2017 Chronicle of China's IP Industry

summarized by China IP,[Comprehensive Reports]

In 2017, the IP industry of China has improved in many aspects: the 19th National Congress of the Communist Party of China stressed the importance of fostering a culture of innovation, and strengthening the creation, protection, and application of IP; China’s Civil Code was adopted and implemented, in which Article 123 regulated dominant items concerning IP and ensured the key position of IP rights; Trademark Office of SAIC released the revised Standards of Trademark Review and Trial (New Standards).
 
At the same time, enterprises have been busy fighting for their IP rights, including but not limited to JD, Sony, New Balance, Tencent, Guangdong Jiaduobao, Alibaba etc. With great efforts made by IPers, the year of 2017 saw tremendous changes, huge progress and positive trends!
 
January 2017
The case of Zhongke Lianshe (Beijing) Academy of Network Technology v. JD company concerning Infringement upon the exclusive right to use trademark
The plaintiff, Zhongke Lianshe (Beijing) Academy of Network Technology (Zhongke), brought a lawsuit against Beijing JD Century Trade Co., Ltd. (JD Company), claiming that the defendant should stop infringement upon its exclusive right to trademark and compensate for the losses it suffered as are sult.
 
The plaintiff is the owner of the text trademarks of "small vault xiaojinku" (No. 9787284) and"small vault" (No. 12360768) in the 35th category which was verified and approved to be used within the scope of "advertising and selling for others", and the text trademark of "Jijinhui xiaojinku" (No.12071358) in the 36th category which was verified and approved to be used within the scope of"insurance and mutual funds". The plaintiff argued that JD Company should stop infringement and make compensation because its exclusive right to use the trademark was infringed by JD Company through its sale of the fund products in the name of "JD xiaojinku" and "xiaojinku" on the website of JD Mall without permission and promotion of the said products on the Weibo in the above names.JD Company answered that, firstly, xiaojinku was a coinage with relatively weak distinctiveness,especially in the financial field; secondly, "JD xiaojinku" used by it was not similar to the trademark of the plaintiff; and lastly, JD xiaojinku service was a kind of value-added services of fund management,belonging to 36th category of financial services, due to which it was not similar goods and constituted no infringement upon trademark.
 
After hearing the case, both the courts of first instance and second instance ruled that the plaintiff had no legal basis to support its claims against JD Company concerning trademark infringement and rejected its claims as a result.
 
SPIC Releases NuPAC Platform Containing Completely Independent IPRs
On January 5, State Power Investment Corporation (SPIC) announced that China has developed a NuPAC platform with completely independent intellectual property rights. The platform has obtained the permission of the National Nuclear Safety Administration of China and the Nuclear Regulatory Commission of the United States, becoming the first nuclear reactor protection system entitled with administrative permission of nuclear safety regulatory authority in both China and the United States.
 
Conference of National IP Office Head Held in Beijing
On January 5, 2017, Conference of National IP Office Head was held in Beijing, with the State Intellectual Property Office (SIPO) head Shen Changyu addressing a work report named Deepen IP Sector Reform and Strengthen IP Protection and Application so as to Realize Significant Improvement in Building an IP Power Country with All Efforts. The report said that the country had over 3.47 million patent applications in 2016, up 23.8 percent year on year; the number of Chinese international patent applications filed under the World Intellectual Property Organization's Patent Cooperation Treaty hit 40,000 last year.
 
Chinas Trademark Office Announces New Standards of Trademark Review and Trial
On January 4, 2017, Trademark Office of the State Administration for Industry &Commerce of the PRC released the revised Standards of Trademark Review and Trial (New Standards). The New Standards covers 10 parts, including review of marks which can not be identified as trademarks, review of the significant characteristics of trademarks etc. The standards of sound trademark review, the application standards of trial submission and other content has been added in the revised New Standards.
 
IP5 PPH Pilot Program Extended for Three Years as From January 6, 2017
The European Patent Office (EPO), the Japan Patent Office (JPO), the Korean Intellectual Property Office (KIPO), the State Intellectual Property Office of the P.R.C (SIPO) and the United States Patent and Trademark Office (USPTO) launched the patent prosecution highway (PPH) pilot program among the IP5 on January 6, 2014. Its duration was three years, and was scheduled to expire on January 5, 2017. The five Offices now decide to extend the PPH pilot program for three years, as from January 6, 2017. Related requirements and procedures can be found on the websites of the Offices.
 
February 2017
The case of Guangdong Camel Clothing Co., Ltd. v. Trademark Review and Adjudication Board of State Administration for Industry & Commerce of P.R.C. concerning the request of declaring the registered trademark invalid
On February 27, Beijing Higher People's Court rendered the final judgment on the case of Guangdong Camel Clothing Co., Ltd. v. Trademark Review and Adjudication Board of State Administration for Industry & Commerce of P.R.C. concerning the request of declaring the registered trademark invalid, with Taizhou Fuping Shoes Industry Co., Ltd. as the third-party of the original case
 
On July 27, 2015, Guangdong Camel Clothing Co., Ltd. filed an application with Trademark Review and Adjudication Board for invalidation declaration of the No. 8516416 trademark verified and approved by the Board to be used by Taizhou Fuping Shoes Industry Co., Ltd. on the 25th goods such as shoes and clothing on the grounds that the registration and use of the alleged contentious trademark were in violation of the provisions of Article 7, 30 and 45-1 of Trademark Law of the P.R.C. The Board made a decision on March 24, 2016 that there was no similarities between the alleged contentious trademark and the invoked trademark submitted by the plaintiff and the original decision on the alleged contentious trademark should be maintained.
 
Guangdong Camel Clothing Co., Ltd. refused to accept the original judgment and filed an appeal with Beijing Higher People's Court, requesting the court to set aside the original judgment and the sued decision so that a new decision could made by the Board. Beijing Higher People's Court ruled that, although there are designs of camel in the contentious trademark and the invoked trademark, there are relatively huge differences in terms of picture composition, colors, elemental composition,overall structure and visual effect, and that it is not easy to cause mistake among the relevant public even if they were used together on the identical or similar goods. Therefore, Beijing Higher People's Court rejected the appeal and affirmed the original judgment.
 
China's Trademark Application Amounts to 3.691 Million in 2016
China handled 3.691 million trademark applications in 2016, remaining world's largest for15 consecutive years. Meanwhile, Guangdong, Beijing, Zhejiang, Shanghai and Jiangsu are the top five applicants. Thanks to the implementation of the reform for trademark registration,trademark registrations increased by 28.4% in 2016, compared with 26.9% in 2015. Among all the registrations, 3.001 million were filed via Internet, representing 81.3% of the total, the percentage in 2015 is 69.3%. As of the end of 2016, valid trademark registrations amounted to 12.376 million. Each 10,000 market entities obtained 1,422 trademarks, increased by 6.5% from 1,335 in2015. It is worth mentioning that 2016 witnessed fast growth of trademark pledge registrations.
 
Professionals Gather in Tianjin to Discuss Strengthening Patent Protection Measures
On February 7, The Symposium of Strengthening Patent Protection Measures was held, with experts specialized in IP research, professionals of Tianjin Higher People's Court, lawyers and IP managers of enterprises attending the symposium and discussing countermeasures and steps of strengthening patent protection measures, formulating related suggestions and making good connections between the administrative enforcement and judicial protection. This described a blueprint for implementing the spirit of 2017 Tianjin Technology IP Working Conference and Several Opinions on Strengthening Patent Protection issued by SIPO.
 
Trademark Office Releases 2016 Trademark Applications and Registrations of Each Prefecture
On February 7, the State Administration for Industry & Commerce of the People's Republic of China(SAIC) released the statistics concerning trademark applications and registrations of each province,autonomous region and municipality. According to the data, the top five provinces or cities in terms of trademark applications are Guangdong, Beijing, Zhejiang, Shanghai and Jiangsu. SAIC carried out a set of reforms facilitating trademark registration in 2016. It opened 15 windows for applicants to filing trademark applications nearby, set up 30 local agencies to handle trademark pledge affairs, and put the first coordination center of trademark examination outside Beijing into operation. Trademark applications totaled 3,691,000, ranking first worldwide for 15 consecutive years. The facilitation reform reaps rewards.
 
The 3rd Revision of Chinas Copyright Law is in Sight
The National Copyright Administration of China (NCAC) issued the 13th Five-Year Plan on Copyright on February. It's required to advance the 3rd revision of Copyright Law, when necessary, to establish copyright collective management organizations (CCMO) for performance,arts and other fields. The Plan begins with a review of the results achieved in the 12th Five-Year Plan. It also points out challenges facing copyright protection environment, copyright awareness of the public and copyright legalization. The Plan requires the 3rd revision should focus on the development of Regulations on Copyright Protection of Folklore and revision of Regulations for the Implementation of Copyright Law etc. It aimed at improving copyright laws and regulations.
 
March 2017
The case of China Iwncomm Co., Ltd. v. Sony Mobile Communications (China) Co. Ltd. concerning infringement upon standard essential patents
On March 22, Beijing Intellectual Property Court rendered the judgment of first instance on the case of China Iwncomm Co., Ltd. (Iwncomm) v. Sony Mobile Communications (China) Co. Ltd. Concerning infringement upon standard essential patents. The plaintiff, Iwncomm, is the obligee of the invention patent "a wireless LAN mobile device security and data access method for secure communication", which was incorporated into China's national mandatory standard in 2003. The defendant, Sony Mobile Communications (China) Co. Ltd., is a manufacturer of mobile communication equipment (mobile phones), including 35 kinds of mobile phones such as the L39h (Xperia Z1) involved in the case. The plaintiff claimed that the defendant used the technical solutions contained in the plaintiff’s patent claims 1, 2, 5 and 6, that the specific infringement behaviors included individually committed direct infringement and jointly committed infringement. The plaintiff requested the court to order the defendant to: (1) immediately stop using the plaintiff’s patent involved in the case, and immediately stop the production and sale of the mobile phone products using the plaintiff's patent rights and (2)make a compensation of 32,887,179 Yuan as economic loss and 474,194 Yuan as reasonable cost, a total of 33,362,373 Yuan, to the plaintiff.
 
The court ruled that the defendant exploited, without permission, the patent involved in the casein the processes such as the design, R&D, testing and routine test of the mobile phones involved in the case which infringed upon the plaintiff’s patent rights, due to which the plaintiff’s claim of direct infringement was established; And the plaintiff’s claim that the defendant should stop infringement shall be affirmed and the defendant shall make a compensation of 8,629,173 Yuan as economic loss and 4,74,194 as reasonable cost for right maintenance, a total of 9,103,367 Yuan, to the plaintiff.
 
Beijing Film and Television Copyright Expert Appraisal Committee Was Established
On March 20, 2017, Beijing Spring TV Fair (Spring Fair) opened at the Beijing Convention Center. At the Spring Fair, China's first Film and Television Copyright Expert Appraisal Committee was officially established. The committee consists of 26 experts, and its primary tasks are to accept the authentication of film and television copyright plagiarism cases entrusted by the court, and to protect intellectual property legal rights.
 
2017 National Brand IP Service Agencies Activity Focuses on Together with Chongqing, Serving for Strong City
From March 23 to 24, 2017 National Brand IP Service Agencies Activity themed with"Together with Chongqing, serving for Strong City" was held in Chongqing. Related leaders from Department of Planning and Development of State Intellectual Property Office, Chongqing Intellectual Property Office etc., attended and delivered speeches. More than 200 people attended the activity, who came from Chongqing Commission of Economy and Information Technology, Intellectual Property Office of various Chongqing districts, 24brand IP service agencies and IP service institutes.
 
Boao Forum for Asia Adopts IP Issues for the First Time
On March 24, the Symposium of Intellectual Property of Boao Forum for Asia Annual Conference 2017 was held successfully. It's the first time for the Forum to set and discuss the IP relevant issues. The commissioner of the State Intellectual Property Office, Shen Changyu, attended the Symposium and had an in-depth discussion surrounding the theme of "IP: Convoying Innovation" with the deputy director of WIPO, Wang Binying, the president of Qualcomm Incorporated, Derek K. Aberle, and the director of IP Research Center in Zhongnan University of Economics and Law, Wu Handong and other guests.
 
The First Intellectual Property Alliance Founded by Academicians Established in Beijing
On March 26, China Mining Intellectual Property Alliance was officially established in Beijing. He Manchao, the academician of Chinese Academy of Sciences (CAS), takes the chair, Song Zhenqi, the academician of CAS and Cai Meifeng, the academician of Chinese Academy of Engineering serve as vice chairmen. This is the 19th industrial intellectual property alliance established in Beijing with the support from Beijing Intellectual Property Office as well as the review and record at the State Intellectual Property Office. It is also the first key industrial intellectual property alliance founded by the academicians.
 
April 2017
The case of New Balance v. 5 defendants concerning trademark infringement
On April 24, the decision in writing for the imposition of a total fine of 1.7 million Yuan rendered by the Intellectual Property Tribunal of Suzhou Intermediate People's Court was served on the defendants in the case of New Balance Trading (China) Co., Ltd. v. Shenzhen NewBalance Sporting Goods Co., Ltd., Jinjiang Qingyang Niubolun Shoes Factory et al., who were the manufacturers and sellers of shoes with the imitation of N letters for the decoration of both sides of shoes infringing upon the right to special decoration owned by New Balance on well-known sporting shoes. The judge served the decision in person on the defendants refusing to carry out legally effective decision of the people's court.
 
New Balance is a brand with high notability in the world. On August 1, 2016, the plaintiff New Balance Trading (China) Co., Ltd. brought a lawsuit against the five defendants’ infringement upon trademark and unfair competition by false promotion in Suzhou Intermediate People's Court and applied for interlocutory injunction (acts preservation). On September 13, 2016, Suzhou Intermediate People's Court made an order that the five defendants shall immediately stop their manufacturing and sale of shoes goods with "N" letters on both sides of the shoes for decoration.However, the defendants refused to comply with the order until April 11, 2017. Therefore, Suzhou Intermediate People's Court made a decision in writing for the imposition of a total fine of 1.7million Yuan (the highest amount provided for in the laws) against the defendants’ refusal to comply with the order and served the decision on the defendants by the judge in person.
 
The Trademark Registration Fee Halved from April This Year
In order to effectively promote the development of the real economy, under the approval of the State Council, the Ministry of Finance, and the National Development and Reform Commission released a notice about sorting out and standardizing the relevant policies of administrative fees. According to the notice that from April 1, 2017, the charge of new varieties of plant protection, and computer software copyright registration fees are suspended, and the trademark registration fee is reduced by half.
 
The First China Electronic Information Industry Intellectual Property Summit Successfully Ends
On April 9, during the period of the Fifth China’s Electronic Information Fair, the First China Electronic Information Industry IP Summit & The 17th Info-Tech Patents Trend Release Conference & HIPEX 4·26 IPR Development Forum was held in Shenzhen. Leaders of Ministry of Industry and Information Technology, State Intellectual Property Office, National Development and Reform Commission, Guangdong Intellectual Property Office leaders, attended the forum and delivered speeches. Report on Patents Trend of Information & Technology (2017) was also issued on the forum.
 
2017 IPR Nanhu Forum Concludes in Shanghai
From April 15 to 16, in order to promote the modernization process of building intellectual property powerful country, 2017 IPR Nanhu Forum: International Conference of "New Developing Idea and the Rule of Law Modernization of Intellectual Property Rights" was held in shanghai. People from various areas, including well-known IP experts from the US, China etc., administrative officers from Sate Intellectual Property Office, State Administration for Industry & Commerce and local IP competent department and practical workers from the Supreme People’s Court of the People’s Republic of China, joined together to offer advice and suggestions for IP industry.
 
Elites Share Views on the 1st Congress of 2017 China-Korea IP Seminar
On April 18, “the 1st Congress of 2017 China-Korea IP Seminar” jointly held by Korea-China Intellectual Property Rights Seminar, Korea Copyright Committee and Korea University was held in Korea University. Themed by practical problems and solutions of the intellectual property between Korea and China, more than 50 attendees from universities and IP administrations of Korea and China shared the local practical problems and experiences of IP affairs.
 
May 2017
The case of Tencent Company v. Baofeng Company concerning infringement upon the right of dissemination via information network
On May 16, Beijing Municipal Shijingshan District People's Court pronounced the judgment on the case of Shenzhen Tencent Computer System Co., Ltd. (Tencent Company) v. Baofeng Group Co., Ltd.(Baofeng Company) concerning the latter's infringement upon the former's right of dissemination via information network in its dissemination of "the Voice of China (Season 3)". In this case, Shijingshan Court determined the amount of compensation by combination of the following factors: (1) "the Voice of China (Season 3)" with high reputation, wide influence and high commercial value in China, (2) After"the Voice of China (Season 3)" was included in the early warning list of 36 major films and TV works released by Copyright Protection Center of China and the early warning notification repeatedly issued by Copyright Protection Center of China, Baofeng Company disregarded the legal rights and interests of the others and still committed infringement by the program involved in the case during the period of hot dissemination, showing a very obvious subjective malice in its infringement and (3) A deduction can be made that Baofeng Company made a relative large amount of profit from its infringement because of the high notability of its website, the wide coverage of its advertisers and its advertisements on the programs involved in the case. It is understood that Tencent Company had issued letter of notice four times to Baofeng Company requiring the latter withdrawal of the program. However, Baofeng Company still refused to stop such infringement. The court ruled that, because the economic loss suffered by Tencent Company from Baofeng Company's infringement obviously exceeded 500,000Yuan, the upper limit of the statutory compensation amount provided for in China's Copyright Law, a discretionary judgment shall be rendered that the defendant shall make a compensation of 1 million Yuan as economic loss and 10,000 Yuan as reasonable cost (a total amount of 6.06 million Yuan) to the plaintiff in order to make up for the economic loss suffered by the obligees and to punish the malicious infringement.
 
China's New Trademark Registration Information Inquiry System Performs a Pilot Run
According to the requirements of Opinions of the SAIC on Vigorously Promoting Facilitation Reform of Trademark Registration, the new edition trademark registration information inquiry system started a pilot run on May 5, 2017, in order to improve the service level of China's trademark website and promote the speed upgrade of the inquiry system. The users can visit the website for trademark information inquiry and from May 5 on, the old edition website has been unavailable.
 
C919 Aircraft Owning Independent IP Right Commences Its Maiden Flight
On May 5, China’s first single-aisle trunk liner developed by China completely in accordance with the world advanced standards completed its maiden flight at Shanghai Pudong International Airport successfully at 14:00 on May 5, 2017. C919 owning independent intellectual property is a symbolized project of building Innovative Country, with the efforts made by the most brilliant design talents and engineering talents. The development staff, focusing on advanced aerodynamic configuration, structural materials and airborne system, planed 102 technical key problems to tackle, including aircraft and engine integration, fly-by-wire system control law, active control technology etc.
 
SIPO and WIPO Signs Agreement to Strengthen Belt and Road IPR Cooperation
On May 14, in the course of the Belt and Road Forum for International Cooperation, SIPO Commissioner Shen Changyu and WIPO Director General Francis Gurry jointly signed the People's Republic of China and WIPO Agreement to Strengthen Belt and Road IPR Cooperation in Beijing.
 
This is the first known document on Belt and Road IPR Cooperation signed between the Chinese government and an international organization. This marks the launch of a comprehensive and in depth cooperation centered on Belt and Road Initiative between the two sides, meant to promote the development of IPR in countries and regions along the Belt and Road.
 
Tencent Music and Universal Music Reaches an Strategic Copyright Cooperation Agreement
On May 16, Tencent Music Entertainment Group and Universal Music Group reached the Strategic Cooperation Agreement of Digital Copyright Distribution in China Mainland, jointly developing the music market in China in the future. Tencent Music will become the only partner of Universal Music's distribution business in China Mainland. Henceforth, Universal Music, Warner Music and Sony Music - three biggest music group in the world have all achieved strategic copyright cooperation with Tencent Music.
 
June 2017
The case concerning the invention patent right dispute over industrial sewing machine
On June 30, Shanghai Intellectual Property Court pronounced a judgment of first instance on the case of dispute over the right to invention patent. The plaintiff, Brother Industries, Ltd., is an industrial sewing machine equipment manufacturer with certain international reputation and the patentee of the invention patent "intermittent presser foot up-down driving device and sewing machine". In 2010, the plaintiff discovered a large number of sewing machines manufactured by the defendant, a mechanical and electrical company, in the Chinese market, all of which were within the scope of patent protection according to its disassembling and comparison of such products.The plaintiff asserted that the defendant, without the permission and for production or business purposes, manufactured, used, sold and offered to sell the allegedly infringing products, which constituted infringement upon the plaintiff’s patent and caused heavy economic loss to the plaintiff. It brought an action in the court, requiring a judgment to order the defendant to immediately stop infringement upon its invention patent right, to destroy the manufactured infringing products and semi-finished products that have been produced, to destroy the molds and special equipment used for the production of the infringing products, and to make a compensation of 34 million Yuan to the plaintiff as economic loss and reasonable cost.
 
Shanghai Intellectual Property Court ruled that, although the plaintiff asserted that compensation amount should be calculated according to the profit obtained by the defendant from October 2010to February 2017, the accurate profit could not be calculated according to such method; that because the evidences submitted to the court were sufficient to prove the wide range, the long duration and the huge profit of the plaintiff’s infringement, according to which the profit from the infringing products was far more than 1 million Yuan. That there should be a discretionary judgment according to the evidences submitted to the court that the defendant’s profit from the infringement was 5million Yuan; The defendant shall immediately stop infringement upon the patent right enjoyed by the plaintiff, Brother Industries, Ltd., from the date of the judgment takes effective, and that the defendant shall make a compensation of 5.5 million Yuan to the plaintiff, Brother Industrial Co., Ltd.,as economic loss and reasonable cost.
 
The 2nd Phase of China IP Judges Forum (Series) Offers an Opportunity to Communicate with Judges
On June 2, China IP held the 2nd Phase of China IP Judges Forum (Series) to further strengthen the deep communication between judges and experts, scholars etc. The former president of the IP Tribunal of Jiangsu Province Higher People's Court, Ms. Song Jian gave a lecture at the forum with the theme of "Analysis of Classical Trademark Cases". Li Yang, professor of Law School of SUN YAT-SEN University hosted the link of expert discussion and interaction, aiming to study on the confirmation of secret points in trademark secret, calculation of damage compensation in trademark secret infringement etc.
 
The 13th Five-Year Plan for IP Talents Distributed by SIPO
On June 2, SIPO established and released the 13th Five-Year Plan for IP Talents, which indicated that a team of high-level IP talents should be set up, focusing on IP leading talents, millions of talents program and a hundred young talents. With endeavor, the team should have IP leading talents who possess solid theoretical knowledge foundation, have relative high practical skills, relative rich experience and competitiveness in the international stage, and play a full role of the leading and demonstration function as leading talents, building a talent team of leading talents.
 
In-depth Discussion on IP Protection and Innovative Development at 2017 Annual Conference of China IP Law Association
 
On June 3, 2017 Annual Conference of China IP Law Association held by China IP Law Association and co-organized by Renmin University of China opened grandly in Beijing International Conference Center. A total number of more than 500 IP professionals from universities and institutes attended the conference, which developed a study of legislative issues of IP industry in China and searched for relevant solutions, with the theme of "IP Protection and Innovative Development Under the Background of Globalization".
 
The Patent Public Announcement to be Published Twice a Week
SIPO announced that the publication period of patent public announcement will be adjusted to twice a week from once a week from June 6, 2017, in order to provide high- quality and high efficient service for the applicants and patentees. Every Tuesday and Friday is the publication date. The above adjustment involves with the application announcement of invention patent, license announcement and routine announcement of three kinds of patents — invention patent, utility patent and design patent.
July 2017
China's first case against fake shop on e-commerce platform
On July 20, Shanghai Municipal Fengxian District People's Court publicly pronounced a judgment of first instance on the case of Taobao.com v. a shop for selling fake goods on the former's platform. The court ruled that the defendant's sale of fake goods caused damage to Taobao's goodwill and that the defendant shall make a compensation of 120,000 Yuan to Taobao.com. It is reported that this is the first case of e-commence platform v. a shop for selling fake goods on its platform whose judgment has been publicly pronounced. The defendant, a Yao,sold "Royalcanin cat food" with fake materials through his shop on the Taobao.com. Taobao.com brought the suit in the court according to Taobao Service Agreement signed by both parties,explaining that "the user shall not sell goods infringing others' intellectual property or other legitimate rights and interests on Taobao platform" and "if the user's acts cause damage to Taobao or its affiliates and Alipay company, (including the direct economic loss, loss of goodwill and external payment as compensation, settlement, legal fees, litigation cost and other indirect economic losses it suffered), the user shall make a compensation of all the above losses to Taobao or its affiliates". The court, after trial, ruled that the defendant's sale of fake goods caused damage to the goodwill of the plaintiff, that there should be a comprehensive consideration of the factors such as the duration the defendant operated, the goods' prices and the profits from such sale, and that the defendant shall make a compensation of 100,000 Yuan as economic loss and 20,000 Yuan as reasonable cost to the plaintiff Taobao.com.

Beijing-Tianjin-Hebei Jointly Promotes Synergic Development Activity Ends Successfully
From July 5-6, “Beijing-Tianjin-Hebei Jointly Promotes Synergic Development” Activity held by the State Intellectual Property Office of the P.R.C. (SIPO) and organized by the intellectual property office of Heibei province, which gathered national brand IP service agencies in Heibei, ended successfully. There are 4 parts in this activity including Speech of national brand IP service agencies, Negotiation between brand IP service agencies and enterprises and public institutions, Communication and Discussion between brand IP service agencies and local agencies, and Brand Agencies’ Research into Baoding High-tech zone. This activity in Baoding, Hebei is the 9th connecting activities held by the SIPO and more activities are expected to be held.
 
Beijing Lehui Tianxia Infringing the Trademark Right of One Piece to Pay 30 Million RMB Compensation
On July 12, Beijing Administration for Industry and Commerce (BAIC) releases a part of trademark infringement cases. Among them, some mobile games infringing the trademark right of One Piece, which became the first major case of infringement punishment in the internet industry. Beijing Lehui Tianxia Technology Co., Ltd. provided the download path to "Pocket One Piece", "Arcade One Piece" without authorization, taking advantage of 360 Mobile Assistant, "Wandoujia" and other mobile software operation platforms. Haidian Office of the Beijing Administration for Industry and Commerce ordered the involved party to pay 29.37 million Yuan.
 
China-Africa High-Level Seminar on IP System and Polices Successfully Held
The China-Africa High-Level Seminar on IP System and Polices organized by State Intellectual Property office (SIPO) and World Intellectual Property Organization (WIPO) was held in Guangdong on July 24, with the participation of 50 senior representatives from WIPO, ARIPO and its member states, Angola, Egypt, Ethiopia, Morocco, Nigeria, IP office of South Africa and China IP community. The seminar was themed on IP system development and practice, IP promotion and service, public IP awareness raise.
 
Sino-South Korea Symposium Calls for Increased International Cooperation in Copyrights
Sino-South Korean Symposium held in Dalian, Liaoning province in late July gathered experts calling for increased international cooperation in copyrights. With the increasing popularity of new media in the fields of movies, publications, games and animation, copyright protection is also facing severe challenges from the internet. The symposium participants said that the related system therefore needs to adapt itself to the latest technological developments, encourage legal innovation and balance the interests of copyright owners and users.
 
August 2017
The case of Guangdong Jiaduobao Drink & Food Co., Ltd. v. Guangzhou Wong Lo Kat Health Industry Co., Ltd. concerning the dispute over the latters use of special name, package and decoration of well-known goods without permission
On August 16, the Supreme People's Court of P.R.C. publicly pronounced the judgment on the appealed case of Guangdong Jiaduobao Drink & Food Co., Ltd. (Jiaduobao Company) v. Guangzhou WongLo Kat Health Industry Co., Ltd. (Wong Lo Kat Company) and the appealed case of Guangdong Jiaduobao Drink & Food Co., Ltd. v. Guangzhou Pharmaceutical Group Co., Ltd. (Guangzhou Pharmaceutical Group) concerning the unauthorized use of special package and decoration of well-known goods.
 
On July 6, 2012, Guangzhou Pharmaceutical Group and Jiaduobao Company respectively brought lawsuits in the court. Both of them asserted that they have the rights and interests to the special package and decoration of well-known goods "canned herbal tea drink Wong Lo Kat", and based on such assertion, claimed that the other party infringed upon their package and decoration by producing andselling such drink. Guangdong Province Higher People's Court ruled in its judgment of first instance that Jiaduobao Company's production and sale of canned herbal tea drink containing "Wong Lo Kat"or "Jiaduobao" on one side and "Jiaduobao" on both sides constituted infringement; that Jiaduobao Company shall stop the infringement, publicize an announcement to eliminate ill effects and make a compensation of 150 million Yuan as economic loss and 0.26 million Yuan as reasonable cost for right maintenance to Guangzhou Pharmaceutical Group. Jiaduobao Company refused to accept such judgment and filed an appeal with the Supreme People's Court of P.R.C. The Court ruled in its final judgment that both Guangzhou Pharmaceutical Group and Jiaoduobao Company have made important contributions to the formation of the rights and interests to the package and decoration of the "canned herbal tea drink Wong Lo Kat" involved in the case; that both parties may co-enjoy such rights and interests under the condition that they cause no damage to the legal rights and interests of the other party.
 
 
Measures on Patent Priority Examination Management Implemented
The Measures on Patent Priority Examination Management, recently issued by the State Intellectual Property Office, has taken into effect since August 1. The new Measures expands the scope of application of the priority examination, covers applications of invention patents in the substantive examination stage, utility models and designs as well as reexamination and invalidation procedures of the above three types of patents. It improves application conditions of priority examinations and expands them. Additionally, it also simplifies the application procedures of the priority examination and optimizes its dealing procedures.
 
Research Findings of IP Regional Layout in China Released
On August 2, research findings of IP regional layout in China was released in the training class of regional IP strategy implementation. The research findings include Theoretical and Political System of Regional IP Layout in China and Research Report of Regional Layout in China (2017), with the guidance of the State Intellectual Property Office (SIPO) and the compilation of the team led by Professor Liu Chaofeng from Dalian University of Technology. The core target of regional IP layout is to establish a resource-allocation- oriented directory through overall analysis of local IP resource elements.
 
Alibaba and Kering Jointly Protects Their IP
On August 3, Alibaba Group and its affiliated enterprise Ant Financial achieved a breakthrough agreement with French Luxury Group - Kering Group on joint protection over their intellectual property. They will initiate a joint action aiming at infringers online and offline, to provide consumers a brilliant experience and reliable environment with great efforts. As part of the agreement, Kering has agreed to cancel the litigation filed to the Court in New York against Alipay - the subsidiary company of Alibaba Group and Ant Financial.
 
China and Tajikistan Vows to Beef up IPR Cooperation
On August 31, under the witness of Chinese President Xi Jinping and President of Tajikistan Emomali Rakhmon, the Memorandum of Understanding between the Government of the People's Republic of China and the Government of the Republic of Tajikistan on Cooperation in the Field of Intellectual Property was signed in Beijing. The MOU noted that, the Parties are recognizing the significant role of intellectual property in enhancing the competitive edge of enterprises and countries and in encouraging economic and social development, etc.
 
September 2017
The case of Hangzhou Aupu Electrical Appliance Co., Ltd. v. Yunnan Aopu Weiye Metallic Building Materials Co., Ltd. and Zhejiang Modern New Energy Co., Ltd. concerning trademark invalidation
On September 25, 2017, the Supreme People's Court of P.R.C. issued Administrative Ruling in Writing on the case of Hangzhou Aupu Electrical Appliance Co., Ltd. (Hangzhou Aupu) v. Yunnan Aopu Weiye Metallic Building Materials Co., Ltd. and Zhejiang Modern New Energy Co., Ltd., piercing the parities' competition forthe right to trademark " 奥普 Aopu": the malicious registration of " 奥普 Aopu" trademark shall be invalid.In November 2009, Hangzhou Aupu requested Trademark Review and Adjudication Board to declare that" 奥普 aopu" was invalid. In July 2015, the Board, after nearly six years of examination, rendered a ruling that the " 奥普 aupu" invoked by Hangzhou Aupu was a well-known trademark, and that the disputed trademark" 奥 普 aopu" should be maintained because of insufficient evidences, the expiration of five years upon the registration of the requested disputed, the non-existence of similarities between the verified and approved metallic building materials and the verified and approved goods to use the invoked trademark and the impossibility of causing confusion or mistake, the long co-existence of the disputed and invoked trademarks and the continually established 13 years of stable market order. Hangzhou Aupu refused to accept such ruling and brought the administrative lawsuit in Beijing Intellectual Property Court. In June 2016, Beijing Intellectual Property Court, after trial, ruled that the registered trademark " 奥普 aupu" invoked by Hangzhou Aupu Electrical Appliances Co., Ltd. was a well-known trademark; that there was malice in the registration of disputed trademark " 奥普 aopu" which may not be limited by the five years period for dispute settlement; that there might be confusion or mistake and there was no way to establish stable market order because ofthe close relationship between the 6th category "metallic building materials" and the goods such as yuba(bath heater) verified and approved to use such well-known trademark, due to which the ruling rendered by the Board was set aside. On January 2, 2017, Beijing Municipal Higher People's Court rejected the appealed claims submitted by Zhejiang Modern New Energy Co., Ltd. and affirmed the original judgment rendered by Beijing Intellectual Property Court. Yunnan Aopu Weiye Metallic Building Materials Co., Ltd. and Zhejiang Modern New Energy Co., Ltd. refused to accept such order and filed an appeal with the Supreme People's Court of P.R.C. who rejected the application for retrial. The battle over the trademark " 奥普 Aopu" came to an end and the trademark " 奥普 Aupu" became the winner.
 
The 8th China Patent Annual Conference Held Smoothly
The 8th China Patent Annual Conference themed "Patent Driving Development of Real Economy" was held in Beijing Conference Center on September 5 and 6, 2017. The event was hosted by Intellectual Property Publishing House Co., Ltd., with input from the State Intellectual Property Office, the Ministry of Industry and Information and World Intellectual Property Organization among others. It reached a new stage in terms of patent analysis, exploration and promotion. Elites from various industries shared their views on how to promote transformation and upgrade of Chinese real economy comprehensively.
 
The Biggest Internet Patent Case Between Sogou and Baidu Heard in Beijing
On Septem,,ber 14, the wellknown "biggest internet patent case" between Sogou and Baidu, in which Sogou claimed that Baidu had infringed its patent, was officially heard in Beijing Municipal IP Court after a preliminary investigation preparation. It is said that this round of court hearing focused on 7 patents involved in this case. With the formal trial of this case, this patent case in the Internet sector with the biggest scale will come to the final decisive period.
 
China-ASEAN Further Cooperate on IP Value Evaluation and Interaction Among IP Users
On September 18, the 8th Meeting of China-ASEAN Heads of Intellectual Property Offices was held in Suzhou, Jiangsu. Guests addressing the meeting were Shen Changyu, Commissioner of SIPO, Wu Zhenglong, Provincial Governor of Jiangsu People's Government, and Chairperson-in-office for the ASEAN Working Group on Intellectual Property Cooperation. The meeting deliberated and approved the China-ASEAN IPR Cooperation Plan for 2017-2018. According to the new work plan, the two sides will continue to cooperate in capacity building and IP value evaluation, explore the establishment of a review work sharing mechanism, and enhance interaction with IP users.
 
Suzhou DAOXIANGCUN Applies for Reconsideration After the Court's Decision of Sales Suspension
On September 22, Beijing Intellectual Property Court made a judgment concerning the trademark infringement case in the e-commerce platform between Beijing Daoxiangcun Foodstuff Co., Ltd. (Beijing Daoxiangcun) and Suzhou DAOXIANGCUN, that Beijing Sudao Food Industry Co., Ltd. and Suzhou DAOXIANGCUN Food Ltd. should immediately stop selling their pastries and cookies with the identification of " 稻香村" on the platform of JD.COM and TMALL. COM etc. On September 24, Suzhou DAOXIANGCUN stated in its official Weibo that they felt sorry that they could not accept this verdict and actively applied for reconsideration the next day.
 
October 2017
The case of Tencent Music (Beijing) Co., Ltd. v. Alibaba (Hangzhou) Cultural Creative Co., Ltd. concerning the infringement of rights of sound or visual recording producers
On October 25, Beijing Intellectual Property Court rendered a judgment of second instance on the case of Tencent Music (Beijing) Co., Ltd. (Tencent Music Company) v. Alibaba (Hangzhou) Cultural Creative Co.,Ltd. (Alibaba Cultural Company) concerning the defendant's infringement upon the rights of sound or visual recording producers.
 
Tencent Music Company claimed that it had the exclusive right of dissemination via information network and protection rights to the music album Daren SHOW in China's mainland during the authorization period, that Alibaba Cultural Company provided the online broadcast and download service of one recording product in the album on its Xiami Music platform without authorization which constituted infringement, and should bear the corresponding legal liability. Beijing Municipal Chaoyang District People's Court ruled in its judgment of first instance that Alibaba Cultural Company should stop the infringement involved in the case and make a compensation of 1,000 Yuan to Tencent Music as economic loss and reasonable cost.
 
Alibaba Cultural Company refused to accept the judgment of first instance and appealed to Beijing Intellectual Property Court, requesting the court to reject all the claims of Tencent Music Company. Tencent Music Company requested the court to affirm all of its claims of first instance. The court of second instance ruled that, according to the authorship on back cover of the music album in dispute,Certificate of Copyright and the Power of Attorney and List of Exclusive Authorizations, Tencent Music Company may by ascertained as having obtained the exclusive right of dissemination via information network in addition to the right to bring lawsuit against infringement in its own name. Therefore, Beijing Intellectual Property Court rejected the appeal and affirmed the judgment of first instance.
 
SIPO Commissioner Leads the Chinese Delegation for the 57th WIPO Assemblies
On October 2, the series of meetings of the 57th WIPO Assemblies kicked off in Geneva, Switzerland. SIPO Commissioner Shen Changyu led the Chinese delegation to attend the meetings. At the opening meeting, Shen Changyu briefed the latest IPR progress made by China in the past year and expressed appreciation towards WIPO for its achievement in various aspects. With China's firm coordination, Shen also hoped that the WIPO's committees could carry out work smoothly.
 
The Opinions on Medicines and Medical Appliances Innovation Published by the State Council to Establish the Patent Linking System
On October 8, General Office of the CPC Central Committee and General Office of the State Council printed and issued the Opinions on Deepening the System Reform of Review, Examination and Approval and Encouraging the Innovation of Medicine and Medical Appliances. They also dispatched a notice to require all of the involved departments in different districts to implement this documentation combining the practice. Highlights involving the patent issues include the establishment of prior review, examination and approval system of compulsory patent licensing medicines etc.
 
The Character of Xiongan to Be Protected
On October 10, SAIC issued the Opinions about Supporting the Planning and Construction of Xiong’an New Area in Hebei Province. About 11 pieces of opinions were targeted at the company registration, regular supervision, trademark and IPR as well as advertisement development, etc. in Xiong’an. SAIC stated clearly that the characters like ‘’Xiong'an China” and “Xiong'an” would be under protection in the trademark registration according to the law. SAIC proposed a separate opinion to support the advertisement development in Xiong’an New Area. SAIC supported the idea of constructing an advertisement industrial park of high starting point, high standard and high-level planning.
 
The 19th CPC National Congress Highlights the Importance of IP Protection
On October 18, the 19th National Congress of the Communist Party of China was held at the Great Hall of the People in central Beijing. The five-year CPC Congress is China's most significant political meeting, attended by more than 2,200 delegates from all walks of life. Stressing the importance of fostering a culture of innovation, and strengthening the creation, protection, and application of intellectual property, President Xi Jinping called for more efforts to cultivate a large number of world class scientists and technologists in strategically important fields, scientific and technological leaders, and young scientists and engineers, as well as high- performing innovation teams.
 
November 2017
The case of Beijing Watchdata System Co. Ltd. v. Hengbao Co., Ltd. concerning patent infringement
On November 29, the order of second instance on the case of Beijing Watchdata System Co. Ltd.v. Hengbao Co., Ltd. was publicly pronounced. According to the civil order rendered by Beijing Munucipal Higher People's Court [(2017) Jing Min Zhong No. 399], the civil judgment ((2015) JingZhi Min Chu Zi No. 441) rendered by Beijing Intellectual Property Court was set aside and Beijing Watchdata's complaint was rejected.
 
On October 13, 2014, Watchdata Company brought a lawsuit against Hengbao Company,asserting the latter's infringement upon its patent right and requesting the latter to stop such infringement and make a compensation of 1 million Yuan as economic loss and relevant litigation cost, and increased the compensation amount to 50 million Yuan on April 7, 2016. The court rendered a judgment of first instance on December 8, 2016 that the defendant should make a compensation of 49 million Yuan as economic loss and 1 million Yuan as reasonable cost for litigation to the plaintiff. The defendant Hengbao Company refused to accept such judgment and filed an appeal with Beijing Municipal Higher People's Court on December 21, 2016. In early November 2017, Patent Reexamination Board of SIPO rendered a ruling that the patent(No. ZL200510105502.1), "a physical authentication method and an electronic device" held by Watchdata Company was partially invalidated.
 
Beijing Municipal High People's Court ruled that the original judgment affirmed the plaintiff's claim of infringement according to the claims 1 and 16 involved in the case and that because the claims 1 and 16 involved in the case were announced by Patent Reexamination Board of SIPO as invalid during the period of second instance, the patent involved in the case has been in unstable condition even if Watchdata Company brought the administrative lawsuit against No. 33700 ruling and the complaint shall be rejected.
 
The National Brand IP Service Agencies To Promote Innovative Development of Anhui Action Carries Out Successfully
On November 2 to 3, The National Brand IP Service Agencies “To Promote Innovative Development of Anhui” Action held by State Intellectual Property Office of the P.R.C has been carried out in Hefei, Anhui province. Deputy director of department of planning and development of State Intellectual Property Office of P.R.C., Liu Jufang and other officials presented the launching ceremony. About 150 people from 23 brand (cultivation) service agencies, enterprises and public institutions and IP Services providers attended the event. This action includes several sections such as representations given by national brand IP Service Agencies, synergy talk to enterprises and public institutions and communications seminars with local services institutes.
 
CCTV Wins Exclusive Full Media Copyrights from FIFA in Its 17 Events in China Mainland
On November 7, CCTV, together with FIFA, convened a launching ceremony for their new round cooperation and announced that CCTV won exclusive full media copyrights from FIFA in broadcasting its events in China mainland from 2018 to 2022. It's reported that this contract includes 17 events such as 2018 Russia FIFA World Cup, the 2022 Qatar FIFA World Cup and so on. Peng Jianming, the deputy editor-in-chief of CCTV, during the launching ceremony said that FIFA has a group of firm fans in China, and in the coming two World Cup periods, CCTV will continue to expand its investment in providing a free high-quality TV broadcasting service for Chinese soccer fans via full media.
 
Tencent Launches New Logo and Font Design
On November 15, Tencent applied the new logo and released new fonts design which will include more than 7,000 Chinese characters and italic fonts of Japanese, Latin and English. These new fonts not only reflect confidence and dream of Tencent leading technological trend, but also express brand trait of Tencent externally during operation process of products and service, and through fonts pass brand character on to users. They will be applied in Chinese logo design and  all propaganda titles of each brands under Tencent, which helps Tencent unify brand concept and spirit around the world and provide consistent brand identified system.
 
IP Research Branch of Shanghai Judicial Think-Tank Institute Set up in Shanghai
On November 17, establishment of IP Research Branch of Shanghai Judicial Think-Tank Institute & Ceremony of Professionals Appointment kicked off in Shanghai Municipality Higher People’s Court. As the domestic pioneer, its foundation symbolizes general improvement of think-tank construction of Shanghai IP judicial protection. As chief judge of IP Trial Tribunal of Shanghai Municipality Higher People’s Court, Liu Junhua acts as the president and hosted founding ceremony who expects development direction of this Research Branch in the future: fully play research role of judicial think-tank, provide theoretical support for IP policy decision and expand IP judicial influence and build IP talents cultivating platform through think-tank.
 
December 2017
The case of Beijing Qihoo Technology Co., Ltd. and Qizhi Software (Beijing) Co., Ltd. v. Beijing Jiangmin New Science Technology Co., Ltd. concerning GUIs infringement
On December 25, Beijing Intellectual Property Court rendered the judgment of first Instance on the case of Beijing Qihoo Technology Co., Ltd. and Qizhi Software (Beijing) Co., Ltd. v. Beijing Jiangmin New ScienceTechnology Co., Ltd. concerning the latter's infringement by its graphical user interface (GUI) and rejected all the claims of the plaintiff. This is the first case involving GUI infringement in China up to the present.
 
The judge hearing the case believed that the patent involved in the case is "computer with GUI", and that the trial of the case should adhere to the current rules for the regulation of design infringement because there are no specific rules for the determination of infringement upon such kind of design.
 
There should be a combination of product and design in determination of the protection scope of design patents. In this case, the product involved in the patent is computer. Therefore, the product"computer" means a limited protection scope of the rights, according to which the plaintiff has the right to prohibit others from using the identical or similar designs on the products identical with or similar to computer. The alleged infringement is the act of providing users with infringing software and not within the category of design products. As a result, even if the user interfaces of the allegedly infringing software are identical with or similar to that of the patent involved, it can not be deemed as within the protection scope of the patent involved in the case. In addition, what the plaintiff sued was just the download of the allegedly infringing software to computer. There existed no act of manufacturing and offering to sell such software or sell the computer and no act of direct exploitation of the patent involved. Therefore, such act constitutes no infringement even if the software were used as the intermediary of the infringing product.
 
Kobalt Music Enters Into Strategic Licensing And Distribution Deal With Netease In China
On December 4, Kobalt Music and NetEase announced an agreement for the Chinese internet and music service company to license and distribute the Kobalt’s recording catalogs on its streaming platform, NetEase Cloud Music. NetEase will represent more than 600,000 songs and recordings from Kobalt's publishing and master catalogs. This includes the prestigious song catalogs of Paul McCartney (MPL) and Max Martin (MXM). Kobalt and NetEase will work closely to drive increased creative collaboration, development of artists, and enforced copyright protection for Kobalt writers and artists. This partnership will also improve transparency for creators and drive new access to data, reporting, and sustainable pay models.
 
The 7th BIP ASIA Forum Sees the MOU Signed between HKTDC and Chinas Eastern Tech-Transfer Center
On December 7, the Business of Intellectual Property Asia (BIP Asia) Forum 2017, jointly organised by the Hong Kong Special Administrative Region (HKSAR) Government, Hong Kong Trade Development Council (HKTDC) and Hong Kong Design Centre, was held in Hong Kong. Entitled “IP & Innovation: Propelling Change, Growth and Connectivity”, the BIP Asia Forum featured more than 80 heavyweight speakers and attracted over 2,500 participants. During the forum, the HKTDC signed a memorandum of understanding with National Eastern Tech-Transfer Center to forge a strategic partnership to promote IP information exchange and cooperation in Asia.
 
IP-Silk Road Russian-Chinese IP Center Established in December 17
On December 17 , Russia and China established IP-Silk Road Russian-Chinese IP Center in Beijing whose aim is to integrate two countries’ innovative ability. Based on the IP Center, two countries’ inventors can use the database of global brand, gain support of application for invention patent and trademark registration and solve related disputes. It helps us to improve the quality and reliability of patent and effectively settle relevant problems of IP protection, avoid malicious competition and improve the potential of commercialization of technology and invention.
 
20 Chinese Patented Gold Awards Granted in the 19th Ceremony for Award for Chinese Outstanding Patented Invention & Industrial Design
On December 13, the 19th Ceremony for Award for Chinese Patented Invention & Industrial Design, jointly hosted by SIPO and WIPO, was held in Beijing. Total 25 gold awards were granted, including 20 for Chinese patented inventions and 5 for Chinese industrial designs. 870 honorable mentions were granted, with 802 for Chinese patented invention, 68 for Chinese industrial design. Relevant products or engineering projects of the 25 gold award patents have generated great profits from the date patent implementation to the end of 2016, with new sales of 93.9 billion Yuan, newly increased profits of 9.6 billion Yuan and newly export sales of 24.4 billion Yuan.

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