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{{Short description|none}}
Intellectual property rights have been acknowledged and protected in the ] since ]. China has acceded to the major international conventions on protection of IPRs. Domestically, protection of intellectual property law has also been established by government legislation, administrative regulations, and decrees in the areas of ], ] and ]. This has led to the creation of a comprehensive legal framework to protect both local and foreign intellectual property.
{{Redirect2|Piracy in China|Chinese piracy|maritime piracy in China|Piracy#East Asia|allegations of intellectual piracy by China|Allegations of intellectual property theft by China}}
{{Use American English|date=July 2013}}
{{Use dmy dates|date=February 2020}}


'''Intellectual property rights''' (IPRs) have been acknowledged and protected in ] since 1980. China has acceded to the major international conventions on protection of rights to ]. Domestically, protection of intellectual property law has also been established by government legislation, administrative regulations, and decrees in the areas of ], ], and ].
Nevertheless, violation of intellectual property is still common, due to weak law enforcement. China's record is still poor and has attracted criticism from foreign investors and their governments, especially the ].


China first began accepting foreign IP concepts when foreign countries forced the Qing dynasty to accept them as part of the bilateral treaties that followed the ]. The early People's Republic of China abolished the statutes enacted by China's Nationalist government and adopted an approach to copyright, trademark, and patent issues more consistent with the model of the Soviet Union. Chinese policymakers became interested in integrating into the global IP framework as the government sought to import more technology in the 1970s.
== International conventions ==


In the 1980s, China began to join international treaties on IP issues. After joining the World Trade Organization in 2001, it assumed IP obligations under the TRIPS Agreement and revised its domestic laws to conform to the TRIPS standards. Internationally, China's view is that the World Intellectual Property Organization (WIPO) should be the primary international forum for IP rule-making. Generally, China's approach internationally is to advocate for maintaining the TRIPS standards, sometimes joining with other developing countries to oppose an increase in obligations beyond TRIPS.
In 1980, China became a member of the ] (WIPO).


China's legal framework for intellectual property protection is developing rapidly as China becomes a source of innovation, although its IP framework is still less developed than most industrialized nations as of 2023. The general trend of its IP system has been to develop towards increasing similarity with the E.U. and U.S. systems.
It has patterned its IPR laws on the ] and the ] (TRIPS).


==International framework==
China acceded to the ] on 14 November 1984 and became an official member on 19 March 1985. China also acceded to the ] in June 1989.
Historically, China began accepting foreign IP concepts at the start of the 20th Century, abolished them when the PRC was established, and began acknowledging IP rights during ].<ref name=":4" />{{Rp|page=15}} In 1902, the Qing dynasty agreed to the ] and agreed to establish domestic laws on IP in bilateral treaties that followed.<ref name=":4" />{{Rp|pages=16–17}}


After the ] to the People's Republic of China, China increasingly sought to import technology.<ref name=":4" />{{Rp|page=18}} The desire to important technology prompted China to begin integrating itself into the global IP framework.<ref name=":4" />{{Rp|page=18}}
In January 1992, China entered into a ] with the United States government to provide copyright protection for all American "works" and for other foreign works. Several bilateral negotiations have been conducted between the two governments. At some points, trade sanctions were threatened by the two governments over IPRs issues. At the conclusion of negotiations in 1995, the ''Sino-US Agreement on Intellectual Property Rights'' was signed. In June 1996, the two governments entered into another agreement protecting American intellectual property in China.


In 1980, China became a member of the ] (WIPO). As of at least 2023, China's view is that WIPO should be the primary international forum for IP rule-making.<ref name=":4" />{{Rp|page=184}} China acceded to the WIPO-administered<ref name=":4" />{{Rp|page=184}} the ] on 19 December 1984 and became an official member on 19 March 1985.<ref>{{Cite web |title=Treaties and Contracting Parties > Contracting Parties > Paris Convention > China |url=https://www.wipo.int/treaties/en/remarks.jsp?cnty_id=209C |access-date=2019-11-20 |website=wipo.int}}</ref> China also acceded to the WIPO-administered<ref name=":4" />{{Rp|page=184}} ] in June 1989.<ref>{{Cite web |title=WIPO-Administered Treaties > Contracting Parties > Madrid Agreement (Marks) |url=https://www.wipo.int/treaties/en/ShowResults.jsp?lang=en&treaty_id=21 |access-date=2019-11-20 |website=www.wipo.int}}</ref> China is also a signatory to the WIPO-administered ], which enhances performers' intellectual property rights.<ref name=":4" />{{Rp|pages=185–187}} It is the only IP treaty named after a Chinese city.<ref name=":4" />{{Rp|page=185}}
Generally, once China has acceded to an international treaty, the People's Courts can quote the provisions of the treaty directly in deciding an intellectual property infringement case, without reference to a Chinese domestic law by which the treaty provision is incorporated.


China acceded to the ] in 1992<ref>{{Cite web |title=From Beijing to Berne – Beijing Review |url=http://www.bjreview.com.cn/quotes/txt/2007-07/24/content_69996.htm |access-date=2023-06-07 |website=www.bjreview.com.cn}}</ref> and assumed its obligations under the ] (TRIPS Agreement) when it joined the ] in 2001.<ref>{{Cite journal |last=Yu |first=Peter K. |date=2018-02-01 |title=When the Chinese intellectual property system hits 35 |url=https://www.elgaronline.com/view/journals/qmjip/8-1/qmjip.2018.01.01.xml |journal=Queen Mary Journal of Intellectual Property |language=en-US |volume=8 |issue=1 |pages=3–14 |doi=10.4337/qmjip.2018.01.01 |s2cid=54060810 |issn=2045-9807|doi-access=free }}</ref> China's adoption of TRIPS incentivized Chinese policymakers to improve the country's regulatory structure to encourage national innovation and resulted in significant domestic policy reforms.<ref>{{Cite book |title=China and the WTO: A Twenty-Year Assessment |publisher=] |year=2023 |isbn=9781009291804 |editor-last=Gao |editor-first=Henry |doi=10.1017/9781009291804 |editor-last2=Raess |editor-first2=Damian |editor-last3=Zeng |editor-first3=Ka |doi-access=free}}</ref>{{Rp|page=2}} The TRIPS agreement is also the basis of China's domestic IP law, as China conformed its IP law, including regarding patents, trademark, and copyright, to the TRIPS standards.<ref name=":4" />{{Rp|page=23}}
== National legal framework ==


Following the TRIPS Agreement, a recurring issue for the WTO has been discussion over the creation of a ]s register (protecting GI wine and spirits) or a geographical indication extension which would go beyond wines and spirits.<ref name=":4" />{{Rp|pages=61–63}} China's regional specialties are generally more geared towards agricultural products rather than wines and spirits, and tends to favor a geographical indication extension.<ref name=":4" />{{Rp|page=63}}
The legal framework for protecting intellectual property in the PRC is built on three national laws passed by the ]: the ''Patent Law'', the ''Trademark Law'' and the ''Copyright Law''. A great number of regulations, rules, measures and policies have been made by the NPC Standing Committee, the ] and various ministries, bureaux and commissions. The circulars, opinions and notices of the Supreme People's Court also form part of the legal framework.


IP was an important consideration during the course of China's negotiations to re-enter the ] (GATT).<ref name=":4" />{{Rp|page=19}}
=== Trademark law ===


In 2012, China hosted the China-] Seminar on the Protection of Intellectual Property Rights, ], and Genetic Resources.<ref name="Loh">{{Cite book |last=Loh |first=Dylan M.H. |title=China's Rising Foreign Ministry: Practices and Representations of Assertive Diplomacy |publisher=] |year=2024 |isbn=9781503638204 |pages=161}}</ref>
The ''Trademark Law of the People's Republic of China'' (&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#21830;&#26631;&#27861;) sets ouot general guidelines on administration of trademarks, protection of trademark owners' exclusive rights and maintenance of quality of products or services bearing the registered trademarks, "with a view to protecting consumer interests and to promoting the development of the socialist commodity economy."


As of at least 2023, China's general approach in addressing IP issues in international forums is to maintain TRIPS Agreement standards and sometimes joining the proposals of other developing countries to oppose further increases in IP standards.<ref name=":4" />{{Rp|page=25}} China has also been trending towards increased alignment with the positions taken by developed countries.<ref name=":4" />{{Rp|page=27}} The global regulation of IP involves multiple non-hierarchical international institutions, and China sometimes adopts different or inconsistent proposals in different forums.<ref name=":4" />{{Rp|pages=25–27}} Since the creation of the ] (MOFCOM) in 2003, MOFCOM has generally been China's lead negotiator on IP issues in international forums.<ref name=":4" />{{Rp|pages=210–211}}
Adhering to Article 4 of the Paris Convention, the Chinese government passed the ''Provisional Regulations Governing Application for Priority Registration of Trademarks in China'' to grant the right of priority to trademark applications submitted in PRC by the nationals of the Paris Convention member countries.


As part of the ] (LMMC), China promotes international negotiations on the disclosure of the origin of genetic resources in the context of patents.<ref name=":4" />{{Rp|pages=83–84}} China is involved in discussions on the protection of genetic resources in a variety of international forums, including the TRIPS Council, the WIPO Intergovernmental Committee, and in its free-trade agreements.<ref name=":4" />{{Rp|page=110}} As of at least 2023, multilateral negotiations on the disclosure obligation feature strong disagreements between LMMC, EU, and the United States regarding whether a disclosure obligation is necessary and if so, how one should be implemented.<ref name=":4" />{{Rp|page=83}}
=== Copyright law ===


==National legal framework==
Copyright law is mainly governed by the ''Copyright Law of the PRC'' (&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#33879;&#20316;&#26435;&#27861;) and the ''Implementing Rules for the Copyright Law of the PRC'' (&#33879;&#20316;&#26435;&#38598;&#20307;&#31649;&#29702;&#26465;&#20363;), both adopted and promulgated in 1990.
China's legal framework for intellectual property protection is developing rapidly as China becomes a source of innovation, although its IP framework is still less developed than most industrialized nations as of 2023.<ref name=":3">{{Cite book |last=Lewis |first=Joanna I. |title=Cooperating for the Climate: Learning from International Partnerships in China's Clean Energy Sector |date=2023 |publisher=The ] |isbn=978-0-262-54482-5 |location=Cambridge, Massachusetts |doi=10.7551/mitpress/11959.001.0001|s2cid=167841443 }}</ref>{{Rp|page=2}} The general trend of its IP system has been to develop towards increasing similarity with the E.U. and U.S. systems.<ref name=":4" />{{Rp|page=267}}


China established its first ''Trademark Law'' in 1982, its ''Patent Law'' in 1984, and its ''Copyright Law'' in 1990.<ref name=":4" />{{Rp|page=19}} It comprehensively amended these laws after it joined the World Trade Organization in 2001.<ref name=":4" />{{Rp|page=52}}
In order to implement the Berne Convention and the ], as well as bilateral copyright treaties signed between China and other foreign countries, the Chinese government passed the ''Regulations on Implementation of International Copyright Treaties'' (]). These have given foreign copyright holders more safeguards in terms of protecting their rights and interests in China.


===Trademark law===
Before China acceded to the Berne Convention, computer software was not treated as a kind of literary work under the ''Copyright Law''. In May 1991, the State Council passed the ''Computer Software Protection Rules''. Based upon these rules, the ''Measures for Computer Software Copyright Registration'' were formulated by the then Ministry of Engineering Electronics Industries. These regulations provide a set of rules covering the definitions of various terms and the registration, examination and approval of computer software programmes in China. At the moment both the Berne Convention and these two domestic computer regulations are co-effective. However, in the event of an inconsistencies, the Berne Convention prevails.
{{Main|Trademark law of China}}


In 1950, China issued ''Procedures for Dealing with Trademarks Registered at the Trademark Office of the Former Kuomintang Government'' which eliminated all trademarks registered under the Nationalist government.<ref name=":5" />{{Rp|page=59}} ''Provisional Regulations on Trademark Registration'', issued in the same year, allowed registration of foreign trademarks.<ref name=":5" />{{Rp|page=59}} Few holders used the procedures.<ref name=":5" />{{Rp|page=59}}
Though the Berne Convention does not require any copyright registration, it is necessary to register copyright for literary works in China, in order to avoid any disputes with regard to ownership. Neverthless, registration procedures are not compulsory in order to receive copyright protection.


In conformity with the TRIPS Agreement, China amended the ''Trademark Law'' in 2000.<ref name=":4" />{{Rp|page=20}}
=== Patent law ===


China uses a first-to-file trademark registration system.<ref name=":Zhang" />{{Rp|page=230}} Trademark registrants do not need to demonstrate their prior use of a trademark.<ref name=":Zhang" />{{Rp|page=230}}
The PRC passed the ''Patent Law of the PRC'' (&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#19987;&#21033;&#27861;) to encourage invention-creation and to promote the development of science and technology. It has been further clarified by the ''Implementing Regulations of the Patent Law of the PRC''. Compared with other rules of implementation in the area of intellectual property, these regulations provide a more comprehensive piece of legislations comprised of 96 provisions.


=== Other legislation === ===Copyright law===
{{See also|Software copyright in China}}


====History====
Apart from the major legislation on trademarks, copyright and patents, a few other laws and regulations have been passed to deal with intellectual property related issues. In 1986, the ''General Principles of Civil Law'' was adopted to protect the lawful civil rights and interests of citizens and legal persons, and to correctly regulate civil relations. Articles 94-97 of the ''General Principles of Civil Law'' deal with intellectual property rights of Chinese citizens and legal persons.
The concept of copyright in China has been found to exist at least as far back as the ] (960–1279). The publishers of a work at that time wrote on the final page of a text that it could not be copied. The first modern official code was implemented in 1910 at the end of the ] (1644–1912). A new version was issued in 1915 during the ] of the ].<ref name="Yiping">{{cite web |url=https://escholarship.org/content/qt8p06h5m1/qt8p06h5m1.pdf |title=The 1990 Copyright Law of The People's Republic of China |last=Yang |first=Yiping |publisher=Pacific Basin Law Journal |date=1993|access-date=February 26, 2021}}</ref> On May 23, 1928, the ] enacted a copyright law that covered books, music, paintings, photographs, engravings, and models. The copyright for most items existed for 30 years after the death of the author. Translations of literary works had a 20-year copyright and photographs had a 10-year copyright after publication. Corporate copyright existed for 30 years after publication.<ref>{{cite book |last=Koepfle |first=Leo |date=January 1937 |title=Copyright Protection Throughout the World Part VII Near East, Far East, Africa, Asia, Surinam and Curacao |url=https://books.google.com/books?id=zVKQyc1c8koC |publisher=US Department of Commerce |page=2}}</ref>


The People's Republic of China abolished the Republic of China statutes in 1949.<ref name=":5">{{Cite book |last=Alford |first=William P. |title=To Steal a Book is an Elegant Offense: Intellectual Property Law in Chinese Civilization |date=1995 |publisher=] |isbn=978-0-8047-2270-4 |series=Studies in East Asian Law series |location=Stanford (Calif.) |doi=10.1515/9780804779296 |s2cid=246169874 |author-link=William P. Alford}}</ref>{{Rp|page=56}} The PRC found the Soviet intellectual model more consistent with traditional Chinese thinking than the Republic of China model, as the Soviet model accorded with the idea that through invention or creation, people engaged in social activities drawing on a body of knowledge that belonged to all people.<ref name=":5" />{{Rp|pages=56–57}} In contrast to patents and trademarks, the early PRC did not issue comparable copyright regulations.<ref name=":5" />{{Rp|page=59}} Instead, official policy in this area was set by resolutions passed in the early 1950s.<ref name=":5" />{{Rp|page=60}} These included editorial rules by which state publishing entities were encouraged to memorialize the author-publisher relationship in contracts which would cover submitting manuscripts, publication, and payment.<ref name=":5" />{{Rp|page=60}}
In the 1990s many more pieces of legislation were passed to perfect the intellectual property protection system. These include the ''Regulations on Customs Protection of Intellectual Property Rights'' (1995) and the ''Law Against Unfair Competition of the PRC'' (1993). The latter prohibited the passing off of registered trademarks, infringing trade secrets, the illegal use of well-known goods or names of other people, as well as other misleading and deceptive conduct. The ''Advertising Law of the PRC'' was passed in 1994 to prohibit the unfair, misleading and deceptive conduct involving patent advertising or other advertising activities in general.


A copyright statute was not adopted until 1990.<ref name="Yiping" /> WIPO provided technical assistance to China during the drafting of the 1990 Copyright Law.<ref name=":4" />{{Rp|page=183}}
== Legal implementation ==


====Current law====
To enforcement IPRs protection, an administrative system has been established within the government. After the reshuffle of the State Council in March 1998, the Patent Office became part of the State Intellectual Property Bureau, the Trademarks Office is still under the authority of the State Administration for Industry and Commerce. The Copyright Office falls within the State Administration for Press and Publication. A similar system exists at various levels of local government. Commonly, enforcement of IPRs will be carried out by local IPRs personnel, assisted by police from the local Public Security Bureau.
{{wikisource|Copyright Law of the People's Republic of China}}
The ''Copyright Law'' was amended in 2000 to ensure compliance with China's obligations under the TRIPS Agreement.<ref name=":4" />{{Rp|page=20}}


In 2015, the National Copyright Administration required all domestic online music platforms to remove unlicensed music or face severe sanctions.<ref name=":Zhang" />{{Rp|page=103}}
In order to handle cases of infringement of IPRs more efficiently, special intellectual property courts have been established in some cities and provinces. At the level of the Higher People's Court in Beijing, Shanghai, Guangdong, Fujian and Hainan, intellectual property courts have been separated from the economic division. Beijing, Shanghai and Tianjin have also established intellectual property courts within the Intermediate People's Court. In 1992, the ] established an intellectual property division.


An influential decision by the Beijing Internet Court has ruled that ]-generated content is entitled to copyright protection.<ref name=":023">{{Cite book |last1=Bachulska |first1=Alicja |url=https://ecfr.eu/publication/idea-of-china/ |title=The Idea of China: Chinese Thinkers on Power, Progress, and People |last2=Leonard |first2=Mark |last3=Oertel |first3=Janka |date=2 July 2024 |publisher=] |isbn=978-1-916682-42-9 |location=Berlin, Germany |pages=98 |format=EPUB |access-date=22 July 2024 |archive-url=https://web.archive.org/web/20240717120845/https://ecfr.eu/publication/idea-of-china/ |archive-date=17 July 2024 |url-status=live}}</ref>
Customs protection is another positivie mechanism in law enforcement with regard to IPRs. The ''Regulations on Customs Protection of Intellectual Property Rights'' (&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#30693;&#35782;&#20135;&#26435;&#28023;&#20851;&#20445;&#25252;&#26465;&#20363;), promulgated in June 1995, strengthened border control to stop counterfeited goods from coming into, or leaving, China.


=== Difficulties === ===Patent law===
{{Main|Patent law of China}}


In 1950, the PRC issued ''Provisional Regulations on the Protection of Invention Rights and Patent Rights.''<ref name=":5" />{{Rp|pages=57–58}} The PRC's early regulations provided for inventors' patent rights, but these were abolished fairly quickly under the view that patent rights were incompatible with socialism.<ref name=":4" />{{Rp|page=183}} China then followed the model of the Soviet Union's investor certificates, honorary titles that were granted to investors without remuneration.<ref name=":4" />{{Rp|page=183}} Just prior to the ], China completely abolished its patent regulations.<ref name=":4" />{{Rp|pages=17–18}}
The enforcement of protection of intellectual property rights is particuarly difficult in the PRC. Historically, intellectual property rights are something foreign to Chinese culture. Without adequate education with regard to IPRs, there is little awareness that infringement is a crime. For example, though the first intellectual property law was drafted in 1982, the first IPRs training centre was only established in 1996.


In 1984, China passed the ''Patent Law of the PRC'' to encourage invention-creation and to promote the development of science and technology.{{cn|date=May 2024}} The subsequent ''Implementing Regulations of the Patent Law of the PRC'' added clarification.{{cn|date=May 2024}}
Sometimes local protectionism may dilute the strength of central legislation or the power of law enforcement. For example, local government might not want to genuinely support the work of anti-piracy supervisors. It may create obstacles during IPRs investigation and assist local counterfeiters by letting them hide their production lines in safer places. When counterfeiters have good connections with local governmental or law enforcement officials, they can find an umbrella for their counterfeiting activitiy.


In addition to ] and ]s, ] are available under Chinese law.<ref name=":3" />{{Rp|page=140}} In cases of joint patentees, the default rule in China is that each patentee can grant nonexclusive license without the other joint patentees' consent.<ref name=":3" />{{Rp|page=140}} Joint patentees can avoid application of this default rule by agreement, however.<ref name=":3" />{{Rp|page=140}}
== Case law ==


As compared to the United States, China has more non-patentable matters.<ref name=":3" />{{Rp|page=140}} Pharmaceuticals and chemicals were not patentable under the 1984 Patent Law, but became patentable after the law was amended in 1992.<ref name=":4" />{{Rp|page=20}} A bilateral memorandum of understanding with the United States made this amendment to domestic law necessary.<ref name=":4" />{{Rp|page=20}} China accepted this requirement because it would have ultimately been necessary in order for China to re-enter GATT.<ref name=":4" />{{Rp|page=21}}
According to Zheng Chengsi, the first major copyright case involving a foreign party was '']''.


The Patent Law was again amended in 2000 to ensure compliance with China's obligations under the TRIPS Agreement.<ref name=":4" />{{Rp|page=20}} In 2008, amendments to the Patent Law added provisions on the protection of genetic resources.<ref name=":4" />{{Rp|pages=96–97}} These amendments established a disclosure obligation for genetic resources, a domestic provision which developed from the positions China took in negotiating on this issue in the TRIPS Council.<ref name=":4" />{{Rp|page=110}} 2010 ''Implementation Rules of the Patent Law'' define genetic resources as any material taken from a human, animal, plant, or microorganism containing genetically functioning units with actual or potential value.<ref name=":4" />{{Rp|page=27}}
== Further reading ==


China became the country filing the largest number of patents in 2011.<ref>{{Cite journal |last=Hu |first=Albert G.Z. |last2=Zhang |first2=Peng |last3=Zhao |first3=Lijing |date=January 2017 |title=China as number one? Evidence from China's most recent patenting surge |journal=] |language=en |volume=124 |pages=107–119 |doi=10.1016/j.jdeveco.2016.09.004}}</ref> This increase resulted in part from government incentives to patent filers, outpacing China's actual R&D spending and labor productivity. Most design and utility patents, which enjoy a shorter protection period and are easier to obtain compared to invention patents, were not renewed after five years.<ref>{{Cite news |last=Yilun Chen |first=Lulu |date=2018-09-26 |title=China Claims More Patents Than Any Country—Most Are Worthless |url=https://www.bloomberg.com/news/articles/2018-09-26/china-claims-more-patents-than-any-country-most-are-worthless |url-status=live |archive-url=https://archive.today/20200217015942/https://www.bloomberg.com/news/articles/2018-09-26/china-claims-more-patents-than-any-country-most-are-worthless |archive-date=17 February 2020 |access-date=2024-11-30 |work=] |language=en}}</ref> In 2020 the Chinese government began pushing for stricter standards in granting patents.<ref>{{Cite web |last=slangman |date=2022-08-30 |title=China sets new targets for high-value patents in ambitious five-year plan |url=https://www.mathys-squire.com/insights-and-events/news/china-sets-new-targets-for-high-value-patents-in-ambitious-five-year-plan/ |access-date=2024-12-03 |website=Mathys & Squire LLP |language=en-GB}}</ref>
Zheng Chengsi, ''Intellectual Property Enforcement in China: Leading Cases and Commentary'' (Sweet & Maxwell Asia, 1997)


===Other legislation and regulations===
Feng, Peter. ''Intellectual Propery in China'' (Sweet & Maxwell Asia, 1997)
Apart from major legislation on trademarks, copyright and patents, a few other laws and regulations have been passed to deal with intellectual property related issues. In 1986, the ''General Principles of Civil Law'' was adopted to protect the lawful civil rights and interests of citizens and legal persons, and to correctly regulate civil relations. Articles 94–97 of the ''General Principles of Civil Law'' deal with intellectual property rights of Chinese citizens and legal persons.{{Citation needed|date=January 2018}}


In the 1990s, many more pieces of legislation were passed to perfect the intellectual property protection system. These include the ''Regulations on Customs Protection of Intellectual Property Rights'' (1995) and the ''Law Against Unfair Competition of the PRC'' (1993).{{Citation needed|date=January 2018}} The latter prohibited the passing off of registered trademarks, infringing trade secrets, the illegal use of well-known goods or names of other people, as well as other misleading and deceptive conduct. The ''Advertising Law of the PRC'' was passed in 1994 and extensively revised in 2015, to now include a joint liability with the advertising spokesperson, special regulations on public interest advertising, and most importantly a definition of misleading advertisement.<ref>{{Cite journal|last=Richter|first=Eva Lena|title=Die Revision des Werbegesetzes der VR China (Revision of the Advertising Law of the People's Republic of China)|url=https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2972630|journal=Zeitschrift für Chinesisches Recht|date=14 August 2015 |volume=23|pages=104–116|ssrn=2972630 }}</ref>
== See also ==


The ] provides for investigating unreasonable IP licensing fees and authority for further supplementary regulations on IP issues.<ref name=":4" />{{Rp|page=124}}
]


The Law of Seeds (2000) established the principle of state sovereignty over the regulation of ] resources for plant seeds.<ref name=":4" />{{Rp|page=97}} Eight years later, amendments to the Patent Law more broadly addressed protection for genetic resources.<ref name=":4" />{{Rp|pages=96–97}}
== External links ==


Although rarely enforced, the Administration of Technology Import/Export Regulations (TIER) previously prohibited foreign enterprises licensing their technology to China from restricting where that technology could be used and required them to waive any rights related to subsequent improvements to the technology.<ref name=":3" />{{Rp|page=100}} The provisions of TIER had been the subject of a number of WTO disputes.<ref name=":3" />{{Rp|page=100}} In March 2019, China agreed to revoke some of the TIER provisions.<ref name=":3" />{{Rp|page=100}}A Foreign Investment Law introduced in late 2019 banned forced technology transfers.<ref name=":2">{{Cite book |last=Moore |first=Scott |url= |title=China's Next Act: How Sustainability and Technology are Reshaping China's Rise and the World's Future |date=2022 |publisher=] |isbn=978-0-19-760401-4 |location=New York, NY |pages= |doi=10.1093/oso/9780197603994.001.0001 |oclc=1316703008}}</ref>{{Rp|page=170}}
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With regard to artificial intelligence, the ] issued draft measures which, among other provisions, obligate tech companies to implement safeguards to ensure their ] platforms respect intellectual property rights.<ref name=":Zhang">{{Cite book |last=Zhang |first=Angela Huyue |title=High Wire: How China Regulates Big Tech and Governs Its Economy |publisher=] |year=2024 |isbn=9780197682258 |doi=10.1093/oso/9780197682258.001.0001}}</ref>{{Rp|page=278}}
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=== Geographical indications ===
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The use of place names as part of product names to emphasize regional specialties existed in China for over 3,000 years.<ref name=":4">{{Cite book |last=Cheng |first=Wenting |title=China in Global Governance of Intellectual Property: Implications for Global Distributive Justice |publisher=] |year=2023 |isbn=978-3-031-24369-1 |series=Palgrave Socio-Legal Studies series |doi=10.1007/978-3-031-24370-7|s2cid=256742457 }}</ref>{{Rp|page=49}} China first encountered European-style ]s as intellectual property following ] in the 1980s.<ref name=":4" />{{Rp|page=49}} Under China's 1984 Trademark Law, geographical names were excluded from trademark registration and in 1986, the ] prohibited the use of geographical names of administrative divisions at or above the county levels as trademarks.<ref name=":4" />{{Rp|page=50}} However, regulators in China began protecting foreign geographical indications on a case-by-case basis.<ref name=":4" />{{Rp|pages=51–52}}
]

In the 2001 amendments to China's ''Trademark Law'', China adopted the provision on geographical indications from the TRIPS Agreement.<ref name=":4" />{{Rp|page=53}} Under this standard, if a trademark contains a place name but the product does not originate in that area, the geographical name should not be used or registered given the risk of misleading the public.<ref name=":4" />{{Rp|page=53}} A ] provides an exception where an otherwise prohibited trademark already registered in good faith remains valid.<ref name=":4" />{{Rp|page=53}}

The ] (AQSIQ) established a '']'' system to cover the use of geographical indication products through the 2005 ''Provisions on the Protection of GI Products.''<ref name=":4" />{{Rp|page=53}} These regulations establish protection and requirements for products using place names if (1) the product is grown or bred from a certain place name location and all of the raw materials come from that place, (2) products produced elsewhere but for which all of the raw materials come from the place name location, and (3) products where some of the raw materials come from elsewhere but are produced in the place name location using specialized techniques.<ref name=":4" />{{Rp|page=53–54}} This approach is intended to accommodate the use of geographical indications in handicrafts like embroidery or ceramics.<ref name=":4" />{{Rp|page=54}} The regulation sets strict standards for products produced under the geographical indication, and non-compliance results in a producer losing the ability to use the place name.<ref name=":4" />{{Rp|page=54}}

In 2007, the ] (MOA) issued a regulation on the protection of agricultural geographical indication products.<ref name=":4" />{{Rp|page=54}} These are defined as including plants, animals, and microorganisms.<ref name=":4" />{{Rp|page=54}}

] signed a GI agreement in September 2020.<ref name=":4" />{{Rp|page=67}} The agreement developed from pilot programs over the preceding eight years in which China and the EU worked on mutual registering and protection of geographical indications.<ref name=":4" />{{Rp|page=67}} The 2020 agreement extends mutual recognition of geographical indications to 275 from each side.<ref name=":4" />{{Rp|page=67}}

The 2020 U.S.-China Economic and Trade Agreement required China to amend its domestic regulations regarding geographic indications, including to provide that geographical indications may become generic over time.<ref name=":4" />{{Rp|page=68}}

As of 2023, nine of China's bilateral ]s include provisions dealing with geographical indications.<ref name=":4" />{{Rp|page=69}} China has generally taken a flexible approach with regard to these provisions and proceeds on the basis of reciprocity.<ref name=":4" />{{Rp|page=74}}

==Implementation==
More than 30 government ministries are involved in domestic IP governance.<ref name=":4" />{{Rp|page=26}} To enforce IPR protection, an administrative system has been established within the government. After the reshuffle of the State Council in March 1998, the Patent Office became part of the ] (SIPO). In 2011, SIPO became the world's largest patent office.<ref name=":4" />{{Rp|page=4}} SIPO developed its own Traditional Chinese Medicine Patent database compiling patents granted for ]s.<ref name=":4" />{{Rp|page=214}} In September 2018, SIPO was renamed the China National Intellectual Property Administration (CNIPA).<ref name=":4" />{{Rp|page=213}}

The Trademarks Office is still under the authority of the State Administration for Industry and Commerce.{{citation needed|date=December 2023}}

The Copyright Office falls within the State Administration for Press and Publication. A similar system exists at various levels of local government. Commonly, enforcement of IPRs will be carried out by local IPRs personnel, assisted by police from the local Public Security Bureau.{{Citation needed|date=January 2018}}

China's IP regulators and policy-makers generally maintain close contact with their peers from developed countries and in international institutions.<ref name=":4" />{{Rp|page=26}}

In addition to government bodies, non-state actors are also involved in China's engagement on IP issues.<ref name=":4" />{{Rp|page=26}}

=== Policy approach ===
China released its ''National IP Strategy'' in 2008.<ref name=":4" />{{Rp|page=4}} Since 2012, China frames intellectual property as an important part of its strategy of driving development through innovation.<ref name=":4" />{{Rp|page=4}} In 2013, China issued its ''Action Plan on Further Implementing the National IP Strategy'' (2014–2020).<ref name=":4" />{{Rp|page=21}} It sets numerical targets for patent applications, trademark registrations, and copyright registrations.<ref name=":4" />{{Rp|page=22}} In 2015, China described its IP as an important mechanism for stimulating innovation, increasing China's technological competitiveness, and facilitating development.<ref name=":4" />{{Rp|page=22}} Influenced by these policies, China in 2019 became the largest user of the WIPO's ].<ref name=":4" />{{Rp|page=22}}

Since the 2010s, continuing through at least 2023, China has been active in negotiating IP rules in regional trade agreements like ], bilateral agreements, and the ].<ref name=":4" />{{Rp|page=4}} In conjunction with the BRI, China does not attempt to impose IP standards on participating countries.<ref name=":4" />{{Rp|page=242}} It works with WIPO to implement training and events design to increase the IP governing capacity of BRI countries.<ref name=":4" />{{Rp|page=242}} In 2016, WIPO initiated the High-Level Conference on Intellectual Property for BRI Countries, where WIPO Director General ] encouraged participating countries to use WIPO tools like its global IP services and databases and to join WIPO-administered IP treaties.<ref name=":4" />{{Rp|page=187}}

=== Courts and tribunals ===
In the 1980s, Chinese courts and regulators began to enforce intellectual property protections on the basis international treaties China had signed before corresponding domestic IP laws were yet in place.<ref name=":4" />{{Rp|page=216}}

The number of IP cases prosecuted criminally in Chinese courts has been on a significant upward trend from 2005 to 2015,<ref>{{Cite journal |last=Bao |first=Yingyu |date=2018 |title=Statistics and Characteristics Analysis of China's Intellectual Property Crimes |url=https://www.matec-conferences.org/articles/matecconf/abs/2018/87/matecconf_cas2018_05013/matecconf_cas2018_05013.html |journal=MATEC Web of Conferences |language=en |volume=228 |pages=05013 |doi=10.1051/matecconf/201822805013 |issn=2261-236X |doi-access=free}}</ref> suggesting tougher enforcement of IP laws.<ref name=":2" />{{Rp|page=169}}

In patent litigation, infringement and invalidation claims generally proceed separately rather than being addressed at the same trial.<ref name=":3" />{{Rp|page=140}} Foreign firms have been increasingly successful in litigating patent infringement suits in China, winning approximately 70% of the time in the period 2006 to 2011, and rising to approximately 80% in the late 2010s.<ref name=":2" />{{Rp|pages=169–170}}

Since 2008, filings for patent and trademark protection by both Chinese and national firms have skyrocketed, leading to increased government focus on IP protection, including establishing specialized intellectual property courts to more effectively resolve disputes.<ref name=":2" />{{Rp|page=169}}

In October 2014, the ] provided additional regulatory guidance on specialized intellectual property court jurisdiction.<ref name=":0">{{Cite web|url=https://www.chinacourt.org/law/detail/2014/10/id/147980.shtml|title=Provisions of the Supreme People's Court on the Jurisdiction of Intellectual Property Courts in Beijing, Shanghai and Guangzhou|last=Supreme People's Court|date=October 31, 2014|access-date=April 13, 2020}}</ref> The specialized IP courts sit at the intermediate court level and have first instance jurisdiction over all technically complex civil and administrative IP cases (including patents, new plant varieties, integrated circuit layout designs, trade secrets, and computer software). They also have first instance jurisdiction over well-known trademarks and deal with all other IP cases upon appeal from the basic people's courts in their province.86 In terms of administrative law, the ] also has special, first-instance jurisdiction over administrative appeals brought against decisions issued by administrative IP adjudication bodies.<ref name=":0" /> Since 2017, the system has expanded to include 20 specialized IP tribunals across the country.<ref name=":1">{{Cite journal|last=Weightman|first=William|date=2020-01-01|title=Is the Emperor Still Far Away? Centralization, Professionalization, and Uniformity in China's Intellectual Property Reforms, 19 UIC Rev. Intell. Prop. L. 145 (2020)|url=https://repository.jmls.edu/ripl/vol19/iss2/3|journal=The John Marshall Review of Intellectual Property Law|volume=19|issue=2|issn=1930-8140}}</ref> Although these tribunals are administratively a part of the intermediate people's court in their city, they have cross-regional and exclusive subject matter jurisdiction over IP cases—similar to the IP courts established in 2014.<ref name=":1" />

In 2019, the city of ] established a pilot program artificial intelligence-based Internet Court to adjudicate internet-related intellectual property claims as well as ecommerce disputes.<ref name=":9222">{{Cite book |last=Šimalčík |first=Matej |title=Contemporary China: a New Superpower? |publisher=] |year=2023 |isbn=978-1-03-239508-1 |editor-last=Kironska |editor-first=Kristina |chapter=Rule by Law |pages=114–127 |doi=10.4324/9781003350064-12 |editor-last2=Turscanyi |editor-first2=Richard Q.}}</ref>{{Rp|page=124}} Parties appear before the court via videoconference and AI evaluates the evidence presented and applies relevant legal standards.<ref name=":9222" />{{Rp|page=124}}

===Difficulties===
Sometimes local protectionism may dilute the strength of central legislation or the power of law enforcement. For example, local governments might not want to genuinely support the work of copyright protection supervisors. It may create obstacles during IPRs investigation and assist local counterfeiters by letting them hide their production lines in safer places. When counterfeiters have good connections with local governmental or law enforcement officials, they may find an umbrella for their counterfeiting activity.<ref>{{cite journal|last=Priest|first=Eric|title=The Future of Music and Film Piracy in China|journal=Berkeley Technology Law Journal|year=2006|volume=21|series=795|pages=796–870|url=http://btlj.org/data/articles2015/vol21/21_2/21-berkeley-tech-l-j-0795-0872.pdf}}</ref>

Chinese government-sponsored search-engine ] provides links to third-party websites that offer online counterfeit products as well as access to counterfeit hardware and merchandise. The Chinese government dominates 70% of its country's search engine revenue and has been called on by US officials to limit the activity of online counterfeiting groups.<ref>{{cite news |date=31 January 2011 |title=China Baidu search engine profits more than treble |work=] |url=https://www.bbc.co.uk/news/business-12331266 |access-date=2011-04-25}}</ref><ref>{{cite news |date=1 March 2011 |title=US says China's Baidu is notorious pirated goods market |work=] |url=https://www.bbc.co.uk/news/business-12605067 |access-date=2011-04-25}}</ref>

==Cases==
The first major dispute on violation of intellectual property rights was filed in April 1992 by ], the inventor of ], against ].<ref name="qq"> In 腾讯网, 13 August 2007.</ref>

In March 1992 Chinese authorities found that Shenzhen reflective materials institute had copied 650,000 Microsoft Corporation holograms. The institute was found to be guilty of trademark infringement against Microsoft and was fined US$252. Losses to Microsoft as a result of the infringement are estimated at US$30&nbsp;million.<ref>Gregory, A. (2003). The Impact of China's Accession to the WTO. In Cass, D, Barker, G., and Willims, B (Eds.), China and the World Trading System (Pg. 330). NY: Cambridge University Press.</ref>

In the 1994 ''Disney v. Beijing Publishing House'' case dealt with how a Chinese court would apply international agreements in copyright disputes.<ref name=":4" />{{Rp|page=216}} The dispute resulted when Disney licensed its copyright to a licensee, who in turn violated the license agreement by improperly licensing copyright material to Beijing Publishing House''.''<ref name=":4" />{{Rp|page=216}} Disney sued for copyright infringement, but the licensing agreement pre-dated the 1992 China-U.S. Memorandum of Understanding that first provided for reciprocal copyright protection between the two countries.<ref name=":4" />{{Rp|page=216}} The court decided to apply the MOU to the dispute and to construe it as a treaty, ordering Beijing Publishing House to pay damages to Disney.<ref name=":4" />{{Rp|pages=216–217}}

In 2001, the China Environmental Project Tech Inc. filed a patent infringement lawsuit against American company Huayang Electronics Co. and Japanese FKK after those companies profited using a CEPT patented technique for using seawater in a fuel gas desulphurization process.<ref>{{Cite web |title=CEPT prevails in 8-year legal saga. |work=Intellectual Property Protection China |date=26 February 2010 |url=http://www.chinaipr.gov.cn/casesarticle/cases/caseothers/201002/616526_1.html |access-date=17 December 2011 |archive-url=https://web.archive.org/web/20141004062540/http://www.chinaipr.gov.cn/casesarticle/cases/caseothers/201002/616526_1.html |archive-date=4 October 2014 |url-status=dead }}</ref> Though the Supreme Court ruled in favor of CEPT, the court failed to issue an injunction because the infringing process was being used to generate electricity and an injunction would interfere with the public interest. The court instead awarded RMB 50 million to CEPT.<ref name="MWE China Law Offices"/>

In 2007, ] Co. Ltd sued French low-voltage electronics manufacturer ] for infringement of a circuit breaker utility model patent. The Wenzhou Intermediate People's Court ruled in CHINT's favor, awarding RMB 334.8&nbsp;million to the Chinese manufacturer, the highest amount ever in a Chinese IP case. After Schneider appealed to the High Court of Zhejiang province, the courts mediated the issue and the parties settled for RMB 157.5&nbsp;million.<ref name="MWE China Law Offices">{{Cite web |title=Top Ten Chinese Intellectual Property Cases of 2009 |publisher=MWE China Law Offices |date=10 August 2010 |url=http://www.mwe.com/info/news/wp_c0810a.pdf}}</ref> In its judgement, the Wenzhou Intermediate People's Court labeled the case "the no. 1 case of patent infringement in China". At the EU–China summit 2007, ] ] said, "I regard the SCHNEIDER case as a test case of the level playing field in China on intellectual property protection that we want to see".<ref>{{Cite web |author=Yang, Harry. |title=CHINT v. SCHNEIDER on Patent Infringement |work=China Intellectual Property Magazine |date=2 January 2008 |url=http://www.chinaipmagazine.com/en/journal-show.asp?id=258}}</ref>

In 2014, ] sued its major competitor ] alleging copyright infringement.<ref name=":Zhang" />{{Rp|page=102}} Tencent used its leverage from the suit to convince NetEase to sublicense music rights from Tencent.<ref name=":Zhang" />{{Rp|page=102}} The sub-licensing arrangement that resulted then became a model used by other online music platforms in China.<ref name=":Zhang" />{{Rp|page=102}}

In 2016 ] sued a manufacturer in China over copyright infringement involving sales worth more than 330 million RMB. In 2020 a Shanghai court sentenced nine individuals to three to six years of prison time and fines of up to 90 million RMB.<ref>{{Cite web |date=2020-09-02 |title=樂高告贏中國「樂拼」 天價罰金出爐 |url=https://tw.news.yahoo.com/%E6%A8%82%E9%AB%98%E5%91%8A%E8%B4%8F%E4%B8%AD%E5%9C%8B-%E6%A8%82%E6%8B%BC-%E5%A4%A9%E5%83%B9%E7%BD%B0%E9%87%91%E5%87%BA%E7%88%90-150553543.html |access-date=2024-09-06 |website=Yahoo News |language=zh-Hant-TW}}</ref><ref>{{Cite web |title=涉案3亿元的侵犯著作权案公诉后,乐高集团给检察院送来锦旗_浦江头条_澎湃新闻-The Paper |url=https://m.thepaper.cn/wifiKey_detail.jsp?contid=6888068 |access-date=2024-09-06 |website=m.thepaper.cn}}</ref>

In 2018 ], a U.S. memory chip maker, accused Chinese competitor ] and Taiwanese manufacturer ] of stealing chip designs.<ref name=":02">{{Cite news |last=Lawder |first=David |date=2018-10-30 |title=U.S. restricts exports to Chinese semiconductor firm Fujian Jinhua |url=https://www.reuters.com/article/us-usa-trade-china-semiconductors-idUSKCN1N328E |url-status=live |archive-url=https://web.archive.org/web/20201107131721/https://www.reuters.com/article/us-usa-trade-china-semiconductors-idUSKCN1N328E |archive-date=2020-11-07 |access-date=2020-10-31 |work=] |language=en}}</ref> The U.S. ] (DOJ) announced an indictment against Fujian Jinhua and UMC.<ref name=":12">{{Cite news |author= |date=2019-01-10 |title=China chipmaker Fujian Jinhua pleads not guilty to US theft charges |url=https://www.reuters.com/article/us-fujian-jinhua-china-court-idUSKCN1P4080 |url-status=live |archive-url=https://web.archive.org/web/20201107120951/https://www.reuters.com/article/us-fujian-jinhua-china-court-idUSKCN1P4080 |archive-date=2020-11-07 |access-date=2020-10-31 |work=] |language=en}}</ref> In October 2020, UMC pleaded guilty and agreed to pay a fine in exchange for cooperating with the DOJ.<ref>{{Cite web |date=2020-10-29 |title=Taiwan's UMC to aid US pursuit of Chinese firm in Micron trade-secrets case |url=https://www.scmp.com/tech/gear/article/3107531/taiwans-umc-aid-us-pursuit-chinese-chip-maker-fujian-jinhua-over-alleged |url-status=live |archive-url=https://web.archive.org/web/20201030125927/https://www.scmp.com/tech/gear/article/3107531/taiwans-umc-aid-us-pursuit-chinese-chip-maker-fujian-jinhua-over-alleged |archive-date=2020-10-30 |access-date=2020-10-31 |website=] |language=en}}</ref> In February 2024, US District Judge ] in ] acquitted Fujian Jinhua of the charge in a non-jury verdict, judging that the prosecutor failed to provide sufficient evidence.<ref>{{Cite news |date=2024-02-29 |title=Chinese firm Fujian Jinhua cleared of US allegations that it stole trade secrets |url=https://www.reuters.com/technology/chinese-firm-fujian-jinhua-cleared-us-allegations-that-it-stole-trade-secrets-2024-02-28/ |work=]}}</ref><ref>{{Cite web |date=2024-02-28 |title=Chinese chip maker cleared of spying charges in US criminal trade secrets case |url=https://www.scmp.com/news/world/united-states-canada/article/3253436/chinese-chip-maker-cleared-spying-charges-us-criminal-trade-secrets-case |url-status=live |archive-url=https://web.archive.org/web/20240228190922/https://www.scmp.com/news/world/united-states-canada/article/3253436/chinese-chip-maker-cleared-spying-charges-us-criminal-trade-secrets-case |archive-date=2024-02-28 |access-date=2024-02-29 |website=] |language=en}}</ref><ref>{{Cite news |last= |first= |date=3 March 2024 |title=U.S. Defeat in Micron Trade-Secrets Case Reveals Struggle Countering Beijing |url=https://www.wsj.com/tech/micron-chipmaker-ip-theft-trial-verdict-6f839f15 |url-access=subscription |url-status=live |archive-url=https://web.archive.org/web/20240304232801/https://www.wsj.com/tech/micron-chipmaker-ip-theft-trial-verdict-6f839f15 |archive-date=2024-03-04 |access-date=2024-03-05 |work=] |language=en-US}}</ref>

In September 2019, Levi's won final judgment in ] on a ] in ]. The case centred on the "arcuate design on two pockets at the back of jeans", which has been protected in China since its registration there in 2005. The company won damages and costs in addition to a ban on future infringements. The infringer's ignorance of the trademark was no bar to punishment.<ref name="lex19">{{cite news |title=LEVI's Prevails in Double Arcs Trademark Infringement Case |url=https://www.lexology.com/library/detail.aspx?g=1c49b0f4-9482-4ef0-91f9-eb2a2d7fb78a |agency=lexology |publisher=Law Business Research |date=16 September 2019}}</ref>

In 2021 Belgian artist Christian Silvain sued Chinese artist Ye Yongqing for plagiarism. Since the 1990s, Ye's works have taken on composition and motifs similar to those of Silvain. On 24 August 2023, the ] awarded €650,000 ($696,000) in damages to Silvain, the highest amount so far for cases related to fine arts in China, and ordered Ye to make a public apology in the '']''. It was still lower than what Silvain had hoped for, but as of September 2023 his lawyers had not appealed the ruling for a larger sum.<ref>{{Cite web |last=Lawson-Tancred |first=Jo |date=2023-09-05 |title=A Renowned Chinese Artist Has Been Found Guilty of Brazen Plagiarism After He Made Millions From Copying a Belgian Artist's Work |url=https://news.artnet.com/art-world/ye-yongqing-christian-silvain-plagiarism-2358025 |access-date=2023-10-25 |website=Artnet News |language=en-US}}</ref>

== U.S.–China relations ==
IP first became a significant negotiating point between the countries in establishing the U.S.-China Agreement on High Energy Physics and the U.S.-China Agreement on Trade Relations.<ref name=":4" />{{Rp|page=19}} Those agreements were reached in 1979.<ref name=":4" />{{Rp|page=19}} The two countries negotiated four bilateral ] dealing with IP issues over the period 1988 to 1996.<ref name=":4" />{{Rp|page=19}}

During the early 1990s, the U.S. often criticized China's IP protections and at times threatened unilateral retaliation.<ref name=":4" />{{Rp|page=184}} WIPO defended China's progress and in 1993 WIPO Director General ] described China's intellectual property development as unprecedented in the history of intellectual property.<ref name=":4" />{{Rp|page=184}} China cited Bogsch's statement in responding to U.S. criticism and the dynamic led to growth in the China-WIPO relationship.<ref name=":4" />{{Rp|page=184}}

In 2007, the U.S. sued China in the WTO, resulting in China's further amendment of domestic IP laws to comply with the WTO panel's decision.<ref name=":4" />{{Rp|page=21}}

To streamline the patent application process for patentees filing under both the Chinese and United States systems, the ] (SIPO) and the ] (USPTO) established a ] (PPH) pilot program on December 1, 2011.<ref name=":3" />{{Rp|page=141}}

In an effort to facilitate renewable energy research and development collaboration by providing more predictability to the patent process, the ] (CERC) established a novel Technology Management Plan to govern intellectual property issues arising under its projects.<ref name=":3" />{{Rp|page=|pages=130–131}} Within CERC, owners who brought IP to CERC retained "all right, title, and interest in their background IP" and were not required to license, assign, or transfer it.<ref name=":3" />{{Rp|page=131}} The CERC Technology Management Plan required, in the event of dispute, that the parties should attempt to reach a mutually agreeable resolution.<ref name=":3" />{{Rp|page=132}} If none could be reached, the Technology Management Plan required submission of the dispute to arbitration in accordance with the rules of the ].<ref name=":3" />{{Rp|page=132}} No instances of arbitration were ultimately required by CERC.<ref name=":3" />{{Rp|page=132}}

In 2014, the ] once again placed China on its "priority watch list" for ] rights violations, along with other nations.<ref>{{cite web |url= https://ustr.gov/about-us/policy-offices/press-office/reports-and-publications/2014/2014-Special-301-Report | title = 2014 Special 301 Report}}</ref> In addition, the U.S., based on claims brought to it by the China Copyright Alliance (CCA)—a group of major copyright industry associations and select companies—brought two ] (WTO) cases against China, one focused on intellectual property rights violations, and one based on market access deficiencies. In both cases, it was ruled that China must change its operating standards to comply with WTO rules; in the IPR case, a helpful standard was established as to the definition of "commercial scale" for which criminal penalties would be required, but found that the U.S. had not supplied sufficient evidence to show that China's 500 copy threshold for criminal liability left some "commercial scale" infringement cases without a criminal remedy.<ref>{{cite news |url= https://www.reuters.com/article/us-china-usa-wto-idUSTRE52J3T920090320|title= China, U.S. trade barbs over WTO piracy case|date= 2009-03-20|publisher= Reuters}}</ref>

The ] surveyed over 500 of its members doing business in China regarding IPR for its ''2016 China Business Climate Survey Report'', and found that IPR enforcement is improving, but significant challenges still remain. The results show that the laws in place exceed their actual enforcement, with patent protection receiving the highest approval rate, while protection of trade secrets lags far behind. Many US companies have said that Chinese companies have stolen their intellectual property some time between 2009 and 2019.<ref>{{Cite web |last=Rosenbaum |first=Eric |date=1 March 2019 |title=1 in 5 corporations say China has stolen their IP within the last year: CNBC CFO survey |url=https://www.cnbc.com/2019/02/28/1-in-5-companies-say-china-stole-their-ip-within-the-last-year-cnbc.html |website=CNBC}}</ref><ref>{{Cite web |last=Hungerford |first=Nancy |date=23 September 2019 |title=Chinese theft of trade secrets on the rise, the US Justice Department warns |url=https://www.cnbc.com/2019/09/23/chinese-theft-of-trade-secrets-is-on-the-rise-us-doj-warns.html |website=CNBC}}</ref> There are three main ways to address this issue. One is to bring a case to the WTO, which usually takes years to reach a final decision and requires a standard of proof against Chinese laws with respect to WTO rules that can be difficult to meet. Another avenue is unilateral restrictions on Chinese exports and investment, possibly leading to retaliations and a trade war. A third avenue is the negotiation of a bilateral investment treaty (BIT) with China that contains a dispute settlement mechanism between states and investors in order to ensure effective enforcement.<ref>{{Cite web |date=2017-10-03 |title=Section 301: US investigates allegations of forced technology transfers to China |url=https://www.eastasiaforum.org/2017/10/03/section-301-us-investigates-allegations-of-forced-technology-transfers-to-china/ |access-date=2023-10-25 |website=East Asia Forum |language=en}}</ref>

The 2020 U.S.-China Economic and Trade Agreement includes the highest IP enforcement standards of any U.S. bilateral agreement.<ref name=":4" />{{Rp|page=4}} It includes provisions on patent linkages, patent term extensions, data exclusivity, trade secrets, and higher criminal standards for infringement.<ref name=":4" />{{Rp|page=22}}

Although legal disputes between American and Chinese entities alleging mishandling or misappropriation of intellectual property occur, the most frequent basis for disputes stems from misunderstandings based on the differing IP rules and legal systems of the two countries.<ref name=":3" />{{Rp|page=141}}

==See also==
*]
* ]
*]
*]
* ]

==References==
{{Reflist}}

==Further reading==
* Clark, Douglas, , 2nd Ed (2015), Oxford University Press.
* Farah, Paolo Davide and Cima, Elena, "China's Participation in the World Trade Organization: Trade in Goods, Services, Intellectual Property Rights and Transparency Issues" in Aurelio Lopez-Tarruella Martinez (ed.), {{Lang|es|El comercio con China. Oportunidades empresariales, incertidumbres jurídicas}}, Tirant lo Blanch, Valencia (Spain) 2010, pp.&nbsp;85–121. {{ISBN|978-84-8456-981-7}}. Available at
*{{Cite book | last=Feng | first=Peter | title=Intellectual Property in China | edition=2 | publisher=Sweet & Maxwell Asia | year=2003|isbn=978-962-661-217-0|url=https://books.google.com/books?id=s9E5AQAAIAAJ}}
*{{Cite book | editor-last=Heath | editor-first=Christopher | title=Intellectual Property Law in China | publisher=] | year=2005 | url = https://books.google.com/books?id=VIE1feDHAyUC&q=Intellectual%20Property%20Law%20in%20China&pg=PP1 | isbn=9789041123404}}
*{{Cite book | last=Mertha | first=Andrew C. | title=The Politics of Piracy: Intellectual Property in Contemporary China | publisher=] | year=2005 | isbn=0801443644 | location=Ithaca, New York | url-access=registration | url=https://archive.org/details/politicsofpiracy00mert }}
*{{Cite book | last=Pang | first=Laikwan | title=Cultural control and globalization in Asia: copyright, piracy, and cinema | year=2006 | publisher=Routledge | isbn=978-0-415-35201-7}}
* Safran, Brian J., "Western Perceptions of China's Intellectual Property System," U. Puerto Rico Bus. L.J. (Vol. 3, Iss. 2) Available at
*Suttmeier, Richard P. and Xiangkui Yao, (NBR Special Report, July 2011)
*{{Cite book | author=Xue Hong | author2=Zheng Chengsi | title=Chinese Intellectual Property Law: In the 21st Century | publisher=Sweet & Maxwell Asia | year=2002|isbn=978-962-661-044-2|url=https://books.google.com/books?id=9tI5AQAAIAAJ}}

{{Economy of China}}
{{Copyright law by country}}

{{DEFAULTSORT:Intellectual Property in China}}
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Latest revision as of 13:12, 15 December 2024

"Piracy in China" and "Chinese piracy" redirect here. For maritime piracy in China, see Piracy § East Asia. For allegations of intellectual piracy by China, see Allegations of intellectual property theft by China.

Intellectual property rights (IPRs) have been acknowledged and protected in China since 1980. China has acceded to the major international conventions on protection of rights to intellectual property. Domestically, protection of intellectual property law has also been established by government legislation, administrative regulations, and decrees in the areas of trademark, copyright, and patent.

China first began accepting foreign IP concepts when foreign countries forced the Qing dynasty to accept them as part of the bilateral treaties that followed the Boxer Protocol. The early People's Republic of China abolished the statutes enacted by China's Nationalist government and adopted an approach to copyright, trademark, and patent issues more consistent with the model of the Soviet Union. Chinese policymakers became interested in integrating into the global IP framework as the government sought to import more technology in the 1970s.

In the 1980s, China began to join international treaties on IP issues. After joining the World Trade Organization in 2001, it assumed IP obligations under the TRIPS Agreement and revised its domestic laws to conform to the TRIPS standards. Internationally, China's view is that the World Intellectual Property Organization (WIPO) should be the primary international forum for IP rule-making. Generally, China's approach internationally is to advocate for maintaining the TRIPS standards, sometimes joining with other developing countries to oppose an increase in obligations beyond TRIPS.

China's legal framework for intellectual property protection is developing rapidly as China becomes a source of innovation, although its IP framework is still less developed than most industrialized nations as of 2023. The general trend of its IP system has been to develop towards increasing similarity with the E.U. and U.S. systems.

International framework

Historically, China began accepting foreign IP concepts at the start of the 20th Century, abolished them when the PRC was established, and began acknowledging IP rights during Reform and Opening up. In 1902, the Qing dynasty agreed to the Boxer Protocol and agreed to establish domestic laws on IP in bilateral treaties that followed.

After the 1972 visit of United States President Richard Nixon to the People's Republic of China, China increasingly sought to import technology. The desire to important technology prompted China to begin integrating itself into the global IP framework.

In 1980, China became a member of the World Intellectual Property Organization (WIPO). As of at least 2023, China's view is that WIPO should be the primary international forum for IP rule-making. China acceded to the WIPO-administered the Paris Convention for the Protection of Industrial Property on 19 December 1984 and became an official member on 19 March 1985. China also acceded to the WIPO-administered Madrid Agreement for the International Registration of Trademarks in June 1989. China is also a signatory to the WIPO-administered Beijing Treaty on Audiovisual Performances, which enhances performers' intellectual property rights. It is the only IP treaty named after a Chinese city.

China acceded to the Berne Convention for the Protection of Literary and Artistic Works in 1992 and assumed its obligations under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) when it joined the World Trade Organization in 2001. China's adoption of TRIPS incentivized Chinese policymakers to improve the country's regulatory structure to encourage national innovation and resulted in significant domestic policy reforms. The TRIPS agreement is also the basis of China's domestic IP law, as China conformed its IP law, including regarding patents, trademark, and copyright, to the TRIPS standards.

Following the TRIPS Agreement, a recurring issue for the WTO has been discussion over the creation of a geographical indications register (protecting GI wine and spirits) or a geographical indication extension which would go beyond wines and spirits. China's regional specialties are generally more geared towards agricultural products rather than wines and spirits, and tends to favor a geographical indication extension.

IP was an important consideration during the course of China's negotiations to re-enter the General Agreement on Tariffs and Trade (GATT).

In 2012, China hosted the China-ASEAN Seminar on the Protection of Intellectual Property Rights, Traditional Knowledge, and Genetic Resources.

As of at least 2023, China's general approach in addressing IP issues in international forums is to maintain TRIPS Agreement standards and sometimes joining the proposals of other developing countries to oppose further increases in IP standards. China has also been trending towards increased alignment with the positions taken by developed countries. The global regulation of IP involves multiple non-hierarchical international institutions, and China sometimes adopts different or inconsistent proposals in different forums. Since the creation of the Ministry of Commerce (MOFCOM) in 2003, MOFCOM has generally been China's lead negotiator on IP issues in international forums.

As part of the Like-Minded Megadiverse Countries (LMMC), China promotes international negotiations on the disclosure of the origin of genetic resources in the context of patents. China is involved in discussions on the protection of genetic resources in a variety of international forums, including the TRIPS Council, the WIPO Intergovernmental Committee, and in its free-trade agreements. As of at least 2023, multilateral negotiations on the disclosure obligation feature strong disagreements between LMMC, EU, and the United States regarding whether a disclosure obligation is necessary and if so, how one should be implemented.

National legal framework

China's legal framework for intellectual property protection is developing rapidly as China becomes a source of innovation, although its IP framework is still less developed than most industrialized nations as of 2023. The general trend of its IP system has been to develop towards increasing similarity with the E.U. and U.S. systems.

China established its first Trademark Law in 1982, its Patent Law in 1984, and its Copyright Law in 1990. It comprehensively amended these laws after it joined the World Trade Organization in 2001.

Trademark law

Main article: Trademark law of China

In 1950, China issued Procedures for Dealing with Trademarks Registered at the Trademark Office of the Former Kuomintang Government which eliminated all trademarks registered under the Nationalist government. Provisional Regulations on Trademark Registration, issued in the same year, allowed registration of foreign trademarks. Few holders used the procedures.

In conformity with the TRIPS Agreement, China amended the Trademark Law in 2000.

China uses a first-to-file trademark registration system. Trademark registrants do not need to demonstrate their prior use of a trademark.

Copyright law

See also: Software copyright in China

History

The concept of copyright in China has been found to exist at least as far back as the Song dynasty (960–1279). The publishers of a work at that time wrote on the final page of a text that it could not be copied. The first modern official code was implemented in 1910 at the end of the Qing dynasty (1644–1912). A new version was issued in 1915 during the Warlord Era of the Republic of China. On May 23, 1928, the Nationalist Government enacted a copyright law that covered books, music, paintings, photographs, engravings, and models. The copyright for most items existed for 30 years after the death of the author. Translations of literary works had a 20-year copyright and photographs had a 10-year copyright after publication. Corporate copyright existed for 30 years after publication.

The People's Republic of China abolished the Republic of China statutes in 1949. The PRC found the Soviet intellectual model more consistent with traditional Chinese thinking than the Republic of China model, as the Soviet model accorded with the idea that through invention or creation, people engaged in social activities drawing on a body of knowledge that belonged to all people. In contrast to patents and trademarks, the early PRC did not issue comparable copyright regulations. Instead, official policy in this area was set by resolutions passed in the early 1950s. These included editorial rules by which state publishing entities were encouraged to memorialize the author-publisher relationship in contracts which would cover submitting manuscripts, publication, and payment.

A copyright statute was not adopted until 1990. WIPO provided technical assistance to China during the drafting of the 1990 Copyright Law.

Current law

The Copyright Law was amended in 2000 to ensure compliance with China's obligations under the TRIPS Agreement.

In 2015, the National Copyright Administration required all domestic online music platforms to remove unlicensed music or face severe sanctions.

An influential decision by the Beijing Internet Court has ruled that artificial intelligence-generated content is entitled to copyright protection.

Patent law

Main article: Patent law of China

In 1950, the PRC issued Provisional Regulations on the Protection of Invention Rights and Patent Rights. The PRC's early regulations provided for inventors' patent rights, but these were abolished fairly quickly under the view that patent rights were incompatible with socialism. China then followed the model of the Soviet Union's investor certificates, honorary titles that were granted to investors without remuneration. Just prior to the Cultural Revolution, China completely abolished its patent regulations.

In 1984, China passed the Patent Law of the PRC to encourage invention-creation and to promote the development of science and technology. The subsequent Implementing Regulations of the Patent Law of the PRC added clarification.

In addition to invention patents and design patents, utility patents are available under Chinese law. In cases of joint patentees, the default rule in China is that each patentee can grant nonexclusive license without the other joint patentees' consent. Joint patentees can avoid application of this default rule by agreement, however.

As compared to the United States, China has more non-patentable matters. Pharmaceuticals and chemicals were not patentable under the 1984 Patent Law, but became patentable after the law was amended in 1992. A bilateral memorandum of understanding with the United States made this amendment to domestic law necessary. China accepted this requirement because it would have ultimately been necessary in order for China to re-enter GATT.

The Patent Law was again amended in 2000 to ensure compliance with China's obligations under the TRIPS Agreement. In 2008, amendments to the Patent Law added provisions on the protection of genetic resources. These amendments established a disclosure obligation for genetic resources, a domestic provision which developed from the positions China took in negotiating on this issue in the TRIPS Council. 2010 Implementation Rules of the Patent Law define genetic resources as any material taken from a human, animal, plant, or microorganism containing genetically functioning units with actual or potential value.

China became the country filing the largest number of patents in 2011. This increase resulted in part from government incentives to patent filers, outpacing China's actual R&D spending and labor productivity. Most design and utility patents, which enjoy a shorter protection period and are easier to obtain compared to invention patents, were not renewed after five years. In 2020 the Chinese government began pushing for stricter standards in granting patents.

Other legislation and regulations

Apart from major legislation on trademarks, copyright and patents, a few other laws and regulations have been passed to deal with intellectual property related issues. In 1986, the General Principles of Civil Law was adopted to protect the lawful civil rights and interests of citizens and legal persons, and to correctly regulate civil relations. Articles 94–97 of the General Principles of Civil Law deal with intellectual property rights of Chinese citizens and legal persons.

In the 1990s, many more pieces of legislation were passed to perfect the intellectual property protection system. These include the Regulations on Customs Protection of Intellectual Property Rights (1995) and the Law Against Unfair Competition of the PRC (1993). The latter prohibited the passing off of registered trademarks, infringing trade secrets, the illegal use of well-known goods or names of other people, as well as other misleading and deceptive conduct. The Advertising Law of the PRC was passed in 1994 and extensively revised in 2015, to now include a joint liability with the advertising spokesperson, special regulations on public interest advertising, and most importantly a definition of misleading advertisement.

The Anti-Monopoly Law provides for investigating unreasonable IP licensing fees and authority for further supplementary regulations on IP issues.

The Law of Seeds (2000) established the principle of state sovereignty over the regulation of germplasm resources for plant seeds. Eight years later, amendments to the Patent Law more broadly addressed protection for genetic resources.

Although rarely enforced, the Administration of Technology Import/Export Regulations (TIER) previously prohibited foreign enterprises licensing their technology to China from restricting where that technology could be used and required them to waive any rights related to subsequent improvements to the technology. The provisions of TIER had been the subject of a number of WTO disputes. In March 2019, China agreed to revoke some of the TIER provisions.A Foreign Investment Law introduced in late 2019 banned forced technology transfers.

With regard to artificial intelligence, the Cyberspace Administration of China issued draft measures which, among other provisions, obligate tech companies to implement safeguards to ensure their artificial intelligence platforms respect intellectual property rights.

Geographical indications

The use of place names as part of product names to emphasize regional specialties existed in China for over 3,000 years. China first encountered European-style geographical indications as intellectual property following Reform and Opening Up in the 1980s. Under China's 1984 Trademark Law, geographical names were excluded from trademark registration and in 1986, the State Administration for Industry and Commerce prohibited the use of geographical names of administrative divisions at or above the county levels as trademarks. However, regulators in China began protecting foreign geographical indications on a case-by-case basis.

In the 2001 amendments to China's Trademark Law, China adopted the provision on geographical indications from the TRIPS Agreement. Under this standard, if a trademark contains a place name but the product does not originate in that area, the geographical name should not be used or registered given the risk of misleading the public. A grandfather clause provides an exception where an otherwise prohibited trademark already registered in good faith remains valid.

The General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) established a sui generis system to cover the use of geographical indication products through the 2005 Provisions on the Protection of GI Products. These regulations establish protection and requirements for products using place names if (1) the product is grown or bred from a certain place name location and all of the raw materials come from that place, (2) products produced elsewhere but for which all of the raw materials come from the place name location, and (3) products where some of the raw materials come from elsewhere but are produced in the place name location using specialized techniques. This approach is intended to accommodate the use of geographical indications in handicrafts like embroidery or ceramics. The regulation sets strict standards for products produced under the geographical indication, and non-compliance results in a producer losing the ability to use the place name.

In 2007, the Ministry of Agriculture (MOA) issued a regulation on the protection of agricultural geographical indication products. These are defined as including plants, animals, and microorganisms.

China and the European Union signed a GI agreement in September 2020. The agreement developed from pilot programs over the preceding eight years in which China and the EU worked on mutual registering and protection of geographical indications. The 2020 agreement extends mutual recognition of geographical indications to 275 from each side.

The 2020 U.S.-China Economic and Trade Agreement required China to amend its domestic regulations regarding geographic indications, including to provide that geographical indications may become generic over time.

As of 2023, nine of China's bilateral free trade agreements include provisions dealing with geographical indications. China has generally taken a flexible approach with regard to these provisions and proceeds on the basis of reciprocity.

Implementation

More than 30 government ministries are involved in domestic IP governance. To enforce IPR protection, an administrative system has been established within the government. After the reshuffle of the State Council in March 1998, the Patent Office became part of the State Intellectual Property Office (SIPO). In 2011, SIPO became the world's largest patent office. SIPO developed its own Traditional Chinese Medicine Patent database compiling patents granted for traditional Chinese medicines. In September 2018, SIPO was renamed the China National Intellectual Property Administration (CNIPA).

The Trademarks Office is still under the authority of the State Administration for Industry and Commerce.

The Copyright Office falls within the State Administration for Press and Publication. A similar system exists at various levels of local government. Commonly, enforcement of IPRs will be carried out by local IPRs personnel, assisted by police from the local Public Security Bureau.

China's IP regulators and policy-makers generally maintain close contact with their peers from developed countries and in international institutions.

In addition to government bodies, non-state actors are also involved in China's engagement on IP issues.

Policy approach

China released its National IP Strategy in 2008. Since 2012, China frames intellectual property as an important part of its strategy of driving development through innovation. In 2013, China issued its Action Plan on Further Implementing the National IP Strategy (2014–2020). It sets numerical targets for patent applications, trademark registrations, and copyright registrations. In 2015, China described its IP as an important mechanism for stimulating innovation, increasing China's technological competitiveness, and facilitating development. Influenced by these policies, China in 2019 became the largest user of the WIPO's Patent Cooperation Treaty.

Since the 2010s, continuing through at least 2023, China has been active in negotiating IP rules in regional trade agreements like RCEP, bilateral agreements, and the Belt and Road Initiative. In conjunction with the BRI, China does not attempt to impose IP standards on participating countries. It works with WIPO to implement training and events design to increase the IP governing capacity of BRI countries. In 2016, WIPO initiated the High-Level Conference on Intellectual Property for BRI Countries, where WIPO Director General Francis Gurry encouraged participating countries to use WIPO tools like its global IP services and databases and to join WIPO-administered IP treaties.

Courts and tribunals

In the 1980s, Chinese courts and regulators began to enforce intellectual property protections on the basis international treaties China had signed before corresponding domestic IP laws were yet in place.

The number of IP cases prosecuted criminally in Chinese courts has been on a significant upward trend from 2005 to 2015, suggesting tougher enforcement of IP laws.

In patent litigation, infringement and invalidation claims generally proceed separately rather than being addressed at the same trial. Foreign firms have been increasingly successful in litigating patent infringement suits in China, winning approximately 70% of the time in the period 2006 to 2011, and rising to approximately 80% in the late 2010s.

Since 2008, filings for patent and trademark protection by both Chinese and national firms have skyrocketed, leading to increased government focus on IP protection, including establishing specialized intellectual property courts to more effectively resolve disputes.

In October 2014, the Supreme People's Court provided additional regulatory guidance on specialized intellectual property court jurisdiction. The specialized IP courts sit at the intermediate court level and have first instance jurisdiction over all technically complex civil and administrative IP cases (including patents, new plant varieties, integrated circuit layout designs, trade secrets, and computer software). They also have first instance jurisdiction over well-known trademarks and deal with all other IP cases upon appeal from the basic people's courts in their province.86 In terms of administrative law, the Beijing Intellectual Property Court also has special, first-instance jurisdiction over administrative appeals brought against decisions issued by administrative IP adjudication bodies. Since 2017, the system has expanded to include 20 specialized IP tribunals across the country. Although these tribunals are administratively a part of the intermediate people's court in their city, they have cross-regional and exclusive subject matter jurisdiction over IP cases—similar to the IP courts established in 2014.

In 2019, the city of Hangzhou established a pilot program artificial intelligence-based Internet Court to adjudicate internet-related intellectual property claims as well as ecommerce disputes. Parties appear before the court via videoconference and AI evaluates the evidence presented and applies relevant legal standards.

Difficulties

Sometimes local protectionism may dilute the strength of central legislation or the power of law enforcement. For example, local governments might not want to genuinely support the work of copyright protection supervisors. It may create obstacles during IPRs investigation and assist local counterfeiters by letting them hide their production lines in safer places. When counterfeiters have good connections with local governmental or law enforcement officials, they may find an umbrella for their counterfeiting activity.

Chinese government-sponsored search-engine Baidu provides links to third-party websites that offer online counterfeit products as well as access to counterfeit hardware and merchandise. The Chinese government dominates 70% of its country's search engine revenue and has been called on by US officials to limit the activity of online counterfeiting groups.

Cases

The first major dispute on violation of intellectual property rights was filed in April 1992 by Wang Yongmin, the inventor of Wubi, against Dongnan Corporation.

In March 1992 Chinese authorities found that Shenzhen reflective materials institute had copied 650,000 Microsoft Corporation holograms. The institute was found to be guilty of trademark infringement against Microsoft and was fined US$252. Losses to Microsoft as a result of the infringement are estimated at US$30 million.

In the 1994 Disney v. Beijing Publishing House case dealt with how a Chinese court would apply international agreements in copyright disputes. The dispute resulted when Disney licensed its copyright to a licensee, who in turn violated the license agreement by improperly licensing copyright material to Beijing Publishing House. Disney sued for copyright infringement, but the licensing agreement pre-dated the 1992 China-U.S. Memorandum of Understanding that first provided for reciprocal copyright protection between the two countries. The court decided to apply the MOU to the dispute and to construe it as a treaty, ordering Beijing Publishing House to pay damages to Disney.

In 2001, the China Environmental Project Tech Inc. filed a patent infringement lawsuit against American company Huayang Electronics Co. and Japanese FKK after those companies profited using a CEPT patented technique for using seawater in a fuel gas desulphurization process. Though the Supreme Court ruled in favor of CEPT, the court failed to issue an injunction because the infringing process was being used to generate electricity and an injunction would interfere with the public interest. The court instead awarded RMB 50 million to CEPT.

In 2007, CHINT Group Co. Ltd sued French low-voltage electronics manufacturer Schneider for infringement of a circuit breaker utility model patent. The Wenzhou Intermediate People's Court ruled in CHINT's favor, awarding RMB 334.8 million to the Chinese manufacturer, the highest amount ever in a Chinese IP case. After Schneider appealed to the High Court of Zhejiang province, the courts mediated the issue and the parties settled for RMB 157.5 million. In its judgement, the Wenzhou Intermediate People's Court labeled the case "the no. 1 case of patent infringement in China". At the EU–China summit 2007, EU Trade Commissioner Peter Mandelson said, "I regard the SCHNEIDER case as a test case of the level playing field in China on intellectual property protection that we want to see".

In 2014, Tencent sued its major competitor NetEase alleging copyright infringement. Tencent used its leverage from the suit to convince NetEase to sublicense music rights from Tencent. The sub-licensing arrangement that resulted then became a model used by other online music platforms in China.

In 2016 the Lego group sued a manufacturer in China over copyright infringement involving sales worth more than 330 million RMB. In 2020 a Shanghai court sentenced nine individuals to three to six years of prison time and fines of up to 90 million RMB.

In 2018 Micron Technology, a U.S. memory chip maker, accused Chinese competitor Fujian Jinhua and Taiwanese manufacturer UMC of stealing chip designs. The U.S. Department of Justice (DOJ) announced an indictment against Fujian Jinhua and UMC. In October 2020, UMC pleaded guilty and agreed to pay a fine in exchange for cooperating with the DOJ. In February 2024, US District Judge Maxine M. Chesney in San Francisco acquitted Fujian Jinhua of the charge in a non-jury verdict, judging that the prosecutor failed to provide sufficient evidence.

In September 2019, Levi's won final judgment in Guangzhou IP Court on a trademark infringement in Guangzhou, China. The case centred on the "arcuate design on two pockets at the back of jeans", which has been protected in China since its registration there in 2005. The company won damages and costs in addition to a ban on future infringements. The infringer's ignorance of the trademark was no bar to punishment.

In 2021 Belgian artist Christian Silvain sued Chinese artist Ye Yongqing for plagiarism. Since the 1990s, Ye's works have taken on composition and motifs similar to those of Silvain. On 24 August 2023, the Beijing Intellectual Property Court awarded €650,000 ($696,000) in damages to Silvain, the highest amount so far for cases related to fine arts in China, and ordered Ye to make a public apology in the Global Times. It was still lower than what Silvain had hoped for, but as of September 2023 his lawyers had not appealed the ruling for a larger sum.

U.S.–China relations

IP first became a significant negotiating point between the countries in establishing the U.S.-China Agreement on High Energy Physics and the U.S.-China Agreement on Trade Relations. Those agreements were reached in 1979. The two countries negotiated four bilateral memoranda of understanding dealing with IP issues over the period 1988 to 1996.

During the early 1990s, the U.S. often criticized China's IP protections and at times threatened unilateral retaliation. WIPO defended China's progress and in 1993 WIPO Director General Árpád Bogsch described China's intellectual property development as unprecedented in the history of intellectual property. China cited Bogsch's statement in responding to U.S. criticism and the dynamic led to growth in the China-WIPO relationship.

In 2007, the U.S. sued China in the WTO, resulting in China's further amendment of domestic IP laws to comply with the WTO panel's decision.

To streamline the patent application process for patentees filing under both the Chinese and United States systems, the State Intellectual Property Office of the People's Republic of China (SIPO) and the U.S. Patent and Trademark Office (USPTO) established a Patent Prosecution Highway (PPH) pilot program on December 1, 2011.

In an effort to facilitate renewable energy research and development collaboration by providing more predictability to the patent process, the U.S.–China Clean Energy Research Center (CERC) established a novel Technology Management Plan to govern intellectual property issues arising under its projects. Within CERC, owners who brought IP to CERC retained "all right, title, and interest in their background IP" and were not required to license, assign, or transfer it. The CERC Technology Management Plan required, in the event of dispute, that the parties should attempt to reach a mutually agreeable resolution. If none could be reached, the Technology Management Plan required submission of the dispute to arbitration in accordance with the rules of the United Nations Commission on International Trade Law. No instances of arbitration were ultimately required by CERC.

In 2014, the Office of the United States Trade Representative once again placed China on its "priority watch list" for intellectual property rights violations, along with other nations. In addition, the U.S., based on claims brought to it by the China Copyright Alliance (CCA)—a group of major copyright industry associations and select companies—brought two World Trade Organization (WTO) cases against China, one focused on intellectual property rights violations, and one based on market access deficiencies. In both cases, it was ruled that China must change its operating standards to comply with WTO rules; in the IPR case, a helpful standard was established as to the definition of "commercial scale" for which criminal penalties would be required, but found that the U.S. had not supplied sufficient evidence to show that China's 500 copy threshold for criminal liability left some "commercial scale" infringement cases without a criminal remedy.

The American Chamber of Commerce in the People's Republic of China surveyed over 500 of its members doing business in China regarding IPR for its 2016 China Business Climate Survey Report, and found that IPR enforcement is improving, but significant challenges still remain. The results show that the laws in place exceed their actual enforcement, with patent protection receiving the highest approval rate, while protection of trade secrets lags far behind. Many US companies have said that Chinese companies have stolen their intellectual property some time between 2009 and 2019. There are three main ways to address this issue. One is to bring a case to the WTO, which usually takes years to reach a final decision and requires a standard of proof against Chinese laws with respect to WTO rules that can be difficult to meet. Another avenue is unilateral restrictions on Chinese exports and investment, possibly leading to retaliations and a trade war. A third avenue is the negotiation of a bilateral investment treaty (BIT) with China that contains a dispute settlement mechanism between states and investors in order to ensure effective enforcement.

The 2020 U.S.-China Economic and Trade Agreement includes the highest IP enforcement standards of any U.S. bilateral agreement. It includes provisions on patent linkages, patent term extensions, data exclusivity, trade secrets, and higher criminal standards for infringement.

Although legal disputes between American and Chinese entities alleging mishandling or misappropriation of intellectual property occur, the most frequent basis for disputes stems from misunderstandings based on the differing IP rules and legal systems of the two countries.

See also

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