China
State Council releases IP measures on further optimising the foreign investment environment and enhancing the attraction of foreign investment
On 13 August 2023, China’s State Council released the Opinions of the State Council on Further Optimising the Foreign Investment Environment and Enhancing the Attraction of Foreign Investment, which propose 24 policy measures in six aspects including two for IP – strengthening the administrative protection of IP rights and strengthening law enforcement regarding IP rights.
The following provides details on the two IP related measures:
Strengthening the administrative protection of IP rights, which improves the system for making administrative adjudication on patent infringement disputes and strengthens the enforcement of administrative adjudication. All regions will be supported to rely on the IP workstations for exhibitions, accept the applications for IP rights such as copyrights, patents and trademarks of the products to be exhibited, and provide effective measures for the prevention of infringement. The measures strengthen the protection of IP rights in the procurement of drugs and medical consumables. When participating in the procurement activities, an enterprise must independently promise that it does not violate any law or regulation such as the Patent Law. For products involving disputes over IP rights, the relevant departments must strengthen communication and consultation, conduct procurement activities in accordance with the laws and regulations, and take timely measures, such as not approving procurement and disqualifying the products for selection that infringe a patent as determined by the administrative ruling of the IP department or by an effective judgment of the people’s court.
Strengthening law enforcement regarding IP rights, which enable authorities to crack down on the infringement upon the IP rights of foreign-funded enterprises and to carry out special law enforcement actions against trans-regional and chain-based infringement acts. The measures are expected to improve the mechanism for rapid and coordinated protection of IP rights, accelerate the handling of cases with clear facts and conclusive evidence in accordance with the law, establish and improve an online and offline integrated law enforcement mechanism, and simplify procedural requirements.
See the full text of the Opinions here (Chinese only).
CNIPA releases a national standard for IP compliance management system for companies
The China National Intellectual Property Administration (CNIPA), in collaboration with the National Standards Technical Committee for Knowledge Management, has formulated the Requirements for Enterprise Intellectual Property Compliance Management System (GB/T29490—2023), which will officially come into effect on 1 January 2024. This national standard focusses on several questions of concern to enterprises, such as how businesses can establish a robust IP management system; how they can safeguard against IP risks and realise the value of the IP.
In 2013, China implemented its first national standard in the field of IP management, the Enterprise Intellectual Property Management Specification (GB/T29490—2013). With the introduction of this all-new “enhanced version” standard, enterprises now have a more standardised framework for conducting IP management.
According to a CNIPA representative, compared to the previous version, this revision emphasises the standard’s compliance aspect. By providing standardised and end-to-end guidance on IP compliance management, the standard significantly enhances its effectiveness in helping businesses establish bottom-line safeguards, manage risks, and reduce credit costs. Its primary aim is to better meet the needs of the new era in enhancing the IP competitiveness of enterprises and supporting innovative development.
See the full text of the standard here (Chinese only).
CNIPA releases national standard for patent valuation
For many technology companies, various types of IP rights, primarily patents, constitute their core competitiveness. However, during the financing and investment processes of such enterprises, influenced by the technology-intensive nature and the specialised threshold of IP assets, there is a lack of standardised methodologies and guidelines for assessing various intellectual property assets. These companies often rely on external asset appraisal organisations to determine the value of IP collateral using traditional asset-appraisal methods. This reliance has led to significant discrepancies in appraisal results across different organisations, higher appraisal costs compared to tangible assets, and longer appraisal periods.
Overall, these challenges have become a bottleneck that hinders the circulation and realisation of intellectual property for science and technology enterprises and the growth of intellectual property pledge financing.
To enhance the IP assessment system, the CNIPA, in collaboration with the People’s Bank of China and the China Banking Insurance Regulatory Commission, has spearheaded the development of the recommended national standard entitled Guidelines for Patent Evaluation (National Standard No. GB/T42748-2023), which took effect on 1 September 2023.
These guidelines establish a scientifically structured and systematic patent value assessment system with robust operability and scalability. They integrate patent value analysis with assessment methods such as the income method, market method, and cost method, enabling an analysis of patent value in various scenarios and dimensions. This flexibility allows financial institutions and other stakeholders to select different indicators and weights based on specific requirements and scenarios, ultimately contributing to the pricing and realisation of patent values.
Hong Kong
IPD Celebrates 25 years of "No Fakes Pledge" Scheme
On 6 September 2023, the Hong Kong Intellectual Property Department (IPD) celebrated the 25th anniversary of its "No Fakes Pledge" Scheme. The Scheme was established in 1998 and is designed to promote the development of Hong Kong as a regional IP trading centre for IP rights. Over 1,750 retail merchants and more than 7,400 outlets are currently participants in the Scheme.
The Scheme encourages participating retailers to help combat counterfeit products by pledging not to sell or distribute them to consumers and is part of the IPD's wider efforts to promote Hong Kong as a shopper's paradise and Asia's World City. Consumers can feel confident in the quality and safety of their purchases when shopping in retail shops that have posted the “No Fakes” stickers and tent cards.
Mid-Autumn Festival
In an update pertaining the Mid-Autumn Festival, the Hong Kong Customs' Intellectual Property Technology Crime Investigation Unit has reported the seizure of 49 boxes of high-imitation mooncakes. Mooncakes are a popular desert traditionally eaten during the Mid-Autumn Festival (also known as the Lantern or Moon Festival), which takes place on the 15th day of the eighth month in the Chinese calendar.
The Hong Kong Customs received complaints from the trade-mark owners alleging that suspected counterfeit mooncakes were on sale over some online platforms. Together with the help of the trade-mark owners, the Hong Kong Customs successfully seized a batch of suspected mooncakes. The seized mooncakes are imitation of the two popular brands – the Peninsula Hong Kong’s Mini Egg Custard Mooncake and Maxim's Lava Custard Mooncake – chiefly by virtue of the packaging design and trade marks. The packaging featured a QR code, which was designed to replicate an authentication process for consumers. However, the QR code on the Peninsula-branded mooncakes linked to a fake website while the Maxim mobile app was unable to scan the code on the other boxes.
The investigation is ongoing and the Hong Kong Customs is also looking into the source of the mooncakes involved. Samples have been sent to the Government Laboratory for safety testing.
This case serves to demonstrate the effectiveness of swift reporting to the Hong Kong Customs and how trademark owners and the Hong Kong Customs can work together to protect brands and promote the safety of Hong Kong.
