China to introduce punitive damages for IP infringements
China’s State Intellectual Property Office (SIPO) has announced that the country will soon introduce punitive damages for IP infringements in an effort to ensure that offenders pay a “big price”.
China’s official news agency Xinhua shared an interview with Shen Changyu, head of SIPO, yesterday, April 12.
According to the interview, Changyu said that a fourth revision of China’s Patent Law will soon be put in place, while urging foreign governments to protect Chinese companies’ IP in the global market.
Changyu reportedly said that “China is ready to work with other countries” in order to create “inclusive, balanced, and effective” rules to protect IP internationally.
He added that the country is seeking to encourage technological exchange in order to support high-quality growth in the industry.
Referring to the recent tariffs on China announced by the US, Changyu said that China opposes the adoption of the use of “trade protectionism in the guise of protecting IP rights”.
A range of businesses and technology associations have urged US President Donald Trump to rethink the trade tariffs.
SIPO’s call to foreign governments comes after China’s government last month confirmed that it would restructure SIPO and broaden its responsibilities to include the granting of geographical indicators and the supervision of related law enforcement.
The restructured agency will accelerate the establishment of an IP rights protection system for owners of all different types of IP, as well as enhancing the work of SIPO with overseas agencies, Changyu said in the interview yesterday.
Speaking to WIPR, Amanda Yang of Chinese law firm Lusheng said that 2018 has so far seen “significant changes” to the agencies which handle IP protection and enforcement in IP, and the restructuring of SIPO is the largest structural change to date.
Yang said the restructuring will involve an increase in the number of examiners and the streamlining of processes relating to the enforcement of IP.
She added that, from August 2018, China’s levy of patent registration fees will cease and the time period for the annual fee reduction of patents will be prolonged.
In 2017, China submitted 48,882 Patent Cooperation Treaty applications, knocking Japan from its second-place ranking.
According to Xinhua, it is also the third largest applicant for trademark registrations under the Madrid System, with its 2017 figure increasing 60% from the year before. It also reported that China has dealt with 192,000 patent and 173,000 trademark infringement disputes in the last five years.
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