The Greater China IP Updates ˇV April 2022

By Lyndon 

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China Attempts to Increase Foreign Confidence in IPR Protection

Chinaˇ¦s IPR administrative system worked on 49,800 patent infringement disputes in 2021, up 17.4% year on year.  Also, 110,000 invention patents were granted and 194,000 trademarks were registered to foreign applicants, up 23.0% and 5.2% respectively.  It seems that despite various headwinds, foreign companies are showing stronger interest in IPR and feeling positive about the general business climate currently.  China has opened 25 protection centers/rapid enforcement centers, and 50 national model areas for GI (geographical indication) products are being prepared.  In 2021, the newly revised patent law was implemented and the framework and contents of the geographical indication law were drafted to further construct a workable and comprehensive protection system.  The China National Intellectual Property Administration released the 2021 National Work Plan for IP Administrative Protection which was about shaping an administrative protection technical investigator system to regulate technical investigatorsˇ¦ involvement in administrative cases, bolstering IP credibility management by listing intentional IP infringement onto aggravated violations of credibility, and guiding IP dispute resolution organizations to interact with users online.  These organizations went on to open 23,000 dispute resolution cases and finished with a 71.19% success rate.  Abnormal patent applications which were obviously not about innovation were dealt with by CNIPA alerting local authorities of a total 815,000 applications which needed investigating.  Revocation of practicing license and suspension of representation service for several firms were some of the results.

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China Issues Policy Interpretations of the Trademark Examination and Trial Guide

Recently, the Trademark Office of the China National Intellectual Property Administration issued policy interpretations of the Trademark Examination and Trial Guide, interpreting key issues in the formulation of the guide concerning aspects of the examination, trial of a bad faith application, trademark registration for a purpose other than use, signs that may not be used as trademarks, distinctiveness of trademarks, and well-known trademarks.  The purpose is to facilitate the public and trademark practitioners to better understand the guide and respond to public and business concerns.  For example, there is a chapter on bad faith applications which emphasizes the stricter standards in the new Trademark Law which will crack down on the abuse of the application process.  The guide also adds an elaboration on concepts related to distinctiveness of trademarks, and to more accurately determine whether a trademark can be registered so as to ensure the consistency of the implementation of the new standards.  The revision of the examination and trial of signs that may not be used as trademarks updates the latest standards of trademark right granting and verification as well as safeguarding social public interests, the legitimate rights and interests of citizens, and social order.  In addition, a well-known trademark should adhere to protection orientation and result orientation.  That is, besides the necessity to resolve the case and conform to statutory requirements, recognition of a well-known trademark should also meet exhaustion of other remedies amongst other conditions.

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China Eliminates Paper Trademark Registration Certificates

In February 2022, the China National Intellectual Property Administration ceased issuance of all hard copies of patent certificates.  As part of the ongoing effort to push for digitalization of administrative work by following the comprehensive e-government model, CNIPA focused on developing a one-portal accessibility for all patent services.  Therefore, from March 1^st, 2022, CNIPA is no longer accepting any requests for paper patent certificates but instead will provide electronic patent certificates only.  The authenticity of an electronic certificate can be verified on the patent e-filing platform to ensure security and credibility.  The first stage for this administrative change was announced under the Announcement No. 349 under the title, ˇ§Related Matters about Electronic Patent Certificates and Electronic Seal for Electronic Patent Applicationsˇ¨ in 2020.  At that time, paper certificates could still be requested on a case-by-case basis.  However, with the latest announcement (No. 472), no hard copies will be issued in future.

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Hong Kong and Australia Renew MOU

The Intellectual Property Department of Hong Kong and IP Australia renewed a Memorandum of Understanding (MOU) on collaboration between the Hong Kong Special Administrative Region and Australia in the field of intellectual property for a period of three years until 2025.  The two sides will continue to exchange information and share practical experience in areas including operation of their registries and the promotion of intellectual property trading and commercialization.  The MOU was first signed in 2019 and is subject to periodic review and renewal.

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