swordnet) project, investigated 5560 infringement cases over the past 13 years; SAIC investigated 19,400 trademark infringement cases from Jan to Oct 2017; and SIPO and other IP protection agencies investigated 189,000 all kinds of infringement and counterfeiting cases in 2016.Related background information: State Council Opinion on Improving Administrative/Criminal IPR Enforcement Coordination.

5.  China Intellectual Property Development Alliance was established  中国知识产权发展联盟成立 (Chinese).   The focus of this alliance is to create a good environment for IP application and protection and to build an ecosystem for IP operation.

6.  Notice on establishing national intellectual property pilot parks.  关于确定国家知识产权试点园区的通知 (Chinese).  2017 new list of national intellectual property pilot parks 2017年新一批国家知识产权试点园区名单 (Chinese).  These pilot parks are established by local governments.  They will provide IP services, information sharing services, help incubate IP intensive industries, and provide supporting infrastructure. SIPO approves them, and will monitor pilot parks’ work progress and review document for renewal.

7.  The story behind of independent development of C919 (English); C919背后的自主研制之路 (Chinese).  The Chinese article describes the patents involved in the C919 aircraft project.

8.  China implemented the first national military standards of intellectual property management in the field of equipment construction 我国首部装备建设领域知识产权管理国家军用标准实施 (Chinese).

9.  China’s R&D investment hits a new high.  我国研发投入再创新高 (Chinese).   China’s total GDP in 2016 was $11 trillion and R&D investment is around $230 billion, which is about 2.15% of GDP. For US, R&D investment is estimated to be around 2.8% of GDP in 2016.

10. China’s invention patent applications exceed one million from Jan. to Oct. (English); 前10个月发明专利申请量超百万件 (Chinese).

11.WIPO Stats on Patent Application Filings Shows China Continuing to Lead the World (English);  China Tops Patent, Trademark, Design Filings in 2016 (English).

12,  “China Big Data Rule of Law Development Report 2017” released.   《中国大数据法治发展报告(2017)》发布 (Chinese).  Related:  Presentation on 2017 China Big Data Rule of Law Development Report 2017中国大数据法治发展报告(实录与PPT)(Chinese)

13.  China to boost competitiveness in AI (English) 产业三年行动计划提出在八大领域率先取得突破——人工智能服务渐入千家万户(Chinese).  The Ministry of Industry and Information Technology (MIIT) recently released an action plan to substantially improve the development of the AI industry. This plan set to make breakthroughs in eight areas, including smart cars, service robot, drone, AI medical diagnosis, facial recognition, voice recognition, smart translation and smart home product. The MIIT promised more policy support, including special funds, talent cultivation and a better business environment. Measures will also be rolled out to build industry clusters, set up key laboratories and encourage data sharing.

14.  Encourage indigenous innovation and build strong brands.  鼓励自主创新 聚力品牌经济 (Chinese).  The China Council for Brand Development is working with the National Development and Reform Commission to formulate “China’s Brand Development Strategy.” This program aims to cultivate 1000 well-known international brands in five years.

15.  More than 2000 clues have been received for the “Suyuan” campaign against trademark infringement.  打击商标侵权“溯源”行动已收到2000余条案件线索 (Chinese)  SAIC started a campaign called “Suyuan” against trademark infringement in September 2017. Until the end of November, more than 2000 clues on cases have been reported.

16.  Shenzhen IP court and Shenzhen Finance court were established 深圳知识产权法庭和深圳金融法庭同时揭牌办公 (Chinese).   A new Shenzhen IP court was opened on December 26, 2017. This court will handle intellectual property cases which were under the jurisdiction of the Shenzhen Intermediate People’s Court.

17,. Wang Jinshan was appointed as the Chief Judge of Beijing IP Court.  王金山被任命为为北京知识产权法院院长 (Chinese).  Wang replaces Chief Judge Su Chi, who has guided the court since it was first launched and implemented numerous reform projects. We wish him well. Judge Wang graduated from Peking University with a major in Law. He was the party secretary of Beijing IP Court since May 2017. Judge Wang also previously worked at Beijing Intermediate People’s Court.

18.  China’s software copyright registration exceeds 700,000 in 2017.  2017年我国软件著作权登记量突破70万件  http://www.nipso.cn/onews.asp?id=39313 (Chinese).

We hope to be providing more updates in the year ahead from the Berkeley Center for Law and Technology.

As usual the information contained herein does not necessarily represent the opinion of any government agency, company, individual or the University of California.

By Berkeley staff.

More on Guiding Cases, Precedents and Databases…

stanfordcase

Judge Liu Yijun from Beijing IP Court spoke on the application of China’s IP Case Guidance System in Beijing IP Court.

 

As we have previously reported, one of the latest development in China’s IP law is to build an IP cases system, which is being implemented in part as a case experiment at the Beijing Intellectual Property Court. Thanks to the continuing efforts of the Stanford Guiding Cases Project (SGCP) under the leadership of Dr. Mei Gechlik, a number of experts including Judge Liu Yijun from Beijing IP Court, recently spoke at a seminar at Stanford University to discuss current status and application of the IP cases system.

The IP Cases System is one of several efforts to achieve more uniform application of law, encompassing such initiatives as national level “guiding cases” and other cases used for instructional or other purposes by national and local courts. Susan Finder’s blog had several posts about overall use of cases in China, including how Supreme People’s Court (SPC) uses case law to guide lower courts and the China’s evolving case law system in practice.

According to Judge Liu at the Seminar, the Beijing IP Court is set to establish a principle that “subsequent cases should be adjudicated in accordance with effective judgements and rulings of prior similar cases.” At the current stage, judges of the Beijing IP Court are required to abide by effective judgements and rulings of the Court as well as upper-level courts that are applicable to the pending case. Meanwhile, judgements and rulings of prior similar cases from other courts at the same level should be referenced by judges adjudicating the pending case.

Judge Liu noted that parties are encouraged to submit prior effective judgments and rulings and lawyers in response, are actively submitting more and more cases. At the end of 2016, the Beijing IP Court used prior effective judgements or rulings in 763 cases. Cases were submitted 657 times by parties, and voluntarily invoked by judges in 106 instances. Of those 763 cases, over 200 followed prior judgements, about 80 were distinguished on the basis of different facts, and the rest, around 480, were treated as completely irrelevant or not submitted via appropriate procedures. When this data is compared to the 8,111 cases concluded by the Beijing IP Court in calendar year 2016, the case citation rate was 9.4% of all cases, which was a big increase compared to the citation rate of 2.1% that we calculated in this blog for the first ten months of  2016.

This IP Cases System can be accessed through an IP cases and judgments database (IP Case Database). In its trial version, we found 186 typical cases (典型案例), over 240,000 judicial judgments (裁判文书), laws and regulations (法律法规), intellectual property/legal index codes (知产码) (see www.faxin.cn) , opinions (观点), books (图书), journals (期刊), and review documents and decisions from Patent Reexamination Board of SIPO and SAIC Trademark Review and Application Board (两委文书). Many of judicial judgments included in the IP Case Database are a subset of judgments on China Judgements Online, which has over 35 million of judgments in total and over 260,000 judgments in the IP area. IPHouse (知产宝), another IP cases and judgments database, has recently told us that it has increased the total number of IP judgements on its database – their website lists around 350,000 cases, but we have heard that it is as high as 400,00. This is well in excess of the official China Judgments Online or the IP Case Database. The additional cases have reportedly been made available through direct outreach to various local courts.

These 186 typical cases in the IP Cases System are currently all trademark related cases, decided between 2000 and 2016. A majority of those cases (112 cases) are actually SPC’s guiding cases, and only a small part are cases from High Court or Intermediate Court (11 cases from High Court in different provinces and 23 Cases from Intermediate Court). Among cases from Intermediate Courts, cases from the Beijing IP Court dominate.

 

Panelists at the seminar at Stanford University suggested that all typical cases will go through a review process before posted to the database, which consists of review by experts, editing, and final review and release. But panelists at that seminar also noted that judges made the decision of which cases to be included in this database. It is unclear what criteria are used by judges and what judges’ role is through the case review process. To the extent that cases go through a curatorial process, they may also run the risk of being altered to serve particular doctrinal purposes – an issue that may have arisen with respect to other cases that have been considered model or guiding cases.

As for the quality of those cases and judicial judgments, key words search of some well-known doctrines in IP law returns very limited number of results on the IP Case Database.  For instance, a search of the doctrine of equivalents (等同原则) returns zero typical cases, which might be because no patent typical cases are included yet, and search of principle of good faith (诚信原则) gives nine typical cases (primarily for trademarks). A search for cases adjudicated by well-known judges returns similar results, with only one typical case adjudicated by Song Yushui (宋鱼水), who currently sits on the Beijing IP Court as its Vice President and was recently confirmed as an alternative delegate to the Central Committee of the CPC. Similarly, same key word search of the judicial judgments in the IP Case Database yields more results, but still relatively small compared to total number of judgments included. A search of doctrine of equivalents gives 81 judgments, search of principle of good faith returns 312 judgments (around one-third on trademarks, one-third on anti-unfair competition, and the rest on everything else) and 74 judgments are adjudicated by judge Song Yushui. Compared to another legal database pkulaw.cn (北大法宝), which combines cases and judgements, the same key word search returns significant higher number of cases and judgments (337 for doctrine of equivalents, 455 for principle of good faith and 255 adjudicated by Judge Song Yushui). Such discrepancy raises questions of whether the IP Case Database is currently comprehensive or easily searchable.

One distinct feature to be noted of the IP Case Database is that each typical case has been given an indicator of whether the case should be followed or just referenced.

My overall impression: cases are cited more frequently in Beijing IP Court and the case experiment will continue. It seems that the Beijing IP Court intends to attract attention and application of the IP Cases Database and make it a national tool in the near future. However, at the current stage, it is not clear whether their database has the ability to gain significant usage among the IP law community. Of particular importance is whether more cases, particularly patent and copyright cases, will be included, and when that will happen remains unknown.

This blog has been prepared by Fan (Emily) Yang, JD Candidate, University of California Berkeley, 2019, with editorial assistance from Prof. Mark Cohen.  The views expressed are the author’s own.