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No.116 Nov.16, 2015
 
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Yang Shuo
 
In this issue
China National Development and Reform Commission: AML Law Guidelines in 6 areas under development
China Pushing Revision of Patent Administrative Enforcement Guidelines
Summary: 30 years of China-EU IP Corporation
China-UK Joint Declaration on Bilateral IP Protection
China filed 2.83 million copyright registrations in the first ten months of 2015
Unitalen: Awards received at 2015 China International Trademarks Festival
Unitalen lawyer Ms. Dan Chen invited to McCarthy Trademark Symposium as speaker
Unitalen Lawyer Yazhou Zhang invited to Taiwan to lecture at “Mainland China IP Course”
Unitalen’s Recent Outstanding Case: “超爽” (meaning: Super Cool) Trademark Invalidation
 
 
 
China National Development and Reform Commission: AML Law Guidelines in 6 areas under development

 
On November 5th, China’s National Development and Reform Commission (NDRC) held a press conference on price reform and pricing monitoring policy, in which they also reported the progress of researching and drafting of the following 6 anti-monopoly law (AML) guidelines: anti-unfair-competition through abusive use of IP right, anti-monopoly in auto industry, leniency policy, business operator’s promises, illegal gains and fines calculation, and immunity procedure for monopoly agreement.

Implemented since 2008, China’s Anti-Monopoly Law specifies Ministry of Commerce of the People’s Republic of China Anti-Monopoly Bureau as the policy maker of AML guidelines. NDRC under China Anti-Monopoly Bureau’s supervision will be responsible for researching for and making of the corresponding guidelines to help provide normalized and refined reference for AML enforcement.

 
 
China Pushing Revision of Patent Administrative Enforcement Guidelines

 
On schedule, State Intellectual Property Office of the P.R.C. (SIPO) is currently pushing the revision of Patent Administrative Enforcement Guidelines. By law SIPO had counseled the local offices at all levels and the front line enforcement officers so as to consolidate their opinions and suggestions, which was taken into account when SIPO made the draft of revision. Now SIPO will open the revision to the public for opinions and suggestions before the final version rolls out.

According to SIPO, the revision will be focused on refined definitions of patent infringement acts for determination, patent infringement indemnity amount calculation and other related areas, so as to provide more normalized standards for patent enforcement. Meanwhile Patent Law revision is in progress to promote the competence of the whole system for legal rights protection upon both patentees and the public.

Per statistics, patent administrative enforcement cases had hit 10,190 in the first half of 2015, up 107.7% vs. the same period last year, including: 5,437 patent disputes (including 5,332 patent infringement disputes), up by 167.6%; and 4,753 patent counterfeit cases, up by 65.4%.

 
 
Summary: 30 years of China-EU IP Corporation

 
On October 9th, State Intellectual Property Office of the P.R.C. (SIPO) and European Patent Office (EPO) conducted a symposium on “Opportunities under the Development of Global Patent System” in Lyon, France. The two parties had reviewed the fruitful results from the close bilateral cooperation in IP fields over the last 30 years, as well as discussed the importance and outlook of the future cooperation with deepen efforts in the evolving global environment.

Along with the improvement of China’s IP system, China-EU patent filing systems are aligned with each other more and more, accordingly the patent filings submitted to both parties by the inventors and innovative businesses from both China and Europe have been increasing at a remarkable rate. From 2005 to 2014, EPO has received 10 times of the patent filing from China; and in 2014, China’s filing takes up 9% of the total 270,000 cases and ranked the 4th in the amount. For the same year, SIPO had received totally 928,000 patent filings including 127,000 overseas filings, 28% of which comes from EPO’s member countries and ranked 2nd in the filing amount.

SIPO and EPO will further strengthen their strategic partnership for cooperation in more areas at deeper levels, so as to promote the reform and development of the global patent system.

 
 
China-UK Joint Declaration on Bilateral IP Protection

 
China and UK have recently announced a Joint Declaration on Building a Global Comprehensive Strategic Partnership for the 21st Century. Both countries will provide each other a fair-and-transparent proactive-and-friendly environment for investment, as well as protect IP rights of the businesses from each other.

The declaration emphasizes the establishment of high level security dialogue system, so as to prevent and attack organized crimes, internet crimes and illegal immigrants; and not to be engaged in conducting or supporting Internet IP theft and trade secrets thefts to gain competitive advantages.

 
 
China filed 2.83 million copyright registrations in the first ten months of 2015

 
Latest news from the National Copyright Social Service Conference held by National Copyright Administration (NCAC) reports that China’s copyright social service has made great improvement during the 12th “five-year plan” period, the ability to create, utilize, protect and manage copyright nationally has been improved significantly, and copyright registrations have enjoyed sustainable growth. As of now, China has received 689,700 copyright registrations in the last ten months. 

According to NCPC,in 2013, copyright registrations,including works registrations, software registrations, copyright pledge registrations, have reached one million milestone. After then, copyright registrations in China have grown steadily. During 2011 and 2014, 2.8301 million copyright registrations were handled by NCPC, up 47.6% than the 11th “five-year plan” period. In the first ten months this year, 689,700 copyright registrations have been filed, among which, 191,900 are software, 328 are copyright pledges. Up to now, copyright registrations have reached 882,000 in total, keeping fast growth trend. 

It is worth noting that, with the formation and development of national copyright service mechanism as well as the progress of copyright pilot project, the copyright industry has developed as a whole. According to a research by Chinese Academy of Press and Publication, copyright industry is now contributing 6.87% of China’s GDP.(Source:China Intellectual Property News)

 
 
Unitalen: Awards received at 2015 China International Trademarks Festival

 
October 17 – 18, co-hosted by China Trademark Association (CTA) and Haikou Government, 2015 China International Trademarks Festival was held in Hainan, China. More than 1,000 participants attended the event and broke the visitor record of past sessions, which includes Chinese professionals and scholars in trademarks field as well as invited guests from World Intellectual Property Office (WIPO).

At the festival’s award ceremony on the night of October 16th with 1,200 guests from famous companies, national IP offices and governments, Unitalen received “Contribution to the Festival” and “2015 Outstanding Trademark Agency” awards.

On October 17, Mr. Bradly Yu, Unitalen’s President, chaired the 2015 China Trademark Annual meeting – International Trademark Law Trends workshop, which had attracted over 100 attendees from businesses, national IP offices and governments.

On October 18, at the China Trademark Outstanding Cases Study Forum, Unitalen’s “超爽” (meaning: super cool) trademark invalidation case was enlisted as one of the 22 outstanding cases and received the “2014-2015 Outstanding Trademark Prosecution Case” award. On the same day afternoon, Unitalen Trademark Salon was held at Hainan International Convention Center to host over 200 guests from businesses, IP offices, governments and associations. At the Salon, Unitalen shared an original micro-movie, which was made with modified Unitalen case examples and cast crew of Unitalen staff, to present a new trend of infringement acts observed to the audience. Mr. Mang yu, China Mobile Communications Corporation Legal Affairs General Manager and Ms. Xiaoyan Pan, Beijing Zhiguo Technology Co. co-founder, have also had a very engaged discussion on Internet marketing issues surrounding IP rights agency and the new business modes presented in the new digital environment.

 
 
Unitalen lawyer Ms. Dan Chen invited to McCarthy Trademark Symposium as speaker

 
Our senior partner, Dan Chen, attended McCarthy Trademark Symposium as one of the speakers at the campus of University of San Francisco on this September 26. Around the speech topic Trends of Trademark Litigation in China, She’s passed her observations and thoughts of the evolving trademark litigation practices in China onto the audience, which includes representatives from prestigious institutes, legal firms and businesses, as well as McCarthy Institute students.

Co-hosted by USF, Microsoft and INTA, McCarthy Trademark Symposium enjoys prestige as a highly-regarded event on Trademark law and practice. Unitalen has been one of the key sponsors of this event for 6 consecutive years so as to advocate sharing of the best practices and knowledge in the global IP legal field.

Slides and speakers’ information can be found via:

http://www.mccarthyinstitute.org/Panels.html.

 
 
Unitalen Lawyer Yazhou Zhang invited to Taiwan to lecture at “Mainland China IP Course”

 
On November 3, 2015 the first lecture of “China Mainland IP Course”, which was organized by Taiwan Industrial Development Bureau, Taiwan Institute for Information Industry and the Chinese Commercial & Industrial Coordination Society, was held at GIS Taipei Tech Convention Center. At invitation, Mr. Yazhou Zhang, Unitalen partner lawyer, provided a lecture to the representatives from many local businesses on the topic of “Risks in granting IP rights in mainland China and Case Studies”.

In the over 3 hours’ lecture, Yazhou Zhang had introduced various legal issues involved with trade secret rights determination, affirmation and granting of trademark rights and copyright determination in Mainland China, along with 14 concurrent typical IP rights cases to share for illustration.

The “China Mainland IP Course” has been well received by Taiwan companies’ legal counsels as it covers the practical operations in IP right determination, risk prevention and infringement litigation fields.

 
 
Unitalen’s Recent Outstanding Case: “超爽” (meaning: Super Cool) Trademark Invalidation

 
Unitalen’s recent “超爽” (meaning: Super Cool) trademark invalidation case was enlisted as one of 22 most outstanding trademark cases at 2015 China International Trademarks Festival.

In this case, Unitalen represents China Alcoholic Drinks Association (the petitioner) to file an invalidation against Asahi Group Holding’s “超爽” trademark, for the reason that the words used in this mark have been widely adopted to describe beer’s taste in the industry since mid-90s. The petitioner believes the mark should be treated as a common descriptive expression to describe the product’s trait and feel instead of as a trademark with distinctiveness requirement, therefore Asahi’s “超爽” trademark, which was registered back in 1997, should be invalidated according to the Subparagraph 2 of Article 10 of the pre-modified Trademark Law. Asahi Group argues the word mark was originally created, neither a common name adopted by beer industry nor a descriptive wording to describe beer’s taste according to China’s national standards, therefore the mark should remain registered.

In the adjudication made by Trademark Review and Adjudication Board (TRAB), , when used on beer products, “超爽” (super cool) can be literally conceived of as description of a beer’s taste, style of feel by consumers, so that it can’t be treated as a trademark to distinguish product source and it lacks of distinctiveness. Meanwhile Asahi Group’s evidences can’t prove the disputed mark has established distinctiveness through use over years. Therefore, the mark is in violation of the Subparagraph 1(2) of Article 11 of the pre-modified Trademark Law and thus invalidated immediately.

Insights: This is a typical case of invalidation due to adoption of descriptive wordings, to which the Subparagraph 1(2) of Article 11 of the pre-modified Trademark Law applies. By the time when “超爽” mark was registered back in 1997, this wording was not yet widely adopted by the industry to describe beer’s taste and feel, so it was approved with registration. However, with the economic environment evolves and trademark owner’s neglegence in enforcing its exclusive trademark right, this wording have become a commonly used expression to describe beer product to the public. TRAB reviewed this case taking into account of the economy development and law regulations to facilitate the industry healthy growth. Businesses should be reminded to keep substantial evidences of trademark uses and take trademark right enforcement actions in proactive ways if needed, so as to avoid their own marks getting diluted into a commonly used descriptive wording or a wording without distinctiveness.