Evolution of IPR protection in China
Source: State Intellectual Property Office of China
IPR enforcement process in China
Source: IP rights regulations in China
The usage of unlicensed software in China should remain an area of focus for the country due to the impact it has - in terms of the economic losses experienced, the country’s reputation and other factors.
Despite China’s growing efforts to increase intellectual property rights (IPR) protection through its legal system, IPR infringement remains a focus in China across a range of industries.
Evolution of IPR protection in China
In a bid to adopt an “Open Door” policy to welcome foreign businesses in the late 1970s, China’s market economic system and reformed legal framework gave rise to China’s new responsibility of increasing intellectual property protection. China gradually increased its IPR protection by joining international IPR treaties.
In 2001, China was accepted as a member of the World Trade Organisation (WTO) and by virtue of its membership, accepted the responsibility to adhere to the Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement dictated by the WTO.
Entities fighting IPR infringement
To ensure that a coordinated and efficient system is in place to protect IPR in China, a variety of entities are involved in fighting IPR infringement.
These entities primarily include the following:
- State Intellectual Property Office
- State Administration for Industry and Commerce
- National Copyright Administration
- Ministry of Industry and Information Technology
- General Administration of Customs
- Supreme People's Court and Supreme People's Procuratorate
- Administration for Quality Supervision, Inspection and Quarantine
IPR legal framework
To date, China’s current IPR legal framework consists of three laws:
- The Patent Law
- The Trademark Law
- The Copyright Law
These are complemented and supplemented by related regulations, judiciary interpretations, administrative measures, and local regulations or measures.
IPR enforcement process in China
Enforcement of any form of IPR in China can be undertaken by way of the administrative enforcement procedure or judicial procedure.
The administrative enforcement procedure has been more widely employed as it provides an effective yet inexpensive method for adjudicating IPR disputes.
Enforcement challenges
Even with efforts working towards more enhanced IPR protection in China, enforcement remains a challenge.
Here are factors that may contribute to the challenge:
- A need for further resources to control and monitor nationwide IPR violations, as well as to impose enforcement policies
- Costs incurred to fund and train IPR experts and judicial expertise
- A great deal of effort to investigate infringement cases
Despite China’s growing efforts to increase IPR protection through its legal system, IPR owners can at times encounter perceived variation between the quality of the laws and the outcome of the enforcement of the laws. As a result, IPR infringement remains a focus in China across a range of industries, such as consumer goods, entertainment, pharmaceuticals and software.
In this report, we explore this issue across the following topics:
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