China proposes new IP court
The Chinese government has said it plans to set up a new court dedicated solely to IP matters.
The proposal is part of a plan for policy reform outlined by China’s communist party and the country’s president Xi Jinpeng on November 15.
Under “The Decision on Major Issues Concerning Comprehensively Deepening Reforms”, which is a 60-point plan, proposals across a range of policies include a system to “encourage and strengthen” IP.
The report says there are plans to “strengthen IP application and protection and explore ways to set up an IP court”.
It adds that it seeks to “perfect a market-based system that encourages technological innovation”.
“This is very exciting news,” said Catherine Wolfe, president of the Institute of Trade Mark Attorneys and partner at Boult Wade Tennant in London.
“Even if an IPR court does not eventually materialise in that form, the fact that it is under discussion … is significant.
“It clearly shows that the government is taking major, public steps in the eyes of the world and within China, in relation to IP in China,” she said.
According to Thomas Pattloch, partner at Taylor Wessing LLP in Munich, the idea of a dedicated IP court was good “in principle” with similar courts in operation in Taiwan and Thailand.
“There is a model project in Chinese courts currently called the three in one system which hears administrative, criminal and civil IP complaints in the same chamber. The impression is that it has been well received,” Pattloch said.
“It would be a great improvement to streamline and enforce IP matters but I am sceptical as to whether it will happen. Without strong backing it is hard to see why they would create a separate branch like this. There remain problems convincing judges that IP should be treated differently [from other cases].”
China has recently outlined several changes to its trademark system, including rules aimed at clamping down on bad faith registrations, as part of wider efforts to improve its IP reputation.
According to the Xinhua news agency, President Jinpeng said the reform will “decide the destiny of modern China”.
“It is also the key to realising the dream of national rejuvenation," Jinpeng added, following the report’s release.
Wolfe added: “All businesses, within China and outside China, cannot now ignore that China is not a pirate nation for IP: there are proper IP laws in China, and the Chinese government intends that at every level there should be a proper rule of law.”
However, Pattloch added that there are "other questions remaining", such as defining the judges sitting on the court, its relationship to other high courts and how you would structure it.
"The idea is good and the EU and other governments have said it would be beneficial to China. All in all it’s a step in the right direction but we will have to see what happens,” Pattloch said.
A deadline of 2020 has been set by the government for implementing reforms.
