The Supreme People’s Court Issues Report – Judicial Protection of Intellectual Property Rights in Chinese Courts (2022)
On 20 April 2023, the Supreme People’s Court issued its report ‘Judicial Protection of Intellectual Property Rights in Chinese Courts (2022)’, which reflects recent developments in the judicial protection of intellectual property rights in China throughout the country’s court system, and provides information relating to both the number and type of IP cases brought in the various courts in 2022.
Details in the Report include the following:
- The courts nationwide accepted 526,165 IP cases, including first instance, second instance and retrial cases, and concluded 543,379 cases (including carried over cases), a year-on-year decrease of 18.17% and 9.67%, respectively.
- The number of technology-related IP cases accepted by the people’s courts continued to increase. The Intellectual Property Tribunal of the Supreme People’s Court continued to accept a significant number of technical intellectual property civil second instance substantive cases. The number of new first instance cases involving patents and technology contracts accepted by local people’s courts at all levels increased significantly. For example, Courts in Jiangsu Province accepted 1,817 new cases relating to disputes over ownership and infringement of IP rights, a 17.61% increase from the previous year. The number of new IPR cases accepted by the courts in Shanxi Province and Hainan Province increased by 22.21% and 72.58%, respectively. In Hebei province, the number of IP cases accepted and concluded increased by 45.94% and 106.01%, respectively. The number of new civil IPR cases accepted in courts in Liaoning Province increased by 61%. The number of new civil IPR cases of first instance accepted in courts in Jiangxi Province increased by 22%. In addition, the number of cases accepted by the courts in Hunan Province, Heilongjiang Province, and the Xinjiang Production and Construction Corps also continued to grow steadily.
Source: The Supreme People’s Court of the People’s republic of China
https://www.court.gov.cn/zixun-xiangqing-397082.html
The Supreme Law released the “Judicial Protection Status of Intellectual Property Rights in Chinese Courts ( 2022 )”
Issue date: 2023-04-20
On April 20, 2023, the Supreme Court issued the “Judicial Protection of Intellectual Property Rights in Chinese Courts (2022)”, which systematically introduced the overall situation of cases, intellectual property protection in the data field, diversified dispute resolution methods, and international exchange of intellectual property rights. The new progress of judicial protection of intellectual property rights in China.
In 2022, courts across the country will accept 526,165 intellectual property cases of first instance, second instance, and application for retrial, and conclude 543,379 cases (including old ones), a decrease of 18.17% and 9.67% respectively compared with 2021. In 2022, the number of intellectual property technology cases accepted by the people’s courts will continue to rise. Specifically, in 2022, the number of technology-related civil second-instance civil cases of intellectual property rights newly accepted by the Supreme People’s Court’s intellectual property court will maintain a relatively high growth rate. The number of first-instance cases involving patents and technical contracts received by local people’s courts at all levels increased significantly. Jiangsu courts newly accepted 1,817 cases involving highly technical intellectual property ownership and infringement disputes, a year-on-year increase of 17.61%. The number of new intellectual property cases received by courts in Shanxi and Hainan increased by 22.21% and 72.58% year-on-year. The number of intellectual property cases accepted by Hebei courts increased by 45.94% and 106.01% year-on-year. The number of new intellectual property civil cases received by Liaoning courts increased by 61% year-on-year. The number of first-instance intellectual property civil cases newly accepted by Jiangxi courts increased by 22% year-on-year. The number of cases accepted by courts in Hunan, Heilongjiang, and Xinjiang Production and Construction Corps has also continued to grow steadily.
Source: Supreme Court 2023-04-20
News link: https://www.court.gov.cn/zixun-xiangqing-397082.html
The Supreme People’s Procuratorate Reported on National IPR Prosecution Work in 2022 and Issued Guidelines for People’s Procuratorates on Handling IPR Cases
Date: 26 April 2023
The Supreme People’s Procuratorate reported that from January 2022 to March 2023, the procuratorates nationwide prosecuted more than 7,300 cases and 15,000 persons for crimes of infringement of intellectual property rights, advised administrative authorities to transfer more than 550 suspected criminals in total to public security authorities, supervised the filing of more than 520 cases and the dismissal of more than 410 cases by the public security authorities, corrected the omission of more than 150 suspects from the public security authorities for arrest, corrected the omission of more than 980 co-defendants referred for review and prosecution, and handled more than 1,100 cases of civil and administrative litigation supervision of intellectual property rights.
In order to enhance the capacity and level of judicial protection of intellectual property rights nationwide, the Supreme People’s Procuratorate issued Guidelines for People’s Procuratorates on Handling IPR Cases on 26 April. The Guidelines consist of 45 articles, divided into five areas, including general principles; handling of criminal intellectual property cases; handling of civil and administrative litigation supervision cases; and handling of public interest litigation cases. The Guidelines clarify the scope of cases and the manner in which IPR procuratorates should perform their duties; specify that IPR cases mainly include criminal, civil, administrative and public interest litigation cases; and provide for procuratorates to give exercise fully their criminal and litigation prosecutorial and supervisory functions. The Guidelines also make it clear that the procuratorates should strengthen communication with public security authorities, people’s courts and administrative departments in relation to intellectual property rights, promptly transfer evidence of criminal activity and inform relevant organs of the acceptance of criminal cases, promote the sharing of information on law enforcement and judicial case handling, and ensure uniformity in the application of judicial standards.
Source: The Supreme People’s Procuratorate of the People’s Republic of China
https://www.spp.gov.cn/spp/xwfbh/wsfbh/202304/t20230426_612558.shtml
The Supreme People’s Procuratorate notified the national intellectual property inspection work in 2022 and released the “Guidelines for the People’s Procuratorate to Handle Intellectual Property Cases “
Date: April 26, 2023
From January 2022 to March 2023, the procuratorial organs across the country prosecuted more than 7,300 intellectual property infringement crimes and more than 15,000 people; they suggested that the administrative organs transfer more than 550 suspects to the public security organs; supervised the public security organs to file more than 520 cases, Supervised and dismissed more than 410 cases; corrected the omissions of the public security organs to arrest more than 150 criminal suspects, and corrected omissions to transfer more than 980 accomplices for review and prosecution; handled more than 1,100 intellectual property civil administrative litigation supervision cases.
In order to improve the ability and level of judicial protection of intellectual property rights, the Supreme People’s Procuratorate issued the “Guidelines for the People’s Procuratorate to Handle Intellectual Property Cases” (hereinafter referred to as the “Work Guidelines”) on April 26. The “Work Guidelines” consists of 45 articles, which are divided into five aspects: general principles, handling of intellectual property criminal cases, handling of civil and administrative litigation supervision cases, and handling of public interest litigation cases. The “Work Guidelines” clarifies the scope of cases and performance methods of intellectual property prosecution, clearly stipulates that intellectual property cases mainly include criminal, civil, administrative and public interest litigation cases, and stipulates that the procuratorate should give full play to its criminal and litigation functions and implement legal supervision. The “Work Guidelines” also clarified that the procuratorial organs should strengthen communication and exchanges with public security organs, people’s courts, and administrative departments related to intellectual property rights, timely transfer clues of violations and crimes and inform relevant organs of the acceptance of criminal cases in a timely manner, and promote the exchange and sharing of dynamic information on law enforcement and judicial handling , to ensure uniformity in the application of judicial adjudication standards.
Source: Supreme People’s Procuratorate of the People’s Republic of China
https://www.spp.gov.cn/spp/xwfbh/wsfbh/202304/t20230426_612558.shtml
Report on China’s Combating of IPR Infringement and Counterfeiting 2022 was Issued
Date: 26 April 2023
A report on combating IPR infringement and counterfeiting in 2022 has been issued by the Office of the National Leading Group on Coordinated Implementation of Building a Quality-powered Nation. The Report elaborates on the effectiveness of China’s efforts to combat infringement and counterfeiting in 2022, focusing on top-level design, laws and regulations, administrative law enforcement, judicial protection, diversified governance, publicity and guidance, international cooperation.
In terms of administrative law enforcement, China has achieved outstanding results in the following key areas: Firstly, rectification on the Internet: a total of 840,000 links of IPR infringing and pirating content were taken down, 15,400 IPR infringing accounts were disposed of, and 1,180 online IPR infringement cases were investigated and dealt with. Secondly, rectification in key livelihood areas: 44,000 illegal cases relating to trademark infringement, patent counterfeiting was investigated and dealt with, involving a total amount of RMB 1.62 billion (approx. $US 229 million). Thirdly, rectification on import and export: in 2022, the General Administration of Customs detained 61,000 batches of suspected infringing goods, involving 77,939,000 pieces of goods; postal administration departments at all levels conducted a total of 31,000 inspections for the purpose of administrative law enforcement and handled 6,077 administrative penalty cases.
In terms of judicial protection of intellectual property rights, China has increased its criminal crackdown on intellectual property crimes. In 2022, a total of 27,000 criminal cases of intellectual property infringement and the production and sale of counterfeit goods were cracked; the procuratorial organs approved the arrest of more than 3,600 suspects and prosecuted 13,000 persons; courts at all levels concluded 2.194 million first instance IPR cases, a year-on-year increase of 221.1%, and the compensation amount increased by 153% compared to 2018.
Source: The State Council of the People’s Republic of China
http://www.gov.cn/lianbo/2023-04/27/content_5753402.htm
“Annual Report on China’s Combating IPR Infringement and Counterfeiting Work ( 2022 )” Released
Date: 2023-04-26
The Office of the Leading Group for Coordinating and Promoting the Construction of a National Quality Power released the “Annual Report on China’s Combating IPR Infringement and Counterfeiting Work (2022)”. The “Report” expounds the effectiveness of China’s crackdown on IP infringement and counterfeiting in 2022, focusing on seven aspects: optimizing top-level design, improving laws and regulations, strengthening administrative law enforcement, focusing on judicial protection, implementing multiple governance, strengthening publicity and guidance, and deepening international cooperation.
In terms of administrative law enforcement, China has achieved outstanding results in the following key areas: First, deepened the rectification of the Internet field, deleted 840,000 infringing and pirated links, disposed of 15,400 infringing accounts, and investigated and dealt with 1,180 online infringement cases. Second, the rectification of key areas of people’s livelihood was promoted, and 44,000 illegal cases involving trademark infringement and counterfeiting of patents were investigated and dealt with, involving a total amount of 1.62 billion yuan. Third, strengthen the rectification of key links such as import and export. In 2022, the General Administration of Customs detained 61,000 batches of suspected infringing goods, involving 77.939 million pieces of goods; postal departments at all levels conducted 31,000 administrative law enforcement inspections and handled 6,077 cases of administrative punishment.
In terms of judicial protection of intellectual property rights, China has strengthened its criminal crackdown on intellectual property crimes. In 2022, a total of 27,000 criminal cases of intellectual property infringement and the production and sale of counterfeit and inferior commodities were cracked; the procuratorial organs approved the arrest of more than 3,600 suspects suspected of intellectual property infringement crimes, and prosecuted 13,000 people; courts at all levels concluded 219.4 first-instance intellectual property cases Ten thousand cases, a year-on-year increase of 221.1%, and the amount of compensation awarded increased by 153% compared with 2018.
Source: Central People’s Government 2023-04-26
News link: http://www.gov.cn/lianbo/2023-04/27/content_5753402.htm
China’s First Case Involving Virtual Digital Human – Defendant Liable for Copyright Infringement and Unfair Competition
Date: 26 April 2023
The Plaintiff, Xmov Technology Ltd. (Xmov Company), used artificial intelligence technology to create Ada, a virtual digital human. The Defendant, a network company in Hangzhou, released two videos through its Douyin account. The videos used the content related to Ada that had been released by Xmov Company, replaced the logo of Xmov Company in the opening and closing credits, and inserted marketing information about the Defendant’s virtual digital human course. In one of the videos the Defendant’s registered trademark was included.
The Hangzhou Internet Court held that the representation of the virtual digital human, Ada, constituted an artwork for the purposes of the Copyright Law and the related videos using Ada’s image constituted audiovisual works and a video production. Xmov Company enjoyed intellectual property rights in the work. Xu, an employee of Xmov Company had performed the live-action drive on the virtual digital human Ada in the course of his employment, and Xmov Company was the owner of rights in the performance. The Defendant’s release of the video infringed Xmov Company’s right of information network dissemination. Further, the Defendant had used Ada to attract traffic for marketing purposes, which directly harmed Xmov Company’s commercial interests and constituted an act of unfair competition.
The Court found in favour of Xmov Company and ordered the Defendant to pay RMB 120,000 (approx. $US 17,000) in compensation for economic loss and legal costs.
Source: The Hangzhou Internet Court
https://mp.weixin.qq.com/s/IhvYGLk6_KqXZZIiiQkJJA
The judgment of the first infringement case involving “virtual digital human” was announced, and the defendant constituted copyright infringement and unfair competition
Date: 2023-04-26
The plaintiff, Mofa, applied artificial intelligence technology to create the virtual digital human Ada. The defendant, an Internet company in Hangzhou, released two videos through its TikTok account, used Ada-related video content released by Mofa in the middle of the video, and replaced Mofa’s logo and inserted The marketing information of the virtual digital human course also added the defendant’s registered trademark in one of the videos.
The Hangzhou Internet Court held that the virtual digital person does not have authorship and does not enjoy copyright and neighboring rights. However, the expression form of the virtual digital human Ada constitutes a work of art, and the related videos using the image of Ada constitute audio-visual works and video production respectively, and Mofa has the property rights and video producer rights to the works. Xu, an employee of Mofa Company who drives the virtual digital human Ada with a real person, complies with the relevant provisions of the “Copyright Law” as a performer, and Mofa Company enjoys the property rights of the performer’s rights in his professional performance. Therefore, the release of the video by an Internet company in Hangzhou, the defendant, infringed Mofa’s information network dissemination rights. At the same time, the defendant company used the virtual digital human Ada to conduct marketing and direct damage to the commercial interests of Mofa, which constituted an unfair competition behavior of false publicity. In the end, the court ruled that the defendant, an Internet company in Hangzhou, should compensate the plaintiff Mofa for economic losses (including rights protection fees) of 120,000 yuan.
Source: Hangzhou Internet Court
News link: https://mp.weixin.qq.com/s/IhvYGLk6_KqXZZIiiQkJJA
For further information, please contact:
Nandi (Landy) Jiang, Partner, Rouse
ljiang@lushenglawyers.com
