Patent Amendments ©(Part II of II)

The Greater China IP Updates

By Lyndon

The General Administration of China Customs Launches IPR Campaign

The GACC recently launched a special action to protect IPR going by the name – Longteng Action 2021. The main focus of the campaign is to crack down on IPR infringing goods being exported to countries in Africa, Europe, and North and South America. Goods that are particularly susceptible to infringement have been discovered in the postal system, so initial efforts to rein in IPR abuse will start there. Some examples of infringement have been connected to goods such as food, medicines, cigarettes, watches, apparel, shoes, baggage, toys, consumer electronics and personal care products. Customs officials at all levels in the country have been instructed to improve communication and cooperation to halt this illegal activity and catch the perpetrators behind the scene before it gets completely out of hand. There will be new joint training, research and enforcement between customs and police departments. Outreach and education programs to help businesses stay on the right path are also being contemplated. In this way, it can be seen that the Chinese government is increasingly concerned about enforcing IPR.

PRC Rules for Domestic Priority of Design Patents

The 4^th Amendment of the Patent Law of the People’s Republic of China will see some changes to matters concerning Domestic Priority of Design Patents. According to Article 29 of the current Patent Law, the applicants of invention patents or utility model patents are entitled to claim foreign priority and domestic priority but for design patent applications, the applicant can only claim foreign priority. This means, in effect, that domestic applicants in China are not allowed to claim the priority of their prior design applications. In Article 29, Paragraph 2, of the amended law, a domestic priority system for design patent applications will be introduced, and this will level the playing field by allowing domestic applicants to have the same priority as foreign applicants for their earlier design patent applications. The exact wording is as follows: “…..within six months from the date of filing the first patent application for a design in China, the applicant files with the Patent Administration Department of the State Council an application for a patent for the same subject, he or it may enjoy a right of priority.” This provision will make it easier for domestic applicants in China to retain the earlier filing dates by claiming priority when, for whatever reason, they decide to abandon their earlier design patent applications and refile new ones on the same subject matter within a 6 month priority period.

Patent Term Extension in China

Currently, the term of an invention patent is 20 years. Beginning in July, 2021, the Fourth Amendment to the China Patent Law will introduce a new Patent Term Extension. This will allow extension of the 20-year term of a patent relating to a new pharmaceutical product approved for marketing in China as a way to compensate for any possible delay due to the lengthy approval process. The patent term extension cannot exceed 5 years, and it is the applicant’s responsibility to apply for it. Further details are as follows:

1. PTE is available to patents related to products, preparation methods or medical uses of new drugs.

2. PTE is available to chemical drugs, biological products and Chinese traditional medicine that are approved for marketing in China.

3. ‘New drugs’ here means active ingredients of new drugs that are approved for marketing for the first time by the regulatory authority (i.e. NMPA of China).

Transforming Hong Kong into a Regional Intellectual Property Trading Center

In Chapter 61 of China’s 14th Five-Year Plan, increased support will be given to Hong Kong and Macao so that they can further develop and become a regional intellectual property trading center. In the Outline of the 14^th Five-Year Plan for National Economic and Social Development and the Long-Range Objectives through the Year 2035, more investment and more educational support will be dedicated to the region in order to create the best climate and conditions for commercializing intellectual property. In truth, this process has already begun with a revamping of various laws and regulations concerned with Intellectual Property Rights in 2019. The Chinese government is confident that Hong Kong will continue to be a useful location for patent rights to be handled and adjudicated professionally.

China’s Alibaba Releases 2020 IP Protection Statistics

Alibaba, the online e-commerce technology company, has released the statistics from their 2020 IP Rights Protection Report. It shows that the number of suspected infringing listings reported by consumers has dropped by a third year on year. They also announced that 98% of the cases of reported IP infringement were handled within 24 hours. Also, in 2020, the number of rights holder accounts on Alibaba’s Intellectual Property Protection Platform increased by 40% from the previous year. Membership of the Alibaba Anti- Counterfeiting Alliance (AACA) is at a total close to 200 companies. It seems that the protection of intellectual property rights in the field of e-commerce is being taken seriously so that an orderly business environment can contribute to the domestic economy and business relations with the rest of the world.

Awareness of Intellectual Property Rights Increases in Hong Kong

A recent survey by the Intellectual Property Department in Hong Kong revealed that the general public maintained a high level of awareness of IP rights and the need for their protection. 92.9% of the 1,000 people participating in the Survey on Public Awareness of Intellectual Property (IP) Right protection 2020 considered it necessary to protect IP rights in Hong Kong. 79.3% felt that IP rights protection could help attract foreign investments, and 77.7% thought that it could help the development of local creative industries. The Director of Intellectual Property, Mr. David Wong, emphasized that the IPD had been raising public awareness through various educational and promotional programs, and the surveys that had been commissioned since 1999 showed a steady rise in awareness. For example, 92.8% of the respondents said they had never or seldom bought pirated or counterfeit goods up from 89.7% in 2018. In addition, 86.2% agreed that it is morally wrong to buy pirated or counterfeit goods, up from 67.4% in 2014. Considering that Hong Kong regards itself as a shoppers’ paradise, this trend will safeguard confidence among consumers and visitors alike going forward.