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Trademark Law of the People’s Republic of China

(Adopted at the 24th Session of the Standing Committee of the Fifth National People’s Congress on 23 August 1982, revised for the first time according to the Decision on the Amendment of the Trademark Law of the People’s Republic of China adopted at the 30th Session of the Standing Committee of the Seventh National People’s Congress, on 22 February 1993, and revised for the second time according to the Decision on the Amendment of the Trademark Law of the People’s Republic of China adopted at the 24th Session of the Standing Committee of the Ninth National People’s Congress on 27 October 2001.)

Chapter l General Provisions

Article 1 This Law is enacted for the purposes of improving the administration of trademarks, protecting the exclusive right to use trademarks, and of encouraging producers and operators to guarantee the quality of their goods and services and maintaining the reputation of their trademarks, with a view to protecting the interests of consumers, producers and operators and to promoting the development of the socialist market economy.

Article 2 The Trademark Office of the administrative authority for industry and commerce under the State Council shall be responsible for the registration and administration of trademarks throughout the country.

The Trademark Review and Adjudication Board, established under the administrative authority for industry and commerce under the State Council, shall be responsible for handling matters of trademark disputes.

Article 3 Registered trademarks mean trademarks that have been approved and registered by the Trademark Office, including trademarks, service marks, collective marks and certification marks; the trademark registrants shall enjoy the exclusive right to use the trademarks, and be protected by law.

Said collective marks mean sings which are registered in the name of bodies, associations or other organizations to be used by the members thereof in their commercial activities to indicate their membership of the organizations.

Said certification marks mean signs which are controlled by organizations capable of supervising some goods or services and used by entities or individual persons outside the organization for their goods or services to certify the origin, material, mode of manufacture, quality or other characteristics of the goods or services.

Regulations for the particular matters of registration and administration of collective and certification marks shall be established by the administrative authority for industry and commerce under the State Council.

Article 4 Any natural person, legal entity or other organization intending to acquire the exclusive right to use a trademark for the goods produced, manufactured, processed, selected or marketed by it or him, shall file an application for the registration of the trademark with the Trademark Office. Any natural person, legal entity or other organization intending to acquire the exclusive right to use a service mark for the service provided by it or him, shall file an application for the registration of the service mark with the Trademark Office.

The provisions set forth in this Law concerning trademarks shall apply to service marks.

Article 5 Two or more natural persons, legal entities or other organizations may jointly file an application for the registration for the same trademark with the Trademark Office, and jointly enjoy and exercise the exclusive right to use the trademark.

Article 6 As for any of such goods, as prescribed by the State, that must bear a registered trademark, a trademark registration must be applied for. Where no trademark registration has been granted, such goods cannot be marketed.

Article 7 Any user of a trademark shall be responsible for the quality of the goods in respect of which the trademark is used. The administrative authorities for industry and commerce at different levels shall, through the administration of trademarks, stop any practice that deceives consumers.

Article 8 In respect of any visual sign capable of distinguishing the goods or service of one natural person, legal entity or any other organization from that of others, including any word, design, letters of an alphabet, numerals, three-dimensional symbol, combinations of
Colours, and their combination, an application may be filed for registration.

Article 9 Any trademark in respect of which an application for registration is filed shall be so distinctive as to be distinguishable, and shall not conflict with any prior right acquired by another person.

A trademark registrant has the right to use the words of “registered trademark” or a symbol to indicate that his trademark is registered.

Article 10 The following signs shall not be used as trademarks:

(1) those identical with or similar to the State name, national flag, national emblem, military flag, or decorations, of the People’s Republic of China, with names of the places where the Central and State organs are located, or with the names and designs of landmark buildings;

(2) those identical with or similar to the State names, national flags, national emblems or military flags of foreign countries, except that the foreign state government agrees otherwise on the use;

(3) those identical with or similar to the names, flags or emblems or names, of international intergovernmentaI organizations, except that the organizations agree otherwise on the use or that it is not easy for the use to mislead the public;

(4) those identical with or similar to official signs and hallmarks, showing official control or warranty by them, except that the use thereof is otherwise authorized;

(5) those identical with or simi1ar to the symbols, or names, of the Red Cross or the Red Crescent;

(6) those having the nature of discrimination against any nationality;

(7) those having the nature of exaggeration and fraud in advertising goods;

(8) those detrimental to socialist morals or customs, or having other unhealthy influences.

The geographical names as the administrative divisions at or above the county level and the foreign geographical names well known to the public shall not be used as trademarks, but such geographical terms as have otherwise meanings or are a part of collective marks/or a certification marks shall be exclusive. Where a trademark using any of the above-mentioned geographical names has been approved and registered, it shall continue to be valid.

Article 11 The following signs shall not be registered as trademarks:

(1) those only comprising generic names, designs or models of the goods in respect of which the trademarks are used;

(2) those having direct reference to the quality, main raw materials, function, use, weight, quantity or other features of the goods in respect of which the trademarks are used;

(3) those lacking distinctive features.

The signs under the preceding paragraphs may be registered as trademarks where they have acquired the distinctive features through use and become readily identifiable.

Article 12 Where an application is filed for registration of a three-dimensional sign as a trademark, any shape derived from the goods itself, required for obtaining the technical effect, or giving the goods substantive value, shall not be registered.

Article 13 Where a trademark in respect of which the application for registration is filed for use for identical or similar goods is a reproduction, imitation or translation of another person’s trademark not registered in China and likely to cause confusion, it shall be rejected for registration and prohibited from use.

Where a trademark in respect of which the application for registration is filed fdr use for non-identical or dissimilar goods is a reproduction, imitation or translation of the well-known mark of another person that has been registered in China, misleads the pub1ic and is likely to create prejudice to the interests of the well-known mark registrant, it shall be rejected for registration and prohibited from use.

Article 14 Account shall be taken of the fol1owing factors in establishment of a well-known mark: (l) reputation of the mark to the relevant public;
(2) time for continued use of the mark;
(3) consecutive time, extent and geographical area of advertisement of the mark;
(4) records of protection of the mark as a well-known mark; and
(5) any other factors relevant to the reputation of the mark.

Article 15 Where any agent or representative registers, in its or his own name, the trademark of a person for whom it or he acts as the agent or representative without authorization therefrom, and the latter raises opposition, the trademark shall be rejected for registration and prohibited from use.

Article 16 Where a trademark contains a geographic indication of the goods in respect of which the trademark is used, the goods is not from the region indicated therein and it misleads the public, it shall be rejected for registration and prohibited from use; however, any trademark that has been registered in good faith shall remain valid.

The geographic indications mentioned in the preceding paragraph refer to the signs that signify the place of origin of the goods in respect of which the signs are used, their specific quality, reputation or other features as mainly decided by the natural or cultural factors of the regions.

Article 17 Any foreign person or foreign enterprise intending to apply for the registration of a trademark in China shall file an application in accordance with any agreement concluded between the People’s Republic of China and the country to which the applicant belongs, or according to the international treaty to which both countries are parties, or on the basis of the principles of reciprocity.

Article 18 Any foreign person or foreign enterprise intending to apply for the registration of a trademark or for any other matters conceming a trademark in China sha1l appoint any of such organizations as designated by the State to act as its or his agent.

Chapter II AppIication for Trademark Registration

Article 19 An applicant for the registration of a trademark shall, in a form, indicate, in accordance with the prescribed classification of goods, the class of the goods and the designation of the goods in respect of which the trademark is to be used.

Article 20 Where any applicant for registration of a trademark intends to use the same trademark for goods in different classes, an application for registration shall be filed in respect of each class of the prescribed classification of goods.

Article 21 Where a registered trademark is to be used in respect of other goods of the same class, a new application for registration shall be filed.

Article 22 Where the sign of a registered trademark is to be altered, a new registration shall be applied for.

Article 23 Where, after the registration of a trademark, the name, address or other registered matters concerning the registrant change, an application regarding the change shall be filed.

Article 24 Any aPp1icant for the registration of a trademark who files an application for registration of the same trademark for identica1 goods in China within six months from the date of filing the first application for the trademark registration overseas may enjoy the right of priority in accordance with any agreement concluded between the People’s Republic of China and the country to which the applicant belongs, or according to the international treaty to which both countries are parties, or on the basis of the principle whereby each acknowledges the right of priority of the other.

Anyone claiming the right of priority according to the preceding paragraph shall make a statement in writing when it or he files the application for the trademark registration, and submit, within three months, a copy of the application documents it or he first filed for the registration of the trademark; where the applicant fails to make the claim in writing or submit the copy of the application documents within the time limit, the claim shall be deemed not to have been made for the right of priority.

Article 25 Where a trademark is first used for goods in an international exhibition on sponsored or recognized by me Chinese Government, the applicant for the registration of the trademark may enjoy the right of priority within six months from the date of exhibition of the goods.

Anyone claiming the right of priority according to the preceding paragraph shall make a claim in writing when it or he files the application for the registration of the trademark, and submit, within three months, documents showing the title of the exhibition in which its or his goods was displayed, proof that the trademark was used for the goods exhibited, and the date of exhibition; where the claim is not made in writing, or the proof documents not submitted within the time limit, the claim shall be deemed not to have been made for the right of priority.

Article 26 The matters reported and materials submitted in the application for trademark registration shall be true, accurate and complete.

Chapter III Examination for and ApprovaI of Trademark Registration

Article 27 Where a trademark the registration of which has been applied for is in conformity with the relevant provisions of this Law, the Trademark Office shall, after examination, preliminarily approve the trademark and publish it.

Article 28 Where a trademark the registration of which has been applied for is not in conformity with the relevant provisions of this Law, or it is identical with or similar to the trademark of another person that has, in respect of the same or similar goods, been registered or, after examination, preliminarily approved, the Trademark Office shall refuse the application and shall not publish the said trademark.

Article 29 Where two or more applicants apply for the registration of identical or similar trademarks for the same or similar goods, the preliminary approval, after examination, and the publication shall be made for the trademark which was first filed. Where applications are filed on the same day, the preliminary approval, after examination, and the publication shall be made for the trademark which was the earliest used, and the applications of the others shall be refused and their trademarks shall not be published.

Article 30 Any person may, within three months from the date of the publication, file an opposition against the trademark that has, after examination, been preliminarily approved. If no opposition has been filed after the expiration of the time limit from the publication, the registration shall be approved, a certificate of trademark registration shall be issued and the trademark shall be published.

Article 31 An application for the registration of a trademark shall not create any prejudice to the prior right of another person, nor unfair means be used to pre-emptively register the trademark of some reputation another person has used.

Article 32 Where the application for registration of a trademark is refused and no publication of the trademark is made, the Trademark Office shall notify the applicant of the same in writing. Where the applicant is dissatisfied, he may, within fifteen days from receipt of the notice, file an application with the Trademark Review and Adjudication Board for a review. The Trademark Review and Adjudication Board shall make a decision and notify ‘the applicant in writing.

Any interested party who is not satisfied with the decision made by the Trademark Review and Adjudication Board may, within thirty days from receipt of the notice, institute legal proceedings in the People’s Court.

Article 33 Where an opposition is filed against the trademark that has, after examination, been preliminarily approved and published, the Trademark Office shall hear both the opponent and applicant state facts and grounds, and shall, after investigation and verification, make a decision. Where any party is dissatisfied, it or he may within fifteen days from receipt of the notification, apply for a reexamination, and the Trademark Review and Adjudication Board shall make a decision and notify both the opponent and applicant in writing.

Any interested party who is not satisfied with the decision made by the Trademark Review and Adjudication Board within thirty days from the date of receipt of the notice, may institute legal proceedings in the People’s Court. The People’s Court shall notify the other party to the trademark reexamination proceeding to be a third party to the litigation.

Article 34 Where the interested party does not, within the statutory time limit, apply for the reexamination of the adjudication by the Trademark Office or does not institute legal proceedings in respect of the ad judication by the Trademark Review and Ad judication Board, the adjudication takes effect.

Where the opposition cannot be established upon ad judication, the registration shall be approved, a certificate of trademark registration shall be issued and the trademark shall be published; where the opposition is established upon adjudication, the registration shall not be approved.

Where the opposition cannot be established upon ad judication, but the registration is approved, the time of the exclusive right the trademark registration applicant has obtained to use the trademark is counted from the date on which the three months expires from the publication of the preliminary examination.

Article 35 Any application for trademark registration and trademark reexamination shall be examined in due course.

Article 36 Where any trademark registration applicant or registrant finds any obvious errors in the trademark registration documents or application documents, it or he may apply for correction thereof The Trademark Office shall ex officio make the correction according to law and notify the interested party of the correction.

The error correction mentioned in the preceding paragraph shall not relate to the substance of the trademark registration documents or application documents.

Chapter IV RenewaI, Assignment and Licensing of Registered Trademarks

Article 37 The period of validity of a registered trademark shall be ten years, counted from the date of approval of the registration.

Article 38 Where the registrant intends to continue to use the registered trademark beyond the expiration of the period of validity, an application for renewal of the registration shall be made within six months before the said expiration. Where no application therefore has been filed within the said period, a grace period of six months may be allowed. If no application has been filed at the expiration the grace period, the registered trademark shall be cancelled.

The period of validity of each renewal of registration shaIl be ten years.

Any renewa1 of registration shall be published after it as been approved.

Article 39 Where a registered trademark is assigned, the assignor and assignee shall conclude a contract for the assignment, and jointly file an application with the trademark Office. The assignee shall guarantee the quality of the goods in respect of which the registered trademark is used.

The assignment of a registered trademark shall be published after it has been approved, and the assignee enjoys the exclusive right to use the trademark from the date of publication.

Article 40 Any trademark registrant may, by signing a trademark license contf8ct, authorize other persons to use his registered trademark. The licensor shall supervise the quality of the goods in respect of which the licensee uses his registered trademark, and the licensee shall guarantee the quality of the goods in respect of which the registered Trademark is used.

Where any party is authorized to use a registered trademark of another person, the name of the licensee and the origin of the goods must be indicated on the goods that bear the registered trademark.

The trademark license contract shall be submitted to the Trademark Office for record. Chapter V Adjudication of Disputes Concerning Registered Trademarks

Article 41 Where a registered trademark stands in violation of the provisions of Articles 10, 11 and 12 of this Law, or the registration of a trademark was acquired by fraud or any other unfair means, the Trademark Office shall cancel the registered trademark in question; and any other organization or individual may request the Trademark Review and Ad judication Board to make an adjudication to cancel such a registered trademark.

Where a registered trademark stands in violation of the provisions of Articles l3, l5, l6 and 3l of this Law, any other trademark owner concerned or interested party may, within five years from the date of the registration of the trademark, file a request with the Trademark Review and Adjudication Board for adjudication to cancel the registered trademark. Where a well-known mark is registered in bad faith, the genuine owner thereof shall not be restricted by the five-year limitation.

In addition to those cases as provided for in the preceding two paragraphs, any person disputing a registered trademark may, within five years from the date of approval of the trademark registration, apply to the Trademark Review and Adjudication Board for adjudication.

The Trademark Review and Adjudication Board shall, after receipt of the application for adjudication, notify the interested parties and request them to respond with arguments within a specified period.

Article 42 Where a trademark, before its being approved for registration, has been the object of opposition and decision, no application for adjudication may be filed based on the same facts and grounds.

Article 43 After the Trademark Review and Adjudication Board has made an adjudication either to maintain or to cancel a registered trademark, it shall notify the interested parties of the same in writing.

Any interested party who is dissatisfied with the adjudication made by the Trademark Review and Adjudication Board may, within thirty days from the date of receipt of the notice, institute legal proceedings in the People’s Court. The People’s Court shall notify the other party of the trademark adjudication proceeding to be a third party to the legal proceedings.

Chapter Vl Administration of the Use of Trademarks

Article 44 Where any person who uses a registered trademark has committed any of the following, the Trademark Office shall order him to rectify the situation within a specified period or even cancel the registered trademark: (1) where a registered trademark is altered unilaterally (that is, without the required registration);
(2) where the name, address or other registered matters concerning the registrant of a registered trademark are changed unilaterally (that is, without the required application ),
(3) where the registered trademark is assigned unilaterally (that is, without the required approval); or
(4) where the use of the registered trademark has ceased for three consecutive years.

Article 45 Where a registered trademark is used in respect of the goods that have been roughly or poorly manufactured, or whose superior quality has been replaced by inferior quality, so that consumers are deceived, the administrative authorities for industry and commerce at different levels shall, according to the circumstances, order rectification of the situation within a specified period, and may, in addition, circulate a notice of criticism or impose a fine, and the Trademark Office may even cancel the registered trademark.

Article 46 Where a registered trademark has been cancelled or has not been renewed at the expiration, the Trademark Office shall, during one year from the date of the cancellation or removal thereof, approve no application for the registration of a trademark that is identical with or similar to the said trademark.

Article 47 Where any person violates the provisions of Article 6 of this Law, the local administrative authority for industry and commerce shall order him to file an application for the registration within a specified period, and may, in addition, impose a fine.

Article 48 Where any person who uses an unregistered trademark has committed any of the following, the local administrative authority for industry and commerce shall stop the use of the trademark, order him to rectify the situation within a specified period, and may, in addition, circulate a notice of criticism or impose a fine: (1) where the trademark is falsely represented as registered;
(2) where any provision of Article 10 of this Law is violated; or
(3) where the manufacture is of rough or poor quality, or where superior quality is replaced by inferior quality, so that ‘consumers are deceived.

Article 49 Any party dissatisfied with the decision of the Trademark Office to cancel a registered trademark may, within fifteen days from receipt of the corresponding notice, apply for a review. The Trademark Review and Adjudication Board shall make a decision and notify the applicant in writing.

Any interested party dissatisfied with the decision by the Trademark Review and Adjudication Board may, within thirty days from the date of receipt of the notice, institute legal proceedings in the People’s Court.

Article 50 Any party dissatisfied with the decision of the administrative authority for industry and commerce to impose a fine under the provisions of Article 45, Article 47 or Article 48 may, within fifteen days from receipt of the corresponding notice, institute legal proceedings with the People’s Court. If there have been instituted no legal proceedings or made no performance of the decision at the expiration of the said period, the administrative authority for industry and commerce may request the People’s Court for compulsory execution thereof.

Chapter VlI Protection of the ExcIusive Rights to Use Registered Trademarks

Article 51 The exclusive right to use a registered trademark is limited to the trademark which has been approved for registration and to the goods in respect of which the use of the trademark has been approved.

Article 52 Any of the following acts shall be an infringement of the exclusive right to use a registered trademark:
(1) to use a trademark that is identical with or similar to a registered trademark in respect of the identical or similar goods without the authorization from the trademark registrant;
(2) to sell goods that he knows bear a counterfeited registered trademark;
(3) to counterfeit, or to make, without authorization, representations of a registered trademark of another person, or to sell such representations of a registered trademark as
were counterfeited, or made without authorization;
(4) to replace, without the consent of the trademark registrant, its or his registered trademark and market again the goods bearing the replaced trademark; or
(5) to cause, in other respects, prejudice to the exclusive right of another person to use a registered trademark.

Article 53 Where any party has committed any of such acts to infringe the exclusive right to use a registered trademark as provided for in Article 52 of this Law and has caused a dispute, the interested parties shall resolve the dispute through consultation; where they are reluctant to resolve the matter through consultation or the consultation fails, the trademark registrant or interested party may institute legal proceedings in the People’s Court or request the administrative authority for industry and commerce for actions. Where it is established that the infringing act is constituted in its handling the matter, the administrative authority for industry and commerce handling the matter shall order the infringer to immediately stop the infringing act, confiscate and destroy the infringing goods and tools specially used for the manufacture of the infringing goods and for counterfeiting the representations of the registered trademark, and impose a fine. Where any interested party is dissatisfied with decision on handling the matter, it or he may, within fifteen days from the date of receipt of the notice, institute legal proceedings in the People’s Court

according to the Administrative Procedure Law of the People’s Republic of China. If there have been instituted no legal proceedings or made on performance of the decision at the expiration of the said period, the administrative authority for industry and commerce shall request the People’s Court for compulsory execution thereof. The administrative authority for industry and commerce handling the matter may, upon the request of the interested party, medicate on the amount of compensation for the infringement of the exclusive right to use the trademark; where the medication fails, the interested party may institute legal proceedings in the People’s Court according to the Civil Procedure Law of the People’s Republic of China.

Article 54 The administrative authority for industry and commerce has the power to investigate and handle any act of infringement of the exclusive right to use a registered trademark according to law; where the case is so serious as to constitute a crime, it shall be transferred to the judicial authority for handling.

Article 55 When investigating and handling an act suspected of infringement of a registered trademark, the administrative authority for industry and commerce at or above the county level may, according to the obtained evidence of the suspected violation of law or informed offence, exercise the following functions and authorities:
(1 ) to inquire of the interested parties involved, and to investigate the relevant events of the infringement of the exclusive right to use the trademark;
(2) to read and make copy of the contract, receipts, account books and other relevant materials of the interested parties relating to the infringement;
(3) to inspect the site where the interested party committed the alleged infringement of the exclusive right to use the trademark; and
(4) to inspect any articles relevant to the infringement; any articles that prove to have been used for the infringement of another person’s exclusive right to use the trademark may be sealed up or seized.

When the administrative authority for industry and commerce exercises the preceding functions and authorities, the interested party shall cooperate and help, and shall not refuse to do so or stand in the way.

Article 56 The amount of damages shall be the profit that the infringer has earned because of the infringement in the period of the infringement or the injury that the infringee has suffered from the infringement in the period of the infringement, including the appropriate expenses of the infringee for stopping the infringement.

Where it is difficult to determine the profit that the infringer has earned because of the infringement in the period of the infringement or the injury that the infringee has suffered from the infringement in the period of the infringement, the People’s Court shall impose an amount of damages of no more than RMB 500, 000 yuan according to the circumstances of the infringement.

Anyone who sells a goods that it or he does not know has infringed the exclusive right to use a registered trademark, and is able to prove that it or he has obtained the goods legitimately and indicates the supplier thereof shall not bear the liability for damages.

Article 57 Where a trademark registrant or interested party who has evidence to show that another person is committing or will commit an infringement of the right to use its or his registered trademark, and that failure to promptly stop the infringement will cause irreparable damages to its or his legitimate rights and interests, it or he may file an application with the People’s Court to order cessation of the relevant act and to take measures for property preservation before instituting legal proceedings in the People’s Court.

The People’s Court handling the application under the preceding paragraph shall apply the provisions of Articles 93 to 96 and 99 of the Civil Procedure Law of the People’s Republic of China.

Article 58 In order to stop an infringing act, any trademark registrant or interested party may file an application with the People’s Court for preservation of the evidence before instituting legal proceedings in the People’s Court where the evidence will possibly be destroyed or lost or difficult to be obtained again in the future. The People’s Court must make adjudication within forty-eight hours after receipt of the application; where it is decided to take the preservative measures, the measures shall be executed immediately. The People’s Court may order the applicant to place guaranty; where the applicant fails to place the guaranty, the application shall be rejected.

Where the applicant institutes no legal proceedings within fifteen days after the People’s Court takes the preservative measures, the People’s Court shall release the measures taken for the preservation.

Article 59 Where any party uses, without the authorization from the trademark registrant, a trademark identical with a registered trademark, and the case is so serious as to constitute a crime, he shall be prosecuted, according to law, for his criminal liabilities in addition to his compensation for the damages suffered by the infringee.

Where any party counterfeits, or makes, without authorization, representations of a registered trademark of another person, or sells such representations of a registered trademark as were counterfeited, or made without authorization, and the case is so serious as to constitute a crime, he shall be prosecuted, according to law, for his criminal liabilities in addition to his compensation for the damages suffered by the infringee.

Where any party sells goods that he knows bear a counterfeited registered trademark, and the case is so serious as to constitute a crime, he shall be prosecuted, according to law, for his criminal liabilities in addition to his compensation for the damages suffered by the infringee.

Article 60 The State functionaries for the registration, administration and reexamination of trademarks must handle cases according to law, be incorruptible and disciplined, devoted to their duties and courteous and honest in their provision of service.

The State functionaries of the Trademark Office and the Trademark Review and Adjudication Board and those working for the registration, administration and reexamination of trademarks shall not practice as trademark agent and engage in any activity to manufacture and market goods.

Article 61 The administrative authority for industry and commerce shall establish and amplify its internal supervision system to supervise and inspect the State functionaries for the registration, administration and reexamination of trademarks in their implementation of the laws and administrative regulations and in their observation of the discipline.

Article 62 Where any State functionary for the registration, administration and reexamination of trademarks neglects his duty, abuses his power, engages in malpractice for personal gain, handles the registration, administration and reexamination of trademarks in violation of law, accepts money or material wealth from any interested party or seeks illicit interest, which constitutes a crime, he or she shall be prosecuted for his or her criminal liabi1ity. If the case is not serious enough to constitute a crime, he or she shall be given disciplinary sanction according to law.

Chapter VIII Supplementary Provisions

Article 63 Any application for a trademark registration and for other matters concerning a trademark shall be subject to payment of the fees as prescribed. The schedule of fees shall be prescribed separately.

ArticIe 64 This Law shall enter into force on March l, l983. The “Regulations Governing Trademarks” promulgated by the State Council on April l0, l963 shall be abrogated on the same date, and any other provisions concerning trademarks contrary to this Law shall cease to be effective at the same time.

Trademarks registered before this Law enters into force shall continue to be valid.

Implementing Regulations under the Trademark Law of the People’s Republic of China

(2002 Revision)
(Promulgated by the State Council on 3 August 2002)

Chapter I. General Provisions

Article 1. These Implementing Regulations are formulated in accordance with the Trademark Law of the People’s Republic of China (hereinafter referred to as the Trademark Law).

Article 2. The provisions made in these Implementing Regulations concerning goods marks shall apply to service marks.

Article 3. The use of trademarks referred to in the Trademark Law and these Regulations include, among other things, the use of trademarks on goods, packages or containers thereof and commodity trading instruments, or use of trademarks in advertisements, exhibitions and other commercial activities.

Article 4. Goods required to bear registered trademarks as prescribed by the State mentioned in Article 6 of the Trademark Law refer to goods in respect of which registered trademarks must be used as prescribed by law and administrative regulations.

Article 5. Under the Trademark Law and these Regulations, when an interested party believes his trademark constitutes a well-known trademark when a dispute arises in the course of trademark registration or trademark review and adjudication, he may file a request with the Trademark Office or the Trademark Review and Adjudication Board to establish it as a well-known trademark, to reject the trademark registration application contrary to the provision of Article 13 of the Trademark Law, or to cancel the trademark registration contrary to the provision of Article 13 of the Trademark Law. When filing an application, an interested party shall submit proofs that his trademark constitutes a well-known trademark.

At the request of the interested party, the Trademark Office or the Trademark Review and Adjudication Board shall, on the basis of ascertained facts, establish whether his trademark constitutes a well-known trademark pursuant to the provision of Article 14 of the Trademark Law.

Article 6. Applications may be filed for registration of geographic indications provided for in Article 16 of the Trademark Law as certification marks or collective marks in accordance with the provisions of the Trademark Law and these Regulations.

Where a geographic indication is registered as a certification mark, the natural person, legal person or other organization whose goods has met the requirement imposed on the geographic indications may request for using the certification mark, and the organization having control on the certification mark shall give its permission. Where a geographic indication is registered as a collective mark, the natural person, legal person or other organization whose goods has met the requirement imposed on the geographic indications may request for membership of the body, association or other organization having the geographic indication as its collective mark. The body, association or other organization shall accept him or it as its member according to the articles of constitution thereof. Any person who does not ask to join the body, association or other organization having the geographic indication as its collective mark may also duly use the geographic indication, and the body, association or other organization does not have the right to prohibit the use.

Article 7. An interested party entrusting a trademark agency with the filing of an application for trademark registration or attending to other trademark matters shall submit a Power of Attorney. The Power of Attorney shall indicate such contents and competence as authorized; the Power of Attorney from a foreign person or foreign enterprise shall, in addition, indicate the nationality of the entruster.

Notarization and legalization of the Power of Attorney and other relevant certificates from a foreign person or foreign enterprise shall be done based on the principle of reciprocity.

The foreign person or foreign enterprise mentioned in Article 18 of the Trademark Law refers to the foreign person who or foreign enterprise which does not have its habitual residence or place of business in China.

Article 8. The Chinese language shall be used in applying for trademark registration or attending to other trademark matters.

Where the various certificates, certifying documents and proofs submitted under the Trademark Law and these Regulations are in a foreign language, the Chinese translation thereof shall be attached; where the Chinese translation is not attached, the certificates, certifying documents and proofs shall be deemed not to have been submitted.

Article 9. In any one of the following circumstances, any staff member of the Trademark Office and the Trademark Review and Adjudication Board shall withdraw, or a party or interested party may request him to withdraw: (1) he is a party or a close relative to a party or agent;
(2) he is related in such ways with a party or agent insofar as the relation would affect impartiality; or
(3) he has interests in an application for trademark registration or any other trademark matters.

Article 10. Unless otherwise provided for in these Regulations, where any document is sent to the Trademark Office or the Trademark Review and Adjudication Board, the date of receipt shall be the date of delivery where it is delivered personally, or the date of posting indicated by the postmark if it is sent by post; where the date of posting indicated by the postmark is illegible, or there is no postmark, the date of receipt shall be the date on which the Trademark Office or the Trademark Review and Adjudication Board actually receives the document, except that the interested party is able to present evidence as to the actual date of posting indicated by the postmark.

Article 11. Any document of the Trademark Office or the Trademark Review and Adjudication Board may be served by post, by personal delivery or by other means. Where an interested party entrusts a trademark agency, delivery of the document to the trademark agency shall be deemed delivery thereof to the interested party.

Where any document is sent to an interested party by the Trademark Office or the Trademark Review and Adjudication Board, the date of receipt shall be the date of receipt indicated by the postmark on which the interested party receives it if it is sent by post; where the date of posting indicated by the postmark is illegible, or where there is no postmark, the document shall be deemed to have been delivered to the interested party on the fifteenth day from the date of posting the document; the date of receipt shall be the date of delivery if it is delivered personally. Where any document cannot be sent by post or by personal delivery, the document may be served by making an announcement. At the expiration of the thirtieth day from the date of the announcement, the document shall be deemed to have been served.

Article 12. Where an application is filed for international registration, it shall be done in accordance with the relevant international treaties to which China has acceded. The specific measures shall be prescribed by the administrative department for industry and commerce under the State Council.

Chapter II. Application for Trademark Registration

Article 13. When applying for the registration of a trademark, a separate application shall be filed in respect of each class of goods or service according to the published Classification of Goods and Services. For each application for the trademark registration, an Application for Trademark Registration shall be filed with the Trademark Office, accompanied by five copies of the reproduction of the trademark; if colour is claimed, five copies of the colour reproduction of the trademark shall be attached, so shall be a black and white design of the trademark.

The reproduction of the trademark must be clear and easy to paste and shall be printed on smooth and clean durable paper or substituted by a photograph. Its length or breadth shall not be more than 10 cm and less than 5 cm each.

Where an application is filed for the registration of a three-dimensional sign as a trademark, a statement shall be made in the application, and the reproduction capable of defining the three-dimensional shape be submitted.

Where an application is filed for the registration of a combination of colours as a trademark, a statement shall be made in the application, and an explanation thereof be submitted in writing.

Where an application is filed for the registration of a certification mark or collective mark, a statement shall be made in the application, and the certificates of the qualification of the applicant and regulations for the administration of the use thereof be submitted.

Where a trademark is in a foreign language or contains lexical elements in a foreign language, explanation of its meaning shall be made.

Article 14. Filing an application for the registration of a trademark, the applicant shall submit a copy of effective certificate capable of proving his identification. The name of the applicant for trademark registration shall be consistent with the certificate submitted.

Article 15. The goods or services shall be listed in the application according to the Classification of Goods and Services. If the goods or services are not listed in the Classification of Goods and Services, a description of the said goods or services shall be attached.

The documents relating to an application for trademark registration shall be typewritten or printed.

Article 16. If an application is jointly filed for registration of the same trademark, a representative shall be designated in the application; if such representative is not designated, the first person listed in the application shall be the representative.

Article 17. If an applicant changes his name, address, agent, or deletes or reduces designated goods, he may go through the formalities for the change with the Trademark Office.

An applicant who assigns his application for trademark registration shall go through the formalities for the assignment with the Trademark Office.

Article 18. The filing date of an application for trademark registration shall be the date on which the Trademark Office receives the application documents. Where the formal requirements of the application are fulfilled and the application form is filled out according to the relevant rules, the Trademark Office will accept the application and notify the applicant in writing. Where the formal requirements are not fulfilled or the application form is not filled out according to the relevant rules, the Trademark Office will not accept it, and it shall notify the applicant in writing and explain the reason.

Where the formal requirements are basically fulfilled or the application form filled out basically according to the relevant rules, but amendments are required, the Trademark Office shall notify the applicant to make the amendments and require him to do so according to the contents prescribed and re-submit it to the Trademark Office within thirty days from the date on which he receives the notification. Where the application is amended and re-submitted to the Trademark Office within the time limit, the date of filing shall be retained. Where the application is not amended within the time limit, the application shall be deemed to have been abandoned, and the Trademark Office shall notify the applicant in writing.

Article 19. Where two or more applicants respectively apply for the registration of identical or similar trademarks used on the identical or similar goods on the same day, each applicant shall, within thirty days from the date of receipt of the notification of the Trademark Office, submit a proof of his prior use of the mark in respect of which he has applied for the registration. Where the applicants used the mark for the first time on the same day or where none of them has used the mark, they shall try to resolve the matter through consultation, and submit a written agreement to the Trademark Office within thirty days from the date of receipt of the notification from the Trademark Office; where the applicants are reluctant to resolve the matter through consultation or an agreement is not reached, the Trademark Office shall notify the applicants that one applicant will be singled out by lot, and reject the registration applications filed by the other applicants. Where the Trademark Office notifies an applicant, but the applicant does not show up and draw his lot, his application shall be deemed to have been abandoned, and the Trademark Office shall notify in writing the applicant who has failed to show up.

Article 20. Where an applicant claims the right of priority according to Article 24 of the Trademark Law, the copy of the application document which he first filed for the registration of the trademark shall be certified by the competent trademark authority accepting the application, with the date of filing and the application number indicated.

Where an applicant claims the right of priority according to Article 25 of the Trademark Law, the certification documents submitted by him shall be certified by the administrative department for industry and commerce under the State Council, except that the international exhibition on which the goods are put on display is held inside the territory of China.

Chapter III. Examination of Application for Trademark Registration

Article 21. The Trademark Office shall, in accordance with the Trademark Law and these Regulations, examine the applications for the registration of trademark it has accepted. Applications which conform to the relevant provisions, or those for the registration of trademarks in respect of a part of the designated goods which conform to the relevant provisions, shall be preliminarily approved and published. Applications which do not conform to the relevant provisions, or those for the registration of trademarks in respect of a part of the designated goods which do not conform to the relevant provisions, shall be rejected. The Trademark Office shall notify the applicant in writing and explain the reason for the rejection.

Where the Trademark Office has preliminarily approved applications for the registration of trademarks on a part of the designated goods, the applicant may apply for the abandonment thereof before the date of expiration of the opposition period; where the applicant abandons the registration of trademarks in respect of a part of the designated goods, the Trademark Office shall withdraw the preliminary approval, terminate the examination procedure, and republish it.

Article 22. Where an opposition is filed to a trademark which, after examination, has been preliminarily approved and published by the Trademark Office, the opponent shall submit the Application for Trademark Opposition in duplicate to the Trademark Office. The Application for Trademark Opposition shall indicate the issue number of the Trademark Gazette on which the opposed trademark is published, and the number of preliminary approval of the opposed trademark. The Application for Trademark Opposition shall contain the specific requests and facts and grounds, with relevant proofs and certificates attached.

The Trademark Office shall send a copy of the Application for Trademark Opposition to the opposed party and require him to make a reply within thirty days from the date of his receipt of the copy. His failure to make a reply shall not affect the adjudication by the Trademark Office on the opposition.

Where an interested party needs to supplement relevant proofs and certificates after he raises an opposition application or makes a reply, he shall make a statement in the application or reply, and submit the proofs and certificates within three months from the date of submission of the application or reply; where he fails to submit them at the expiration of the time limit, the interested party shall be deemed to have abandoned supplementing the relevant proofs and certificates.

Article 23. The justification of the opposition mentioned in Article 34, paragraph two, of the Trademark Law shall include the justification of the opposition to a registration in respect of a part of the designated goods. Where such opposition is justified, the application for the registration of trademarks in respect of that part of the designated goods shall not be approved.

Where an opposed trademark has, prior to the coming into effect of the adjudication on the opposition, been announced as a registered trademark in the Trademark Gazette, the registration announcement shall be cancelled. The trademark that has been approved for registration upon the adjudication on the opposition shall be re-published.

The trademark approved for registration upon the adjudication on the opposition shall not have the retroactive effect on another person’s act to use a sign identical with or similarly to the trademark on the same or similar goods from the date on which the period for trademark opposition expires and before the adjudication on the opposition takes effect; however, the losses inflicted to the trademark registrant due to the bad faith in which the sign is used shall be compensated.

The time limit for the application for review and adjudication of the trademark approved for registration upon the adjudication on the opposition shall be calculated from the date of publication of the adjudication on the trademark opposition.

Chapter IV. Modification, Assignment and Renewal of Registered Trademarks

Article 24. When applying for modification of his name, address or other registration matters, the registrant shall file an Application for Modification with the Trademark Office. The Trademark Office shall, upon examination and approval, issue the trademark registrant the relevant certificates, and make an announcement. Where the application is not approved, the Trademark Office shall notify the applicant in writing and explain the reason.

When applying for modification of his name, the registrant shall submit modification certificate issued by the relevant registry. An applicant who has not submitted the modification certificate may do so within thirty days from the date of filing the application. Where the submission is not made within the time limit, the application for the modification shall be deemed to have been abandoned, and the Trademark Office shall notify the applicant in writing.

When applying for modification of his name and address, the trademark registrant shall make the modifications in all his registered trademarks. If he fails to do so, the application for the modification shall be deemed to have been abandoned, and the Trademark Office shall notify the applicant in writing.

Article 25. When applying for the assignment of a registered trademark, the assignor and assignee shall file with the Trademark Office an Application for Assignment of Registered Trademark. The formalities of applying for the assignment of the registered trademark shall be gone through by the assignee. The Trademark Office, upon examination and approval of the application, shall issue the relevant certificate to the assignee and make an announcement.

When applying for the assignment of a registered trademark, the trademark registrant shall assign all the identical or similar trademarks registered in respect of the same or similar goods. If the registrant fails to do so, the Trademark Office shall notify him to correct the situation within a time limit; if the correction is not made within the time limit, the application for the assignment of the registered trademark shall be deemed to have been abandoned, and the Trademark Office shall notify the applicant in writing.

Any application for the assignment of a registered trademark that may mislead the public or cause confusion or exert any other adverse effects shall not be approved by the Trademark Office. the Trademark Office shall notify the applicant in writing and explain the reason.

Article 26. If the exclusive right to use a registered trademark is transferred for reasons other than assignment, the party receiving the transferred exclusive right to use the registered trademark shall go to the Trademark Office with relevant certificates or legal instruments to go through the formalities for the transfer of the exclusive right to use the registered trademark.

When applying for the transfer of the exclusive right to use a registered trademark, the exclusive right holder of the registered trademark shall transfer all the other identical or similar trademarks registered in respect of the same or similar goods. If the exclusive right holder fails to do so, the Trademark Office shall notify him to correct the situation within a time limit; if the correction is not made within the time limit, the application for the assignment of the registered trademark shall be deemed to have been abandoned, and the Trademark Office shall notify the applicant in writing.

Article 27. When applying for the renewal of a trademark registration, the applicant shall file with the Trademark Office an Application for Renewal of Trademark Registration. After examination and approval of the application for the renewal of a trademark registration, the Trademark Office shall issue the relevant certificate and announce it.

The period of validity of a renewed trademark shall be calculated from the day after the expiration of the previous period of validity of the said trademark.

Chapter V. Trademark Review and Adjudication

Article 28. The Trademark Review and Adjudication Board shall accept applications for trademark review and adjudication filed according to the provisions of Articles 32, 33, 41 and 49 of the Trademark Law, and conduct, according to law, the review and adjudication on the basis of facts.

Article 29. By having dispute over a registered trademark mentioned in Article 41, paragraph three, of the Trademark Law shall be meant that a registrant of a trademark in respect of which a prior application is filed for registration thereof alleges that a trademark in respect of which another person subsequently files an application for its registration is identical with or similar to his trademark registered in respect of the identical or similar goods.

Article 30. When applying for the trademark review and adjudication, the applicant shall file an application with the Trademark Review and Adjudication Board, and submit the same number of copies thereof as that of the other parties; when filing the application for reexamination based on the Decision or Adjudication made by the Trademark Office, the applicant shall meantime submit a copy of the Decision or Adjudication made by the Trademark Office.

After receipt of the application, the Trademark Review and Adjudication Board shall accept the application found to have met the requirements for acceptance upon examination; the Trademark Review and Adjudication Board shall not accept the application if it does not meet the requirements, and notify the applicant in writing and explain the reason. Where rectification is required, the Trademark Review and Adjudication Board shall notify the applicant to make the rectification within thirty days from the date of receipt of the notification. If an application still fails to meet the requirements after the rectification, the Trademark Review and Adjudication Board shall not accept it, and notify the applicant in writing and explain the reason. If the rectification is not made within the time limit, the application shall be deemed to have been withdrawn, and the Trademark Review and Adjudication Board shall notify the applicant in writing.

Where it finds that an application for the trademark review and adjudication does not meet the requirements for acceptance after accepting it, the Trademark Review and Adjudication Board shall reject the application and notify the applicant in writing and explain the reason.

Article 31. After accepting an application for the trademark review and adjudication, the Trademark Review and Adjudication Board shall send, in a timely manner, a copy of the Application to the other party, and require him to reply within thirty days from the date of receipt of the copy of the Application; failure to make a reply at the expiration of the time limit shall not affect the review and adjudication by the Trademark Review and Adjudication Board.

Article 32. Where an interested party needs to supplement relevant proofs after he files an application for trademark review and adjudication or makes a reply, he shall make a statement to this effect in the Application or Reply, and submit the proofs within three months from the date of filing the Application or making the Reply; if the proofs are not submitted at the expiration of the time limit, the supplementation thereof shall be deemed to have be abandoned.

Article 33. The Trademark Review and Adjudication Board may, at the request of an interested party or according to practical needs, decide to conduct a public review and adjudication of the application therefor.

Where it conducts a public review and adjudication of an application therefor, the Trademark Review and Adjudication Board shall notify the interested party, within fifteen days before the public review and adjudication is held, of the date and place of, and the persons conducting the public review and adjudication. The interested party shall make a reply within the time limit fixed in the notification.

Where the applicant does not reply, nor attend the public review and adjudication, his application for the trademark review and adjudication shall be deemed to have been withdrawn, and the Trademark Review and Adjudication Board shall notify him in writing. Where the respondent does not respond, nor attend the public review and adjudication, the Trademark Review and Adjudication Board may conduct a default review and adjudication.

Article 34. Where an applicant requests for the withdrawal of his application before the Trademark Review and Adjudication Board makes its decision or adjudication, he may withdraw his application after he explains the reason in writing to the Trademark Review and Adjudication. Where the application is withdrawn, the review and adjudication procedure terminates.

Article 35. Where an applicant withdraws his application for review and adjudication, he shall not file another application for the review and adjudication on the basis of the same facts and grounds. Where the Trademark Review and Adjudication Board has made the adjudication or decision as regards an application for trademark review and adjudication, any person shall not file another application for the review and adjudication on the basis of the same facts and grounds.

Article 36. In respect of a trademark the registration of which is cancelled in accordance with Article 41 of the Trademark Law, the exclusive right to use the trademark shall be deemed to be non-existent from the beginning. The decision or adjudication on the cancellation of the registered trademark has no retroactive effect on a judgment or decision already made and executed by the People’s Court or the administrative department for industry and commerce on a case of trademark infringement, or on a trademark assignment or licensing contract executed. However, in respect of damage done to any other person in bad faith by the trademark registrant, he shall compensate for the damages.

Chapter VI. Administration of the Use of Trademarks

Article 37. Where a registered trademark is used, it may carry the indication of “注册商标” (“Registered Trademark”) or the registration signs on the goods, packaging or description or other attachments on the goods.

The registration signs include () and ( ® ). When used, the registration signs shall be marked or indicated on the upper or lower right hand corner of the trademark.

Article 38. Where a Certificate of Trademark Registration is lost or damaged, it is necessary to apply to the Trademark Office for re-issuance of the Certificate. Where the Certificate is lost, the registrant shall declare the loss of the Certificate by publishing a declaration in the Trademark Gazette. The damaged Certificate shall be returned to the Trademark Office when an application for re-issuance is filed.

Where a Certificate of Trademark Registration is forged or falsified, criminal liability shall be imposed according to law based on the provisions governing the crimes of forging and falsifying certificates issued by the State administrative authority or other crimes.

Article 39. In respect of any of the acts referred to in Article 44 (1), (2) and (3) of the Trademark Law, the administrative authority for industry and commerce shall order the trademark registrant to rectify the situation within a time limit. If the registrant refuses to comply, the case shall be submitted to the Trademark Office for cancellation of the registered trademark.

In respect of the act referred to in Article 44 (4) of the Trademark Law, any person may apply to the Trademark Office for cancellation of the said registered trademark and explain the circumstances. The Trademark Office shall notify the trademark registrant and require him to furnish, within two months from the date of receipt of the notification, proof of use of the trademark before the date on which the application for cancellation is filed, or a justifiable reason for its non-use. If no proof of use, nor a justifiable reason for the non-use is furnished at the expiration of the time limit or the proof is invalid, the Trademark Office shall cancel his registered trademark.

The proof of use of a trademark referred to in the preceding paragraph includes the proofs of the registrant’s use of the registered trademark and his licensing any other person to use the registered trademark.

Article 40. Registered trademarks cancelled according to the provisions of Articles 44 and 45 of the Trademark Law shall be published by the Trademark Office; the exclusive right in the registered trademarks shall terminate on the date of cancellation decision made by the Trademark Office.

Article 41. Where the Trademark Office or the Trademark Review and Adjudication Board cancels a registered trademark for reasons relating only to a part of the goods designated, the trademark registration in respect of this part of the designated goods shall be cancelled.

Article 42. The amount of the fine imposed in accordance with the provisions of Articles 45 and 48 of the Trademark Law shall be less than 20% of the illegal business turnover or less than two times the illegal profits.

The amount of the fine imposed in accordance with the provision of Article 47 of the Trademark Law shall be less than 10% of the illegal business turnover.

Article 43. Where he licenses another person to use his registered trademark, the licensor shall submit the trademark licensing contract to the Trademark Office for filing within three months from the date on which the contract is concluded.

Article 44. Where any person contravening the provisions of Article 40, paragraph two, of the Trademark Law, the administrative department for industry and commerce shall order the offender to rectify the situation within a prescribed time limit. Where the offender refuses to comply, the administrative department for industry and commerce shall confiscate the representations of his trademark. If it is difficult to detach the representations of the trademark from the goods, both the representations and goods shall be confiscated and destroyed.

Article 45. Where a trademark is used in contravention of the provision of Article 13 of the Trademark Law, an interested party may request the administrative department for industry and commerce for prohibition of the use. When filing the request, the interested party shall submit proofs that his trademark constitutes a well-known mark. If the Trademark Office establishes it as a well-known mark according to the provision of Article 14 of the Trademark Law, the administrative department for industry and commerce shall order the infringer to cease the act of using the well-known mark in contravention with the provision of Article 13 of the Trademark Law, confiscate and destroy the representations of the trademark. If it is difficult to detach the representations of the trademark from the goods, both the representations and goods shall be confiscated and destroyed.

Article 46. Where a trademark registrant applies for the removal, from the Register, of his registered trademark or the registration of his trademark in respect of a part of the designated goods, he shall send an Application for Trademark Removal and return the original Certificate of Trademark Registration to the Trademark Office.

Where a trademark registrant applies for the removal, from the Register, of his registered trademark or the registration of his trademark in respect of a part of the designated goods, the exclusive right in the registered trademark or the effect thereof on the part of designated goods shall terminate on the date of receipt by the Trademark Office of the Application for Trademark Removal.

Where a registered trademark is removed from the Register owing to the death or cessation of the trademark registrant, the exclusive right to use the registered trademark terminates from the date of the death or cessation of the trademark registrant.

Article 48. Where a registered trademark is cancelled or removed from the Register according to the provisions of Articles 46 and 47 of these Regulations, the original Certificate of Trademark Registration shall become invalid. Where the registration of the trademark in respect of a part of the designated goods is cancelled, or where the trademark registrant applies for removal, from the Register, the registration of the trademark in respect of a part of designated goods, the Trademark Office shall return, to the registrant, the original Certificate of Trademark Registration on which the approval of the cancellation or removal has been marked, or re-issue the Certificate of Trademark Registration and publish the re-issuance.

Chapter VII. Protection of the Exclusive Right to Use Registered Trademark

Article 49. Where a registered trademark contains the generic name, shape or model of the goods in respect of which it is used, or directly indicates the quality, main raw material, function, use, weight, quantity and other features of the goods, or contains a place name, the holder of the exclusive right to use the registered trademark has no right to prohibit others from duly using.

Article 50. Any of the following acts shall be an act of infringement of the exclusive right to use a registered trademark as provided for in Article 52 (5) of the Trademark Law:

(1) to use any design which is identical with or similar to the registered trademark of another person on the same or similar goods, as the designation or decoration of the goods, which mislead the public;

(2) to intentionally provide any other person with such facilities as of storage, transportation, postal service, and concealment in his infringement of the exclusive right of another person to use a registered trademark.

Article 51. Where the exclusive right to use a registered trademark has been infringed, any person may lodge a complaint with, or file a report on, the case of infringement to the administrative department for industry and commerce.

Article 52. An act of infringement of the exclusive right to use a registered trademark shall be subject to a fine of not exceeding three times the amount of the illegal business turnover. Where it is impossible to calculate the amount of the illegal business turnover, the fine shall be no more than RMB 100,000 yuan.

Article 53. Where a trademark proprietor believes that another person has registered his well-known trademark as an enterprise name, which is likely to deceive, or mislead, the public, he may file an application with the competent authority for the registration of enterprise names for cancellation of the registration of the enterprise name. The competent authority for the registration of enterprise names shall handle the matter pursuant to the Regulations for the Administration of Registration of Enterprise Names.

Chapter VIII. Supplementary Provisions

Article 54. Where a service mark already in continuous use up to 1 July 1993 which is identical with or similar to the service mark of another person already registered in respect of the same or similar services may continue to be used. However, a mark the use of which has been suspended for three or more years after 1 July 1993 shall not continue to be used.

Article 55. The specific measures for the administration of trademark agency shall be separately provided for by the State Council.

Article 56. The classification of goods and services for the purposes of registration of trademarks shall be formulated and published by the administrative department for industry and commerce under the State Council.

The documents or forms for filing applications for the registration of trademarks or for attending to other trademark matters shall be formulated and published by the administrative department for industry and commerce under the State Council.

The rules for trademark review and adjudication of the Trademark Review and Adjudication Board shall be formulated and published by the administrative department for industry and commerce under the State Council.

Article 57. The Trademark Office shall set up the Register of Trademark Registration for the documentation of registered trademarks and matters relating to the registration.

The Trademark Office shall compile, print and distribute the Trademark Gazette to publish trademark registrations and other related matters.

Article 58. Fees shall be paid for applying for the registration of trademarks or for handling other trademark matters. The items and schedule of the fees shall be provided for and published by the administrative department for industry and commerce under the State Council in conjunction with the competent price administrative department under the State Council.

Article 59. These Regulations shall enter into force on 15 September 2002. The Implementing Regulations of the Trademark Law of the People’s Republic of China promulgated by the State Council on 10 March 1983, revised for the first time with the approval by the State Council on 3 January 1988, and revised for the second time with the approval by the State Council on 15 July 1993 and the Answers by the State Council to Issues Relating to the Attachment of Certificates for the Purpose of Trademark Registration shall simultaneously be abrogated.

Copyright Law of the People’s Republic of China

(Adopted at the Fifteenth Meeting of the Standing Committee of the Seventh National People’s Congress on September 7, 1990 .Amended in accordance with the Decision of the Standing Committee of the Ninth National People’s Congress on Amending the Copyright Law of the People’s Republic of China at its 24th Meeting on October 27, 2001.)

TABLE OF CONTENTS

Chapter I General Provisions

Chapter II Copyright

     Section 1 Copyright Owners and Their Rights

     Section 2 Ownership of Copyright

     Section 3 Term of Protection for Rights

     Section 4 Limitations on Rights

Chapter lIl Copyright Licensing and Assignment Contracts

Chapter IV Publication, Performance, Sound Recording, Video Recording and Broadcasting

     Section 1 Publication of Books, Newspapers and Periodicals

     Section 2 Performance

     Section 3 Sound Recordings and Video Recordings

     Section 4 Broadcasting by Radio Stations or Television Stations

Chapter V Legal Liabilities and Enforcement Measures

Chapter Vl Supplementary Provisions

Chapter I General Provisions

Article 1 This Law is enacted, in accordance with the Constitution, for the purposes of protecting the copyright of authors in their literary, artistic and scientific works and the copyright-related rights and interests, of encouraging the creation and dissemination of works which would contribute to the construction of socialist spiritual and material civilization, and of promoting the development and prosperity of the socialist culture and science.

Article 2 Chinese citizens, legal entities or other organizations shall enjoy copyright for their works, whether published or not, in accordance with this Law.

Any work of a foreigner or stateless person which is eligible to enjoy copyright under an agreement concluded between the country to which the foreigner belongs or in which he has habitual residence and China, or under an international treaty to which both countries are party, shall be protected in accordance with this Law.

Foreigners or stateless persons first published works in the territory of the People’s Republic of China shall enjoy copyright for such works in accordance with this Law.

Any work of a foreigner who belongs to a country which has not concluded an agreement with China or which is not a party to an international treaty with China, or a stateless person first published in an country which is a party to an international treaty with China or in such a member state and nonmember state, shall be protected in accordance with this Law.

Article 3 For the purposes of this Law, the term “works” includes works of literature, art, natural science, social science, engineering technology and the like which are expressed in the following forms:

(1) written works;

(2) oral works;

(3) musical, dramatic, quyi’, choreographic and acrobatic works;

(4) works of fine art and architecture;

(5) photographic works;

(6) cinematographic works and works created by virtue of an analogous method of film production;

(7) drawings of engineering designs, and product designs; maps, sketches and other graphic works and model works;

(8) computer software;

(9) other works as provided for in laws and administrative regulations.

Article 4 Works the publication or distribution of which is prohibited by law shall not be protected by this Law.

Copyright owners, in exercising their copyrights, shall not violate the Constitution or laws or prejudice the public interests.

Article 5 This Law shall not be applicable to:

(l) laws, regulations, resolutions, decisions and orders of State organs, other documents of a legislative, administrative or judicial nature, and their official translations;

(2) news on current events;

(3) calendars, numerical tables and forms of general use, and formulas.

Article 6 Regulations for the protection of copyright in expressions of folklore shall be established separately by the State Council.

Article 7 The copyright administration department under the State Council shall be responsible for the nationwide administration of copyright. The copyright administration department of the People’s Government of each province, autonomous region and municipality directly under the Central Government shall be responsible for the administration of copyright in its administrative region.

Article 8 The copyright owners and copyright-related right holders may authorize an organization for collective administration of copyright to exercise the copyright or any copyright-related right. After authorization, the organization for collective administration of copyright may, in its own name, claim the right for the copyright owners and copyright-related right holders, and participate, as an interested party, in litigation or arbitration relating to the copyright or copyright-related right.

The organization for collective administration of copyright is a non-profit organization. Provisions for the mode of its establishment, rights and obligations, collection and distribution of the royalties of copyright licensing, and supervision and administration thereof shall be separately established by the State Council.

Chapter II Copyright

Section 1 Copyright Owners and Their Rights

Article 9 The term “copyright owners” shall include:

(1) authors;

(2) other citizens, legal entities or organizations enjoying copyrights in accordance with this Law.

Article 10 The term “copyright” shall include the following personality rights and property rights:

(l) the right of publication, that is, the right to decide whether to make a work available to the public;

(2) the right of authorship, that is, the right to claim authorship and to have the author’s name mentioned in connection with a work;

(3) the right of alteration, that is, the right to alter or authorize others to alter a work;

(4) the right of integrity, that is, the right to protect a work against distortion and mutilation;

(5) the right of reproduction, that is, the right to produce one or more copies of a work by printing, photocopying, lithographing, making a sound recording or video recording, duplicating a recording work, or duplicating a photographic work or by any other means;

(6) the right of distribution, that is, the right to make available to the public the original or reproductions of a work though sale or bestowal;

(7) the right of rental, that is, the right to authorize, with payment, others to use temporarily cinematographic works, works created by virtue of an analogous method of film production, and computer software, except any computer software that is not the main subject matter of rental;

(8) the right of exhibition, that is, the right to display publicly the original or reproduction of a work of fine art and photography;

(9) the right of performance, that is, the right to perform publicly a work and broadcast publicly the performance of a work by various means;

(10) the right of displaying, that is, the right to display to the public a work, of fine art, photography, cinematography and any work created by analogous methods of film production through film projectors, over-head projectors or any other technical devices;

(11) the right of broadcast, that is, the right to broadcast publicly or communicate to the public a work by wireless means, to communicate to the public a broadcast work by wire or relay means, and to communicate to the public a broadcast work by a loudspeaker or by any other analogous tool used to transmit symbols, sounds or pictures;

(12) the right of communication of information on networks, that is, the right to communicate to the public a work, by wire or wireless means in such a way that members of the public may access these works from a place and at a time individually chosen by them;

(13) the right of making cinematographic work, that is, the right to fixate a work on a carrier by way of film production or by virtue of an analogous method of film production;

(14) the right of adaptation, that is, the right to prepare new derivative works of originality based on a work;

(15) the right of translation, that is, the right to translate a work in one language into one in another language;

(16) the right of compilation, that is, the right to compile works or parts of works into a new work by the selection or arrangement;

(17) any other rights a copyright owner is entitled to enjoy.

A copyright owner may authorize another person to exercise the rights under the preceding paragraphs (5) to
(17), and receive remuneration pursuant to an agreement or this Law.
A copyright owner may assign, in part or in whole, the rights under the preceding paragraphs (5) to (17), and receive remuneration pursuant to an agreement or this Law.

Section 2 Ownership of Copyright

Article 11 The copyright in a work shall belong to its author, except where otherwise provided in this Law.

The author of a work is the citizen who has created the work.

Where a work is created according to the intention and under the supervision and responsibility of a legal entity or other organization, such legal entity or organization shall be deemed to be the author of the work.

The citizen, legal entity or other organization whose name is mentioned in connection with a work shall, in the absence of proof to the contrary, be deemed to be the author of the work.

Article 12 Where a work is created by adaptation, translation, annotation or arrangement of a preexisting work, the copyright in the work thus created shall be enjoyed by the adapter, translator, annotator or arranger, provided that the exercise of such copyright shall not prejudice the copyright in the original work.

Article 13 Where a work is created jointly by two or more co-authors, the copyright in the work shall be enjoyed jointly by those co-authors. Co-authorship may not be claimed by anyone who has not participated in the creation of the work.

If a work of joint authorship can be separated into independent parts and exploited separately, each co-author shall be entitled to independent copyright in the parts that he has created, provided that the exercise of such copyright shall not prejudice the copyright in the joint work as a whole.

Article 14 A work created by compilation of several works, parts of works, data that do not constitute a work or other materials and having originality in the selection or arrangement of its contents is a work of compilation. The copyright in the work of compilation shall be enjoyed by the compiler, provided that the exercise of such copyright shall not prejudice the copyright in the original works.

Article 15 The copyright in a cinematographic work and any work created by an analogous method of fl1m production shall be enjoyed by the producer of the work, but the scriptwriter, director, cameraman, lyricist, composer, and other authors thereof shall enjoy the right of authorship in the work, and have the right to receive remuneration pursuant to the contract concluded with the producer.

The authors of the screenplay, musical works and other works that are incorporated in a cinematographic work and work created by virtue of an analogous method of film production and can be exploited separately shall be entitled to exercise their copyright independently.

Article 16 A work created by a citizen in the fulfillment of tasks assigned by a legal entity or other organization shall be deemed to be a work made for hire. The copyright in such work shall be enjoyed by the author, except the provisions of the second paragraph of this Article, provided that the legal entity or other organization shall have a priority right to exploit the work within the scope of its practice areas. During the two years after the completion of the work, the author shall not, without the consent of the legal entity or other organization, authorize a third party to exploit the work in the same way as the legal entity or other organization does.

For any of the following work made for hire, the author shall enjoy the right of authorship, while the legal entity or other organization shall enjoy the other rights included in the copyright and may reward the author:

(1) drawings of engineering designs and product designs, maps, computer software and the like created in the course of employment mainly with the material and technical resource of the legal entity or other organization and under its responsibility;

(2) works created in the course of employment where the copyright is, in accordance with laws, administrative regulations or contracts, enjoyed by the legal entity or other organization.

Article 17 The ownership of the copyright in a commissioned work shall be agreed upon in a contract between the commissioning and the commissioned parties. In the absence of such contract or of an explicit agreement in such contract, the copyright in the work shall belong to the commissioned party.

Article 18 The transfer of ownership of the original copy of a work of fine art or the like, shall not be deemed to include the transfer of the copyright in such work, provided that the right to exhibit the original copy of a work of fine art shall be enjoyed by the owner of such original copy.

Article 19 Where the copyright in a work belongs to a citizen, the rights under Article 10, paragraphs (5) to (17), of this Law in respect of the work shall, after his death, during the term of protection provided for in this Law, be transferred in accordance with the provisions of the Inheritance Law.

Where the copyright in a work belongs to a legal entity or other organization, the rights under Articles l0, paragraphs (5) to (l7), of this Law, shall, after the change or the termination of the status of the legal entity or other organization, during the term of protection provided for in this Law, be enjoyed by the succeeding legal entity or other organization which has taken over the former’s rights and obligations, or, in the absence of such successor entity or other organization, by the State.

Section 3 Term of Protection for Rights

ArticIe 20 The term of protection for rights of authorship, alteration and integrity of an author shall be unlimited.

Article 21 The term of protection for the right of publication and the rights referred to in Article l0, paragraphs (5) to (17), of this Law in respect of a work of a citizen shall be the lifetime of the author and fifty years after his death, and expires on December 31 of the fiftieth year after the death of the author. In the case of a work of joint authorship, such term shall expire on December 31 of the fiftieth year after the death of the last surviving author.

The term of protection for the right of publication and the rights provided for in Article 10, paragraphs (5) to (17), of this Law in respect of a work where the copyright belongs to a legal entity or other organization or in respect of a work made for hire where the legal entity or other organization enjoys the copyright (except the right of authorship), shall be fifty years, and expires on December 31 of the fiftieth year after the first publication of such work, provided that any such work that has not been published within fifty years after the completion of its creation shall no longer be protected under this Law.

The term of protection for the right of publication and the rights referred to in Article l0, paragraphs (5) to (17), of this Law in respect of a cinematographic work, a work created by virtue of an analogous method of film production or a photographic work shall be fifty years, and expires on December 3l of the fiftieth year after the first publication of such work, provided that any such work that has not been published within fifty years after the completion of its creation shall no longer be protected under this Law.

Section 4 Limitations on Rights

Article 22 A work may be exploited In the following circumstances without permission from, and without payment of remuneration to, the copyright owner, provided that the name of the author and the title of the work shall be mentioned and the other rights enjoyed by the copyright owner by virtue of this Law shall not be prejudiced:

(l) to use a published work for the purposes of the user’s own private study, research or self-entertainment;

(2) to quote appropriately from a published work in one’s own work for the purposes of introduction to, or comments on a work, or demonstration of a point;

(3) to use or cite, for any unavoidable reason, a published work in newspapers, periodicals, at radio stations, television stations or any other media for the purpose of reporting current events;

(4) to publish in newspapers or periodicals, or broadcast by radio stations, television stations, or any other media, articles on current issues relating to politics, economics or religion published by other newspapers, periodicals, or broadcast by other radio stations, television stations or any other media, except where the author has declared that the publishing and broadcasting is not permitted;

(5) to publish in newspapers or periodicals, or broadcast by radio stations, television stations or any other media, a speech delivered at a public gathering, except where the author has declared that the publication or broadcasting is not permitted;

(6) to translate, or reproduce in a small quantity of copies, a published work by teachers or scientific researchers for the purpose of teaching for classroom use or scientific research, provided that the translation or reproduction shall not be published or distributed;

(7) to use a published work, within proper scope, by a State organ for the purpose of fulfilling its official duties;

(8) to reproduce a work in its collections by a library, archive, memorial hall, museum, art gallery or any similar institution, for the purposes of the display, or preservation of a copy of the work;

(9) to perform a published work free-of-charge and neither any fee is collected from the public nor any remuneration is paid to the performer(s) for such performance;

(10) to copy, paint, photograph or video record an artistic work located or on display in an outdoor public place;

(11) to translate a published work of a Chinese citizen, legal entity or any other organization from the Han language into any minority nationality language for publication and distribution within the country;

(12) to transliterate a published work into Braille and publication of the work so transliterated.

The above limitations on rights shall be also applicable to the rights of publishers, performers, producers of sound recordings and video recordings, radio stations and television stations.

Article 23 In compiling and publishing textbooks for implementing the nine-year compulsory education and the national educational program, parts of published works, short written works, music works or single copies of works of painting or photographic works may be compiled into textbooks without the authorization from the authors, except where the authors have declared in advance the use thereof is not permitted, but with remuneration paid to the authors according to the regulations and the name of the author and the title of the work indicated, and without prejudice to other rights enjoyed by the copyright owners according to this Law.

The above limitations on rights shall be applicable also to the rights of publishers, performers, producers of sound recordings and video recordings, radio stations and television stations.

Chapter lIl Copyright Licensing and Assignment Contracts

Article 24 Anyone who exploits a work created by others shall conclude a contract with the copyright owner(s), except the circumstances in which no permission is needed in accordance with the provisions of this Law.

A licensing contract shall include the following basic clauses:

(l) the category of right licensed for exploitation of the work covered by the license;

(2) the exclusive or non-exclusive nature of the right to exploit the work covered by the license; (3) the geographic area and term of the license;

(4) the standard of remuneration and the method of payment;’ (5) the liability in case of breach of the contract; and

(6) any other matter that the contracting parties consider necessary.

Article 25 Assignment of a right referred to in Article 10, paragraphs (5) to (17), of this Law shall require conclusion of a contract in writing.

A contract of assignment shall include the following basic clauses:

(1) title of the work;
(2) category and geographic area of the assigned right;
(3) assignment price; (4) date and manner of payment of the assignment price; (5) liabilities for breach of the contract; and (6) any other matters that the contracting parties consider necessary.

Article 26 The other party shall not, without permission from the copyright owner, exercise any right that the copyright owner has not expressly licensed or assigned in the licensing and assignment contracts.

Article 27 The standard of remuneration for the exploitation of a work may be fixed by the interested parties or may be paid according to the standard established by the copyright administration department under the State Council in collaboration with other departments concerned. Where the interested parties have not expressly fixed it, remuneration is paid in accordance with the standard established by the copyright administration department under the State Council in collaboration with other departments concerned.

Article 28 Publishers, performers, producers of sound recordings and video recordings, radio stations, television stations and other entities who or which have obtained, pursuant to the relevant provisions of this Law, the right to exploit the copyright of others, shall not prejudice the authors’ rights of authorship, alteration, and integrity, and rights for obtaining remuneration.

Chapter IV Publication, Performance, Sound Recording, Video Recording and Broadcasting

Section 1 Publication of Books, Newspapers and Periodicals

Article 29 A book publisher who publishes a book shall conclude a publishing contract with, and pay remuneration to, the copyright owner.

Article 30 A book publisher’s exclusive right to publish a work delivered to him by the copyright owner for publication, which is specified in the contract, shall be protected by the law, and no others may publish such work.

Article 31 The copyright owner shall deliver the work within the term specified in the contract. The book publisher shall publish the work in accordance with the quality requirements and within the term specified in the contract.

The book publisher shall bear the civil liability in accordance with the provisions in Article 53 of this Law if he fails to publish the work within the term specified in the contract.

The book publisher shall notify, and pay remuneration to, the copyright owner when the work is to be reprinted or republished. If the publisher refuses to reprint or republish the work when stocks of the book are exhausted, the copyright owner shall have the right to terminate the contrast.

Article 32 Where a copyright owner has submitted the manuscript of his work to a newspaper or a periodical publisher for publication and has not received, within 15 days from the newspaper publisher or within 30 days from the periodical publisher, counted from the date of submission of the manuscript, any notification of the said publisher’s decision to publish the work, the copyright owner may submit the manuscript of the same work to another newspaper or periodical publisher for publication, unless the two parties have agreed otherwise.

After the work has been published, except where the copyright owner has declared that reprinting or excerpting is not permitted, other newspaper or periodical publishers may reprint the work or print an abstract of it or print it as reference material, but such other publishers shall pay remuneration to the copyright owner as prescribed in regulations.

Article 33 A book publisher may alter or abridge a work with the permission of the copyright owner.

A newspaper or periodical publisher may make editorial modifications and abridgements in a work, but shall not make modifications in the contents of the work unless permission has been obtained from the author.

Article 34 When publishing works created by adaptation, translation, annotation, assembling or compilation of preexisting works, the publisher shall both have the permission from, and pay remuneration to, the owners of the copyright in the works created by means of adaptation, translation, annotation, assembling or compilation and the owners of the copyright in the preexisting works.

Article 35 A publisher has the right to license or prohibit any other person to use typographical arrangements of books or periodicals he has published.

The term of protection for the right provided for in the preceding paragraph shall be ten years, and expires on December 3l of the tenth year after the first publication of the books or periodicals using the typographical arrangements.

Section 2 Performance

Article 36 A performer (an individual performer or a performing entity) who for a performance exploits a work created by another person shall obtain permission from, and pay remuneration to, the copyright owner. Where a performing organizer organizes a performance, the organizer shall obtain permission from, and pay remuneration to, the copyright owner.

When exploiting, for performance, works created by adaptation, translation, annotation, assembling or compilation of preexisting works, the performer shall have the permission both from, and pay remuneration to, the owners of the copyright in the works created by means of adaptation, translation, annotation, arrangement or compilation and the owners of the copyright in the preexisting works.

Article 37 A performer shall, in relation to his performance for a work, enjoy the following rights

(l) to claim as a performer;

(2) to protect the image inherent in such performance from distortion; (3) to authorize others to make live broadcasts and public transmission of such performance and to receive remuneration therefore; (4) to authorize others to make sound recordings and video recordings, and to receive remuneration therefore.
(5) to authorize others to reproduce or distribute sound recordings and video recordings incorporating such performance, and to receive remuneration therefore;
(6) to authorize others to communicate such performance to the public on information network, and to receive remuneration therefore.
The person so authorized who exploits the work in the way referred to in the preceding paraphraphs (3) to (6) shall obtain permission from, and pay remuneration to, the copyright owner of the work.

Article 38 The term of protection for the rights provided for in Article 37, paragraphs (1) and (2), of this Law shall not be limited.

The term of protection for the rights provided for in Article 37, paragraphs (3) to (6), of this Law shall be fifty years, and expires on December 31 of the fiftieth year after the performance was made.

Section 3 Sound Recordings and Video Recordings

Article 39 A producer of sound recordings or video recording who, for the production of a sound recording or video recording, exploits a work created by another person, shall obtain permission from, and pay remuneration to, the copyright owner.

A producer of sound recordings or video recordings who exploits a work created by adaptation, translation, annotation or arrangement of a preexisting work shall obtain permission both from, and pay remuneration to the owner of the copyright in the work created by adaptation, translation, annotation or arrangement and the owner of the copyright in the preexisting work.

A producer of sound recordings, who exploits a music work duly made by another person into a sound recording to produce sound recordings, may not obtain permission from, but shall pay remuneration to the copyright owner as prescribed by regulat1ons, such work shall not be exploited where the copyright owner has declared that such exploitation is not permitted.

Article 40 When producing a sound recording or video recording, the producer shall conclude a contract with, and pay remuneration to, the performers.

Article 41 A producer of sound recordings or video recordings shall have the right to authorize others to reproduce, distribute, rent and communicate to the public on an information network such sound recordings or video recordings and the right to obtain remuneration therefore. The term of protection of such rights shall be fifty years, and expires on December 3l of the fiftieth year after the recording was first produced.

Any one who is authorized to reproduce, distribute and communicate to the public on an information network a sound recording work or video recording work shall also obtain permission from, and pay remuneration to, the copyright owner and the performer as presented by regulations.

Section 4 Broadcasting by Radio Stations or Television Stations

Article 42 A radio station or television station that broadcasts an unpublished work created by another person, shall obtain permission from, and pay remuneration to, the copyright owner.

A radio station or television station that broadcasts a published work created by another person does not need a permission from, but shall pay remuneration to, the copyright owner.

Article 43 A radio station or television station that broadcasts a published sound recording work, does not need a permission from, but shall pay remuneration to, the copyright owner, except that the interested parties have agreed otherwise. The specific provisions shall be established by the State Council.

Article 44 A radio station or television station shall have the right to prohibit the following acts without its authorization :

(1) to rebroadcast its radio or television program broadcast;

(2) to fix its radio or television program broadcast on a sound recording or video recording carrier and to reproduce such sound recording or video recording carrier.

The term of protection for the right referred to in the preceding paragraph shall be fifty years, and expires on December 31 of the fiftieth year after the radio or television program was first broadcast.

Article 45 A television station that broadcasts a cinematographic work, a work created by virtue of an analogous method of film production or a video graphic work produced by another person shall obtain permission from, and pay remuneration to, the producer of the Cinematographic or video graphic work; the station that broadcasts a video graphic work produced by another person shall also obtain permission of, and pay remuneration to, the copyright owner.

Chapter V Legal Liabilities and Enforcement Measures

Article 46 Anyone who commits any of the following acts of infringement shall bear civil liability for such remedies as ceasing the infringing act, eliminating the effects of the act, making an apology or paying compensation for damages, depending on the circumstances:

(1) publishing a work without the permission of the copyright owner;

(2) publishing a work of joint authorship as a work created solely by oneself, without the permission of the other co-authors;

(3) having one’s name mentioned in connection with a work created by another, in order to seek personal fame and gain, where one has not taken part in the creation of the work;

(4) distorting or mutilating a work created by another personr;

(5) plagiarizing a work of another person; (6) exploiting by exhibition, film production or any analogous method of film production, or by adaptation, translation, annotation, or by other means, without the permission of the copyright owner, unless otherwise provided in this Law;

(7) exploiting a work created by another person without paying remuneration where such remuneration shall be paid;

(8) rending a work, sound recording or video recording, without the permission of the copyright owner of the cinematographic work, the work created by virtue of an analogous method of film production, the computer software, the sound recording or video recording or the owner of a copyright-related right thereof, unless otherwise provided in this Law;

(9) exploiting the typographic arrangement of a book or periodical without the permission of the publisher;

(10) broadcasting live a performance or communicating the live performance to the public, or recording such performance without the permission of the performer;

(11) committing any other act of infringement of copyright and of other rights and interests relating to copyright.

Article 47 Anyone who commits any of the following acts of infringement shall bear civil liability for such remedies as ceasing the infringing act, eliminating the effects of the act, making an apology or paying damages, depending on the circumstances, and may, in addition, be subjected by a copyright administration department to such administrative penalties as ceasing the infringing act, confiscating unlawful income from the act, confiscating and destroying infringing reproductions and imposing a fine; where the circumstances are serious, the copyright administration department may also confiscate the materials, tools, and equipment mainly used for making the infringing reproductions; and if the act constitutes a crime, the infringer shall be prosecuted for his criminal liability:

(1) reproducing, distributing, performing, displaying, broadcasting, compiling or communicating to the public on an information network a work without the permission of the copyright owner of such work, unless otherwise provided in this Law;

(2) publishing a book where the exclusive right of publishing such book belongs to another person;

(3) reproducing and distributing a sound recording or video recording of a performance, or communicating to the public his performance on an information network without the permission of the performer, unless otherwise provided in the Law;

(4) reproducing and distributing or communicating to the public on an information network a sound recording or video recording produced by another person, without the permission of the producer, unless otherwise provided in the Law;

(5) broadcasting and reproducing a radio or television program produced by a radio station or television station without the permission of the radio station or television station, unless otherwise provided in this Law;

(6) intentionally circumventing or destroying the technological measures set by a right holder for protecting the
copyright or copyright-related rights in his work, sound recording or video recording, without the permission of the copyright owner, or the owner of the copyright-related rights, unless otherwise provided in law or in administrative regulations;

(7) intentionally deleting or altering the electronic right management information of a work, sound recording or video recording, without the permission of the copyright owner or the owner of a copyright-related right thereof, unless otherwise provided in law or in administrative regulations; or
(8) producing or selling a work where the signature of another is counterfeited.

Article 48 Where a copyright or a copyright-re1ated right is infringed, the infringer shall compensate for the actually loss suffered by the right holder; where the actual loss is difficult to compute, the damages shall be paid on the basis of the unlawful income of the infringer. The amount of damages shall also include the appropriate fees paid by the right holder to seek the infringing act to be ceased.

Where the right holder’s actual loss or infringer’s Unlawful income cannot be determined, the People’s Court shall judge the damages not exceeding RMB 50,000.00 depending on the circumstances of the infringing act.

Article 49 A copyright owner or owner of a copyright-related right who has evidence to prove that another person is committing or will commit an act of infringing his right, which is likely to cause irreparable harm to his legitimate rights and interests if the act is not checked or prevented from occurring in time, may, before instituting legal proceedings, request the People’s Court to adopt measures for ordering cessation of the related act and the preservation of property.

The provisions of Articles 93 to 96 and 99 of the Civil Procedure Law of the People’s Republic of China shall apply when the People’s Court handles the request referred to in the preceding paragraph.

Article 50 For the purpose of preventing an infringing act and under the circumstance where the evidence is likely to be lost or difficult to obtain afterwards, the copyright owner or the owner of a copyright-related right may, before initiating legal proceedings, request the People’s Court for evidence preservation.

The People’s Court shall make the decision within forty-eight hours after it receives a request; the measures of preservation shall be taken without delay if it is decided to do so.

The People’s Court may order the requestor to provide a guaranty, if the latter fails to do so, the Court shall reject the request.

Where the requestor fails to institute legal proceedings within fifteen days after the People’s Court adopted the measures of preservation, the Court shall terminate the measures of preservation.

Article 51 The People’s Court hearing a case may confiscate the unlawful income, infringing reproductions and materials used for committing the illegal act of infringement of copyright or copyright-related rights.

Article 52 The publisher or producer of a reproduction who cannot prove that his publication or production has been authorized, the distributor of a reproduction or the renter of the reproduction of a cinematographic work, a work created by virtue of an analogous method of film production, computer software, sound recording or video recording who cannot prove that his distributed or rented reproduction has been from a legitimate source, shall bear legal liability.

Article 53 A party who fails to fulfill his contractual obligations, or executes them in a manner that is not in conformity with the agreed conditions of the contract, shall bear civil liability in accordance with the relevant provisions of the General Principles of the Civil Law of the People’s Republic of China, the Contract Law of the People’s Republic of China and other relevant laws and regulations.

Article 54 A dispute over copyright may be settle by mediation, or also submitted for arbitration to a copyright arbitration body under a written arbitration agreement or under the arbitration clause in the contract concluded between the parties.

Any party may institute proceedings directly in the People’s Court in the absence of a written arbitration agreement or in the absence of an arbitration clause in the contract.

Article 55 Any party who is not satisfied with an administrative penalty may institute proceedings in the People’s Court within three months from the date of receipt of the written decision on the penalty. If a party neither institutes legal proceedings nor implements the decision within the time limit, the copyright administration department concerned may apply to the People’s Court for enforcement.

Chapter VI Supplementary Provisions

Article 56 For the purposes of this Law, the terms “zhuzuoquan” is “banquan”2.

Article 57 “publication” referred to in Article 2 of this Law means the reproduction and distribution of a work.

Article 58 Regulations for the protection of computer software and the right of communication of information on network shall be established separately by the State Council.

Article 59 The rights of copyright owners, publishers, performers, producers of sound recordings and video recordings, radio stations and television’ stations as provided for in this Law, of which the term of protection specified in this Law has not yet expired on the date of this Law’s entry into force, shall be protected in accordance with this Law.

Any infringements of copyright and the copyright-related rights or breaches of contract committed prior to the entry into force of this Law shall be dealt with under the relevant regulations or policies in force at the time when the act was committed.

Article 60 This Law shall enter into force on June 1, l99l.

Implementing Regulations of the Copyright Law of the People’s Republic of China

(Promulgated by Decree No. 359 of the State Council of the People’s Republic of China on August 2, 2002, and effective as of September 15, 2002)

Article 1. These Implementing Regulations are formulated pursuant to the Copyright Law of the People’s Republic of China (hereinafter referred to as the Copyright Law).

Article 2. The term”works” referred to in the Copyright Law shall mean intellectual creations in the literary, artistic and scientific domain, insofar as they are of originality and capable of being reproduced in a certain tangible form.

Article 3. The term”creation” referred to in the Copyright Law shall mean intellectual activities from which literary, artistic and scientific works are directly created.

The provision of administrative support, consultations, material means or other supporting services for others in their creative activities shall not be deemed as acts of creation.

Article 4. The works as mentioned in the Copyright Law and these Regulations shall mean the following:

(1) written works are works expressed in written form, such as novels, poems, essays, and theses;

(2) oral works are works which are expressed in spoken words, such as impromptu speeches, lectures, and court debates;

(3) musical works are works which can be sung or performed, and may include or not include any accompanying words, such as songs, and symphonic works;

(4) dramatic works are works which are used for stage performances, such as dramas, operas, and local art forms;

(5) “quyi” works are works which are performed in a way mainly including recitation or/and singing, such as “xiangsheng” (cross talk), “kuaishu” (clapper talk), “dagu” (ballad singing with drum accompaniment), and”pingshu” (story-telling based on classical novels);

(6) choreographic works are works which express ideas and emotions through successive body movements, gestures and facial movements and expressions;

(7) works of acrobatic art are works expressed through body movements and artistry, such as acrobatic, magic and circus works;

(8) works of fine art are works two-dimensional or three-dimensional works created in lines, colors or other media, which being viewed, impart aesthetic effect, such as painting, works of calligraphy and sculptures;

(9) architectural works are works expressed in architectural or constructional form, which being viewed, impart aesthetic effect;

(10) photographic works are artistic works created by recording images of existing objects on light-sensitive materials or other media with the aid of devices;

(11) cinematographic works and works created by virtue of analogous methods of film production are works which are recorded on some medium and consist of a series of related images which, when shown in succession with the aid of suitable devices, impart an impression of motion, together with or without accompanying sounds;

(12) pictorial works are such works as drawings of engineering designs and product deigns for the purpose of actual construction or manufacture, and maps and diagrams showing geographic phenomena and demonstrating the fundamentals or structures of objects;

(13) model works are three-dimensional works made according to the shapes and structures, in certain scales, of objects for the purpose of exhibition, experimentation, observation or measurement.

Article 5. The terms as mentioned in the Copyright Law and in these Regulations shall mean the following:

(1) news on current events refers to the mere facts or happenings conveyed by such media as newspapers, periodicals and radio and television programs;

(2) sound recordings refer to works resulted from the recordation of any sounds of performance and other sounds;

(3) video recordings refer to works resulted from the recordation of a series of related images, with or without accompanying sounds, other than cinematographic works or works created by virtue of analogous methods of film production;

(4) producer of a sound recording refers to the first original person who makes the sound recording;

(5) producer of a video recording refers to the first original person who makes the video recording;

(6) performer refers to an actor, performing entity or any other person who performs literary or artistic works.

Article 6. Copyright shall be protected from the date on which the creation of a work is completed.

Article 7. Copyright in the works of foreigners or stateless persons first published in the territory of China as provided for in Article 2, paragraph three, of the Copyright Law shall be protected from the date on which the work is first published.

Article 8. Where works of foreigners or stateless persons are first published outside the territory of China and then, within thirty days, published in the territory of China, the works shall be deemed to have been simultaneously published in the territory of China.

Article 9. Where a jointly created work is not able to be used separately, the copyright of the work shall be jointly enjoyed by the joint authors, and exercised by unanimous agreement; where the joint authors fail to reach an agreement and without justified reasons, any party may not prevent any of the other parties from exercising the copyright except the right of assignment, but the gaining from the exercising shall be reasonably distributed between or among all joint authors.

Article 10. Where the copyright owner has authorized others to make cinematographic works and works created by virtue of analogous methods of film production, it is deemed that he has permitted them to make necessary alteration of his works, insofar as such alteration does not distort or mutilate the original work.

Article 11. The “tasks assigned” in the provision of Article 16, paragraph one of the Copyright Law regarding works made for hire, refer to duties which citizens shall perform in the legal entity or organization.

The “material and technical resource” used for the creation of a work in the course of employment in the provision of Article 16, paragraph two of the Copyright Law refer to fund, equipment or reference material which the legal entity or organization has provided specifically the citizens to accomplish the creation of the work .

Article 12. During the two years after the completion of a work made for hire, the author, with the permission of the legal entity or organization, authorizes a third party to exploit the work in the same way as the legal entity and receives remuneration, the remuneration shall be distributed between the author and the entity or organization at an agreed ratio.

The time limit of two years after the completion of the creation of a work shall be calculated from the date on which the author thereof delivers the work to the entity.

Article 13. In the case of a work of an unknown author, the copyright, except the right of authorship, shall be exercised by the owner of the original copy of the work. Where the author has been identified, the copyright shall be exercised by the author or his heir in title.

Article 14. Where one of the co-authors of a work of joint authorship dies without heir in title or other bequeathed beneficiary of the rights owned by him according to Article 10, items (5) to (17) of paragraph one, of the Copyright Law, such rights shall be exercised by the other co-authors.

Article 15. The rights of authorship, alteration and integrity of an author shall, after the death of the author, be protected by the heir in title and other bequeathed beneficiary.

In the absence of an heir in title or other bequeathed beneficiary, the rights of authorship, alteration and integrity shall be protected by the copyright administrative departments.

Article 16. The exploitation of works the copyright of which is owned by the State shall be administered by the copyright administrative department under the State Council.

Article 17. In the case of posthumous works, the right of publication may be exercised by the author’s heir in title or other bequeathed beneficiary within a period of fifty years after the death of the author, unless the author had expressly stated that the work shall not be published. In the absence of an heir in title or other bequeathed beneficiary, such right shall be exercised by the owner of the original copy of the work.

Article 18. In the case of a work of an unknown author, the term of protection in relation to the rights provided for in Article 10, items (5) to (17) of paragraph one, of the Copyright Law, shall be fifty years ending on December 31 of the fiftieth year after the first publication of the work. Article 21 of the Copyright Law shall be applicable after the author of the work has been identified.

Article 19. Any person who exploits a work created by another person shall indicate the name of the author and title of the work, except otherwise agreed between interested parties or otherwise impossible to do so due to the specific way in which the work is exploited.

Article 20. A published work as mentioned in the Copyright Law refers to a work which has been made available to the public by the copyright owner himself or by authorization.

Article 21. Where any person exploits, according to the relevant provisions of the Copyright Law, a published work that may be exploited without the authorization of the copyright owner, he shall not affect the normal exploitation of the work, nor unreasonably prejudice the legitimate interests of the copyright owner.

Article 22. The standard of remuneration for exploitation of works under Article 23, Article 32, paragraph two, and Article 39, paragraph three, of the Copyright Law shall be formulated and published by the copyright administrative department under the State Council in conjunction with the competent price administrative department under the State Council.

Article 23. Where anyone exploits a work of other person, he shall conclude a license contract with the copyright owner. Where the right licensed is an exclusive right of exploitation, the contract shall be made in writing, except the work is to be published by newspapers and periodicals.

Article 24. The contents of the exclusive right of exploitation provided for in Article 24 of the Copyright Law shall be stipulated in contract. Where no such stipulation is made in the contract or the stipulation is not clear, it shall be deemed that the licensee has the right to exclude any other person, including the copyright owner, from exploiting the work in the same way. Where a licensee licenses a third party to exercise the same right, he shall be authorized by the copyright owner, except otherwise agreed upon.

Article 25. Where any person concludes an exclusive licensing contract or assignment contract with a copyright owner, he may submit the contractual documents to the copyright administrative department for recordation.

Article 26. Rights and interests related to copyright, as mentioned in the Copyright Law and these Regulations, mean the rights enjoyed by publishers in the typographical arrangements of their books or periodicals published, the rights enjoyed by performers in their performances, the rights enjoyed by producers of sound recordings and video recordings in their sound recordings and video recordings and the rights enjoyed by radio and television stations in their broadcast radio or television programs.

Article 27. Publishers, performers, producers of sound recordings and video recordings and radio and television stations, in the course of exercising their rights, shall not prejudice the rights of the copyright owners of the works being used and of the original works.

Article 28. Where it is agreed in a book publishing contract that the publisher enjoys the exclusive publishing right, but the contents of the right is not clearly defined, it shall be deemed that the publisher enjoys the exclusive right to publish in the same language of the original edition or revised edition of the book within the term of validity of the contract and in the geographic area agreed under the contract.

Article 29. Where two orders mailed by the author to the publisher are not fulfilled within six months, it is deemed that stocks of the book have been exhausted mentioned in Article 31 of the Copyright Law.

Article 30. Where a copyright owner declares that the reprinting of his work in whole or in part is not permitted pursuant to Article 32, paragraph two, of the Copyright Law, he shall make a statement attached to the work when the work is published in a newspaper or a periodical.

Article 31. Where a copyright owner declares that his work is not permitted to be produced into sound recordings pursuant to Article 39, paragraph three, of the Copyright Law, he shall make a statement when the sound recordings of the work are legitimately produced.

Article 32. Where any person exploits a work of another person according to the provisions of Article 23, Article 32, paragraph two, and Article 39, paragraph three, of the Copyright Law, he shall pay remuneration to the copyright owner within two months from the date of exploitation of the work.

Article 33. Performance by foreign or stateless performers in the territory of China shall be protected by the Copyright Law.

The rights enjoyed by foreign or stateless performers in their performances pursuant to the international treaties to which China has acceded, shall be protected by the Copyright Law.

Article 34. The sound recordings produced and distributed in the territory of China by foreign or stateless producers shall be protected by the Copyright Law.

The right enjoyed by foreign or stateless producers in their sound recordings produced and distributed pursuant to the international treaties to which China has acceded, shall be protected by the Copyright Law.

Article 35. The right enjoyed by foreign radio and television stations in their broadcast radio or television programs pursuant to the international treaties to which China has acceded, shall be protected by the Copyright Law.

Article 36. In respect of infringement of copyright, with prejudice of the social and public interests, as enumerated in Article 47 of the Copyright Law, the copyright administrative departments may impose a fine not exceeding three times the amount of illegal business turnover. Where it is difficult to calculate the amount of illegal business turnover, it may impose a fine of no more than RMB 100,000 yuan.

Article 37. The copyright administrative departments under the local governments shall be responsible for investigating and handling infringements of copyright, with prejudice of the social and public interests, as enumerated in Article 47 of the Copyright Law.

The copyright administrative department under the State Council may investigate and handle copyright infringements that are of nationwide influence.

Article 38. These Implementing Regulations shall enter into force on September 15, 2002. The Implementing Regulations of the Copyright Law of the People’s Republic of China as approved by the State Council on May 24, 1991 and promulgated by the National Copyright Administration on May 30, 1991 shall be simultaneously abrogated.

Implementing Regulations of the Patent Law of the People’s Republic of China

Implementing Regulations of the Patent Law of the People’s Republic of China

(Promulgated by Decree No. 368 of the State Council of the People’s Republic of China on December 28, 2002, and effective as of February 1, 2003)

TABLE OF CONTENTS

Chapter I General Provisions

Chapter II Application for Patent

Chapter III Examination and Approval of Application for Patent

Chapter IV Reexamination of Patent Application and Invalidation of Patent Right

Chapter V Compulsory License for Exploitation of Patent

Chapter VI Reward and Remuneration of Inventors or Creators of Service Inventions-Creations

Chapter VII Protection of Patent Right

Chapter VIII Patent Registration and Patent Gazette

Chapter IX Fees

Chapter X Special Provisions Concerning International Application

Chapter X Supplementary Provisions

Chapter I General Provisions

Rule 1. These Implementing Regulations are formulated in accordance with the Patent Law of the People’s Republic of China (hereinafter referred to as the Patent Law).

Rule 2 “Invention” in the Patent Law means any new technical solution relating to a product, a process or improvement thereof.

“Utility model” in the Patent Law means any new technical solution relating to the shape, the structure, or their combination, of a product, which is fit for practical use.

“Design” in the Patent Law means any new design of the shape, the pattern or their combination, or the combination of the color with shape or pattern, of a product, which creates an aesthetic feeling and is fit for industrial application.

Rule 3 Any formalities prescribed by the Patent Law and these Implementing Regulations shall be complied with in a written form or in any other form prescribed by the Patent Administration Department under the State Council.

Rule 4 Any document submitted in accordance with the provisions of the Patent Law and these Implementing Regulations shall be in Chinese; the standard scientific and technical terms shall be used if there is a prescribed one set forth by the State; where no generally accepted translation in Chinese can be found for a foreign name or scientific or technical term, the one in the original language shall be also indicated.

Where any certificate or certifying document submitted in accordance with the provisions of the Patent Law and these Implementing Regulations is in a foreign language, the Patent Administration Department under the State Council may, when it deems necessary, request a Chinese translation of the certificate or the certifying document be submitted within a specified time limit; where the translation is not submitted within the specified time limit, the certificate or certifying document shall be deemed not to have been submitted.

Rule 5 Where any document is sent by mail to the Patent Administration Department under the State Council , the date of mailing indicated by the postmark on the envelope shall be deemed to be the date of filing; where the date of mailing indicated by the postmark on the envelope is illegible, the date on which the Patent Administration Department under the State Council receives the document shall be the date of filing, except where the date of mailing is proved by the party concerned.

Any document of the Patent Administration Department under the State Council may be served by mail, by personal delivery or by other forms. Where any party concerned appoints a patent agency, the document shall be sent to the patent agency; where no patent agency is appointed, the document shall be sent to the liaison person named in the request.

Where any document is sent by mail by the Patent Administration Department under the State Council , the 16th day from the date of mailing shall be presumed to be the date on which the party concerned receives the document.

Where any document is delivered personally in accordance with the provisions of the Patent Administration Department under the State Council , the date of delivery is the date on which the party concerned receives the document.

Where the address of any document is not clear and it cannot be sent by mail, the document may be served by making an announcement. At the expiration of one month from the date of the announcement, the document shall be deemed to be served.

Rule 6 The first day of any time limit prescribed in the Patent Law and these Implementing Regulations shall not be counted in the time limit. Where the time limit is counted by year or by month, it shall expire on the corresponding day of the last month; if there is no corresponding day in that month, the time limit shall expire on the last day of that month; if a time limit expires on an official holiday, it shall expire on the first working day following that official holiday.

Rule 7 Where a time limit prescribed in the Patent Law or these Implementing Regulations or specified by the Patent Administration Department under the State Council is not observed by a party concerned because of force majeure, resulting in loss of his or its rights, he or it may, within two months from the date on which the impediment is removed, at the latest within two years immediately following the expiration of that time limit, state the reasons, together with relevant supporting documents, and request the Patent Administration Department under the State Council to restore his or its rights.

Where a time limit prescribed in the Patent Law or these Implementing Regulations or specified by the Patent Administration Department under the State Council is not observed by a party concerned because of any justified reason, resulting in loss of his or its rights, he or it may, within two months from the date of receipt of a notification from the Patent Administration Department under the State Council , state the reasons and request the Patent Administration Department under the State Council to restore his or its rights.

Where the party concerned makes a request for an extension of a time limit specified by the Patent Administration Department under the State Council , he or it shall, before the time limit expires, state the reasons to the Patent Administration Department under the State Council and go through the relevant formalities.

The provisions of paragraphs one and two of this Rule shall not be applicable to the time limit referred to in Articles 24, 29, 42 and 62 of the Patent Law.

Rule 8 Where an application for a patent for invention relates to the secrets of the State concerning national defense and requires to be kept secret, the application for patent shall be filed with the patent department of national defense. Where any application for patent for invention relating to the secrets of the State concerning national defense and requiring to be kept secret is received by the Patent Administration Department under the State Council , the application shall be forwarded to the patent department of national defense for examination, and the Patent Administration Department under the State Council shall make a decision on the basis of the observations of the examination made by the patent department of national defense.

Subject to the preceding paragraph, the Patent Administration Department under the State Council shall, after receipt of an application for patent for invention which is required to be examined for the purpose of security, send it to the relevant competent department under the State Council for examination. The relevant competent department shall, within four months from the date of receipt of the application, notify the Patent Administration Department under the State Council of the results of the examination. Where the invention for which a patent is applied for is required to be kept secret, the Patent Administration Department under the State Council shall handle it as an application for secret patent and notify the applicant accordingly.

Rule 9 Any invention-creation that is contrary to the laws of the State referred to in Article 5 of the Patent Law shall not include the invention-creation merely because the exploitation of which is prohibited by the laws of the State.

Rule 10 The date of filing referred to in the Patent Law, except for those referred to in Articles 28 and 42, means the priority date where priority is claimed.

The date of filing referred to in these Implementing Regulations, except as otherwise prescribed, means the date of filing prescribed in Article 28 of the Patent Law.

Rule l1 “A service invention-creation made by a person in execution of the tasks of the entity to which he belongs” referred to in Article 6 of the Patent Law means any invention-creation made:

(1) in the course of performing his own duty;

(2) in execution of any task, other than his own duty, which was entrusted to him by the entity to which he belongs;

(3) within one year from his resignation, retirement or change of work, where the invention-creation relates to his own duty or the other task entrusted to him by the entity to which he previously belonged.

“The entity to which he belongs” referred to in Article 6 of the Patent Law includes the entity in which the person concerned is a temporary staff member. “Material and technical means of the entity” referred to in Article 6 of the Patent Law mean the entity’s money, equipment, spare parts, raw materials or technical materials which are not disclosed to the public.

Rule 12 “Inventor” or “creator” referred to in the Patent Law means any person who makes creative contributions to the substantive features of an invention-creation. Any person who, during the course of accomplishing the invention-creation, is responsible only for organizational work, or who offers facilities for making use of material and technical means, or who takes part in other auxiliary functions, shall not be considered as inventor or creator.

Rule l3 For any identical invention-creation, only one patent right shall be granted.

Two or more applicants who respectively file, on the same day, applications for patent for the identical invention-creation, as provided for in Article 9 of the Patent Law, shall, after receipt of a notification from the Patent Administration Department under the State Council , hold consultations among themselves to decide the person or persons who shall be entitled to file the application.

Rule 14 Any assignment of the right to apply for a patent or of the patent right, by a Chinese entity or individual, to a foreigner shall be approved by the competent department for foreign trade and economic affairs of the State Council in conjunction with the science and technology administration department of the State Council.

Rule 15 Except for the assignment of the patent right in accordance with Article 10 of the Patent Law, where the patent right is transferred because of any other reason, the person or persons concerned shall, accompanied by relevant certified documents or legal papers, request the Patent Administration Department under the State Council to make a registration of change in the owner of the patent right.

Any license contract for exploitation of the patent which has been concluded by the patentee with an entity or individual shall, within three months from the date of entry into force of the contract, be submitted to the Patent Administration Department under the State Council for the record.

Chapter II Application for Patent

Rule l6 Anyone who applies for a patent in written form shall file with the Patent Administration Department under the State Council application documents in two copies.

Anyone who applies for a patent in other forms as provided by the Patent Administration Department under the State Council shall comply with the relevant provisions.

Any applicant who appoints a patent agency for applying for a patent, or for having other patent matters to attend to before the Patent Administration Department under the State Council , shall submit at the same time a power of attorney indicating the scope of the power entrusted.

Where there are two or more applicants and no patent agency is appointed, unless otherwise stated in the request, the applicant named first in the request shall be the representative.

Rule l7 “Other related matters” in the request referred to in Article 26, paragraph two of the Patent Law means:

(1) the nationality of the applicant;

(2) where the applicant is an enterprise or other organization, the name of the country in which the applicant has the principal business office;

(3) where the applicant has appointed a patent agency, the relevant matters which shall be indicated; where no patent agency is appointed, the name, address, postcode and telephone number of the liaison person;

(4) where the priority of an earlier application is claimed, the relevant matters which shall be indicated;

(5) the signature or seal of the applicant or the patent agency;

(6) a list of the documents constituting the application;

(7) a list of the documents appending the application;

(8) any other related matter which needs to be indicated.

Rule l8 The description of an application for a patent for invention or utility model shall state the title of the invention or utility model, which shall be the same as it appears in the request. The description shall include the following:

(1) technical field: specifying the technical field to which the technical solution for which protection is sought pertains;

(2) background art: indicating the background art which can be regarded as useful for the understanding, searching and examination of the invention or utility model, and when possible, citing the documents reflecting such art;

(3) contents of the invention: disclosing the technical problem the invention or utility model aims to settle and the technical solution adopted to resolve the problem; and stating, with reference to the prior art, the advantageous effects of the invention or utility model;

(4) description of figures: briefly describing each figure in the drawings, if any;

(5) mode of carrying out the invention or utility model: describing in detail the optimally selected mode contemplated by the applicant for carrying out the invention or utility model; where appropriate, this shall be done in terms of examples, and with reference to the drawings, if any;

The manner and order referred to in the preceding paragraph shall be followed by the applicant for a patent for invention or for utility model, and each of the parts shall be preceded by a heading, unless, because of the nature of the invention or utility model, a different manner or order would result in a better understanding and a more economical presentation.

The description of the invention or utility model shall use standard terms and be in clear wording, and shall not contain such references to the claims as: “as described in claim ?”, nor shall it contain commercial advertising.

Where an application for a patent for invention contains disclosure of one or more nucleotide and/or amino acid sequences, the description shall contain a sequence listing in compliance with the standard prescribed by the Patent Administration Department under the State Council . The sequence listing shall be submitted as a separate part of the description, and a copy of the said sequence listing in machine-readable form shall also be submitted in accordance with the provisions of the Patent Administration Department under the State Council .

Rule l9 The same sheet of drawings may contain several figures of the invention or utility model, and the figures shall be numbered and arranged in numerical order consecutively as “Figure l, Figure 2, ?”.

The scale and the distinctness of the drawings shall be as such that a reproduction with a linear reduction in size to two-thirds would still enable all details to be clearly distinguished.

Reference signs not mentioned in the text of the description of the invention or utility model shall not appear in the drawings. Reference signs not mentioned in the drawings shall not appear in the text of the description. Reference signs for the same composite part shall be used consistently throughout the application document.

The drawings shall not contain any other explanatory notes, except words which are indispensable.

Rule 20 The claims shall define clearly and concisely the matter for which protection is sought in terms of the technical features of the invention or utility model.

If there are several claims, they shall be numbered consecutively in Arabic numerals.

The technical terminology used in the claims shall be consistent with that used in the description. The claims may contain chemical or mathematical formulae but no drawings. They shall not, except where absolutely necessary, contain such references to the description or drawings as: “as described in part ?of the description”, or “as illustrated in Figure ?of the drawings”.

The technical features mentioned in the claims may, in order to facilitate quicker understanding of the claim, make reference to the corresponding reference signs in the drawings of the description. Such reference signs shall follow the corresponding technical features and be placed in parentheses. They shall not be construed as limiting the claims.

Rule 2l The claims shall have an independent claim, and may also contain dependent claims.

The independent claim shall outline the technical solution of an invention or utility model and state the essential technical features necessary for the solution of its technical problem.

The dependent claim shall, by additional technical features, further define the claim which it refers to.

Rule 22 An independent claim of an invention or utility model shall contain a preamble portion and a characterizing portion, and be presented in the following form:

(1) a preamble portion: indicating the title of the claimed subject matter of the technical solution of the invention or utility model, and those technical features which are necessary for the definition of the claimed subject matter but which, in combination, are part of the most related prior art;

(2) a characterizing portion: stating, in such words as “characterized in that…” or in similar expressions, the technical features of the invention or utility model, which distinguish it from the most related prior art. Those features, in combination with the features stated in the preamble portion, serve to define the scope of protection of the invention or utility model.

Where the manner specified in the preceding paragraphs is not appropriate to be followed because of the nature of the invention or utility model, an independent claim may be presented in a different manner.

An invention or utility model shall have only one independent claim, which shall precede all the dependent claims relating to the same invention or utility model.

Rule 23 Any dependent claim of an invention or utility model shall contain a reference portion and a characterizing portion, and be presented in the following manner:

(l) a reference portion: indicating the serial number(s) of the claim(s) referred to, and the title of the subject matter;

(2) a characterizing portion: stating the additional technical features of the invention or utility model.

Any dependent claim shall only refer to the preceding claim or claims. Any multiple dependent claims, which refers to two or more claims, shall refer to the preceding one in the alternative only, and shall not serve as a basis for any other multiple dependent claims.

Rule 24 The abstract shall consist of a summary of the disclosure as contained in the application for patent for invention or utility model. The summary shall indicate the title of the invention or utility model, and the technical field to which the invention or utility model pertains, and shall be drafted in a way which allows the clear understanding of the technical problem, the gist of the technical solution of that problem, and the principal use or uses of the invention or utility model.

The abstract may contain the chemical formula which best characterizes the invention. In an application for a patent which contains drawings, the applicant shall provide a figure which best characterizes the technical features of the invention or utility model. The scale and the distinctness of the figure shall be as such that a reproduction with a linear reduction in size to 4cm x 6cm would still enable all details to be clearly distinguished. The whole text of the abstract shall contain not more than 300 words. There shall be no commercial advertising in the abstract.

Rule 25 Where an invention for which a patent is applied for concerns a new biological material which is not available to the public and which cannot be described in the application in such a manner as to enable the invention to be carried out by a person skilled in the art, the applicant shall, in addition to the other requirements provided for in the Patent Law and these Implementing Regulations, go through the following formalities:

(1) depositing a sample of the biological material with a depositary institution designated by the Patent Administration Department under the State Council before, or at the latest, on the date of filing (or the priority date where priority is claimed), and submit at the time of filing or at the latest, within four months from the filing date, a receipt of deposit and the viability proof from the depository institution; where they are not submitted within the specified time limit, the sample of the biological material shall be deemed not to have been deposited;

(2) giving in the application document relevant information of the characteristics of the biological material;

(3) indicating, where the application relates to the deposit of the biological material, in the request and the description the scientific name (with its Latin name) and the title and address of the depositary institution, the date on which the sample of the biological material was deposited and the accession number of the deposit; where, at the time of filing, they are not indicated, they shall be supplied within four months from the date of filing; where after the expiration of the time limit they are not supplied, the sample of the biological material shall be deemed not to have been deposited.

Rule 26 Where the applicant for a patent for invention has deposited a sample of the biological material in accordance with the provisions of Rule 25 of these Implementing Regulations, and after the application for patent for invention is published, any entity or individual that intends to make use of the biological material to which the application relates, for the purpose of experiment, shall make a request to the Patent Administration Department under the State Council , containing the following items:

(1) the name and address of the requesting person;

(2) an undertaking not to make the biological material available to any other person;

(3) an undertaking to use the biological material for experimental purpose only before the grant of the patent right.

Rule 27 The size of drawings or photographs of a design submitted in accordance with the provisions of Article 27 of the Patent Law shall not be smaller than 3cm x 8cm, nor larger than l5cm x 22cm.

Where an application for a patent for design seeking concurrent protection of colors is filed, a drawing or photograph in color shall be submitted in two copies.

The applicant shall, in respect of the subject matter of the product incorporating the design which is in need of protection, submit the relevant views and stereoscopic drawings or photographs, so as to clearly show the subject matter for which protection is sought.

Rule 28 Where an application for a patent for design is filed, a brief explanation of the design shall, when necessary, be made.

The brief explanation of the design shall include the essential portion of the design, the colors for which protection is sought and the omission of the view of the product incorporating the design. The brief explanation shall not contain any commercial advertising and shall not be used to indicate the function of the product.

Rule 29 Where the Patent Administration Department under the State Council deems necessary, it may require the applicant for a patent for design to submit a sample or model of the product incorporating the design. The volume of the sample or model submitted shall not exceed 30cm x 30cm x 30cm, and its weight shall not surpass l5 kilograms. Articles that are easy to get rotten or broken or articles that are dangerous shall not be submitted as sample or model.

Rule 30 The existing technology referred to in Article 22, paragraph three of the Patent Law means any technology which has been publicly disclosed in publications in the country or abroad, or has been publicly used or made known to the public by any other means in the country, before the date of filing (or the priority date where priority is claimed), that is, prior art.

Rule 3l The academic or technological meeting referred to in Article 24, subparagraph (2) of the Patent Law means any academic or technological meeting organized by a competent department concerned of the State Council or by a national academic or technological association.

Where any invention-creation for which a patent is applied falls under the provisions of Article 24, subparagraph

(l) or (2) of the Patent Law, the applicant shall, when filing the application, make a declaration and, within a time limit of two months from the date of filing, submit certifying documents issued by the entity which organized the international exhibition or academic or technological meeting, stating the fact that the invention-creation was exhibited or published and with the date of its exhibition or publication.

Where any invention-creation for which a patent is applied falls under the provisions of Article 24, subparagraph (3) of the Patent Law, the Patent Administration Department under the State Council may, when it deems necessary, require the applicant to submit the relevant certifying documents within the specified time limit.

Where the applicant fails to make a declaration and submit certifying documents as required in paragraph two of this Rule, or fails to submit certifying documents within the specified time limit as required in paragraph three of this Rule, the provisions of Article 24 of the Patent Law shall not apply to the application.

Rule 32 Where any applicant goes through the formalities of claims priority in accordance with the provisions of Article 30 of the Patent Law, he or it shall, in his or its written declaration, indicate the date and the number of the application which was first filed (hereinafter referred to as the earlier application) and the country in which the application was filed. If the written declaration does not contain the filing date of the earlier application and the name of the country in which the application was filed, the declaration shall be deemed not to have been made.

Where the foreign priority is claimed, the copy of the earlier application documents submitted by the applicant shall be certified by the competent authority of the foreign country in which the application was filed. Where in the certifying material submitted, the name of the earlier applicant is not the same as that of the later one, the applicant shall submit document certifying the assignment of priority. Where the domestic priority is claimed, the copy of the earlier application document shall be prepared by the Patent Administration Department under the State Council .

Rule 33 An applicant may claim one or more priorities for an application for a patent; where multiple priorities are claimed, the priority period for the application shall be calculated from the earliest priority date.

Where an applicant claims the right of domestic priority, if the earlier application is one for a patent for invention, he or it may file an application for a patent for invention or utility model for the same subject matter; if the earlier application is one for a patent for utility model, he or it may file an application for a patent for utility model or invention for the same subject matter. However, when the later application is filed, if the subject matter of the earlier application falls under any of the following, it may not be taken as the basis for claiming domestic priority:

(1) where the applicant has claimed foreign or domestic priority;

(2) where it has been granted a patent right;

(3) where it is the subject matter of a divisional application filed as prescribed.

Where the domestic priority is claimed, the earlier application shall be deemed to be withdrawn from the date on which the later application is filed.

Rule 34 Where an application for a patent is filed or the right of foreign priority is claimed by an applicant having no habitual residence or business office in China, the Patent Administration Department under the State Council may, when it deems necessary, require the applicant to submit the following documents:

(1) a certificate concerning the nationality of the applicant;

(2) a document certifying the seat of the business office or the headquarters, if the applicant is an enterprise or other organization;

(3) a document certifying that the country, to which the foreigner, foreign enterprise or other foreign organization belongs, recognizes that Chinese entities and individuals are, under the same conditions as those applied to its nationals, entitled to the patent right, the right of priority and other related rights in that country.

Rule 35 Two or more inventions or utility models belonging to a single general inventive concept which may be filed as one application in accordance with the provision of Article 3l, paragraph one of the Patent Law shall be technically inter-related and contain one or more of the same or corresponding special technical features. The expression “special technical features” shall mean those technical features that define a contribution which each of those inventions or utility models, considered as a whole, makes over the prior art.

Rule 36 The expression “the same class” referred to in Article 3l, paragraph two of the Patent Law means that the product incorporating the designs belongs to the same subclass in the classification of products for designs. The expression “be sold or used in sets” means that the products incorporating the designs have the same designing concept and are customarily sold and used at the same time.

Where two or more designs are filed as one application in accordance with the provision of Article 3l, paragraph two of the Patent Law, they shall be numbered consecutively and the numbers shall precede the titles of the view of the product incorporating the design.

Rule 37 When withdrawing an application for a patent, the applicant shall submit to the Patent Administration Department under the State Council a declaration to that effect stating the title of the invention-creation, the filing number and the date of filing.

Where a declaration to withdraw an application for a patent is submitted after the preparations for the publication of the application document has been completed by the Patent Administration Department under the State Council , the application document shall be published as scheduled. However, the declaration withdrawing the application for patent shall be published in the next issue of the Patent Gazette.

Chapter III Examination and Approval of Application for Patent

Rule 38 Where any of the following events occurs, a person who makes examination or hears a case in the procedures of preliminary examination, examination as to substance, reexamination or invalidation shall, on his own initiative or upon the request of the parties concerned or any other interested person, be excluded from excising his function:

(1) where he is a near relative of the party concerned or the agent of the party concerned;

(2) where he has an interest in the application for patent or the patent right;

(3) where he has any other kinds of relations with the party concerned or with the agent of the party concerned that may influence impartial examination and hearing.

(4) where a member of the Patent Reexamination Board who has taken part in the examination of the same application.

Rule 39 Upon the receipt of an application for a patent for invention or utility model consisting of a request, a description (drawings must be included in an application for utility model) and one or more claims, or an application for a patent for design consisting of a request and one or more drawings or photographs showing the design, the Patent Administration Department under the State Council shall accord the date of filing, issue a filing number, and notify the applicant.

Rule 40 In any of the following circumstances, the Patent Administration Department under the State Council shall refuse to accept the application and notify the applicant accordingly:

(1) where the application for a patent for invention or utility model does not contain a request, a description (the description of utility model does not contain drawings) or claims, or the application for a patent for design does not contain a request, drawings or photographs;

(2) where the application is not written in Chinese;

(3) where the application is not in conformity with the provisions of Rule120, paragraph one of these Implementing Regulations;

(4) where the request does not contain the name and address of the applicant;

(5) where the application is obviously not in conformity with the provisions of Article 18, or of Article l9, paragraph one of the Patent Law;

(6) where the kind of protection (patent for invention, utility model or design) of the application for a patent is not clear and definite or cannot be ascertained.

Rule 41 Where the description states that it contains explanatory notes to the drawings but the drawings or part of them are missing, the applicant shall, within the time limit specified by the Patent Administration Department under the State Council , either furnish the drawings or make a declaration for the deletion of the explanatory notes to the drawings. If the drawings are submitted later, the date of their delivery at, or mailing to, the Patent Administration Department under the State Council shall be the date of filing of the application; if the explanatory notes to the drawings are to be deleted, the initial date of filing shall be retained.

Rule 42 Where an application for a patent contains two or more inventions, utility models or designs, the applicant may, before the expiration of the time limit provided for in Rule 54, paragraph one of these Implementing Regulations, submit to the Patent Administration Department under the State Council a divisional application. However, where an application for patent has been rejected, withdrawn or is deemed to have been withdrawn, no divisional application may be filed.

If the Patent Administration Department under the State Council finds that an application for a patent is not in conformity with the provisions of Article 3l of the Patent Law or of Rule 35 or 36 of these Implementing Regulations, it shall invite the applicant to amend the application within a specified time limit; if the applicant fails to make any response after the expiration of the specified time limit, the application shall be deemed to have been withdrawn.

The divisional application may not change the kind of protection of the initial application.

Rule 43 A divisional application filed in accordance with the provisions of Rule 42 of these Implementing Regulations shall be entitled to the filing date and, if priority is claimed, the priority date of the initial application, provided that the divisional application does not go beyond the scope of disclosure contained in the initial application.

The divisional application shall go through all the formalities in accordance with the provisions of the Patent Law and these Implementing Regulations.

The filing number and the date of filing of the initial application shall be indicated in the request of the divisional application. When the divisional application is filed, it shall be accompanied by a copy of the initial application; if priority is claimed for the initial application, a copy of the priority document of the initial application shall also be submitted.

Rule 44 “Preliminary examination” referred to in Articles 34 and 40 of the Patent Law means the check of an application for a patent to see whether or not it contains the documents as provided for in Articles 26 or 27 of the Patent Law and other necessary documents, and whether or not those documents are in the prescribed form; such check shall also include the following:

(1) whether or not any application for a patent for invention obviously falls under Articles 5 or 25 of the Patent Law, or is not in conformity with the provisions of Article l8 or of Article l9, paragraph one of the Patent Law, or is obviously not in conformity with the provisions of Article 3l, paragraph one, or Article 33 of the Patent Law, or of Rule 2, paragraph one, or Rule 18, or Rule 20 of these Implementing Regulations;

(2) whether or not any application for a patent for utility model obviously falls under Article 5 or 25 of the Patent Law, or is not in conformity with the provisions of Article l8 or of Article l9, paragraph one of the Patent Law, or is obviously not in conformity with the provisions of Article 26, paragraph three or four, or of Article 3l, paragraph one, or of Article 33 of the Patent Law, or of Rule 2, paragraph two, or of Rule l3, paragraph one, or of Rule l8 to 23, or of Rule 43, paragraph one of these Implementing Regulations, or is not entitled to a patent right in accordance with the provisions of Article 9 of the Patent Law;

(3) whether or not any application for a patent for design obviously falls under Article 5 of the Patent Law, or is not in conformity with the provisions of Article l8 or of Article l9, paragraph one of the Patent Law, or is obviously not in conformity with the provisions of Article 3l, paragraph two, or of Article 33 of the Patent Law, or of Rule 2, paragraph three, or of Rule l3, paragraph one, or of Rule 43, paragraph one of these Implementing Regulations, or is not entitled to a patent right in accordance with the provisions of Article 9 of the Patent Law.

The Patent Administration Department under the State Council shall notify the applicant of its opinions after checking his or its application and invite him or it to state his or its observations or to correct his or its application within the specified time limit. If the applicant fails to make any response within the specified time limit, the application shall be deemed to have been withdrawn. Where, after the applicant has made his or its observations or the corrections, the Patent Administration Department under the State Council still finds that the application is not in conformity with the provisions of the Articles and the Rules cited in the preceding subparagraphs, the application shall be rejected.

Rule 45 Apart from the application for patent, any document relating to the patent application which is submitted to the Patent Administration Department under the State Council , shall, in any of the following circumstances, be deemed not to have been submitted:

(1) where the document is not presented in the prescribed form or the indications therein are not in conformity with the prescriptions;

(2) where no certifying document is submitted as prescribed.

The Patent Administration Department under the State Council shall notify the applicant of its opinion after checking that the document is deemed not to have been submitted.

Rule 46 Where the applicant requests an earlier publication of its or his application for a patent for invention, a statement shall be made to the Patent Administration Department under the State Council . The Patent Administration Department under the State Council shall, after preliminary examination of the application, publish it immediately, unless it is to be rejected.

Rule 47 The applicant shall, when indicating in accordance with Article 27 of the Patent Law the product incorporating the design and the class to which that product belongs, refer to the classification of products for designs published by the Patent Administration Department under the State Council . Where no indication, or an incorrect indication, of the class to which the product incorporating the design belongs is made, the Patent Administration Department under the State Council shall supply the indication or correct it.

Rule 48 Any person may, from the date of publication of an application for a patent for invention till the date of announcing the grant of the patent right, submit to the Patent Administration Department under the State Council his observations, with reasons therefor, on the application which is not in conformity with the provisions of the Patent Law.

Rule 49 Where the applicant for a patent for invention cannot furnish, for justified reasons, the documents concerning any search or results of any examination specified in Article 36 of the Patent Law, it or he shall make a statement to the Patent Administration Department under the State Council and submit them when the said documents are available.

Rule 50 The Patent Administration Department under the State Council shall, when proceeding on its own initiative to examine an application for a patent in accordance with the provisions of Article 35, paragraph two of the Patent Law, notify the applicant accordingly.

Rule 5l When a request for examination as to substance is made, and that, within the time limit of three months after the receipt of the notification of the Patent Administration Department under the State Council, the application has entered into examination as to substance, the applicant for a patent for invention may amend the application for a patent for invention on its or his own initiative.

Within two months from the date of filing, the applicant for a patent for utility model or design may amend the application for a patent for utility model or design on its or his own initiative.

The Patent Administration Department under the State Council may, on its own initiative, correct the obvious clerical mistakes and symbol mistakes in the documents of application for a patent. Where the Patent Administration Department under the State Council corrects mistakes on its own initiative, it shall notify the applicant.

Rule 52 When an amendment to the description or the claims in an application for a patent for invention or utility model is made, a replacement sheet in prescribed form shall be submitted, unless the amendment concerns only the alteration, insertion or deletion of a few words. Where an amendment to the drawings or photographs of an application for a patent for design is made, a replacement sheet shall be submitted as prescribed.

Rule 53 In accordance with the provisions of Article 38 of the Patent Law, the circumstances where an application for a patent for invention shall be rejected by the Patent Administration Department under the State Council after examination as to substance are as follows:

(1) where the application does not comply with the provisions of Rule 2, paragraph one of these Implementing Regulations;

(2) where the application falls under the provisions of Article 5 or 25 of the Patent Law, or it does not comply with the provisions of Article 22 of the Patent Law or of Rule l3, paragraph one, or of Rule 20, paragraph one, or of Rule 21, paragraph two of these Implementing Regulations, or the applicant is not entitled to a patent right in accordance with the provisions of Article 9 of the Patent Law;

(3) where the application does not comply with the provisions of Article 26, paragraph three or four, or of Article 3l, paragraph one of the Patent Law;

(4) where the amendment to the application does not comply with the provisions of Article 33 of the Patent Law, or the divisional application does not comply with the provisions of Rule 43, paragraph one of these Implementing Regulations.

Rule 54 After the Patent Administration Department under the State Council issues the notification to grant the patent right, the applicant shall go through the formalities of registration within two months from the date of receipt of the notification. If the applicant completes the formalities of registration within the said time limit, the Patent Administration Department under the State Council shall grant the patent right, issue the patent certificate and announce it.

If the applicant does not go through the formalities of registration within the time limit, he or it shall be deemed to have abandoned its or his right to obtain the patent right.

Rule 55 After the announcement of the decision to grant a patent for utility model, the patentee of the said patent for utility model may request the Patent Administration Department under the State Council to make a search report on the utility model patent.

Where such person requests for a search report on a utility model patent, he shall submit a request, indicating the patent number of the said patent for utility model. Each request shall be limited for one patent for utility model.

After receiving a request for a search report on a utility model patent, the Patent Administration Department under the State Council shall proceed to make an examination of the request. Where the request does not comply with the requirements as prescribed, the said department shall notify the requesting person to amend the request within a specified time limit.

Rule 56 Where, after examination, the request for a search report on a utility model patent complies with the provisions, the Patent Administration Department under the State Council shall promptly make a search report on the utility model patent.

Where the Patent Administration Department under the State Council finds, after search, that the patent for utility model concerned does not comply with the provisions of Article 22 of the Patent Law concerning novelty or inventiveness, it shall cite the documents considered to be relevant, state the reasons therefor and send the copies of the cited relevant documents together with the report.

Rule 57 The Patent Administration Department under the State Council shall correct promptly the mistakes in the patent announcements and documents issued by it once they are discovered, and the corrections shall be announced.

Chapter IV Reexamination of Patent Application and Invalidation of Patent Right

Rule 58 The Patent Reexamination Board shall consist of technical and legal experts appointed by the Patent Administration Department under the State Council . The person responsible for the Patent Administration Department under the State Council shall be the Director of the Board.

Rule 59 Where the applicant requests the Patent Reexamination Board to make a reexamination in accordance with the provisions of Article 41 of the Patent Law, it or he shall file a request for reexamination, state the reasons and, when necessary, attach the relevant supporting documents.

Where the request for reexamination does not comply with the prescribed form, the person making the request shall rectify it within the time limit fixed by the Patent Reexamination Board. If the requesting person fails to meet the time limit for making rectification, the request for reexamination shall be deemed not to have been filed.

Rule 60 The person making the request may amend its or his application at the time when it or he requests reexamination or makes responses to the notification of reexamination of the Patent Reexamination Board. However, the amendments shall be limited only to remove the defects pointed out in the decision of rejection of the application, or in the notification of reexamination.

The amendments to the application for patent shall be in two copies.

Rule 61 The Patent Reexamination Board shall remit the request for reexamination which the Board has received to the examination department of the Patent Administration Department under the State Council which has made the examination of the application concerned to make an examination. Where that examination department agrees to revoke its former decision upon the request of the person requesting reexamination, the Patent Reexamination Board shall make a decision accordingly and notify the requesting person.

Rule 62 Where, after reexamination, the Patent Reexamination Board finds that the request does not comply with the provisions of the Patent Law and these Implementing Regulations, it shall invite the person requesting reexamination to submit his observations within a specified time limit. If the time limit for making response is not met, the request for reexamination shall be deemed to have been withdrawn. Where, after the requesting person has made its observations and amendments, the Patent Reexamination Board still finds that the request does not comply with the provisions of the Patent Law and these Implementing Regulations, it shall make a decision of reexamination to maintain the earlier decision rejecting the application.

Where, after reexamination, the Patent Reexamination Board finds that the decision rejecting the application does not comply with the provisions of the Patent Law and these Implementing Regulations, or that the amended application has removed the defects as pointed out by the decision rejecting the application, it shall make a decision to revoke the decision rejecting the application, and ask the examination department which has made the examination to continue the examination procedure.

Rule 63 At any time before the Patent Reexamination Board makes its decision on the request for reexamination, the requesting person may withdraw his request for reexamination.

Where the requesting person withdraws his request for reexamination before the Patent Reexamination Board makes its decision, the procedure of reexamination is terminated.

Rule 64 Anyone requesting invalidation or part invalidation of a patent right in accordance with the provisions of

Article 45 of the Patent Law shall submit a request and the necessary evidence in two copies. The request for invalidation shall state in detail the grounds for filing the request, making reference to all the evidence as submitted, and indicate the piece of evidence on which each ground is based.

The grounds on which the request for invalidation is based, referred to in the preceding paragraph, mean that the invention-creation for which the patent right is granted does not comply with the provisions of Article 22, Article 23, or of Article 26, paragraph three or four, or of Article 33 of the Patent Law, or of Rule 2, or of Rule l3, paragraph one, or of Rule 20, paragraph one, or of Rule 21, paragraph two of these Implementing Regulations; or the invention-creation falls under the provisions of Articles 5 or 25 of the Patent Law; or the applicant is not entitled to be granted the patent right in accordance with the provisions of Article 9 of the Patent Law.

Rule 65 Where the request for invalidation does not comply with the provisions of Rule 64 of these Implementing Regulations, the Patent Reexamination Board shall not accept it.

Where, after a decision on any request for invalidation of the patent right is made, invalidation based on the same facts and evidence is requested once again, the Patent Reexamination Board shall not accept it.

Where a request for invalidation of a patent for design is based on the ground that the patent for design is in conflict with a prior right of another person, but no effective ruling or judgement is submitted to prove such conflict of rights , the Patent Reexamination Board shall not accept it.

Where the request for invalidation of the patent right does not comply with the prescribed form, the person making the request shall rectify it within the time limit specified by the Patent Reexamination Board. If the rectification fails to be made within the time limit, the request for invalidation shall be deemed not to have been made.

Rule 66 After a request for invalidation is accepted by the Patent Reexamination Board, the person making the request may add reasons or supplement evidence within one month from the date when the request for invalidation is filed. Additional reasons or evidence which are submitted after the specified time limit may be disregarded by the Patent Reexamination Board.

Rule 67 The Patent Reexamination Board shall send a copy of the request for invalidation of the patent right and copies of the relevant documents to the patentee and invite it or him to present its or his observations within a specified time limit.

The patentee and the person making request for invalidation shall, within the specified time limit, make responses to the notification concerning transmitted documents or the notification concerning the examination of the request for invalidation sent by the Patent Reexamination Board. Where no response is made within the specified time limit, the examination of the Patent Reexamination Board will not be affected.

Rule 68 In the course of the examination of the request for invalidation, the patentee for the patent for invention or utility model concerned may amend its or his claims, but may not broaden the scope of patent protection.

The patentee for the patent for invention or utility model concerned may not amend its or his description or drawings. The patentee for the patent for design concerned may not amend its or his drawings, photographs or the brief explanation of the design.

Rule 69 The Patent Reexamination Board may, at the request of the parties concerned or in accordance with the needs of the case, decide to hold an oral procedure in respect of a request for invalidation.

Where the Patent Reexamination Board decides to hold an oral procedure in respect of a request for invalidation, it shall send notifications to the parties concerned, indicating the date and place of the oral procedure to be held. The parties concerned shall make response to the notification within the specified time limit.

Where the person requesting invalidation fails to make response to the notification of the oral procedure sent by the Patent Reexamination Board within the specified time limit, and fails to take part in the oral procedure, the request for invalidation shall be deemed to have been withdrawn. Where the patentee fails to take part in the oral procedure, the Patent Reexamination Board may proceed to examine by default.

Rule 70 In the course of the examination of a request for invalidation, the time limit specified by the Patent Reexamination Board shall not be extended.

Rule 71 The person requesting invalidation may withdraw his request before the Patent Reexamination Board makes a decision on it.

Where the person requesting invalidation withdraws his request before the Patent Reexamination Board makes a decision on it, the examination of the request for invalidation is terminated.

Chapter V Compulsory License for Exploitation of Patent

Rule 72 After the expiration of three years from the date of the grant of the patent right, any entity may, in accordance with the provisions of Article 48 of the Patent Law, request the Patent Administration Department under the State Council to grant a compulsory license.

Any entity requesting a compulsory license shall submit to the Patent Administration Department under the State Council a request for compulsory license, state the reasons therefor, and attach relevant certifying documents each in two copies.

The Patent Administration Department under the State Council shall send a copy of the request for compulsory license to the patentee, who shall make his or its observations within the time limit specified by the Patent Administration Department under the State Council . Where no response is made within the time limit, the Patent Administration Department under the State Council will not be affected in making a decision concerning a compulsory license.

The decision of the Patent Administration Department under the State Council granting a compulsory license for exploitation shall limit the exploitation of the compulsory license to be predominately for the supply of the domestic market. Where the invention-creation involved in the compulsory license relates to the semi-conductor technology, the exploitation of the compulsory license shall be limited only for public non-commercial use or to remedy a practice determined after judicial or administrative process to be anti-competitive.

Rule 73 Where any entity or individual requests, in accordance with the provisions of Article 54 of the Patent Law, the Patent Administration Department under the State Council to adjudicate the fees for exploitation, it or he shall submit a request for adjudication and furnish documents showing that the parties concerned have not been able to conclude an agreement in respect of the amount of the exploitation fee. The Patent Administration Department under the State Council shall make an adjudication within three months from the date of receipt of the request and notify the parties concerned accordingly.

Chapter VI Reward and Remuneration of Inventors or Creators of Service Inventions-Creations

Rule 74 The State-owned enterprise or institution to which a patent right is granted shall, within three months from the date of the announcement of the grant of the patent right, award to the inventor or creator of a service invention-creation a sum of money as prize. The sum of money prize for a patent for invention shall not be less than RMB 2000 yuan; the sum of money prize for a patent for utility model or design shall not be less than RMB 500 yuan.

Where an invention-creation is made on the basis of an inventor’s or creator’s proposal adopted by the entity to which he belongs, the State-owned enterprise or institution to which a patent right is granted shall award to him a money prize on favorable terms.

For the money prize awarded to the inventor or creator, the enterprise may have it included into its production cost, and the institution may have it disbursed out of its operating expenses.

Rule 75 The State-owned enterprise or institution to which a patent right is granted shall, after exploiting the patent for invention-creation within the duration of the patent right, draw each year from the profits after taxation earned from exploitation of the invention or utility model a percentage of not less than 2%, or from the profits after taxation earned from exploitation of the design a percentage of not less than 0.2%, and award it to the inventor or creator as remuneration. The entity may, as an alternative, by making reference to the said percentage, award a lump sum of money to the inventor or creator as remuneration once and for all.

Rule 76 Where any State-owned enterprise or institution to which a patent right is granted authorizes any other entity or individual to exploit its patent, it shall draw from the profits it receives for exploitation of the said patent after taxation a percentage of not less than 10% and award it to the inventor or creator as remuneration.

Rule 77 The provisions of this Chapter may be implemented by any other Chinese entity by making reference thereto.

Chapter VII Protection of Patent Right

Rule 78 The administrative authority for patent affairs referred to in the Patent Law and these Implementing Regulations means the department responsible for the administrative work concerning patent affairs set up by the people’s government of any province, autonomous region, or municipality directly under the Central Government, or by the people’s government of any city which consists of districts, has a large amount of patent administration work to attend to and has the ability to deal with the matter.

Rule 79 In addition to the provisions of Article 57 of the Patent Law, the administrative authority for patent affairs may also mediate in the following patent disputes at the request of the parties concerned:

(1) any dispute over the ownership of the right to apply for patent and the patent right;

(2) any dispute over the qualification of the inventor or creator;

(3) any dispute over the award and remuneration of the inventor or creator of a service invention-creation;

(4) any dispute over the appropriate fee to be paid for the exploitation of an invention after the publication of the application for patent but before the grant of patent right.

In respect of the dispute referred to in subparagraph (4), where the patentee requests the administrative authority for patent affairs to mediate, the request shall be made after the grant of the patent right.

Rule 80 The Patent Administration Department under the State Council shall provide professional guidance to the administrative authorities for patent affairs in handling and mediating patent disputes.

Rule 81 Where any party concerned requests handling or mediation of a patent dispute, it shall fall under the jurisdiction of the administrative authority for patent affairs where the requested party has his location or where the act of infringement has taken place.

Where two or more administrative authorities for patent affairs all have jurisdiction over a patent dispute, any party concerned may file his or its request with one of them to handle or mediate the matter. Where requests are filed with two or more administrative authorities for patent affairs, the administrative authority for patent affairs that first accepts the request shall have jurisdiction.

Where administrative authorities for patent affairs have a dispute over their jurisdiction, the administrative authority for patent affairs of their common higher level people’s government shall designate the administrative authority for patent affairs to exercise the jurisdiction; if there is no such administrative authority for patent affairs of their common higher level people’s government, the Patent Administration Department under the State Council shall designate the administrative authority for patent affairs to exercise the jurisdiction.

Rule 82 Where, in the course of handling a patent infringement dispute, the defendant requests invalidation of the patent right and his request is accepted by the Patent Reexamination Board, he may request the administrative authority for patent affairs concerned to suspend the handling of the matter.

If the administrative authority for patent affairs considers that the reasons set forth by the defendant for the suspension are obviously untenable, it may not suspend the handling of the matter.

Rule 83 Where any patentee affixes a patent marking on the patented product or on the package of that product in accordance with the provisions of Article 15 of the Patent Law, he or it shall make the affixation in the manner as prescribed by the Patent Administration Department under the State Council .

Rule 84 Any of the following is an act of passing off the patent of another person as one’s own:

(1) without authorization, indicating the patent number of another person on the product or on the package of that product made or sold by him or it;

(2) without authorization, using the patent number of another person in the advertisement or in any other promotional materials of his or its product, so as to mislead other persons to regard the technology concerned as the patented technology of another person;

(3) without authorization, using the patent number of another person in the contract entered into by him or it , so as to mislead other persons to regard the technology referred to in the contract as the patented technology of another person;

(4) counterfeiting or transforming any patent certificate, patent document or patent application document of another person.

Rule 85 Any of the following is an act of passing a non-patented product off as patented product or passing a non-patented process off as patented process:

(1) making or selling non-patented products which are affixed with patent marking;

(2) continuing to affix patent marking on the products that are made or sold after the patent right concerned has been declared invalid;

(3) passing any non-patented technology off as patented technology in the advertisements or in any other promotional materials;

(4) stating any non-patented technology as patented technology in any contract entered into by him or it;

(5) counterfeiting or transforming any patent certificate, patent document or patent application document.

Rule 86 Any party concerned to a dispute over the ownership of the right to apply for a patent or the patent right, which is pending before the administrative authority for patent affairs or the people’s court, may request the Patent Administration Department under the State Council to suspend the relevant procedures.

Any party requesting the suspension of the relevant procedures in accordance with the preceding paragraph, shall submit a written request to the Patent Administration Department under the State Council , and attach a copy of the document acknowledging the receipt of the relevant request from the administrative authority for patent affairs or the people’s court.

After the decision made by the administrative authority for patent affairs or the judgment rendered by the people’s court enters into force, the parties concerned shall request the Patent Administration Department under the State Council to resume the suspended procedure. If, within one year from the date when the request for suspension is filed, no decision is made on the dispute relating to the ownership of the right to apply for a patent or the patent right, and it is necessary to continue the suspension, the party who or that the request shall, within the said time limit, request to extend the suspension. If, at the expiration of the said time limit, no such request for extension is filed, the Patent Administration Department under the State Council shall resume the procedure on its own initiative.

Rule 87 Where, in hearing civil cases, the people’s court has ordered the adoption of measures for a patent right preservation, the Patent Administration Department under the State Council, for the purpose of assisting the execution of the order, shall suspend the relevant procedure concerning the preserved patent right. At the expiration of the time limit for preservation, if there is no order of the people’s court to continue the preservation, the Patent Administration Department under the State Council shall resume the relevant procedure on its own initiative.

Chapter VIII Patent Registration and Patent Gazette

Rule 88 The Patent Administration Department under the State Council shall keep a Patent Register in which the registration of the following matters relating to patent application or patent right shall be made:

(1) any grant of the patent right;

(2) any transfer of the right of patent application or the patent right;

(3) any pledge and preservation of the patent right and their discharge;

(4) any patent license contract for exploitation submitted for the record;

(5) any invalidation of the patent right;

(6) any cessation of the patent right;

(7) any restoration of the patent right;

(8) any compulsory license for exploitation of the patent;

(9) any change in the name, nationality and address of the patentee.

Rule 89 The Patent Administration Department under the State Council shall publish the Patent Gazette at regular intervals, publishing or announcing the following:

(1) the bibliographic data contained in patent applications;

(2) the abstract of the description of an invention or utility model, the drawings or photographs of a design and its brief explanation;

(3) any request for examination as to substance of an application for a patent for invention and any decision made by the Patent Administration Department under the State Council to proceed on its own initiative to examine as to substance an application for a patent for invention;

(4) any declassification of secret patents;

(5) any rejection, withdrawal and deemed withdrawal of an application for a patent for invention after its publication;

(6) any grant of the patent right;

(7) any invalidation of the patent right

(8) any cessation of the patent right;

(9) any transfer of the patent application or the patent right;

(10) any patent license contract for exploitation submitted for the record;

(11) any pledge and preservation of the patent right and their discharge;

(12) any grant of compulsory license for exploitation of the patent;

(13) any restoration of a patent application or patent right;

(14) any change in the name or address of the patentee;

(15) any notification to a party whose address is not known;

(16) any correction made by the Patent Administration Department under the State Council ;

(17) any other related matters.

The description and its drawings, and the claims of an application for a patent for invention or utility model shall be separately published in full in pamphlet form by the Patent Administration Department under the State Council

Chapter IX Fees

Rule 90 When any person files an application for a patent with, or has other formalities to go through at, the Patent Administration Department under the State Council , he or it shall pay the following fees:

(1) filing fee, additional fee for filing application, and printing fee for publishing the application;

(2) substantive examination fee for an application for patent for invention, and reexamination fee;

(3) registration fee for the grant of patent right, printing fee for the announcement of grant of patent right, maintenance fee for application, and annual fee;

(4) fee for a change in the bibliographic data, fee for claiming priority, fee for requesting restoration of rights, fee for requesting extension of a time limit, and fee for establishing a search report on a utility model patent;

(5) fee for requesting invalidation, fee for requesting suspension of the patent procedure, fee for requesting a compulsory license, fee for requesting adjudication on exploitation fee of a compulsory license.

The amount of the fees referred to in the preceding paragraph shall be prescribed by the price administration department under the State Council in conjunction with the Patent Administration Department under the State Council .

Rule 91 The fees provided for in the Patent Law and in these Implementing Regulations may be paid directly to the Patent Administration Department under the State Council or paid by way of bank or postal remittance, or by way of any other means as prescribed by the Patent Administration Department under the State Council .

Where any fee is paid by way of bank or postal remittance, the applicant or the patentee shall indicate on the money order at least the correct filing number or the patent number and the name of the fee paid. If the requirements as prescribed in this paragraph are not complied with, the payment of the fee shall be deemed not to have been made.

Where any fee is paid directly to the Patent Administration Department under the State Council , the date on which the fee is paid shall be the date of payment; where any fee is paid by way of postal remittance, the date of remittance indicated by the postmark shall be the date of payment; where any fee is paid by way of bank transfer, the date on which the transfer of the fee is done shall be the date of payment. Where, however, the time between such a date and the date of receipt of the order by the Patent Administration Department under the State Council lasts more than fifteen days, unless the date of remittance or transfer is proved by the bank or the post office, the date of receipt by the Patent Administration Department under the State Council shall be the date of payment.

Where any patent fee is paid in excess of the amount as prescribed, paid repeatedly or wrongly, the party making the payment may, within one year from the date of payment, request a refund from the Patent Administration Department under the State Council .

Rule 92 The applicant shall, after receipt of the notification of acceptance of the application from the Patent Administration Department under the State Council , pay the filing fee, the printing fee for the publication of the application and the necessary additional fees at the latest within two months from the filing date. If the fees are not paid or not paid in full within the time limit, the application shall be deemed to be withdrawn.

Where the applicant claims priority, he or it shall pay the fee for claiming priority at the same time with the payment of the filing fee. If the fee is not paid or not paid in full within the time limit, the claim for priority shall be deemed not to have been made.

Rule 93 Where the party concerned makes a request for an examination as to substance, a restoration of right or a reexamination, the relevant fee shall be paid within the time limit as prescribed respectively for such requests by the Patent Law. If the fee is not paid or not paid in full within the time limit, the request is deemed not to have been made.

Rule 94 Where the applicant for a patent for invention has not been granted a patent right within two years from the date of filing, it or he shall pay a fee for the maintenance of the application from the third year.

Rule 95 When the applicant goes through the formalities of registration of the grant of patent right, it or he shall pay a registration fee for the grant of patent right, printing fee for the announcement of grant of patent right and the annual fee of the year in which the patent right is granted. The applicant for a patent for invention shall pay the application maintenance fee for all the years, with the exception of the year in which the patent right is granted. If such fees are not paid within the prescribed time limit, the registration of the grant of patent right shall be deemed not to have been made. The subsequent annual fees shall be paid in advance within the month before the expiration of the preceding year.

Rule 96 Where the annual fee of the patent right after the year in which the patent is granted is not paid in due time by the patentee, or the fee is not paid in full, the Patent Administration Department under the State Council shall notify the patentee to pay the fee or to make up the insufficiency within six months from the expiration of the time limit within which the annual fee is due to be paid, and at the same time pay a surcharge. The amount of the surcharge shall be, for each month of late payment, 5% of the whole amount of the annual fee of the year within which the annual fee is due to be paid. Where the fee and the surcharge are not paid within the time limit, the patent right shall lapse from the expiration of the time limit within which the annual fee should be paid.

Rule 97 The fee for a change in the bibliographic data, fee for establishing a search report on a utility model patent, fee for requesting suspension of the patent procedure, fee for requesting a compulsory license, fee for requesting adjudication on exploitation fee of a compulsory license and fee for requesting invalidation shall be paid as prescribed within one month from the date on which such request is filed. The fee for requesting extension of a time limit shall be paid before the expiration of the said time limit. If the fee is not paid or not paid in full within the time limit, the request shall be deemed not to have been made.

Rule 98 Where any applicant or patentee has difficulties in paying the various fees prescribed in these Implementing Regulations, he may, in accordance with the prescriptions, submit a request to the Patent Administration Department under the State Council for a reduction or postponement of the payment. Measures for the reduction and postponement of the payment shall be prescribed by the Patent Administration Department under the State Council in consultation with the finance administration department and the price administration department under the State Council.

Chapter X Special Provisions Concerning International Application

Rule 99 The Patent Administration Department under the State Council receives international patent applications filed under the Patent Cooperation Treaty in accordance with the provisions of Article 20 of the Patent Law.

Where any international application filed under the Patent Cooperation Treaty designating China (hereinafter referred to as the international application) enters the Chinese national phase, the requirements and procedures prescribed in this Chapter shall apply. Where no provisions are made in this Chapter, the relevant provisions in the Patent Law and in any other chapters of these Implementing Regulations shall apply.

Rule 100 Any international application which has been accorded an international filling date in accordance with the Patent Cooperation Treaty and which has designated China shall be deemed as an application for patent filed with the Patent Administration Department under the State Council, and the said filing date shall be deemed as the filing date referred to in Article 28 of the Patent Law.

Where, in the international phase, an international application or its designation of China is withdrawn or deemed to be withdrawn, the effect of the said international application in China shall cease.

Rule 101 Rule 101 Any applicant for an international application entering the Chinese national phase shall, within 30 months from the priority date as referred to in Article 2 of the Patent Cooperation Treaty (referred to as “the priority date” in this chapter), go through the following formalities at the Patent Administration Department under the State Council:

(1) submitting a written statement concerning the entry of his or its international application into the Chinese national phase. The statement shall indicate the international application number, and also indicate in Chinese the kind of patent protection sought, the title of the invention-creation, the name or title of the applicant, the address of the applicant and the name of the inventor. Such indications shall be the same as those recorded by the International Bureau;

(2) paying the filing fee, the additional fee for filing application and the printing fee for publishing the application as provided in Rule 90, paragraph one of these Implementing Regulations;

(3) where an international application is filed in a language other than Chinese, the Chinese translation of the description, the claims, the text matter of the drawings, and the abstract of the initial international application shall be furnished; where an international application is filed in Chinese, a copy of the abstract published in the international publication shall be furnished.

(4) where an international application contains drawings, a copy of the drawings shall be furnished. Where an international application is filed in Chinese, a copy of the figure of the drawings in the abstract as published in the international publication shall be furnished.

If the applicant fails to go through the relevant formalities for entering the Chinese national phase within the time limit prescribed in the preceding paragraph, he or it may, after paying a surcharge for the late entry, go through these formalities before the expiration of the respective time limit of 32 months respectively from “the priority date”.

Rule 102 Where the applicant fails to go through the formalities for entering the Chinese national phase, within the time limit prescribed in Rule 101, paragraph two of these Implementing Regulations or any of the following circumstance occurs at the expiration of the said time limit, the effect of his or its international application shall cease in China:

(1) where the international application number is not indicated in the statement concerning entry into the Chinese national phase;

(2) where the filing fee, the printing fee for publishing the application prescribed in Rule 90, paragraph one of these Implementing Regulations, or the surcharge for the late entry as prescribed in Rule 101, paragraph two of these Implementing Regulations is not paid;

(3) where the international application is filed in a language other than Chinese, the Chinese translation of the description and the claims of the initial international application are not furnished.

Where the effect of an international application has ceased in China, the provisions of Rule 7, paragraph two of these Implementing Regulations shall not apply.

Rule 103 Where any of the following circumstances occur at the time when the applicant goes through the formalities for entering the Chinese national phase, the Patent Administration Department under the State Council shall notify the applicant to make corrections within the specified time limit:

(1) where the Chinese translation of the abstract or a copy of the abstract is not furnished;

(2) where a copy of the drawings or a copy of the figure of the drawings in the abstract is not furnished;

(3) where the title of the invention-creation, the name of the applicant, the address of the applicant and the name of the inventor are not indicated in Chinese in the statement concerning entry into the Chinese national phase;

(4) where the content or the form of the statement concerning entry into the Chinese national phase is not in conformity with the provisions.

If, at the expiration of the time limit, the applicant fails to make the corrections, his or its application shall be deemed to be withdrawn.

Rule 105 When the applicant goes through the formalities for entering the Chinese national phase, he or it shall also fulfill the following requirements:

(1) where the inventor is not indicated in the international application, the name of the inventor shall be indicated in the statement concerning entry into the Chinese national phase;

(2) where the applicant has gone through the formalities for the change in the applicant before the International Bureau in the international phase, the document certifying the right of the new applicant to the international application shall be furnished;

(3) where the applicant is not the same person as the applicant of the earlier application which is the basis of the priority claimed, or where the applicant has changed his or its name after filing the earlier application, the document certifying the right of the applicant to claim priority shall be furnished when necessary;

(4) Where any invention-creation to which the international application relates has one of the events referred to in Article 24, subparagraph (1) or (2) of the Patent Law and where statements have been made in this respect when the international application was filed, the applicant shall indicate it in the statement concerning entry into the Chinese national phase, and furnish the relevant certificates prescribed in Rule 31, paragraph two of these Implementing Regulations within two months from the date of going through the formalities for entering the Chinese national phase.

Where the applicant fails to satisfy the requirements provided for in subparagraph (1), (2) or (3) of the preceding paragraph, the Patent Administration Department under the State Council shall notify the applicant to make corrections within the specified time limit. Where, within the time limit, no correction is made in respect of the requirement provided for in subparagraph (1) or (2), the application shall be deemed to be withdrawn; Where, within the time limit, no correction is made in respect of the requirement provided for in subparagraph (3), the claim for priority shall be deemed not to have been made.

Where the applicant fails to fulfill the requirement provided for in subparagraph (4) of paragraph one of this Rule, the provisions of Article 24 of the Patent Law shall not apply to his or its international application.

Rule 106 Where the applicant has made indications concerning deposited biological materials in accordance with the provisions of the Patent Cooperation Treaty, the requirements provided for in Rule 25, subparagraph (3) of these Implementing Regulations shall be deemed to have been fulfilled. In the statement concerning entry into the Chinese national phase, the applicant shall indicate the documents recording the particulars of the deposit of the biological materials, and the exact location of the record in the documents.

Where particulars concerning the deposit of the biological materials are contained in the description of the international application as initially filed, but there is no such indication in the statement concerning the entry into the Chinese national phase, the applicant shall make correction within four months from the date of going through the formalities for entering the Chinese national phase. If the correction is not made at the expiration of the time limit, the biological materials shall be deemed not to have been deposited.

Where the applicant submits the certificates of the deposit and the viability of the biological materials to the Patent Administration Department under the State Council within four months from the date of going through the formalities for entering the Chinese national phase, the deposit of biological materials shall be deemed to have been made within the time limit as provided for in Rule 25, subparagraph (1) of these Implementing Regulations.

Rule 107 Where the applicant claims one or multiple priorities in the international phase and such claims remain valid at the time when the application enters the Chinese national phase, the applicant shall be deemed to have submitted the written declaration in accordance with the provisions of Article 30 of the Patent Law.

Where there are clerical mistakes or the application number of the earlier application is missing in the written declaration claiming the priority made in the international phase, the applicant may request to make corrections or to fill in the missing application number of the earlier application at the time of going through the formalities for entering the Chinese national phase. Where a request for making corrections is made, the applicant shall pay the fee for correcting the claim for priority.

Where the applicant has submitted a copy of the earlier application in the international phase in accordance with the provisions of the Patent Cooperation Treaty, he or it shall be exempted form submitting a copy of the earlier application to the Patent Administration Department under the State Council at the time of going through the formalities for entering the Chinese national phase. Where the applicant has not submitted a copy of the earlier application in the international phase, and if the Patent Administration Department under the State Council deems necessary, it may notify the applicant to submit a copy of the earlier application within the specified time limit. If no copy is submitted at the expiration of the time limit, his or its claim for priority shall be deemed not to have been made.

Where the claim for priority is deemed not to have been made in the international phase and the information is already published by the International Bureau, the applicant may, if he has justified reasons, request the Patent Administration Department under the State Council to restore his or its claim for priority at the time of going through the formalities for entering the Chinese national phase.

Rule 108 Where, before the expiration of 30 months from “the priority date”, the applicant files a request with the Patent Administration Department under the State Council for early processing and examination of his or its international application, he or it shall, in addition to going through the formalities for entering the Chinese national phase, submit a request in accordance with the provisions in Article 23, paragraph two of the Patent Cooperation Treaty. Where the international application has not been transmitted by the International Bureau to the Patent Administration Department under the State Council, the applicant shall submit a confirmed copy of the international application.

Rule 109 With regard to an international application for a patent for utility model, the applicant may file a request with the Patent Administration Department under the State Council to amend the description, the drawings and the claims within one month from the date of going through the formalities for entering the Chinese national phase.

With regard to an international application for a patent for invention, the provisions of Rule 51, paragraph one of these Implementing Regulations shall apply.

Rule 110 Where the applicant finds that there are mistakes in the Chinese translation of the description, the claims or the text matter of the drawings as filed, he or it may correct the translation in accordance with the international application as filed within the following time limits:

(1) before the completion of technical preparations for national publication by the Patent Administration Department under the State Council ;

(2) within three months from the date of receipt of the notification sent by the Patent Administration Department under the State Council , stating that the application for a patent for invention has entered into the substantive examination phase.

Where the applicant intends to correct the mistakes in the translation, he or it shall file a written request, furnish a replace sheet of the translation and pay the prescribed fee for the correction of the translation.

Where the applicant makes correction of the translation in accordance with the notification of the Patent Administration Department under the State Council , he or it shall, within the specified time limit, go through the formalities prescribed in paragraph two of this Rule. If the prescribed formalities are not gone through at the expiration of the time limit, the international application shall be deemed to be withdrawn.

Rule 111 With regard to any international application for a patent for invention, if the Patent Administration Department under the State Council , after preliminary examination, considers it in compliance with the provisions of the Patent Law and these Implementing Regulations, it shall publish it in the Patent Gazette; where the international application is filed in a language other than Chinese, the Chinese translation of the international application shall be published.

Where the international publication of an international application for a patent for invention by the International Bureau is in Chinese, the provisions of Article 13 of the Patent Law shall apply from the date of the international publication. If the international publication by the International Bureau is in a language other than Chinese, the provisions of Article 13 of the Patent Law shall apply from the date of the publication of the Chinese translation by the Patent Administration Department under the State Council .

With regard to an international application, the publication referred to in Articles 21 and 22 of the Patent Law means the publication referred to in paragraph one of this Article.

Rule 112 Where two or more inventions or utility models are contained in an international application, the applicant may, after going through the formalities for entering the Chinese national phase, submit a divisional application in accordance with the provisions in Rule 42, paragraph one of these Implementing Regulations.

Where, in the international phase, some parts of the international application have not been the subject of international search or international preliminary examination because the International Searching Authority or the International Preliminary Examination Authority considers that the international application does not comply with the requirement of unity of invention prescribed in the Patent Cooperation Treaty, and the applicant fails to pay the additional fee, whereas at the time of going through the formalities for entering the Chinese national phase, the applicant requests that the said parts be the basis of examination, the Patent Administration Department under the State Council , finding that the decision concerning unity of invention made by the International Searching Authority or the International Preliminary Examination Authority is justified, shall notify the applicant to pay the restoration fee for unity of invention within the specified time limit. Where the fee is not paid or not paid in full at the expiration of the prescribed time limit, those parts of the international application which have not been searched or have not been the subject of international preliminary examination shall be deemed to be withdrawn.

Rule 113 Where the applicant furnishes the documents and pays the fees in accordance with the provisions of Rule 101 of these Implementing Regulations, the date on which the Patent Administration Department under the State Council receives the documents shall be the date of submitting, and the date on which it receives the fees shall be the date of payment.

Where there is delay in the mailing of the documents and the applicant proves, within one month from the date on which he finds the delay, that the documents have been mailed five days prior to the expiration of the time limit prescribed in Rule 101 of these Implementing Regulations, the documents shall be deemed to have been received on the date on which the time limit expires. However, the time for the applicant to furnish evidence may not be later than six months after the expiration of the time limit prescribed in Rule 101 of these Implementing Regulations.

Where documents are to be submitted to the Patent Administration Department under the State Council in accordance with the provisions of Rule 101 of these Implementing Regulations, the applicant may send them by fax. Where the applicant submits the documents by fax, the date on which the Patent Administration Department under the State Council receives the fax shall be the date of submitting. The applicant shall submit to the Patent Administration Department under the State Council the original copy within 14 days from the date of the transmission by fax. Where the original copy is not submitted within the time limit, the documents shall be deemed not to have been submitted.

Rule 114 Where an international application claims the priority, the applicant shall, at the time of going through the formalities for entering the Chinese national phase, pay the fee for claiming the priority; if the fee is not paid or not paid in full, the Patent Administration Department under the State Council shall notify the applicant to pay it within the specified time limit; if the fee is still not paid or not paid in full at the expiration of the time limit, the claim for priority shall be deemed not to have been made.

Rule 115 Where an international application in the international phase has been refused to be accorded an international filling date or has been declared to be deemed withdrawn by an international authority concerned, the applicant may, within two months from the date on which he or it receives the notification, request the International Bureau to send the copy of any document in the file of the international application to the Patent Administration Department under the State Council , and shall go through the formalities prescribed in Rule 101 of these Implementing Regulations within the said time limit at the Patent Administration Department under the State Council . After receiving the documents sent by the International Bureau, the Patent Administration Department under the State Council shall review the decision made by the international authority concerned to find whether it is correct.

Rule 116 With regard to a patent right granted on the basis of an international application, if the scope of protection determined in accordance with the provisions of Article 56 of the Patent Law exceeds the scope of the international application in its original language because of incorrect translation, the scope of protection granted on the international application shall be limited according to the original language of the application; if the scope of protection granted on the international application is narrower than the scope of the application in its original language, the scope of protection shall be determined according to the patent in the language when it is granted.

Chapter X Supplementary Provisions

Rule 117 Any person may, after approval by the Patent Administration Department under the State Council , consult or copy the files of the published or announced patent applications and the Patent Register. Any person may request the Patent Administration Department under the State Council to issue a copy of extracts from the Patent Register.

The files of the patent applications which have been withdrawn or deemed to be withdrawn or which have been rejected, shall not be preserved after expiration of two years from the date on which the applications cease to be valid.

Where the patent right has been abandoned, wholly invalidated or ceased, the files shall not be preserved after expiration of three years from the date on which the patent right ceases to be valid.

Rule 118 Any patent application which is filed with, or any formality which is gone through at, the Patent Administration Department under the State Council shall comply with the unified form prescribed by the Patent Administration Department under the State Council, and signed or sealed by the applicant, the patentee, any other interested person or his or its representative. Where any patent agency is appointed, it shall be sealed by such agency.

Where a change in the name of the inventor, or in the name, nationality and address of the applicant or the patentee, or in the name and address of the patent agency and the name of patent agent is requested, a request for a change in the bibliographic data shall be made to the Patent Administration Department under the State Council , together with the relevant certifying documents.

Rule 119 The document relating to a patent application or patent right which is mailed to the Patent Administration Department under the State Council shall be mailed by registered letter, not by parcel.

Except for any patent application filed for the first time, any document which is submitted to and any formality which is gone through at the Patent Administration Department under the State Council , the filing number or the patent number, the title of the invention-creation and the name of the applicant or the patentee shall be indicated.

Only documents relating to the same application shall be included in one letter.

Rule 120 Various kinds of application documents shall be typed or printed. All the characters shall be in black ink, neat and clear. They shall be free from any alterations. The drawings shall be made in black ink with the aid of drafting instruments. The lines shall be uniformly thick and well defined, and free from alterations.

The request, description, claims, drawings and abstract shall be numbered separately in Arabic numerals and arranged in numerical order.

The written language of the application shall run from left to right. Only one side of each sheet shall be used.

Rule 121 The Patent Administration Department under the State Council shall formulate Guidelines for Examination in accordance with the Patent Law and these Implementing Regulations.

Rule 122 These Implementing Regulations shall enter into force on July 1, 2001. The Implementing Regulations of the Patent Law of the People’s Republic of China approved by the State Council on December 12, 1992 and promulgated by the Patent Office of the People’s Republic of China on December 21, 1992 shall be repealed at the same time.

Patent Law of the People’s Republic of China

Patent Law of the People’s Republic of China

(Adopted at the 4th Meeting of the Standing Committee of the Sixth National People’s Congress on March 12,1984 Amended in accordance with the Decision of the Standing Committee of the Seventh National People’s Congress on Amending the Patent Law of the People’s Republic of China at its 27th Meeting on September 4,1992 Amended again in accordance with the Decision of the Standing Committee of the Ninth National People’s Congress on Amending the Patent Law of the People’s Republic of China adopted at its 17th Meeting on August 25,2000)

TABLE OF CONTENTS

Chapter I General Provisions

Chapter II Requirements for Grant of Patent Right

Chapter III Application for Patent

Chapter IV Examination and Approval of Application for Patent

Chapter V Duration, Cessation and Invalidation of Patent Right

Chapter VI Compulsory License for Exploitation of Patent

Chapter VII Protection of Patent Right

Chapter VIII Supplementary Provisions

Chapter I General Provisions

Article 1  This Law is enacted to protect patent rights for inventions-creations, to encourage invention-creation, to foster the spreading and application of inventions-creations, and to promote the development and innovation of science and technology, for meeting the needs of the construction of socialist modernization.

Article 2  In this Law, “inventions-creations” mean inventions, utility models and designs.

Article 3  The patent administration department under the State Council is responsible for the patent work throughout the country. It receives and examines patent applications and grants patent rights for inventions-creations in accordance with law.

The administrative authority for patent affairs under the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government are responsible for the administrative work concerning patents in their respective administrative areas .

Article 4  Where an invention-creation for which a patent is applied for relates to the security or other vital interests of the State and is required to be kept secret, the application shall be treated in accordance with the relevant prescriptions of the State.

Article 5  No patent right shall be granted for any invention-creation that is contrary to the laws of the State or social morality or that is detrimental to public interest.

Article 6  An invention-creation, made by a person in execution of the tasks of the entity to which he belongs, or made by him mainly by using the material and technical means of the entity is a service invention-creation. For a service intention-creation, the right to apply for a patent belongs to the entity. After the application is approved, the entity shall be the patentee.

For a non-service invention-creation, the right to apply for a patent belongs to the inventor or creator. After the application is approved, the inventor or creator shall be the patentee.

In respect of an invention-creation made by a person using the material and technical means of an entity to which he belongs, where the entity and the inventor or creator have entered into a contract in which the right to apply for and own a patent is provided for, such a provision shall apply.

Article 7  No entity or individual shall prevent the inventor or creator from filing an application for a patent for a non-service invention-creation.

Article 8  For an invention-creation jointly made by two or more entities or individuals, or made by an entity or individual in execution of a commission given to it or him by another entity or individual, the right to apply for a patent belongs, unless otherwise agreed upon, to the entity or individual that made, or to the entities or individuals that jointly made, the invention-creation. After the application is approved, the entity or individual that applied for it shall be the patentee.

Article 9 Where two or more applicants file applications for patent for the identical invention-creation, the patent right shall be granted to the applicant whose application was filed first.

Article 10 The right to apply for a patent and the patent right may be assigned.

Any assignment, by a Chinese entity or individual, of the right to apply for a patent, or of the patent right, to a foreigner must be approved by the competent department concerned of the State Council.

Where the right to apply for a patent or the patent right is assigned, the parties shall conclude a written contract and register it with the patent administration department under the State Council. The patent administration department under the State Council shall announce the registration. The assignment shall take effect as of the date of registration.

Article 11  After the grant of the patent right for an invention or utility model, except where otherwise provided for in this Law, no entity or individual may, without the authorization of the patentee, exploit the patent, that is, make, use, offer to sell, sell or import the patented product, or use the patented process, and use, offer to sell, sell or import the product directly obtained by the patented process, for production or business purposes.

After the grant of the patent right for a design, no entity or individual may, without the authorization of the patentee, exploit the patent, that is, make, sell or import the product incorporating its or his patented design, for production or business purposes.

Article 12 Any entity or individua1 exploiting the patent of another shall conclude with the patentee a written license contract for exploitation and pay the patentee a fee for the exploitation of the patent. The licensee has no right to authorize any entity or individual, other than that referred to in the contract for exploitation, to exploit the patent.

Article 13 After the publication of the application for a patent for invention, the applicant may require the entity or individual exploiting the invention to pay an appropriate fee.

Article 14 Where any patent for invention, belonging to any State-owned enterprise or institution, is of great significance to the interest of the State or to the public interest, the competent departments concerned under the State council and the people’s governments of provinces, autonomous regions or municipalities directly under the Central Government may, after approval by the State Council, decide that the patented invention be spread and applied within the approved limits, and allow designated entities to exploit that invention. The exploiting entity shall, according to the regulations of the State, pay a fee for exploitation to the patentee .

Any patent for invention belonging to a Chinese individual or an entity under collective ownership, which is of great significance to the interest of the State or to the public interest and is in need of spreading and application, may be treated alike by making reference to the provisions of the preceding paragraph.

Article l5 The patentee has the right to affix a patent marking and to indicate the number of the patent on the patented product or on the packing of that product.

Article 16 The entity that is granted a patent right shall award to the inventor or creator of a service invention–creation a reward and, upon exploitation of the patented invention-creation, shall pay the inventor or creator a reasonable remuneration based on the extent of spreading and application and the economic benefits yielded.

Article l7 The inventor or creator has the right to be named as such in the patent document.

Article 18 Where any foreigner, foreign enterprise or other foreign organization having no habitual residence or business office in China files an application for a patent in China, the application sha1l be treated under this Law in accordance with any agreement concluded between the country to which the applicant belongs and China, or in accordance with any international treaty to which both countries are party, or on the basis of the principle of reciprocity.

Article l9 Where any foreigner, foreign enterprise or other foreign organization having no habitual residence or business office in China applies for a patent, or has other patent matters to attend to, in China, it or he shall appoint a patent agency designated by the patent administration department under the State Council to act as his or its agent.

Where any Chinese entity or individual applies for a patent or has other patent matters to attend to in the country, it or he may appoint a patent agency to act as its or his agent.

The patent agency shall comply with the provisions of laws and administrative regulations, and handle patent applications and other patent matters according to the instructions of its clients. In respect of the contents of its clients’ inventions-creations, except for those that have been published or announced, the agency shall bear the responsibility of keeping them confidential. The administrative regulations governing the patent agency shall be formulated by the State Council.

Article 20 Where any Chinese entity or individual intends to file an application in a foreign country for a patent for invention-creation made in China, it or he shall file first an application for patent with the patent administration department under the State Council, appoint a patent agency designated by the said department to act as its or his agent, and comply with the provisions of Article 4 of this Law.

Any Chinese entity or individual may file an international application for patent in accordance with any international treaty concerned to which China is party. The applicant filing an international application for patent shall comply with the provisions of the preceding paragraph.

The patent administration department under the State Council shall handle any international application for patent in accordance with the international treaty concerned to which China is party, this Law and the relevant regulations of the State Council.

Article 21 The patent administration department under the State Council and its Patent Reexamination Board shall handle any patent application and patent-related request according to law and in conformity with the requirements for being objective, fair, correct and timely.

Until the publication or announcement of the application for a patent, staff members of the patent administration department under the State Council and other persons involved have the duty to keep its contents secret.

Chapter II Requirements for Grant of Patent Right

Article 22 Any invention or utility model for which patent right may be granted must possess novelty, inventiveness and practical app1icability.

Novelty means that, before the date of filing, no identical invention or utility model has been publicly disclosed in publications in the country or abroad or has been publicly used or made known to the public by any other means in the country, nor has any other person filed previously with the Patent Administration Department Under the State Council an application which described the identical invention or utility mode1 and was published after the said date of filing.

Inventiveness means that, as compared with the technology existing before the date of filing, the invention has prominent substantive features and represents a notable progress and that the utility model has substantive features and represents progress.

Practical applicability means that the invention or utility model can be made or used and can produce effective results.

Article 23 Any design for which patent right may be granted must not be identical with and simi1ar to any design which, before the date of filing, has been publicly disclosed in publications in the country or abroad or has been publicly used in the country, and must not be in conflict with any prior right of any other person.

Article 24 An invention-creation for which a patent is applied for does not lose its novelty where, within six months before the date of filing, one of the following events occurred:

(l) where it was first exhibited at an international exhibition sponsored or recognized by the Chinese Government;

(2) where it was first made public at a prescribed academic or technological meeting;

(3) where it was disc1osed by any person without the consent of the applicant.

Article 25  For any of the following, no patent right shall be granted:

(1) scientific discoveries;

(2) rules and methods for mental activities;

(3) methods for the diagnosis or for the treatment of diseases;

(4) animal and plant varieties;

(5) substances obtained by means of nuclear transformation.

For processes used in producing products referred to in items (4) of the preceding paragraph, patent right may be granted in accordance with the provisions of this Law.

Chapter III Application for Patent

Article 26 Where an application for a patent for invention or utility model is filed, a request, a description and its abstract, and claims shall be submitted.

The request shall state the title of the invention or utility model, the name of the inventor or creator, the name and the address of the applicant and other related matters.

The description shall set forth the invention or utility model in a manner sufficiently clear and complete so as to enable a person skilled in the re1evant field of techno1ogy to carry it out; where necessary, drawings are required. The abstract shall state briefly the main technical points of the invention or utility model.

The claims sha1l be supported by the description and shal1 state the extent of the patent protection asked for.

Article 27 Where an app1ication for a patent for design is filed, a request, drawings or photographs of the design shall be submitted, and the product incorporating the design and the class to which that product be1ongs shall be indicated.

Article 28 The date on which the Patent Administration Department Under the State Council receives the application shall be the date of filing. If the app1ication is sent by mail, the date of mailing indicated by the postmark shall be the date of filing.

Article 29 Where , within twelve months from the date on which any applicant first filed in a foreign country an application for a Patent for invention or utility model, or within six months from the date on which any applicant first filed in a foreign country an application for a patent for design, he or it files in China an application for a patent for the same subject matter, he or it may, in accordance with any agreement concluded between the said foreign country and China, or in accordance with any international treaty to which both countries are party, or on the basis of the principle of mutual recognition of the right of priority, enjoy a right of priority.

Where, within twelve months from the date on which any applicant first filed in China an application for a patent for invention or utility model, he or it files with the Patent Administration Department Under the State Council an application for a patent for the same subject matter , he or it may enjoy a right of priority.

Article 30 Any applicant who claims the right of priority shall make a written declaration when the application is filed, and submit, within three months, a copy of the patent application document which was first filed ; if the applicant fails to make the written declaration or to meet the time limit for submitting the patent application document, the claim to the right of priority shall be deemed not to have been made.

Article 3l An application for a patent for invention or utility model shall be limited to one invention or uti1ity model. Two or more inventions or utility models belonging to a single general inventive concept may be filed as one application.

An application for a patent for design shall be limited to one design incorporated in one product. Two or more designs which are incorporated in products belonging to the same c1ass and are sold or used in sets may be filed as one application.

Article 32 An applicant may withdraw his or its application for a patent at any time before the patent right is granted.

Article 33 An applicant may amend his or its application for a patent, but the amendment to the application for a patent for invention or utility model may not go beyond the scope of the disclosure contained in the initial description and claims, and the amendment to the application for a patent for design may not go beyond the scope of the disclosure as shown in the initial drawings or photographs.

Chapter IV Examination and Approval of Application for Patent

Article 34 Where, after receiving an application for a patent for invention, the Patent Administration Department Under the State Council, upon preliminary examination, finds the application to be in conformity with the requirements of this Law, it shall publish the application promptly after the expiration of eighteen months from the date of filing. Upon the request of the applicant, the Patent Administration Department Under the State Council publishes the application earlier.

Article 35  Upon the request of the applicant for a patent for invention, made at any time within three years from the date of filing, the Patent Administration Department Under the State Council will proceed to examine the application as to its substance. If, without any justified reason, the applicant fails to meet the time limit for requesting examination as to substance, the application shall be deemed to have been withdrawn.

The Patent Administration Department Under the State Council may, on its own initiative, proceed to examine any application for a patent for invention as to its substance when it deems it necessary.

Article 36 When the applicant for a patent for invention requests examination as to substance , he or lit shall furnish pre-filing date reference materials concerning the invention.

For an application for a patent for invention that has been already filed in a foreign country, the patent administration department under the State Council may ask the app1icant to furnish within a specified time limit documents concerning any search made for the purpose of examining that application, or concerning the results of any examination made, in that country. If, at the expiration of the specified time limit, without any justified reason, the said documents are not furnished, the application shall be deemed to have been withdrawn.

Article 37 Where the Patent Administration Department Under the State Council , after it has made the examination as to substance of the application for a patent for invention, finds that the application is not in conformity with the provisions of this Law, it shall notify the applicant and request him or it to submit, within a specified time limit, his or its observations or to amend the application. If, without any justified reason, the time limit for making response is not met, the application shall be deemed to have been withdrawn.

Article 38 Where, after the applicant has made the observations or amendments, the Patent Administration Department Under the State Council finds that the application for a patent for invention is still not in conformity with the provisions of this Law, the application shall be rejected.

Article 39 Where it is found after examination as to substance that there is no cause for rejection of the application for a patent for invention, the patent administration department under the State Council shall make a decision to grant the patent right for invention, issue the certificate of patent for invention, and register and announce it. The patent right for invention shall take effect as of the date of the announcement.

Article 40 Where it is found after preliminary examination that there is no cause for rejection of the application for a patent for utility model or design, the patent administration department under the State Council shall make a decision to grant the patent right for utility model or the patent right for design, issue the relevant patent certificate, and register and announce it. The patent right for utility model or design shall take effect as of the date of the announcement.

Article 41 The patent administration department under the State Council shall set up a Patent Reexamination Board. Where an applicant for patent is not satisfied with the decision of the said department rejecting the application, the applicant may, within three months from the date of receipt of the notification, request the Patent Reexamination Board to make a reexamination. The Patent Reexamination Board shall, after reexamination, make a decision and notify the applicant for patent.

Where the applicant for patent is not satisfied with the decision of the Patent Reexamination Board, it or he may, within three months from the date of receipt of the notification, institute legal proceedings in the people’s court.

Chapter V Duration, Cessation and Invalidation of Patent Right

Article 42 The duration of patent right for inventions shall be twenty years, the duration of patent right for utility models and patent right for designs shall be ten years, counted from the date of filing.

Article 43 The patentee shall pay an annual fee beginning with the year in which the patent right was granted.

Article 44 In any of the following cases, the patent right shall cease before the expiration of its duration:

(1) where an annual fee is not paid as prescribed;

(2) where the patentee abandons his or its patent right by a written declaration.

Any cessation of the patent right shall be registered and announced by the Patent Administration Department Under the State Council .

Article 45 Where, starting from the date of the announcement of the grant of the patent right by the patent administration department under the State Council, any entity or individual considers that the grant of the said patent right is not in conformity with the relevant provisions of this Law, it or he may request the Patent Reexamination Board to declare the patent right invalid.

Article 46 The Patent Reexamination Board shall examine the request for invalidation of the patent right promptly, make a decision on it and notify the person who made the request and the patentee. The decision declaring the patent right invalid shall be registered and announced by the patent administration department under the State Council.

Where the patentee or the person who made the request for invalidation is not satisfied with the decision of the Patent Reexamination Board declaring the patent right invalid or upholding the patent right, such party may, within three months from receipt of the notification of the decision, institute legal proceedings in the people’s court. The people’s court shall notify the person that is the opponent party of that party in the invalidation procedure to appear as a third party in the legal proceedings.

Article 47 Any patent right which has been declared invalid shall be deemed to be non-existent from the beginning.

The decision declaring the patent right invalid shall have no retroactive effect on any judgement or ruling of patent infringement which has been pronounced and enforced by the people’s court, on any decision concerning the handling of a dispute over patent infringement which has been complied with or compulsorily executed, or on any contract of patent license or of assignment of patent right which has been performed prior to the declaration of the patent right invalid; however, the damage caused to other persons in bad faith on the part of the patentee shall be compensated.

If, pursuant to the provisions of the preceding paragraph, the patentee or the assignor of the patent right makes no repayment to the licensee or the assignee of the patent right of the fee for the exploitation of the patent or of the price for the assignment of the patent right, which is obviously contrary to the principle of equity, the patentee or the assignor of the patent right shall repay the whole or part of the fee for the exploitation of the patent or of the price for the assignment of the patent right to the licensee or the assignee of the patent right.

Chapter VI Compulsory License for Exploitation of Patent

Article 48 Where any entity which is qualified to exploit the invention or utility model has made requests for authorization from the patentee of an invention or utility model to exploit its or his patent on reasonable terms and conditions and such efforts have not been successful within a reasonable period of time, the Patent Administration Department Under the State Council may, upon the request of that entity, grant a compulsory license to exploit the patent for invention or utility model.

Article 49 Where a national emergency or any extraordinary state of affairs occurs, or where the public interest so requires, the Patent Administration Department Under the State Council may grant a compulsory license to exploit the patent for invention or utility model.

Article 50 Where the invention or utility model for which the patent right has been granted involves important technical advance of considerable economic significance in relation to another invention or utility model for which a patent right has been granted earlier and the exploitation of the later invention or utility model depends on the exploitation of the earlier invention or utility model, the patent administration department under the State Council may, upon the request of the later patentee, grant a compulsory license to exploit the earlier invention or utility model.

Where, according to the preceding paragraph, a compulsory license is granted, the Patent Administration Department Under the State Council may, upon the request of the earlier patentee, also grant a compulsory license to exploit the later invention or utility model.

Article 51 The entity or individual requesting, in accordance with the provisions of this Law, a compulsory license for exploitation shall furnish proof that it or he has not been able to conclude with the patentee a license contract for exploitation on reasonable terms and conditions.

Article 52 The decision made by the patent administration department under the State Council granting a compulsory license for exploitation shall be notified promptly to the patentee concerned, and shall be registered and announced.

In the decision granting the compulsory license for exploitation, the scope and duration of the exploitation shall be specified on the basis of the reasons justifying the grant. If and when the circumstances which led to such compulsory license cease to exist and are unlikely to recur, the patent administration department under the State Council may, after review upon the request of the patentee, terminate the compulsory license.

Article 53 Any entity or individual that is granted a compulsory license for exploitation shall not have an exclusive right to exploit and shall not have the right to authorize exploitation by any others.

Article 54 The entity or individual that is granted a compulsory license for exploitation shall pay to the patentee a reasonable exploitation fee, the amount of which shall be fixed by both parties in consultations. Where the parties fail to reach an agreement, the Patent Administration Department Under the State Council shall adjudicate.

Article 55 Where the patentee is not satisfied with the decision of the patent administration department under the State Council granting a compulsory license for exploitation, or where the patentee or the entity or individual that is granted the compulsory license for exploitation is not satisfied with the ruling made by the patent administration department under the State Council regarding the fee payable for exploitation, it or he may, within three months from the receipt of the date of notification, institute legal proceedings in the people’s court.

Chapter VII Protection of Patent Right

Article 56 The extent of protection of the patent right for invention or utility model shall be determined by the terms of the claims. The description and the appended drawings may be used to interpret the claims.

The extent of protection of the patent right for design shall be determined by the product incorporating the patented design as shown in the drawings or photographs.

Article 57 Where a dispute arises as a result of the exploitation of a patent without the authorization of the patentee, that is, the infringement of the patent right of the patentee, it shall be settled through consultation by the parties. Where the parties are not willing to consult with each other or where the consultation fails, the patentee or any interested party may institute legal proceedings in the people’s court, or request the administrative authority for patent affairs to handle the matter. When the administrative authority for patent affairs handling the matter considers that the infringement is established, it may order the infringer to stop the infringing act immediately. If the infringer is not satisfied with the order, he may, within 15 days from the date of receipt of the notification of the order, institutes legal proceedings in the people’s court in accordance with the Administrative Procedure Law of the People’s Republic of China. If, within the said time limit, such proceedings are not instituted and the order is not complied with, the administrative authority for patent affairs may approach the people’s court for compulsory execution. The said authority handling the matter may, upon the request of the parties, mediate in the amount of compensation for the damage caused by the infringement of the patent right. If the mediation fails, the parties may institute legal proceedings in the people’s court in accordance with the Civil Procedure Law of the People’s Republic of China.

Where any infringement dispute relates to a patent for invention for a process for the manufacture of a new product, any entity or individual manufacturing the identical product shall furnish proof to show that the process used in the manufacture of its or his product is different from the patented process. Where the infringement relates to a patent for utility model, the people’s court or the administrative authority for patent affairs may ask the patentee to furnish a search report made by the patent administration department under the State Council.

Article 58 Where any person passes off the patent of another person as his own, he shall, in addition to bearing his civil liability according to law, be ordered by the administrative authority for patent affairs to amend his act, and the order shall be announced. His illegal earnings shall be confiscated and , in addition, he may be imposed a fine of not more than three times his illegal earnings and, if there is no illegal earnings, a fine of not more than RMB 50,000 yuan. Where the infringement constitutes a crime, he shall be prosecuted for his criminal liability.

Article 59 Where any person passes any non-patented product off as patented product or passes any non-patented process off as patented process, he shall be ordered by the administrative authority for patent affairs to amend his act , and the order shall be announced, and he may be imposed a fine of no more than RMB 50,000 yuan.

Article 60 The amount of compensation for the damage caused by the infringement of the patent right shall be assessed on the basis of the losses suffered by the patentee or the profits which the infringer has earned through the infringement. If it is difficult to determine the losses which the patentee has suffered or the profits which the infringer has earned, the amount may be assessed by reference to the appropriate multiple of the amount of the exploitation fee of that patent under contractual license.

Article 61 Where any patentee or interested party has evidence to prove that another person is infringing or will soon infringe its or his patent right and that if such infringing act is not checked or prevented from occurring in time, it is likely to cause irreparable harm to it or him, it or he may, before any legal proceedings are instituted, request the people’s court to adopt measures for ordering the suspension of relevant acts and the preservation of property.

The people’s court, when dealing with the request mentioned in the preceding paragraph, shall apply the provisions of Article 93 through Article 96 and of Article 99 of the Civil Procedure Law of the People’s Republic of China

Article 62 Prescription for instituting legal proceedings concerning the infringement of patent right is two years counted from the date on which the patentee or any interested party obtains or should have obtained knowledge of the infringing act.

Where no appropriate fee for exploitation of the invention, subject of an application for patent for invention, is paid during the period from the publication of the application to the grant of patent right, prescription for instituting legal proceedings by the patentee to demand the said fee is two years counted from the date on which the patentee obtains or should have obtained knowledge of the exploitation of his invention by another person. However, where the patentee has already obtained or should have obtained knowledge before the date of the grant of the patent right, the prescription shall be counted from the date of the grant.

Article 63 None of the following shall be deemed an infringement of the patent right:

(l) Where, after the sale of a patented product that was made or imported by the patentee or with the authorization of the patentee, or of a product that was directly obtained by using the patented process, any other person uses, offers to sell or sells that product;

(2) Where, before the date of filing of the application for patent, any person who has already made the identical product, used the identical process, or made necessary preparations for its making or using, continues to make or use it within the original scope only;

(3) Where any foreign means of transport which temporarily passes through the territory, territorial waters or territorial airspace of China uses the patent concerned, in accordance with any agreement concluded between the country to which the foreign means of transport belongs and China, or in accordance with any international treaty to which both countries are party, or on the basis of the principle of reciprocity, for its own needs, in its devices and installations;

(4) Where any person uses the patent concerned solely for the purposes of scientific research and experimentation.

Any person who, for production and business purposes, uses or sells a patented product or a product that was directly obtained by using a patented process, without knowing that it was made and sold without the authorization of the patentee, shall not be liable to compensate for the damage of the patentee if he can prove that he obtains the product from a legitimate source.

Article 64 Where any person, in violation of the provisions of Article 20 of this Law, files in a foreign country an application for a patent that divulges an important secret of the State, he shall be subject to disciplinary sanction by the entity to which he belongs or by the competent authority concerned at the higher level. Where a crime is established, the person concerned shall be prosecuted for his criminal liability according to the law.

Article 65 Where any person usurps the right of an inventor or creator to apply for a patent for a non-service invention-creation, or usurps any other right or interest of an inventor or creator, prescribed by this Law, he shall be subject to disciplinary sanction by the entity to which he belongs or by the competent authority at the higher level.

Article 66 The administrative authority for patent affairs may not take part in recommending any patented product for sale to the public or any such commercial activities.

Where the administrative authority for patent affairs violates the provisions of the preceding paragraph, it shall be ordered by the authority at the next higher level or the supervisory authority to correct its mistakes and eliminate the bad effects. The illegal earnings, if any, shall be confiscated. Where the circumstances are serious, the persons who are directly in charge and the other persons who are directly responsible shall be given disciplinary sanction in accordance with law.

Article 67 Where any State functionary working for patent administration or any other State functionary concerned neglects his duty, abuses his power, or engages in malpractice for personal gain, which constitutes a crime, shall be prosecuted for his criminal liability in accordance with law. If the case is not serious enough to constitute a crime, he shall be given disciplinary sanction in accordance with law.

Chapter VIII Supplementary Provisions

Article 68 Any application for a patent filed with, and any other proceedings before, the Patent Administration Department Under the State Council shall be subject to the payment of a fee as prescribed.

Article 69 This Law shall enter into force on April l, 1985.

Rules of the Customs of People’s Republic of China for Implementing the Regulations of People’s Republic of China on Customs Protection of Intellectual Property Rights

Rules of the Customs of People’s Republic of China for Implementing the Regulations of People’s Republic of China on Customs Protection of Intellectual Property Rights (Adopted at the Executive Meeting of the General Administration of Customs on April 22, 2004, promulgated by Decree No.114 of the General Administration of Customs on May 25, 2004, and effective as of July 1, 2004)

Chapter I General Provisions

Article 1 These Rules are formulated in accordance with the Customs Law of the People’s Republic of China and other laws and administrative regulations, in order to implement effectively the Regulations of the People’s Republic of China on Customs Protection of Intellectual Property Rights (hereinafter referred to as the “Regulations”).

Article 2 Where any holder of intellectual property right requests the Customs to take protection measures for his intellectual property rights or goes through procedures of Customs Protective Recordation of Intellectual Property Rights with the General Administration of Customs, he is entitled to lodge the application, directly or entrust an agent established in mainland China on his behalf, on condition that he is located in mainland China. Where such holder of intellectual property right is located outside mainland China, he shall entrust either his liaison office or an agent, both are established in mainland China, to lodge the application on his behalf.

Where the holder of intellectual property right entrusts an agent established in mainland China to present his application in accordance with the preceding paragraph, he shall produce a power of attorney in a prescribed form.

Article 3 When the holder of intellectual property right or his agent (hereinafter collectively referred to as the holder of intellectual property right) discovers that the suspected infringing goods pending to import or export, he may apply to the Customs for detention of such goods in accordance with the provisions in Chapter 3 of these Rules.

Where the relevant goods are suspected of infringing an intellectual property right that have been recorded with the General Administration of Customs, the holder of intellectual property right may report to the Customs and apply for detaining such suspected infringing goods by the Customs in accordance with the provisions in Chapter 4 of these Rules.

Article 4 The consignor or consignee of import or export goods or his agent (hereinafter collectively referred to as the consignor or consignee) shall, to a reasonable extent, have knowledge of the intellectual property right status of his import or export goods. If the status of intellectual property right related to his import or export goods is obliged to be declared, the consignor or consignee shall make such declaration and present any relevant evidentiary documents truthfully to the Customs.

Article 5 If any commercial secrets are involved in the relevant documents or evidence presented to the Customs by either holder of intellectual property right, or the consignor or consignee, an explanation of such secrets in writing shall be presented to the Customs by the holder of intellectual property right, or the consignor or consignee.

The Customs shall keep the confidentiality of the commercial secrets of relevant parties when operating protection of intellectual property rights. But the information which the Customs are obliged to disclose in accordance with law shall not be included.

Chapter II Recordation of Intellectual Property Rights

Article 6 When going through the procedures of Customs Protective Recordation of Intellectual Property Rights, the holder of intellectual property right shall present an application in a prescribed form to the General Administration of Customs.

The holder of intellectual property right shall present a separate application form for each of his intellectual property rights for which the recordation is applied. Where applying for recordation of an International Registered Trademark, the holder of intellectual property right shall present a separate application form for recordation of each class of commodities covered.

Article 7 The holder of intellectual property right shall attach the following documents and evidence when he presents the application for recordation to the General Administration of Customs:

(1) A photocopy of personal identification document, or business license or other documents which identifies the holder of intellectual property right;

(2) A photocopy of the Trademark Registration Certificate issued by the Trademark Office of the State Council’s industry and commerce authority, the documents confirming trademark registration issued by the Trademark Office of the State Council’s industry and commerce authority shall be presented in addition where the applicant has been permitted to change, renew, transfer the trademark registration or apply for recordation of an International Registered Trademark;

A photocopy of the certificate of voluntary copyright registration issued by the copyright registration authority, or the photographs of the works confirmed by the copyright registration authority. Where the applicant has not carried out the procedures for voluntary copyright registration of his works, a sample of his works or other evidence which can prove his ownership of the copyright shall be presented;

A photocopy of the patent certificate issued by the State Council’s patent authority. Where the grant of patent has been announced more than one year, a duplicate of the patent register issued, within six months prior to the application for recordation, by the State Council’s patent authority. Where applying for the recordation of an utility model or a design, a photocopy of search report of the utility model or a photocopy of announcement of design issued by the State Council’s patent authority shall also be presented;

(3) A photocopy of a contract of licence shall be presented where the holder of intellectual property right has licensed other parties to use a registered trademark, a work or a patent and a contract of license has been reached. Where no written licence has been reached, a document explaining the details of scope, term of the license, etc. shall be presented;

(4) The photographs of goods and their package on which the holder of intellectual property right lawfully exercised his rights;

(5) The evidence of the known import or export of infringing goods; Where any infringement dispute between the holder of intellectual property right and other party has been settled by a People’s Court or by the competent intellectual property right authority, a photocopy of the relevant legal document shall also be presented;

(6) Any other documents or evidence that the General Administration of Customs considers necessary to present.

The documents and evidence presented by the holder of intellectual property right to the General Administration of Customs in accordance with the preceding paragraph shall be complete, truthful and valid. Where the relevant documents and evidence are in a foreign language, they shall be accompanied by a Chinese translation. Where the General Administration of Customs deems necessary, it may require the holder of an intellectual property to present notarization or certification of the relevant documents or evidence.

Article 8 The holder of an intellectual property shall make payment of recordation fee while he applies to the General Administration of Customs for the Customs Protective Recordation of intellectual property right. The holder of intellectual property right shall attach a photocopy of credence of remittance of the recordation fee when he presenting the application for recordation to the General Administration of Customs.

The rate of recordation fee shall be prescribed and announced by the General Administration of Customs in conjunction with relevant authorities of State.

Article 9 The Customs Protective Recordation of intellectual property right shall enter into effect on the date of approval by the General Administration of Customs and be valid for a term of 10 years. Where the term of the intellectual property right is less than 10 years from the effective date of the recordation, the recordation term of an intellectual property right shall be in conformity with the term of the intellectual property right.

The terms of recordation and renewed recordation approved by the General Administration of Customs prior to the effectiveness of Regulations shall remain to be calculated in accordance with their original terms.

Article 10 The holder of intellectual property right may, within six months prior to the expiration of the recordation term of the Customs protection of intellectual property right, apply for renew of recordation by presenting a written application together with relevant documents to the General Administration of Customs. Where the General Administration of Customs approves the renewal of the recordation, it shall notify the holder of intellectual property right in writing; where it disapproves the renewal, it shall notify the holder of intellectual property right in writing and explain the reason thereof.

The term of the renewed recordation shall be 10 years, calculated from the day following the expiration of the previous recordation term. Where the term of the intellectual property right is less than 10 years from the day following the expiration of the previous recordation term, the renewal recordation term of the intellectual property right shall be in conformity with the term of the intellectual property right.

Article 11 The holder of intellectual property right shall, within 30 working days from the date of change occurs, apply to the General Administration of Customs for amending the Customs protective Recordation of intellectual property right and presents relevant documents, where any change occurs to the following information of the intellectual property right recorded:

(1) The name of the holder of intellectual property right;

(2) The commodities on which the registered trademark has been used;

(3) The information of licensed using the registered trademark, work or patent;

(4) The information of address, contact person, telephone number, etc. of the holder of intellectual property right;

(5) Any other particulars specified in Article 7 of these Regulations.

Article 12 In any of the following circumstances, the holder of intellectual property right shall, within 30 working days from the date of the change in the recorded intellectual property right, apply to the General Administration of Customs for cancellation of the Customs Protective Recordation of intellectual property right and present relevant documents:

(1) The intellectual property right ceases to be protected by laws and administrative regulations prior to the expiration of the recordation term;

(2) The recorded intellectual property right is transferred.

Where either of the circumstances specified in the preceding paragraph occurs, the General Administration of Customs may cancel the recordation of the relevant intellectual property right on its own initiative or against the application of any party interested.

The holder of intellectual property right may apply to the General Administration of Customs for cancellation of the recordation if he decides to abandon any recordation during the recordation term.

The General Administration of Customs shall notify the relevant holder of intellectual property right in writing of cancellation of any recordation. The recordation shall become invalid since the date of cancellation by the General Administration of Customs.

Article 13 Where the General Administration of Customs decide to revoke a Customs protective Recordation of intellectual property right in accordance with Article 9 of Regulations, the holder of intellectual property right shall be notified in writing.

The General Administration of Customs has the authority to refuse the application for recordation lodged, within one year from the date of the revocation of the intellectual property right recordation by the relevant holder of intellectual property right, by the holder of intellectual property right for the relevant intellectual property rights which the recordation thereof has been revoked.

Chapter III Detention pursuant to an Application

Article 14 Where the holder of intellectual property right discovers the suspected infringing goods pending to import or export and request the Customs to detain the goods, he shall lodge an application, in accordance with Article 37 of Regulations, to the port Customs where the goods pending to import or export. In addition, the holder of intellectual property right shall present the documents and evidence specified in items (1) and (2) of the first paragraph of Article 7 of these Rules where the relevant intellectual property right has not been recorded with the General Administration of Customs.

The holder of intellectual property right shall provide sufficient evidence proving the obvious existence of the fact of infringement to the Customs as well when he requests the Customs to detain the suspected infringing goods. The evidence provided by the holder of intellectual property right shall be sufficient to prove the following facts:

(1) The goods requested to be detained by the Customs are pending to import or export;

(2) The trademark, works or patent have been used on the relevant goods without the consent of the holder of intellectual property rights.

Article 15 Where applying for detaining the suspected infringing goods by the Customs, the holder of intellectual property right shall deposit, within the period specified by the Customs, a security equivalent to the value of the goods with the Customs.

Article 16 The holder of intellectual property right may, provided that he has lodged the application in accordance with Article 14 and deposited the security in accordance with Article 15 of these Rules, request to inspect the suspected infringing goods before the Customs perform the detention.

The holder of intellectual property right may, upon approval of the Customs, revise or withdraw his application on condition that the suspected infringing goods have not been detained by the Customs.

Where the application lodged by the holder of intellectual property right fails to be in conformity with Article 14, or the security fails to be deposited in conformity with Article 15 of these Rules, the Customs shall refuse the application and notify the holder of intellectual property right in writing of such refusal.

Article 17 The Customs, where detaining the suspected infringing goods, shall notify the holder of intellectual property right in writing of such details as description, quantity and value of the goods, name of the consignor or consignee, date of import or export declaration and detention, etc.

The holder of intellectual property right may apply, in accordance with Article 23 of Regulations, to the People’s Court for a ruling of ceasing infringing act or a ruling of property preservation. The Customs shall provide assistance where they receive, within 20 working days from the date on which the Customs detain the suspected infringing goods, a written petition from the People’s Court for assisting to enforce the ruling; Otherwise, the Customs shall release the goods.

Article 18 When the Customs detain the suspected infringing goods, they shall serve a written notification of detention of the suspected infringing goods and a Customs Detention Receipt on the consignor or consignee. Upon the approval of the Customs, the consignor or consignee may inspect the relevant goods.

If the consignee or consignor believes that his import or export goods do not infringe the relevant intellectual property right, he shall, within 20 working days from the date on which the goods are detained by the Customs, present to the Customs a written explanation together with the necessary evidence. If the consignor or consignee requests the Customs to release the goods suspected of infringing a patent, he shall present a written application for releasing the goods and deposit a security equivalent to the value of the goods to the Customs in addition.

Article 19 The Customs shall release the goods and notify the holder of intellectual property right in writing provided that the consignor or consignee requests the Customs to release the goods suspected of infringing the patent and such request is in conformity with the second paragraph of Article 18 of these Rules.

The holder of intellectual property right shall present a photocopy of notice of accepting case from the People’s Court to the Customs within 30 working days from the date when the written notification, specified in the preceding paragraph, from the Customs has been served where he has brought a lawsuit before the People’s Court in respect of the dispute of patent infringement.

Chapter IV Ex Official Action

Article 20 Where the Customs discover, when performing supervision and control over import or export goods, any import or export goods suspected of infringing a recorded intellectual property right recorded with the General Administration of Customs, they shall immediately notify the holder of intellectual property right.

Article 21 The holder of intellectual property right shall, within three working days from the date when the written notification, specified in Article 20 of these Rules, from the Customs has been served, response in accordance with the following provisions:

(1) To lodge a written application to the Customs for detaining the suspected infringing goods and deposit a security in accordance with Article 22 of these Rules where believing that the relevant goods have infringed his intellectual property right recorded with the General Administration of Customs and requesting he Customs to perform detention, or

(2) To explain the reasons to the Customs in writing. where believing that the relevant goods have not infringed his intellectual property right recorded with the General Administration of Customs or not requesting the Customs to perform detention.

Upon the approval of the Customs, the holder of intellectual property right may inspect the relevant goods.

Article 22 Where requesting the Customs to detain the suspected infringing goods in accordance with item (1) of the first paragraph of Article 21 of these Rules, the holder of intellectual property right shall deposit a security with the Customs in accordance with the following provisions:

(1) Where the value of goods is below RMB 20,000 Yuan, a security equivalent to the value of the goods is to be deposited;

(2) Where the value of goods is above RMB 20,000 Yuan but below RMB200,000 Yuan, a security equivalent to 50% of the value of the goods shall be deposited. But the minimum amount of the security shall not be less than RMB 20,000 Yuan;

(3) Where the value of goods is above RMB 200,000 Yuan, a security of RMB¥100,000 shall be deposited.

Upon the approval of the Customs, the holder of intellectual property right may provide a general security with the Customs. The minimum amount of such general security shall be RMB 200,000 Yuan.

Article 23 Where the holder of intellectual property right has applied for detention of the suspected infringing goods in conformity with item (1) of the first paragraph of Article 21 of these Rules and deposited a security in accordance with Article 22, the Customs shall detain the suspected infringing goods and notify the holder of intellectual property right in writing; The Customs shall release the goods where neither application has been lodged nor security has been deposited.

Article 24 Where detaining the suspected infringing goods, the Customs shall serve on the consignor or consignee a written notification of detaining the suspected infringing goods and a Customs Detention Receipt. The consignor or consignee may inspect the relevant goods upon the approval of the Customs.

The consignor or consignee shall present, within the period of Customs’ investigation into the suspected infringing goods, a written explanation together with necessary evidence to the Customs where he believes that his import or export goods do not infringe the relevant intellectual property right. If he requests the Customs to release the goods suspected infringing a patent, he shall, within 50 working days from the date on which the goods are detained by the Customs, present to the Customs a written application for releasing the goods and provide a security equivalent to the value of the goods.

Where the consignor or consignee lodges a request, which is in conformity with the preceding paragraph, to the Customs for releasing the goods suspected of infringing a patent, the Customs shall handle the matter in accordance with Article 19 of these Rules. While the goods are determined as of infringing the patent by the Customs investigation, the Customs shall handle the matter in accordance with Article 27 of these Rules.

Article 25 The Customs shall, in accordance with law, perform investigation into the suspected infringing goods as well as other relevant circumstances after they have detained the suspected infringing goods.

The consignor or consignee and the holder of intellectual property right shall cooperate in the Customs investigation and shall truthfully provide relevant information and evidence.

When investigating into the suspected infringing goods, the Customs may request the relevant competent authorities of intellectual property right to provide advice.

Article 26 The Customs shall, within 30 working days from the date on which the suspected infringing goods are detained, inform the holder of intellectual property right in writing of any of the following conclusions of investigation:

(1) The goods are determined as of infringement of relevant intellectual property right;

(2) Evidence provided by the consignor or consignee is regarded as sufficient to prove that the goods do not infringe the relevant intellectual property right;

(3) The Customs cannot determine whether the goods infringe the relevant intellectual property right or not.

Article 27 Where the Customs cannot determine whether the goods infringe the intellectual property right or not, the holder of intellectual property right may apply to the People’s Court for a ruling of ceasing infringing act or a ruling of property preservation in accordance with Article 23 of Regulations.

The Customs shall provide assistance where the Customs receives a petition for assistance in enforcing either the ruling of ceasing infringing act or the ruling for property preservation from the People’s Court within 50 working days from the date on which the suspected infringing goods are detained. Otherwise, the goods shall be released.

Article 28 Where the Customs have decided to confiscate infringing goods, the holder of intellectual property right shall be informed in writing of the following known details:

(1) Description and quantity of infringing goods;

(2) Name of the consignor or consignee;

(3) Date of import or export declaration of the infringing goods, date of detention by the Customs and date of effectiveness of the Customs’ punishment decision;

(4) Place of departure and destination of the infringing goods;

(5) Other information relating to the infringing goods that the Customs can provide.

Where the People’s Court or another competent intellectual property right authority, when handling an infringement dispute between the relevant parties, requires any assistance from the Customs in obtaining evidence relating to the import or export goods, the Customs shall provide such assistance.

Article 29 The Customs shall detain the inward or outward articles carried or mailed by individuals which are both in excess of the reasonable quantity for personal use and suspected of infringing the intellectual property right specified in Article 2 of Regulations. The articles shall be confiscated if determined as of infringement by the Customs after investigation.

The holder of intellectual property right shall provide assistance to the Customs when they are operating investigation into the infringing articles.

Chapter V Disposal of Goods and Relevant Expenses

Article 30 The goods confiscated by the Customs shall be disposed of in accordance with the following provisions:

(1) Where the relevant goods can be directly used for public welfare undertakings or if the holder of intellectual property right intends to purchase the goods, they shall be handed over to the relevant public welfare organization for use in public welfare undertakings or transferred to the holder of intellectual property right with compensation;

(2) Where the relevant goods cannot be disposed of in accordance with item (1) but the infringing features can be removed, the goods shall be auctioned after removal of the infringing features; the money obtained from the auction of the goods shall be turned over to the national treasury;

(3) Where the relevant goods cannot be disposed of in accordance with item (1) or (2), they shall be destroyed.

The holder of intellectual property right shall provide necessary assistance when the Customs destroy infringing goods. When the relevant public welfare organization uses the infringing goods confiscated by the Customs in public welfare undertakings or the holder of intellectual property right assists the Customs in destroying the infringing goods, the Customs shall exercise the necessary supervision.

Article 31 In either cases that he Customs assist the People’s Court in enforcing a ruling of ceasing infringing act or a property preservation order, or release detained goods, the holder of intellectual property right shall pay the expenses for warehousing, maintenance, disposal, etc., of the goods during the period they are detained by the Customs.

If the Customs confiscates the infringing goods, the holder of intellectual property right shall pay the expenses for warehousing, maintenance, disposal, etc. of the goods for the actual period of time they are stored after their detention by the Customs. However, if the Customs fails to complete the disposal of the goods within three months from the date on which the decision to confiscate the infringing goods is served on the consignor or consignee, and such failure is not due to the consignor or consignee applying for administrative reconsideration, filing administrative proceedings or other special reason relating to the disposal of the goods, the holder of intellectual property right shall not be required to pay the relevant expenses incurred after the three months.

If the Customs auctions the infringing goods in accordance with item (2) of the second paragraph of Article 30 of these Rules, the auction expenses shall be handled in accordance with relevant regulations.

Article 32 Where the holder of intellectual property right fails to pay the relevant expenses in accordance with Article 31 of these Rules, the Customs shall be entitled to deduct the relevant expenses from the security provided by the holder of intellectual property right or demand that the guarantor perform its guarantee obligations.

Where the Customs confiscates infringing goods, the Customs shall refund the security to the holder of intellectual property right or release the guarantee liabilities after disposal of the goods has been completed and the relevant expenses have been settled.

Where the Customs assists in the enforcement of a ruling of an order to cease the infringing act or a property preservation from the People’s Court, or releases detained goods, and does not receive a notice from the People’s Court for assistance in enforcing the security provided by the holder of intellectual property right within 20 working days from the date on which the Customs assists in the enforcement of the relevant ruling of the People’s Court or releases the detained goods, it shall refund the security to the holder of intellectual property right ; if it receives a petition for assistance in enforcement, it shall provide such assistance.

Article 33 Where the holder of intellectual property right , in accordance with the second paragraph of Article 19 of these Rules, presents to the Customs a photocopy of the notice of accepting the case from the People’s Court’s after the Customs, in accordance with the first paragraph of Article 19, release the detained goods suspected infringing patent, the Customs shall, in accordance with the notice of the People’s Court for assistance in enforcing the relevant judgment or ruling, dispose of the security provided by the consignor or consignee; if the holder of intellectual property right fails to present a photocopy of the notice of accepting the case from the People’s Court, the Customs shall refund the security to the consignor or consignee.

Chapter VI Supplementary Provisions

Article 34 In these Rules, the term “security” means cash or a guarantee provided by a bank or other financial institution.

Article 35 The value of goods in these Rules shall be examined and determined by the Customs on the basis of the transaction value of the goods. If the transaction value cannot be determined, the value of goods shall be estimated by the Customs in accordance with law.

Article 36 Where the holder of intellectual property right or a consignor or consignee is to present a photocopy of a relevant document to the Customs pursuant hereto, he shall verify such photocopy against the original. Once the photocopy has been verified as being in order, the words “True Copy” shall be noted on the photocopy, which shall then be signed and/or sealed in confirmation.

Article 37 These Rules shall go into effect as of July 1, 2004. The Rules of the Customs of the People’s Republic of China Concerning Implementing Protection of Intellectual Property Rights (ref. Decree No. 54 of the General Administration of Customs) shall be repealed simultaneously.

Regulations of the People’s Republic of China on Customs Protection of Intellectual Property Rights

Regulations of the People’s Republic of China on Customs Protection of Intellectual Property Rights (Adopted at the 30th Executive Meeting of the State Council on November 26, 2003, promulgated by Decree No. 395 of the State Council of the People’s Republic of China on December 2, 2003, and effective as of March 1, 2004)

Chapter I General Provisions

Article 1 These Regulations are formulated in accordance with the Customs Law of the People’s Republic of China in order to implement Customs protection of intellectual property rights, promote foreign trade and international scientific, technological and cultural exchanges and safeguard public interests.

Article 2 Customs protection of intellectual property rights used in these Regulations refers to the protection provided by the Customs for the exclusive rights to use a trademark, copyrights and their related rights, and patent rights (hereinafter referred to as intellectual property rights) related to import or export goods and protected under the laws and administrative regulations of the People’s Republic of China.

Article 3 The State prohibits the importation and exportation of goods which infringe intellectual property rights.

The Customs provides protection for intellectual property rights in accordance with the provisions of relevant laws and these Regulations and exercises relevant powers under the Customs Law of the People’s Republic of China.

Article 4 The holders of intellectual property rights, where requesting the Customs to implement protection of intellectual property rights, shall submit an application to the Customs for taking protective measures.

Article 5 The consignees of import goods or the consignors of export goods and both of their agents shall bona fide declare the status of intellectual property rights related to their import or export goods and present relevant evidentiary documents to the Customs in accordance with the provisions of the State.

Article 6 When implementing protection of intellectual property rights, the Customs shall keep the confidentiality of commercial secrets of the interested parties.

Chapter II Recordation of Intellectual Property Rights

Article 7 The holder of an intelldctual property right may apply for recordation with the General Administration of Customs of his intellectual property right in accordance with the provisions of these Regulations; when applying for the recordation, he shall present a written application. The application shall include the following particulars:

(1) the business name or name, place of registration or nationality, etc. of the holder of the intellectual property right;

(2) the description, contents and any other relevant information relating to the intellectual property right;

(3) the status quo relating to licensing of the intellectual property right;

(4) the description, origin, Customs at the port of entry or exit, importer or exporter, main features and prices, etc. of the goods on which the holder of the intellectual property right lawfully exercises his right;

(5) the manufacturers, importers or exporters, Customs at the port of entry or exit, main features and prices, etc. of the goods that infringe the intellectual property right, as far as it is known.

The holder of the intellectual property right shall attach any evidentiary documents, provided that the contents of the application referred to in the preceding paragraph are whereby proved.

Article 8 The General Administration of Customs shall, within 30 working days from the date of receipt of all the application documents, make a decision on whether or not to grant the recordation and shall notify the applicant in writing; where the recordation is not granted, reasons thereof shall be explained.

Under any of the following circumstances, the General Administration of Customs shall not grant the recordation:

(1) where the application documents are incomplete or invalid;

(2) where the applicant is not the holder of the intellectual property right;

(3) where the intellectual property right is no longer protected under laws or administrative regulations.

Article 9 The General Administration of Customs may revoke a recordation where the Customs finds that the holder of an intellectual property right has not bona fide provided the relevant information or documents in the course of applying for the recordation of the intellectual property right.

Article 10 A recordation for Customs protection of an intellectual property right shall be valid from the date on which the General Administration of Customs grants the recordation and shall be valid for a term of 10 years.

The holder of the intellectual property right may apply to the General Administration of Customs for renewal of the recordation for Customs protection of the intellectual property right within six months prior to the expiration of its term of validity, provided that the intellectual property right is valid. Each renewal of a recordation shall be valid for a term of 10 years.

A recordation for Customs protection of an intellectual property right shall cease to be valid immediately where no application is presented for renewal of the recordation for Customs protection of the intellectual property right upon expiration of its term of validity, or where the intellectual property right is no longer protected under laws or administrative regulations.

Article 11 In case of any change in respect of an intellectual property right under recordation, the holder of the intellectual property right shall go through the procedures of modification or cancellation of recordation with the General Administration of Customs within 30 working days from the date of such change.

Chapter III Application for Detention of Suspected Infringing Goods and Relative Treatment

Article 12 Where discovering the suspected infringing goods pending importation or exportation, the holder of the intellectual property right may present an application with the Customs at the port of entry or exit for detaining such goods.

Article 13 Where requesting the Customs to detain the suspected infringing goods, the holder of the intellectual property right shall present a written application and relevant evidentiary documents, and provide as well any evidence that sufficiently proves the obvious existence of the fact of infringement.

An application shall mainly include the following particulars:

(1) the business name or name, place of registration or nationality, etc. of the holder of the intellectual property right;

(2) the description, contents and any other relevant information relating to the intellectual property right;

(3) the business name of the consignee and consignor of the suspected infringing goods;

(4) the descriptions, specifications, etc. of the suspected infringing goods;

(5) the possible ports, time, means of transport, etc. related to the importation or exportation of the suspected infringing goods.

The application shall include the number of Customs recordation in addition where the goods are suspected to infringe an intellectual property right under recordation.

Article 14 Where requesting the Customs to detain the suspected infringing goods, the holder of an intellectual property right shall provide to the Customs a security not exceeding or equivalent to the value of the goods to cover the possible compensation for the losses suffered by the consignee and consignor due to an improper application, and the payment of the expenses of warehousing, maintenance and disposal of the goods incurred after detained by the Customs. The corresponding amount shall be deducted from the security where the holder of the intellectual property right makes a direct payment of the expenses of warehousing and maintenance to the warehousing entity. Specific measures are formulated by the General Administration of Customs.

Article 15 Where the holder of an intellectual property right has applied for detention of the suspected infringing goods in conformity with the provisions of Article 13 of these Regulations and provided a security in conformity with the provisions of Article 14 of these Regulations, the Customs shall detain the suspected infringing goods, notify the holder of the intellectual property right in writing of the detention and serve the consignee or consignor with a Customs Detention Receipt.

Where the holder of an intellectual property right fails to comply with the provisions of Article 13 of these Regulations when applying for detaining the suspected infringing goods, or fails to comply with the provisions of Article 14 of these Regulations when providing a security, the Customs shall refuse the application and notify the holder of the intellectual property right in writing of such refusal.

Article 16 Where discovering any import or export goods suspected of infringing an intellectual property right under Customs recordation, the Customs shall immediately notify the holder of the intellectual property right in writing of such suspected infringement. In case the holder of the intellectual property right presents an application in conformity with the provisions of Article 13 of these Regulations and provide a security in conformity with the provisions of Article 14 of these Regulations within three working days from the date of service of the notification, the Customs shall detain the suspected infringing goods, notify the holder of the intellectual property right in writing of such detention and serve a Customs Detention Receipt on the consignee or consignor. The Customs shall not detain the goods in case the holder of the intellectual property right fails to present an application or to provide a security within the period.

Article 17 With consent of the Customs, the holder of the intellectual property right and consignor or consignee may have the relevant goods inspected.

Article 18 Where believing that his goods have not infringed the right of the holder of the intellectual property right, the consignee or consignor shall present a written explanation to the Customs as well as the relevant evidence.

Article 19 Where believing that his import or export goods have not infringed a patent, the consignee or consignor of the goods suspected of infringing the patent may request the Customs to release the goods after providing to the Customs a security equivalent to the value of such goods. The Customs shall refund the security where the holder of the intellectual property right fails to file a lawsuit at the people’s court within a reasonable period of time.

Article 20 Where the holder of an intellectual property right requests the Customs to detain the suspected infringing goods after the Customs discovers the import or export goods suspected of infringing the intellectual property right under Customs recordation and notifies the holder of the intellectual property right of such suspected infringement, the Customs shall carry out an investigation and make, within 30 working days from the date of detention, a determination as to whether the suspected infringing goods under detention have infringed the intellectual property right; in case the determination cannot be made, the Customs shall immediately notify the holder of the intellectual property right in writing.

Article 21 Where the Customs, when carrying out an investigation on the suspected infringing goods which have been detained, requests any assistance from the competent intellectual property authority, the relevant competent intellectual property authority shall provide such assistance.

Where the competent intellectual property authority, when handling a case of infringement involving import or export goods, requests any assistance from the Customs, the Customs shall provide such assistance.

Article 22 When the Customs carries out an investigation on the suspected infringing goods under detention and other details of the case, both the holder of the intellectual property right and the consignee or consignor shall provide cooperation.

Article 23 After presenting an application to the Customs for taking protective measures, the holder of the intellectual property right may, in accordance with the provisions of the Trademark Law of the People’s Republic of China, the Copyright Law of the People’s Republic of China, or the Patent Law of the People’s Republic of China, apply to the people’s court for the adoption of measures to order the cease of the infringing act or for preservation of property against the suspected infringing goods under detention before filing a lawsuit.

The Customs shall provide assistance upon the receipt of a notification from the people’s court for assistance in execution of an order to cease an infringing act or for preservation of property.

Article 24 The Customs shall release the detained suspected infringing goods under any of the following circumstances:

(1) where, after detaining the suspected infringing goods in accordance with the provisions of Article 15 of these Regulations, the Customs has not received any notification from the people’s court for assistance in execution of an order within 20 working days from the date of the detention;

(2) where, after detaining the suspected infringing goods in accordance with the provisions of Article 16 of these Regulations, the Customs has not received any notification from the people’s court for assistance in execution of an order and cannot determine through investigation that the suspected infringing goods under detention have infringed the intellectual property right within 50 working days from the date of the detention;

(3) where the consignee or consignor of the goods suspected of infringing a patent requests the Customs to release his goods after providing to the Customs a security equivalent to the value of such goods;

(4) where the Customs is convinced that the consignee or consignor possesses ample evidence proving that his goods have not infringed the right of the holder of the intellectual property right.

Article 25 Where the Customs detains the suspected infringing goods in accordance with the provisions of these Regulations, the holder of the intellectual property right shall make the payment of the relevant expenses for warehousing, maintenance and disposal of the goods. Where the holder of the intellectual property right fails to make such payment, the Customs may deduct it from the security he provided to the Customs or require the guarantor to perform the relevant duty of guarantee.

Where the suspected infringing goods are determined to have infringed an intellectual property right, the holder of the intellectual property right may claim the paid expenses for warehousing, maintenance and disposal as reasonable expenses incurred in halting the infringement.

Article 26 Where discovering any suspected criminal offence in carrying out the protection of intellectual property rights, the Customs shall hand the case over to the public security authorities for handling according to law.

Chapter IV Legal Liability

Article 27 The suspected infringing goods under detention shall be confiscated by the Customs where such goods are considered to have infringed an intellectual property right by the Customs after investigation.

After confiscating the goods infringing an intellectual property right, the Customs shall notify the holder of the intellectual property right in writing of the information related to the goods of infringement.

Where the confiscated goods infringing an intellectual property right can be used for public welfare projects, the Customs shall hand such goods over to the relevant public welfare bodies for use in public welfare projects; where the holder of the intellectual property right intends to purchase the goods, the Customs may have such goods assigned to the holder of the intellectual property right with compensation. Where either the confiscated goods infringing an intellectual property right can not be used for public welfare projects or the holder of the intellectual property right has no intention to purchase the goods, the Customs may have such goods auctioned according to law after removing their infringing features; where the infringing features can not be removed, the Customs shall destroy the goods.

Article 28 The articles carried on person, or posted, into or out of the territory shall be confiscated by the Customs if the quantity of such articles exceeds the reasonable limit for personal use and such articles have infringed any intellectual property right provided for by Article 2 of these Regulations.

Article 29 Where the Customs, after accepting an application for recordation of an intellectual property right or for adopting protective measures for an intellectual property right, fails to discover the infringing goods or to adopt timely protective measures, or adopts protective measures ineffectively, due to the failure on the part of the holder of the intellectual property right to provide exact information, the holder of the intellectual property right shall take full responsibility for the consequences.

Where the holder of an intellectual property right requests the Customs to detain the suspected infringing goods, the Customs can not determine that the detained suspected infringing goods have infringed his intellectual property right or the people’s court adjudicates that there is no infringement of his intellectual property right, the holder of the intellectual property right shall bear liability for compensation according to law.

Article 30 Where the importation or exportation of goods infringing an intellectual property right constitutes a crime, the offender shall be prosecuted for criminal liability according to law.

Article 31 Any Customs officer who neglects his duty, abuses powers, or practises graft in implementing the protection of intellectual property rights shall be prosecuted for criminal liability according to law if a crime is constituted; if the act has not constituted a crime, an administrative sanction shall be imposed according to law.

Chapter V Supplementary Provisions

Article 32 Where recording his intellectual property right with the General Administration of Customs, the holder of the intellectual property right shall pay a recordation fee in accordance with relevant provisions of the State.

Article 33 These Regulations shall become effective from March 1, 2004. The Regulations of the People’s Republic of China on Customs Protection of Intellectual Property Rights promulgated by the State Council on July 5, 1995 shall be repealed simultaneously.

China’s Invention Patent Applications up 26.3 pct

China’s State Intellectual Property Office (SIPO) said Wednesday that the country accepted 2,377,000 patent applications, including Patent, Utility Model and Design application, up 15.9% over the previous year; SIPO granted 1,313,000 patent applications, up 4.6% over the previous year. And 825,000 invention patent applications were accepted in 2013, up 26.3 percent year on year.

Shen Changyu, head of the SIPO, said the office concluded 355,000 patent applications and authorized 208,000 last year.

The country strengthened protecting of intellectual property and handled 16,227 related cases, up 79.8 percent year on year, of which 5,056 cases were patent disputes, Shen said.

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