China strengthens copyright law
The Chinese government has approved a legal amendment to shore up copyright protection within the country, raising the level of statutory damages for infringement from 500,000 Yuan ($75,500) to 5 million Yuan ($755,000).
The amendment was adopted by the 23rd standing committee session of the 13th National People's Congress (NPC), China’s top legislature, yesterday, November 11, following a third review.
According to the new amendment, the onus will be on alleged infringers to produce evidence that they gained permission from the copyright holder in order to defend themselves during the process of litigation. It has also established “a compensation floor” of 500 yuan to be paid by those who are found to have violated copyright law.
China’s state-run press agency Xinhua reported that the amendment also grants authorities the power to carry out on-site inspections, request and copy relevant materials and seal up and detain relevant places and goods during investigations.
The report also stated: “It is widely believed that the revisions, with the introduction of punitive damages, will serve as a stronger deterrent against copyright infringement. Legal experts have said the key to copyright protection is to make sure the penalty is higher than the gains from violations.”
Li Zhanshu, chairman of the NPC Standing Committee, told the closing meeting after the vote that “legal weapons should be put into better use to enhance intellectual property rights protection and safeguard the entitlement of the creators, disseminators and users”.
The amendment also allows that infringed works should be destroyed upon the request of the copyright holder other than in exceptional cases, adding that the materials, tools, and facilities used for the reproductions of infringements should be destroyed without compensation.
The amendment has been designed to enhance the copyright protection measures first enacted in China in 1991 and amended in 2001 and 2010, and will come into force on June 1 2021.
It is the latest development in China’s bid to revise all its major IP laws in the space of approximately two years.
In April 2019, the country revised its trademark law so that “improper behaviour” involving trademark registration would be tackled and stronger penalties would be issued.
"Trademark registration that is not for the purpose of use for business operations will be rejected," the amendment read.
The government also amended its anti-unfair competition law, which protects trade secrets. The update increased the penalties for trade secret theft, and made the accessing of trade secrets via electronic means illegal.
Shen Changyu, head of China’s National Intellectual Property Administration, said:
“Invisible assets such as patents, trademarks, copyrights, trade secrets and software are playing an increasingly important role during the transformation, and the importance of IP protection was becoming increasingly prominent.”
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