CHINA INTELLECTUAL PROPERTY LAW NEWSLETTER
Vol. 4 , No. 3 - March 11, 2003
VISIT LLX AT INTA INTA 125th Annual Meeting 2003
May 3 - 7 in Amsterdam
RAI International Exhibition & Congress Centre LEHMAN, LEE & XU welcomes you to participate in the following: 3rd ANNUAL CHINA BRAND OWNERS BRUNCH - May 4, 11:00am to 2:00pm at the Nam Tin Chinese restaurant, Amsterdam. Start the 125th INTA Annual Meeting by experiencing Chinese hospitality at its finest. Hosted by LEHMAN, LEE & XU, we hope that this year's Sunday brunch will once again provide for a relaxing forum to learn more about China brand owners and discuss IP issues. If you would like to attend, please send email to inta@lehmanlaw.com or fax to +8610 8532-1999. LEHMAN, LEE & XU BOOTH - Exhibit Area, Booths V17 & V19. Visit with representatives of LEHMAN, LEE & XU and other Chinese brand owners. On display will be general literature on China trademark law, Q&As on China trademark registration, IP enforcement strategies and more. NAM TIN Chinese Restaurant Jodenbreestraat 11
1011 NG Amsterdam
(Metro access at Waterlooplein Station)
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TOPICS THIS ISSUE:
- WIPO Summit on Intellectual Property and the Knowledge Economy
- Presiding Court Judges on Protection of Internet Intellectual Property Rights
- Chinese Designed Jets Add Fuel to Domestic IP
- China is Boosting the Innovation System and Intellectual Property Rights Protection of Traditional Chinese Medicine
- Pirated Game Software Does not Deter Major Video Game Maker to Enter the Chinese Market
- Foreign Investors Praise China's Anti-counterfeiting Efforts
WIPO Summit on Intellectual Property and the Knowledge Economy
The Government of the People's Republic of China will host the World Intellectual Property Organization (WIPO) Summit on Intellectual Property and the Knowledge Economy, and the accompanying Industry and Private Sector Forum, in Beijing, from April 24 to 26, 2003.
The meeting will be held at the Great Hall of the People and attendees include high-level government officials and policy-makers, senior judges, leading CEOs, members of the international governmental and non-government intellectual property community, creators, inventors and academics. They will be welcomed by the Chinese leadership and the Director General of WIPO to the start of discussions that will offer a unique opportunity for reflection and comment on the key role of the intellectual property system in stimulating creativity and innovation to foster economic growth and social well-being through wealth creation and business development.
The closing ceremony of the Summit on April 26 will include a celebration of World Intellectual Property Day and will be accompanied by a concert featuring artists from around the globe.
Themes for discussion at the Summit include:
- Intellectual Property Challenges and Opportunities in the New Millennium;
- The Contribution of Creativity to Human Progress;
- Leveraging the Benefits of Invention in the Real and Virtual Worlds;
- Intellectual Property as a Tool for Economic, Social and Cultural Development - Forging Partnerships to Boost Innovation and Wealth Creation;
- Promoting Respect for Intellectual Property Rights.
The Forum, in its examination of the role of the private sector and industry in the creation of an intellectual property culture, will examine topics that include:
- The Role of Intellectual Property in the Knowledge Economy: Shaping the Future;
- Publishing, Art and Entertainment: Sharing the Benefits of Creativity in the Real and Virtual Worlds;
- Empowering Entrepreneurs: Intellectual Property as a Tool for Economic, Social and Cultural Development;
- Respecting Creators and Inventors: Enforcement of Intellectual Property Rights.
The closing date for registration is March 31, 2003.
(Source: WIPO)
Presiding Court Judges on Protection of Internet Intellectual Property Rights
The Internet intellectual property rights have to be protected in compliance with the related laws and regulations, so as to provide a fair environment for the transmission of articles on the Internet, said a Supreme People's Court presiding judge on Sunday.
Among the 5,000 to 6,000 cases per year in China that are related to intellectual property rights violations, several hundred concerned disputes on Internet copyrights.
It is clear that the Internet has scored rapid progress in China since the mid 1990s. The enacting of the relevant laws and regulations, however, is lagging behind. According to legal explanations given by the Supreme People's Court judge, the original authors should be paid if their articles on the Internet are used by others and, under no circumstances, should their articles be copied or reprinted provided they do not permit their fellow citizens to do so.
The rights of many writers have nevertheless been infringed upon since others use their publications on the Internet at will without any payment being affected to the writer. The State Intellectual Property Rights Office is working out payment standards for the use of articles on the Internet.
(Source: Xinhua News Service)
Chinese Designed Jets Add Fuel to Domestic IP
The central government's decision to develop western China and the success of Beijing's bid to host the 2008 Olympics will open up new opportunities for the regional aviation market. The General Administration of Civil Aviation of China Transport believes that regional jets will become a new growth area in China's civil aviation industry.
The China Aviation Industry Corp I (AVIC I), one of the country's two biggest aircraft manufacturers will attempt to take 80 per cent of the regional jet market in China within two decades. The company is finishing a new design of a regional jet, the ARJ 21, by the end of June this year. The new-generation jet comes in 79-seat and 99-seat models. The new line is Chinese-designed and so the intellectual property rights to it are owned by China. The jet to is expected to acquire airworthiness certificates from the Chinese government and from the Federal Aviation Administration (FAA) of the United States in 2007.
(Source: China Daily)
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China is Boosting the Innovation System and Intellectual Property Rights Protection of Traditional Chinese Medicine
In the view of many Chinese experts, the lack of comprehensive qualitative criteria, scientific testing methods and intellectual property rights protection has locked China's traditional medicine industry into even fiercer competition with multi-nationals since its entry into the World Trade Organization.
In order to develop its pharmaceutical industry China should accelerate the development of a pharmaceutical innovation system, especially with regard to the modernization of traditional medicine and intellectual property. The need for better intellectual property protection is evident since Chinese herbal medicines and natural drugs are considered as important precursors of future medicines. A few examples of the success of Chinese traditional medicine are the new Japanese medicines developed on traditional Chinese prescriptions and phytotherapy that are currently used in Europe. Furthermore, Tebonin, a new medicine emerging in Europe made from the leaves of ginkgo trees, a plant species exclusive to China, has an annual sales volume of over one billion US dollars.
(Source: Xinhua News Service)
Pirated Game Software Does not Deter Major Video Game Maker to Enter the Chinese Market
Until now the spread of copied game software in China has deterred Nintendo from starting a game business there. In fact Nintendo incurred about 78.7 billion yen ($673 million) in lost sales last year due to piracy in China. The company cites two risk factors for the Chinese operations: high production costs relative to the disposable income of the Chinese public and the prevalence of piracy.
Nevertheless, Nintendo Co. will enter the Chinese video-game market, planning to start the sale of consoles and software there in 2003. Behind the turnaround in strategy appears to be its rivalry with Sony Computer Entertainment Inc., which has already announced a plan to expand into the Chinese market. There is also an on-going struggle to win harsh sales battles with Sony and other rivals on the Japanese, American and European markets, which may also account for the switch in strategy. Earlier this year, Nintendo executives began voicing the company's Chinese strategy, including the development of a business model. Given the unimpressive performance of the GameCube console in year-end sales and difficulty of quickly regaining lost ground on Japanese and Western markets, it may be only natural for the company to turn to China. It cannot afford to let Sony get ahead of it in China as well, and so it is staking its future on the business.
As the first step, Nintendo will likely market in Shanghai, Beijing and other big cities software that is already sold in Japan and Western countries. It may also produce consoles locally.
Although the World Trade Organization is beginning to take the protection of intellectual property rights in China seriously, according to the Association of Copyright for Computer Software, there will be some time before the Chinese authorities begin a full-scale effort to identify counterfeiters and impose penalties on them. Regarding the piracy problem, however, the company appears confident, saying it "has done research on software pirates for 20 years and can pinpoint who they are." They are confident in that Nintendo can set up an anti-piracy system in China that even Sony will not be able to match.
No content providers have succeeded in China so far. With Nintendo and Sony poised to challenge their luck, the Chinese battle of the video-game war is about to begin.
(Source: The Nikkei Weekly)
Foreign Investors Praise China's Anti-counterfeiting Efforts
Law enforcement departments in China have improved their efficiency and cooperation substantially in cracking down on counterfeiting, said an official of the China Association of Enterprises with Foreign Investment (CAEFI).
At a ceremony marking its third anniversary recently, the Quality Brands Protection Committee (QBPC) under the CAEFI granted awards to law-enforcement organs from across China in recognition of their outstanding and exemplary efforts in handling counterfeiting and other intellectual property problems.
The QBPC was launched in March 2000 in answer to calls for a concerted and coordinated corporate-government effort to address the counterfeiting in China. Its 81 members of foreign investors collectively have invested over 19 billion US dollars in China.
Counterfeiting is admittedly still an issue in China and the QBPC would continue to help increase public awareness of the seriousness of the problem.
(Source: Xinhua News Service)
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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.
