State Council Issues ‘2023 Outline for Building an Intellectual Powerhouse and the Implementation and Promotion Plan for the 14th Five-Year Plan’
Release Date: 27 July 2023
The Inter-Ministerial Joint Conference Office of the State Council for the Implementation of National Intellectual Property Strategy has issued a ‘2023 Outline for Building an Intellectual Powerhouse and the Implementation and Promotion Plan for the 14th Five-Year Plan’ (the Plan). The Plan sets out seven key tasks for 2023: improving the intellectual property system; strengthening intellectual property protection; enhancing the operation mechanism of the intellectual property market; improving the quality of public intellectual property services; creating a favourable cultural and social environment for intellectual property innovation; actively participating in global intellectual property governance; and strengthening organizational security. The Plan includes 135 specific measures.
Taking the improvement of the intellectual property system as an example, the Plan calls for improving intellectual property laws, regulations, and rules; reforming and improving major policies on intellectual property; and refining intellectual property rules in emerging and specific areas. It specifically proposes measures such as completing the amendment of relevant laws and regulations, including Regulations for the Implementation of the Patent Law of the People’s Republic of China; implementing the establishment of first-class patent and trademark examination institutions; and accelerating the establishment of intellectual property protection rules for data.
In terms of strengthening intellectual property protection, the Plan emphasizes the need to strengthen judicial protection of intellectual property rights; enhance administrative protection of intellectual property rights; and improve the collaborative protection framework. It puts forward specific measures such as advancing reform of the national-level trial mechanism for intellectual property appeal cases; strengthening professional guidance for trademark and patent enforcement; and constructing national intellectual property protection demonstration zones with high standards.
Source: The State Council of the People’s Republic of China
https://www.gov.cn/zhengce/zhengceku/202308/content_6898128.htm
The State Council issued the ” 2023 Outline for Building a Powerful Intellectual Property Nation and the ” 14th Five-Year Plan ” Implementation and Promotion Plan”
Date of issue: 2023-07-27
The Office of the Inter-Ministerial Joint Conference on the Implementation of the Intellectual Property Strategy of the State Council issued the “2023 Outline for Building a Strong Intellectual Property Power and the Implementation and Promotion Plan of the 14th Five-Year Plan” (the “Plan”). The “Plan” proposes seven major categories of key tasks for 2023, namely: improving the intellectual property system, strengthening intellectual property protection, improving the operating mechanism of the intellectual property market, improving the level of public services for intellectual property, creating a good humanistic and social environment for intellectual property, Deeply participate in global intellectual property governance and strengthen organizational guarantees. On this basis, the “Plan” also proposed 135 specific measures. Taking the improvement of the intellectual property system as an example, the “Plan” requires the improvement of intellectual property laws, regulations and rules, the reform and improvement of major intellectual property policies, the improvement of intellectual property rules in emerging fields and specific fields, and specifically proposes to promote relevant laws and regulations such as the “Patent Law of the People’s Republic of China”. Measures such as revising the “Detailed Rules”, implementing the construction project of first-class patent and trademark review institutions, and accelerating the construction of data intellectual property protection rules. In terms of strengthening the protection of intellectual property rights, the “Plan” calls for strengthening judicial protection of intellectual property rights, strengthening administrative protection of intellectual property rights, and improving the collaborative protection pattern of intellectual property rights. It specifically proposes to deepen the reform of the appeal hearing mechanism for intellectual property cases at the national level and strengthen the professionalism of trademark and patent law enforcement. Guidance, high-standard construction of national intellectual property protection demonstration zones and other measures.
Source: State Council
News link: https://www.gov.cn/zhengce/zhengceku/202308/content_6898128.htm
The Central Committee of the CPC and the State Council Jointly Released ‘Guidelines on Promoting the Development and Growth of the Private Economy’
Release Date: 19 July 2023
The jointly released guidelines aim generally to improve conditions in the private sector and promote the growth and development of the private economy. The fourth part of the Opinions emphasizes the need to strengthen the rule of law to protect the interests of private businesses to assist in the development and growth of the private economy. Article 12 in this fourth part sets out the objective of “Continuously Improving the Intellectual Property Protection System,” which includes the following specific requirements:
- Increase the protection of original innovation for small and medium-sized private enterprises.
- Strictly implement rules relating to punitive damages and the grant of interlocutory relief in intellectual property infringement actions.
- Establish a rapid handling mechanism for intellectual property infringement and administrative non-litigation enforcement, and improve the cross-regional jurisdiction system of intellectual property courts.
- Research and improve intellectual property protection measures to encourage business improvement, cultural creativity, and other innovative achievements.
- Severely crack down on unfair competition acts such as infringement of trade secrets, counterfeiting, and trademark squatting.
- Increase the punishment for criminal intellectual property infringement.
- Improve the guidance mechanism for Chinese companies dealing with overseas intellectual property disputes.
Source: The State Council of the People’s Republic of China
https://www.gov.cn/zhengce/202307/content_6893055.htm
The State Council issued the ” Opinions of the Central Committee of the Communist Party of China and the State Council on Promoting the Development and Growth of the Private Economy”
Date of issue: 2023-07-19
The fourth part of the “Opinions” emphasizes that in order to promote the development and growth of the private economy, legal protection for the development of the private economy should be strengthened. Article 12 of the “Opinions” sets out requirements for the work direction of “continuously improving the intellectual property protection system”, specifically including: increasing the protection of original innovations of private small, medium and micro enterprises; strictly implementing systems such as punitive damages and behavioral preservation for intellectual property infringement ; Establish a rapid processing mechanism for intellectual property infringement and administrative non-litigation enforcement, and improve the cross-regional jurisdiction system of intellectual property courts; study and improve intellectual property protection methods for commercial improvements, cultural creativity and other innovative achievements, and severely crack down on infringement of business secrets, counterfeiting and confusion, etc. Competition and malicious trademark registration and other illegal activities; increase the criminal crackdown on illegal and criminal acts that infringe on intellectual property rights; improve the guidance mechanism for responding to overseas intellectual property disputes.
Source: State Council
News link: https://www.gov.cn/zhengce/202307/content_6893055.htm
China’s Cyberspace Administration (CAC) and Six Other Departments Jointly Issue Interim Measures for the Management of Generative Artificial Intelligence Services
Release Date: 13 July 2023
The Interim Measures for the Management of Generative Artificial Intelligence Services (the Measures), which regulate the provision of artificial intelligence generated content (AIGC) services, include compliance requirements of AIGC technology and its training data, the accountability of AIGC service providers, as well as rules for manual data labelling, complaints handling mechanisms, and legal consequences.
According to the Measures, all activities related to the provision, use, and training of AIGC must comply with laws and regulations, respect social morality and ethics, and not infringe upon other’s intellectual property rights and trade secrets or engage in any monopolistic or unfair competition acts. In addition, it also must not infringe upon other’s legitimate rights and interests such as personal information and privacy. In terms of liability, the Measures clarify that AIGC service providers who process personal information bear the same responsibilities as network information content producers and personal information processors. If an AIGC service provider finds that users are misusing AIGC, it shall take appropriate measures such as sending warnings, imposing restrictions on the user’s functions, suspending or terminating its services, and reporting the misuse to the competent authorities. Providers who violate the Measures may face administrative penalties or bear criminal liability.
Source: The Cyberspace Administration of China
http://www.cac.gov.cn/2023-07/13/c_1690898326795531.htm
Seven departments including the Cyberspace Administration of China jointly issued the “Interim Measures for the Management of Generative Artificial Intelligence Services”
Date of issue: 2023-07-13
The Interim Measures stipulate a series of important matters regarding generative artificial intelligence (AIGC), including the legality requirements of AIGC and its training data, the main responsibilities of AIGC providers, as well as manual labeling rules, complaint handling mechanisms, legal consequences, etc. .
According to the “Interim Measures”, AIGC’s provision, use and data training and other activities should comply with laws and regulations, respect public order and good customs, and must not infringe on intellectual property rights, business secrets, engage in unfair competition, or infringe on personal information, privacy and other legitimate rights and interests. In terms of subject responsibility, the “Interim Measures” clarify that AIGC providers bear the responsibility of producers of network information content and bear the responsibility of processors of personal information. If the provider discovers that the user is using AIGC to engage in illegal activities, it should take disposal measures such as warning, restricting functions, suspending or terminating services to the user, and report to the competent authority. Providers who violate the provisions of the “Interim Measures” may face administrative penalties or legal consequences of being held criminally responsible.
Source: Internet Information Office of the People’s Republic of China 2023-07-13
News link: http://www.cac.gov.cn/2023-07/13/c_1690898326795531.htm
JDB Group Ordered to Pay Compensation of 317 Million Yuan (Approx. US$ 44 Million) for Infringement of WongLoKat Trademark
Date: 10 July 2023
Guangzhou Pharmaceutical Corporation is the owner of the registered trademark ‘WongLoKat’. In 1995, Hongdao Group (HK), the parent company of Jiaduobao (JDB) Group, obtained an exclusive licence to use the ‘WongLoKat’ trademark and invested in extensive formula research and advertising, which increased the trademark’s value to over 100 billion yuan (approx. US$ 14 billion). The licence was originally set to expire in 2010, but subsequently extended by two supplementary agreements to 2023. In 2012, these supplementary agreements were held to be invalid by China’s International Economic and Trader Arbitration Commission. The Hongdao Group then rebranded its herbal tea as ‘Jiaduobao’ and in 2014, Guangzhou Pharmaceutical Corporation filed a trademark infringement action against six JDB companies, including JDB (China) Beverage Co., Ltd., seeking compensation of 2.93 billion yuan (approx. US$ 405 million) for economic loss caused by the infringement of its registered ‘WongLoKat’ trademark for the period 2010 to 2012. This initiated a legal battle between Guangzhou Pharmaceutical Corporation and JDB Group that has lasted nearly a decade.
In 2018, the Guangdong High People’s Court (Guangdong High Court) ruled at first instance that the JDB Group had infringed and should pay compensation of 1.44 billion yuan (approx. US$ 199 million) to Guangzhou Pharmaceutical Corporation. Both parties appealed to the Supreme People’s Court (the SPC). On 17 June 2019, the SPC returned the case to the Guangdong High Court for retrial, citing significant deficiencies in the main evidence provided by Guangzhou Pharmaceutical Corporation. On 10 July 2023, the result of the retrial was announced, with the Guangdong High Court confirming that the six JDB companies had jointly infringed Guangzhou Pharmaceutical Corporation’s exclusive rights to use the ‘WongLoKat’ trademark and ordering the JDB Group to pay compensation of 317 million yuan (approx. US$ 44 million). The JDB Group has expressed dissatisfaction with the judgment and intends to appeal to the SPC.
Source: The Official Website of JDB Group
https://www.jdbchina.com/cn/new/jdb_news.asp?id=1763
Jiaduobao Company was ordered to pay RMB 317 million for using the ” Wanglaoji ” trademark
Date: 2023-07-10
Guangzhou Pharmaceutical Group is the owner of the registered trademark “Wanglaoji”. In 1995, Hong Kong Hongdao Group, the parent company of Jiaduobao Company, obtained the right to use the Wong Lo Kat trademark, and through formula research and advertising investment, the Wong Lao Kat trademark value exceeded 100 billion. In 2012, GPHL hoped to take back the right to use the “Wanglaoji” trademark, while Hongdao Group re-created its own herbal tea brand Jiaduobao. In 2014, GPHL filed a lawsuit against six Jiaduobao companies including Jiaduobao (China) Beverage Co., Ltd., demanding compensation of RMB 2.93 billion in economic losses caused by infringement of its exclusive rights to the registered trademark “Wanglaoji” from 2010 to 2012. Yuan, which triggered nearly ten years of litigation between GPHL and Jiaduobao Company.
In 2018, the Guangdong Higher People’s Court (“Guangdong High Court”) ruled in the first instance that Jiaduobao Company should compensate GPHL 1.44 billion yuan. After appeals from both parties, on June 17, 2019, the Supreme People’s Court sent the case back to the Guangdong High Court for retrial on the grounds that the main evidence provided by GPHL had major flaws. On July 10, 2023, both parties announced the results of the retrial. The Guangdong High Court determined that the six defendants Jiaduobao Company constituted joint infringement and ruled that Jiaduobao Company should compensate GPHL 317 million yuan. Jiaduobao Company expressed dissatisfaction with the judgment and would appeal to the Supreme People’s Court.
Data source: Jiaduobao official website 2023-07-10
News link: https://www.jdbchina.com/cn/new/jdb_news.asp?id=1763
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