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No.56¡¡Oct.28, 2009
 
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Five-finger Mountain in Hainan
 
In this issue
The SIPO of China Promulgates Transition Rules for Implementation of New Patent Law
WIPO: PCT Applications from China increased by 19% in the First Half Year
International trademark applications designating China totals 139,900
OSRAM praises China as one of the best countries in IP protection
Shanghai Court and Procuratorate take joint measure to strengthen trial supervision
IP Exchange Center Established in Shanghai providing Platform for IP Pledge Financing
First IP Criminal Case involving EXPO 2010 heard in Shanghai
Unitalen Won Domain Name Disputes for World-famous Companies
 
 
 
The SIPO of China Promulgates Transition Rules for Implementation of New Patent Law

 
In order to ensure the implementation of Decision of the Standing Committee of the National People¡¯s Congress on Revising the Patent Law of the PRC promulgated on December 27, 2008, the State Intellectual Property Office (SIPO) promulgated Transition Rules for Implementation of the Revised Patent Law on September 29, making specific provisions in regard to the engagement of the implementation of the revised Patent Law with the old Patent Law.

According to the provision of Article 2 of the Transition Rules, for a patent application filed before October 1, 2009 and a patent right granted for the application, the provisions of the old Patent Law shall apply unless otherwise prescribed in the Transition Rules; and for a patent application filed after October 1, 2009 and a patent right granted for the application, the provisions of the revised Patent Law shall apply. That is, for the conditions for patenting, the examination procedure and the possible future invalidation request in connection with a patent application which was accepted before October 1, 2009 but for which a patent right was not yet granted, the provisions of the old Patent Law shall apply in principle. This provision is in compliance with the provision in regard to the Doctrine of Non-Retroactivity of Legislation provided for in Article 84 of the Law on Legislation, and can also secure the lawful rights and interests of patent applicants and patentees.

In order to secure national interests and public interests, Article 3 of the Transition Rules provides for that, for compulsory licensing requested for a patent right granted for a patent application accepted before October 1, 2009, the provisions of the revised Patent Law shall apply.

Regarding the handling of an action which is suspected to involve patent infringement or an action which is suspected to involve passing-off by a local administrative authority for patent affairs, Articles 4 and 5 of the Transition Rules provide for that, if the action occurs after October 1, 2009, the provisions of the revised Patent Law shall apply. This can secure the interests of patentees and the public.

For the convenience of foreign applicants and patentees filing applications for patents and handling other patent affairs in China, and also for establishing a fair competition environment for patent agents, Article 7 of the Transition Rules explicitly provides for that, where a foreign applicant or patentee appoints a patent agency or changes the appointment after October 1, 2009, the provisions of Article 19 of the revised Patent Law shall apply, that is, he/it may appoint any legally set up patent agency, but not necessarily a patent agency designated by the SIPO provided for in Article 19 of the old Patent Law.

 
 
WIPO: PCT Applications from China increased by 19% in the First Half Year

 
As revealed by the chief secretary Mr. Francis Gurry of the Word Intellectual Property Organization (WIPO) in a media meeting on September 18, preliminary statistics show an increase of 19% in the number of PCT (Patent Cooperation Treaty) applications from China in the first half year of 2009.

Since the statistic data in 2009 are not yet complete, Mr. Gurry did not reveal the specific number of the PCT applications from China in the first half year. However, Mr. Gurry mentioned that the Chinese economy is continuously increasing and enterprises, universities, research organs and so on in China are realizing more and more the benefits brought about by using the PCT system, and all these are the reasons why the number of PCT applications from China is continuously increasing.

In the last year, Chinese enterprises and organs filed a total of 6089 PCT applications, increased by 11.9% than in 2007, ranking the sixth in the world. America (53521), Japan (28774), Germany (18427), South Korean (7908) and France (6867) rank the top five, respectively.

 
 
International trademark applications designating China totals 139,900

 
During the Symposia for Celebrating the 20th Anniversary of China¡¯s Joining Madrid International Registration System held on October 18, 2009, Mr. Shuangjian Fu, deputy director-general of SAIC, disclosed that the total number of the international applications designating China has reached 139,900 by September 30, 2009, ranking No.1 for four consecutive years among all the member states of WIPO.

The Chinese government submitted the notice of joining ¡°Madrid Agreement for International Registration of Trade Marks¡± to WIPO on July 4, 1989. This Agreement came into effect in China on October 4, 1989.

 
 
OSRAM praises China as one of the best countries in IP protection

 
¡°I have been to many countries in the world to take IP protection actions, and I think China is one of the most effective and excellent countries in IP protection.¡± said vice secretary-general of IP department of OSRAM in praising China¡¯s IP protection recently in Yi Wu, Zhejiang Province.

In addition, OSRAM gave particular appreciation to Yi Wu Customs, who seized 2998 fluorescent lamps infringing the trademark right of OSRAM from the containers exported by a local trading company in Raohe County to Malaysia in last August.

 
 
Shanghai Court and Procuratorate take joint measure to strengthen trial supervision

 
Recently, Shanghai Court and Shanghai Procuratorate concluded ¡°Several Opinions on the Strengthening of Trial Supervision by People¡¯s Court and People¡¯s Procuratorate ¡± (¡°Opinion¡±), stipulating 15 rules for further strengthening legal supervision, covering legal supervision over criminal trials, execution of punishment, civil trials, and administrative trials.

The ¡°Opinions¡± also gave same tentative stipulations concerning the enhancement of judicial protection of IP and the promotion of IP trial system reform. It stresses that people¡¯s procuratorate should cooperate with the authorized local courts in the reform of unified trials of IP related civil cases, criminal cases and administrative cases, and thoroughly perform the functions of public prosecution and trail supervision in IP criminal cases.

 
 
IP Exchange Center Established in Shanghai providing Platform for IP Pledge Financing

 
In order to speed up the capitalization and industrialization of scientific and technological achievements, Shanghai is making every effort to promote the IP pledge financing. On 11th October 2009, Shanghai IP Exchange Center operated by Shanghai United Assets and Equity Exchange (SUAEE) was established, which will become a platform for the evaluation and transfer of pledged IP right.

According to reports, the newly established Shanghai IP Exchange Center will become one of the most important parts of the IP pledge financing system in Shanghai, featuring three major functions: 1) taking part in the initial evaluation of target IP rights, recording target IP rights and analyzing potential transfer possibility; 2) transferring IP rights on public exchange platform when the pledged IP rights are withdrawn from the market; and 3) transferring IP rights in various forms including bidding and auction. The establishment of the IP exchange system helps to give market support to the initial pricing and withdrawal operation for IP pledge financing.

 
 
First IP Criminal Case involving EXPO 2010 heard in Shanghai

 
To seek for illegitimate profits, Shanghai Changzheng Material Co., Ltd. and its principal Tianwei TAN sold the steel tube bearing counterfeit well-known trademark to the constructor of Shanghai EXPO. On 16th October 2009, Shanghai Pudong District People's Court rendered the first-instance judgment affirming that Shanghai Changzheng Material Co., Ltd. and its principal Tianwei TAN have conducted the crime of selling commodities carrying counterfeit registered trademark. The company was punished with a fine of RMB180, 000 and Tianwei TAN was sentenced to two years in prison.

The Court expressed that the above case is the first IP criminal case relating to Shanghai Expo. The judgment was made in conformity with the legal provisions and will be helpful in maintaining the order of Shanghai Expo construction.

 
 
Unitalen Won Domain Name Disputes for World-famous Companies

 
As known to all, domain name is one of most important competition tools for business entities, and also part of the intangible assets. Because of this, there have been more and more companies or individuals seeking for registration of domain names similar to trademarks or trade names of famous companies, and then put them into use or offer for sale at high price. These bad-faith acts infringe the legal rights of well-known trademark owners. Recently Unitalen won a number of domain name dispute cases on behalf of leading industrial frontiers, including BMW, Georgio Armani and UPS.

BMW's trademark ¡®BMW¡¯, Giorgio Armani's trademarks ¡®armani¡¯, ¡®giorgio armani¡¯ and ¡®emporio armani¡¯ and UPS¡¯s UPS series marks enjoy very high reputation worldwide, which incur preemptive domain name ¡°hi-jacking¡± by ill-will third parties.

Since 2008, Unitalen, acting on behalf of BMW AG, has won disputes against domain names ¡®bmw-bmw.com¡¯, ¡®bmw-bmw.cn¡¯ and ¡®bmw-bmw.com.cn¡¯. On behalf of Giorgio Armani Corporation, Unitalen has succeeded in retrieving domain names ¡®emporioarmaniwatches.com.cn¡¯, ¡®emporioarmaniwatches.cn¡¯, ¡®armaniexchange.net.cn¡¯, ¡®armaniexchange.org.cn¡¯ and ¡®giorgioarmanibeauty.cn¡¯. Unitalen also assisted UPS to get their domain names ¡°upsdeliverylink.cn¡±, ¡°upsracing.cn¡±, ¡°upsworldship.cn, ¡°upsource.cn¡± back as outcome of a single domain complaint. These successes help maintain the good-will of these worldwide well-known brands.

In addition, Unitalen has also assisted in recovering many other domain names through complaint proceedings, including ¡®alainafflelou.com.cn¡¯ and ¡®alainafflelou.cn¡¯ for Alain Afflelou Franchiseur, and ¡®frangelico.cn¡¯ and ¡®frangelico.com.cn¡¯ for C & C International Limited.

The successes of these domain name disputes not only safeguarded the clients¡¯ lawful interests, but also helped curb the domain name ¡°hi-jacking¡± activities. In so doing, Unitalen has shown its outstanding ability in domain name protection.