CHINA INTELLECTUAL PROPERTY LAW NEWSLETTER
Vol. 1, No. 26 - November 27, 2000
TOPICS THIS ISSUE:
- China Approves Draft Copyright and Trademark Amendments
- Two American Companies Win in Lawsuits Over Domain Names
- 15-40% of Procter & Gamble's Products in China are Counterfeit
- Beijing Launches Crackdown on Counterfeit Goods
- China Offers Legal Changes to Speed WTO Accession
- IPR Lawsuits Increasing in Shanghai
China Approves Draft Copyright and Trademark Amendments
Amendment drafts to China's Copyright Law and Trademark Law were passed in principle at a meeting of the State Council on November 22. The amendments are just one of many efforts to bolster the country's protection of Intellectual Property rights and to meet WTO accession requirements.
The 1991 Copyright Law and the 1983 Trademark Law (revised in 1993) are considered by many to be too vague to have any substantial effect on the country's rampant piracy.
After further revision, the drafts will be submitted for review to the Standing Committee of the National Peoples' Congress.
(Source: Xinhua News Agency)
Two American Companies Win in Lawsuits Over Domain Names
U.S.-based Procter & Gamble and Du Pont have won lawsuits over Cybersquatters in China. According to the court verdict, both the Du Pont trademark and Procter & Gamble's "Tide" trademark are widely recognized by the general public and are considered "well-known trademarks." The domain names had been registered by two Beijing-based companies, Guowang Information Co. Ltd. and Tiandi Electronics Group.
In addition to being required to revoke the invalid domain name, Guowang Information Co. Ltd. was also ordered to repay RMB 2,700 (USD 325) Du Pont spent on litigation. One may assume that this was not Du Pont's total legal bill. Lawyers representing Guowang Information Company said after the trial they could not accept the verdict and planned to appeal to a higher court. The Guowang Information Company was using dupont.com.cn.
In a separate suit by Procter and Gamble, Tiandi Electronics Group was also required to stop using the domain name tide.com.cn.
According to the ruling, handed down on November 21 by the Beijing No. 1 Intermediate People's Court, both of the domain names in question are invalid on the grounds that they violate China's Trademark Law and the Law Against Unfair Competition. The Dispute Resolution Procedure for trademark/domain name disputes that was recently drafted by CNNIC is not yet available.
(Source: Xinhua News Agency)
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15-40% of Procter & Gamble's Products in China are Counterfeit
Between 15 and 40 percent of Procter & Gamble brand products on the Chinese market are counterfeit, according to the China Foreign-Invested Enterprises Association (CFIEA).
Although firms such as Proctor & Gamble are engaged in an uphill struggle to protect their brands, many are hoping that the country's IPR protection will improve following China's accession to the World Trade Organization.
According to the CFIEA report, if fake products account for 15 percent of total Procter & Gamble brand products in China, the company would lose approximately 150 million USD in revenue each year.
(Source: AFX - Asia)
Beijing Launches Crackdown on Counterfeit Goods
A crackdown on economic crimes in China has extended to Beijing. The campaign, which was launched recently by the State Council, focuses on counterfeiting activities, as well as on fake tax bills and commercial papers.
Several ministries and government branches are participating in the project, headed by Vice-Premier Wu Bangguo. These include the State Economic and Trade Commission, the ministries of public security, finance, and foreign and economic cooperation, as well as the judicial branch, the police and the Central Propaganda Department. State-run media will also be participating, and has been ordered by the government to provide extensive coverage of the crackdown in an effort to increase public awareness and participation.
The goal of the campaign is to combat the flood of counterfeit goods in all sectors in time for the country's expected accession to the World Trade Organization early next year. Premier Zhu Rongji has warned that the counterfeit industry and the practice of issuing fake economic statistics undermines the survival of law-abiding companies, and has weakened the country's ability to face the challenges that market-opening will certainly bring.
Among the targets of the campaign are counterfeit medical products as well as the use of false license plates for military vehicles, thereby extending anti-counterfeiting measures against military corruption.
According to Communist Party sources, these efforts will be followed by a similar campaign against organized crime and triad activities early next year.
(Source: BBC News)
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China Offers Legal Changes to Speed WTO Accession
In a bid to avoid delaying its accession to the World Trade Organization, the Chinese government recently announced plans to make changes to its commercial laws and regulations. The proposed alterations and additions will allegedly be completed before accession.
The country submitted the plan to a meeting of the WTO multilateral task force on Chinese entry, which ended late last week. The changes include enhancing its protection of intellectual property rights and abolishing local content rules.
China's admission to the WTO was originally expected by the end of this year. The date has proved elusive, however, as China previously refused demands from WTO members to bring its legal and administrative systems in line with WTO rules on trade and investment. It argued that the calls amounted to interference in its domestic affairs.
Under the last-minute plan, China pledged to alter relevant regulations and extend the protection period for computer software copyrights, while adding provisions to its Trademark Law to further protect well-known brands.
China also plans to review its regulations on technology transfers from foreign companies to China, and reconsider its restrictions on the operations of distribution and service joint ventures.
The Chinese government intends to alter its content regulations as part of its submitted plan. Local content rules currently require that foreign firms purchase Chinese-made components and materials, while there are restrictions on the procurement of foreign currencies by non-Chinese companies.
Despite these concessions, China's entry to the world body by early next year is still uncertain. Other points are as yet unresolved, such as the possibility of China's treatment as a developing nation and the deregulation of its telecommunications and financial sectors.
(Source: Asia Pulse)
IPR Lawsuits Increasing in Shanghai
Lawsuits on intellectual property rights in Shanghai have risen since the city established a court for this purpose in 1994.
Lu Guoqiang, chief judge of the Court on Intellectual Property Rights under the Shanghai Higher People's Court, has said that since 1994, the court has handled more than 17,000 cases, and reached 16,000 verdicts. The number of cases handled this year is up more than 30 percent from 1994.
Most of the cases relate to the rights of brands, literature works, computer software and patents. Disputes on the rights of on-line works and domain names are also rising with the rapid development of China's Internet economy.
The court intends to increase the transparency of its court proceedings and may publish selected cases on-line.
(Source: Xinhua News Agency)
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The China Intellectual Property Law Newsletter is intended to be used for news purposes only. It should not be taken as comprehensive legal advice, and Lehman, Lee & Xu will not be held responsible for any such reliance on its contents.
