Shanghai Municipality, Strengthening Protection of Intellectual Property Rights in Foreign Trade and Economic Cooperation Opinion

Issued: May 20 2003

Main contents: The Opinion provides that the entities engaging in foreign trade and economic cooperation activities should strengthen the protection and relevant administration of intellectual property (IP) rights (Article 1). Apart from training and education, these entities should sign a commercial secret confidentiality agreement with their foreign trading personnel (Article 2). They may protect themselves by signing a special contract for intellectual property rights or setting out terms in a contract for IP protection in their trading activities (Article 3). If their imported goods, services and technology, or their processed products, packaging or promotional items involve IP rights, they should require the exporting or entrusting party to prove its legal rights or its licensee rights to such IP and specify that it should bear the infringement liability. Article 8 sets out the matters to be noted in signing a patented technology licensing contract. Before signing a trademark licensing contract, a search should be conducted to ensure there is no conflict with the local laws or the third party's priority rights. Before exporting goods, services and technology, they should make sure there is no infringement and should obtain local IP protection (Article 10). The Opinion also sets out the ways of IP protection in setting up a joint venture, investing or undertaking projects overseas and participating in trade fairs. Article 17 requires joint ventures to include in their joint venture contracts terms on handling IP rights jointly owned upon expiry of the joint venture investment. Provisions are also given on dispute resolution, infringement and legal actions.