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Briefing on IPR policy & procedures in China Nordic Chambers Royal Norwegian Embassy Beijing – June 15, 2015 Davide Follador [email protected]
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Briefing on IPR policy & procedures in China
Nordic Chambers
Royal Norwegian Embassy Beijing – June 15, 2015
Davide Follador
Summary Chinese InnovaFon Policy
Overview of Chinese Intellectual Property System
Patent ProtecFon & Recent News
Foreign Investments & IP: case scenario
IP & Technology Transfer
Trademark ProtecFon & Recent News
Is Chinese economy “Innova@on” driven?
Patent Applications: China grows domestically
Infographic: World Intellectual Property Office 2014
Interna@onal Patent Applica@ons
Infographic: World Intellectual Property Office 2014
China Japan
GDP & Patents
Asian Compe@@on
Infographic: World Intellectual Property Office
China USA
GDP & Patents
The two sides of the Pacific Ocean
Infographic: World Intellectual Property Office
China Germany
GDP & Patents
Asia-‐Europe
Infographic: World Intellectual Property Office
China India
GDP & Patents
Between developing countries
Infographic: World Intellectual Property Office
China South Korea
GDP & Patents
Patent “powers”?
Infographic: World Intellectual Property Office
Finland Norway Sweden
GDP & Patents
Just between us…
Infographic: World Intellectual Property Office
Gross R&D expenditure (OECD)
Infographic: OECD
Chinese IP system in place
The different types of IP (I)
Legal right What for? How?
Utility models New inventions
Copyright Original creative or artistic forms
Exists automatically
Patents New invenFons ApplicaFon and examinaFon
Application and registration
EPO/OHIM Intellectual Property Teaching Kit -‐ IP Basics
The different types of IP (II)
Trade marks DisFncFve idenFficaFon of products or services
Only by registraFon
Registered designs Registration
Trade secrets
External appearance
Valuable informaFon not known to the public
Reasonable efforts to keep secret
EPO/OHIM Intellectual Property Teaching Kit -‐ IP Basics
Legal right What for? How?
Registered designs External appearance Registered designs External appearance
Copyright § So^ware § User manuals § Ringtones § Start-‐up tone § Images
One product -‐ many IP rights
Designs § Form of overall phone § Arrangement and shape of bu`ons § PosiFon and shape of screen
© Nokia CorporaFon
Trade secrets § Some technical know-‐how kept "in-‐house" and not published
Trade marks § NOKIA § Product "208" § Start-‐up tone
Patents and u@lity models § Data-‐processing methods § OperaFng system § OperaFon of user interface
EPO/OHIM Intellectual Property Teaching Kit -‐ IP Basics
What is a patent?
• A legal @tle which grants the holder – the exclusive right to prevent others from
making, using or offering for sale, selling or imporFng a product that infringes his patent without his authorisaFon
– in countries for which the patent was granted (China)
– for a limited Fme (up to 20 years). • In return for this protec@on, the holder has to
disclose the inven@on to the public.
Reveal invenFon (disclosure)
Get exclusivity (patent)
Patents are granted in nearly every country in the world and in China as well!
EPO/OHIM Intellectual Property Teaching Kit -‐ IP Basics
What are trade secrets?
• InformaFon that
– is not generally known or easily discovered – has a business, commercial or economic value
(actual or potenFal) because the informaFon is not generally known
– is subject to reasonable efforts to maintain secrecy
• Unlimited life, provided the informaFon does not become public knowledge.
41 EPO/OHIM Intellectual Property Teaching Kit -‐ IP Basics
Recent news and expected changes in the Chinese Patent system
New DraZ Patent Law
• The new draft proposes to allow methods for the diagnosis or for the treatment of disease for farmed animals as patentable subject matter
• Design protection now possible for a for a portion of a product
• Term of protection of designs extended to 15 years • Statutory damages for willful infringement
increased to 3 ml RMB • Increased powers of investigation for
administrative enforcement authorities
Service Inven@ons
• Recently reformed (April 2015) • Provides rules for awards and remuneraFons of invenFons realized by employees
• Applies in the absence of private agreements • Scope of “service invenFons” • If no agreement: at least two month salary (award)
• If no agreement: at least 5% operaFng profits/0,5% revenues from IPR (remuneraFon)
SAIC regula@on on abuse of IPRs to restrict compe@@on
• SAIC RegulaFon is expected to enter into force on August 1, 2015
• Target: companies [IPR holders] in predominant market posiFon and “use” of IPRS aimed at creaFng monopolies
• Relevant market is broadly idenFfied • PresumpFons of exclusion might not be sufficient to
exclude sancFons • Fines can be quite high • The NDRC has iniFated dra^ing Guidelins for the AnF
MonopolisFc Intellectual Property Rights Abuse, which should further clarify many points
Is China a good place for innova@ve companies?
Patent filings in China: foreign applicants
Data: State Intellectual Property Office of China *2015 data are projecFons
Foreign Investments & IP
• 2015 reform of the Foreign Investment Industry Catalogues: relaxaFon of requirements
• “Encouraged” investments list focus on high-‐tech • IP remain an essenFal element in foreign investments to China
• Post-‐registraFon reports might pose IP concerns • Regulatory barriers with potenFal impact on IP
Technology, know-‐how transfer & Intellectual Property issues
Tech-‐Transfer & Licensing in China Legal Framework
• Patent Law • Contract Law • Corporate Income Tax: tax credits related to tech-‐transfer • AnF-‐Monopoly Law & SAIC RegulaFon on abuses of IP: abuses
of IPRs to eliminate/restrict market compeFFon • Foreign Trade Law: again on abuse of IPRs that restrict
compeFFon • AdministraFon of Prohibited and Restricted Import of
Technologies: the royalty rate • Law on Chinese-‐Foreign JVs
Foreign Engineering Company in China
Business Model 1
100%
Panda Ltd China WFOE
Plant owner EPSQ Grade 2 Design company qualificaFon Past performance track record IniFally only small scale projects
News on the protec@on of brands
Online counterfei@ng & e-‐commerce
• Currently “hot topic” • Legal framework for liability of e-commerce
platform
• Weakness of the “notice & take down” practice • New e-commerce law under drafting • “Soft law” strategies & Memorandum of
Understanding
www.ipkey.org
IP Key is co-‐financed by the European Union and the Office for HarmonizaFon in the Internal Market (OHIM) under the framework of the new EU-‐China CooperaFon. It is implemented by the Office for HarmonizaFon in the Internal Market (OHIM) in cooperaFon with the European Patent Office (EPO). The contents of this publicaFon are the sole responsibility of the project implementaFon team and can in no way be taken to reflect the views of the European Union. 本出版物是在欧盟的支持下制作，但本出版物的内容是项目实施小组的单独职责，决不反映欧盟的观点。欧洲内部市场协调局
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