CHINA INTELLECTUAL PROPERTY LAW NEWSLETTER
Vol. 1, No. 27 - DECEMBER 14, 2000
TOPICS THIS ISSUE:
- INTA Welcomes New Members from China
- SAIC Investigates Fake Foreign Auto Parts Cases
- Landmark Copyright Lawsuit Rules in Favor of Website
- Nationwide Attack on Counterfeiting Progresses
- China and WTO Conclude Latest Round of Negotiations
INTA Welcomes New Members from China
With China poised to enter the World Trade Organization, many international associations are looking to China to bring a new perspective to their groups. This October, the International Trademark Association, one of the oldest and largest global intellectual property rights organizations, accepted the China International Trust and Investment Corporation (CITIC) as a member. This marked the first time an intellectual property rights owner from China was accepted as an INTA member.
This week INTA hosted two meetings, in Beijing on December 11 and Shanghai on December 12, to meet other Chinese intellectual property rights owners who wish to join the organization. The INTA delegation was led by President Kimbley Muller and Executive Director Alan Drewsen, who welcomed a large group of prospective members. The two meetings encouraged fifteen additional Chinese companies to join INTA:
1. Tsingtao Brewery Group
2. Sohu.com
3. Beijing Founder Electronics Co. Ltd.
4. Great Wall Lubricating Oil Group Co., SINOPEC
5. Changhong Electronics Group Corporation
6. Shanghai Jahwa United Co., Ltd.
7. Shanghai GuanShengYuan (Group) Co., Ltd.
8. Shanghai XiaFei Flavor & Fragrance Co., Ltd.
9. Shanghai JiaoDa Onlly Co., Ltd.
10. Shanghai Conch (Group) Co., Ltd.
11. Shanghai ZhongHua Pharmaceuticals Co., Ltd.
12. Good Baby Group Co., Ltd.
13. Nanjing Panda Electronics (Group) Co., Ltd.
14. Konka (Group) Co., Ltd.
15. Shanghai White Cat (Group) Co., Ltd.
The meetings have been planned for months as one of INTA's top priorities. Said Edward E. Lehman of Lehman, Lee & Xu, coordinator of the dual-city event and member of INTA’s Membership Committee, "The Chinese brands represented at these meetings will now be taking their place alongside Nokia, Coca-Cola, McDonalds and IBM as they expand beyond Asia to truly become global."
INTA's role as industry lobbyist and advisor to governments and world organizations was stressed at the two-day event. President Muller hopes to see many of the Chinese brand owners at INTA's next general meeting in San Francisco in May, 2001. He explained to the group that by joining INTA committees and participating in meetings with over 6,000 attendees, Chinese companies can make their voices heard in international intellectual property discourse.
SAIC Investigates Fake Foreign Auto Parts Cases
In response to dozens of complaints by foreign car manufacturers, the State Administration of Industry and Commerce (SAIC) has initiated a crackdown on the manufacture and sale of counterfeit auto parts.
Specialists from foreign car manufacturers, including Toyota, Nissan, Mitsubishi and Mercedes Benz concluded upon examination that ninety percent of the products on the market are counterfeit.
Raids on production sites in four provinces began on November 28, within days of the SAIC receiving complaints from the foreign manufacturers. Almost one thousand officials nationwide have investigated markets suspected of selling the fake products, resulting in the confiscation of approximately 30,000 auto parts falsely marked with foreign brand names.
Thus far, over RMB 11 million (US $1.4 million) worth of counterfeit auto parts have been confiscated in the raids, according to a recent SAIC announcement.
(Source: China Daily)
Landmark Copyright Lawsuit Rules in Favor of Website
A landmark decision in a dispute between a traditional medium and a website was handed down last week. The lawsuit, filed by the online publishing site Ronshu.com, was filed against the China Social Publishing house for violation of copyright.
Earlier this year, Ronshu.com discovered that China Social Publishing House had included a number of published articles in a series of books without consent.
The Beijing First Intermediate People’s Court handed down the decision, requiring that China Social Publishing House immediately discontinue publishing books that contain Ronshu.com’s copyrighted material and pay the website RMB 10,001 (US $1,209) in damages. China Social Publishing must also bear the legal costs of the lawsuit and make an open apology in the Xinmin Evening News and Beijing Evening News.
Ronshu.com publishes original Chinese literary works and has concluded copyright license agreements with the authors of those works.
(Source: Ronshu.com)
Nationwide Attack on Counterfeiting Progresses
The campaign against China’s rampant counterfeiting industry has resulted in millions of RMB in confiscated goods and several hundred arrests, but is suffering setbacks from opposition to the crackdown. Successful raids in several provinces have resulted in the shutdown of many large-scale counterfeit goods production lines, whose products rang from soap and clothing to auto parts and appliances.
Not everyone is lauding the victory: cities in several provinces are reluctant to participate in the campaign, even going so far as to protect factories producing fake goods. According to the State Bureau of Quality and Technical Supervision, cities in Chongqing, Guizhou, Shanxi and Henan provinces do not support the anti-counterfeiting campaign.
During some raids, supervisors participating in the investigations were beaten, and one was stabbed to death while inspecting a fake cigarette shop in Chongqing.
The production and sale of counterfeit goods is seriously damaging China’s economy, as well as affecting the reputation of the Chinese market for foreign industries operating here. The government initiated the campaign in late October, calling upon the media, provincial and local governments and the general public to help eliminate the scourge.
(Source: China Daily)
China and WTO Conclude Latest Round of Negotiations
The latest round of World Trade Organization negotiations ended in Geneva on Friday, with progress made in the protection of intellectual property in China. Negotiations for China’s accession to the international trade body are set to resume in mid-January.
China is expecting to be admitted to the WTO by the middle of 2001. The country has been a candidate for WTO membership for fourteen years and has concluded bilateral agreements with 50 countries to date.
The protection of intellectual property rights is one of several issues delaying China’s accession, but one that has made definite progress towards resolution. The chairman of the WTO working group announced on Friday that a ten-page document regarding intellectual property is nearing completion. The document aims in part to put a stop to counterfeiting, a problem plaguing both foreign and domestic companies operating in China.
Another major hurdle for China’s accession is the issue of industrial policy and subsidies. In particular, dumping, or the practice of flooding foreign markets with low-priced goods, has proven contentious. Little progress was made on this issue by the end of the negotiations, and it is hoped that the next round will prove more conclusive.
(Source: AFP)
Lehman Lee & Xu
China Lawyers, Notaries, Patent, Copyright and Trademark Agents
(formerly known as the L&A Law Firm)
Suite 188, Beijing International Club
21 Jianguomenwai Dajie, Beijing 100020 China
Tel.: (86)(10) 6532-3861
Fax: (86)(10) 6532-3877
mail@chinalaw.cc
http://www.chinalaw.cc/
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The China Itellectual 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.
