The Greater China IP Updates ¡V Feb 2024

By Lyndon 

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China’s National Intellectual Property Administration Allows Third Party Challenges to Pharmaceutical Patent Term Extensions

It was announced on December 21, 2023, that China’s National Intellectual Property Administration (CNIPA) would allow third parties to challenge the grant of patent term extension (PTE) for Chinese pharmaceutical patents effective January 20, 2024.  A PTE extends the life of a patent when there has been a potentially lengthy regulatory review process.  A PTE is calculated by deducting 5 years from the interval between the date of filing of the patent application and the date of licensing of the drug.  The new regulation also allows for a patentee to challenge annuity fee reduction decisions when registering for open licensing.

China’s Supreme People’s Court Adjusts Jurisdiction of their IP Tribunal

.Effective November 1, 2023, the IP Tribunal of China’s Supreme People’s Court will no longer hear appeals involving utility model patents, technical trade secrets and computer software unless the appeal is against a first-instance judgement issued by a high court.  The IP Tribunal will retain its jurisdiction on second-instance civil and administrative appeal cases involving ownership and infringement disputes on invention patents, new plant varieties, integrated circuit layout design as well as administrative appeal cases involving disputes derived from prosecution and invalidation of patents of all kinds, new plant varieties, and integrated circuit layout design.

ASML Suspends Some China Exports after US Expands Restrictions

Citing national security and the need to protect the rights holders of some advanced semiconductor tech, the US has communicated with the Dutch government to restrict shipment of some of its chip-making equipment to China.  Recently, in December 2023, the US expanded its restrictions about what types of semiconductors could be sold to China, and that had an effect on what kind of lithography systems ASML could export.  The updated export restrictions would affect between 10% and 15% of ASML’s sales to China.  The Dutch government had revoked an export license for their advanced NXT:2050i and NXT:2100i lithography systems which Chinese firms like Semiconductor Manufacturing International Corporation (SMIC) were hoping to buy.  In China, only Shanghai Micro Electronics Equipment (SMEE) manufacture lithography machines, but their technological level is well behind ASML.  In July 2023, the Dutch government agreed to put restrictions on sales of ASML’s deep ultraviolet (DUV) lithography machines, the second most advanced it produces, after pressure from the US.  The US government is concerned about China’s ability to make advanced chips which have military applications.  Because of those concerns, the US seeks to limit China’s ability to expand its semiconductor knowledge and production, and has been urging its allies to restrict technology associated with the manufacture of semiconductors.