The importance of IP strategy

October 03, 2013 | BY

clpstaff &clp articles &

Chen Jihong of Zhong Lun Law Firm analyses the biggest cases of the last 12 months and looks at the proposed amendments to the Trademark Law

China Law & Practice's Annual Review was released at the Awards Ceremony in Beijing this month. Part of the Annual Review comprises insights from leading lawyers. It also includes analysis of the most important news stories of the year. Please click here to view the Annual Review on issuu.

1. What were the key legislative and market developments affecting IP over the past year? How have these affected your work?

The State Council revised two sets of regulations relating to copyrights, namely, the Implementing Regulations for the PRC Copyright Law and the Regulations for Protection of the Right of Communication Through Information Networks. Both sets of regulations came into effect on March 1. The newly revised versions of the regulations have imposed more severe punishment on infringement of copyright, especially online infringement.

Recently, with the rapid development of China's information technology industry, there have been an increasing number of cases involving the protection of intellectual property on the internet. For example, the conflict between trademark and domain name holders, weak protection on works distributed online and unfair competition involving complex network technology. As there are technical facts involved in cyber infringement cases, an understanding of advanced and complex technology is crucial in solving IP disputes relating to the internet. It is important to use litigators who have both law degrees and an understanding of advanced technology, as an understanding of the technical issues enables litigators to provide smarter and more effective representation. It is also vital to explore the full range of strategies before embarking on litigation, giving particular consideration to alternative dispute resolution methods such as arbitration and mediation.

2. What are some of the biggest challenges foreign companies experience when it comes to IP enforcement?

IP law gives a company or an individual the right to own IP and protect it from infringement and misuse. Enforcement of IP is fundamental to IP protection; it gives reality and meaning to IP laws. But foreign companies in China face some serious challenges in IP enforcement.

Foreign companies are far more critical of IP enforcement than they are of legislation. Although the central government has taken various measures to strengthen enforcement, some factors including local interest protectionism, insufficiency of qualified IP officials and judges and imbalance of economic development still reduce the effectiveness of enforcement efforts. In addition, foreign companies need to realise one fact – the enforcement of IP law in different areas is very different. In commercial, central cities like Beijing and Shanghai, judges are very experienced and capable of hearing very complicated IP cases, and local interest protectionism is minimal, while on the contrary, in other areas the courts may lack experience in hearing IP cases. The venue for your IP case is also critical. Fortunately, the legal system of China allows for a limited amount of what is called venue shopping.

In terms of trademark cross-border protection, due to the principle of territoriality of a trademark, Chinese courts sometimes require a trademark to be well-known in China and deny protection even if a foreign company, the true owner of the trademark, can prove that the mark is internationally well-known in a considerable number of other countries.

Many technology transfer/licensing agreements are entered into by and between the foreign licensor and the Chinese licensee. In the context of dispute resolution, this may raise a difficulty for international enforcement. A court judgment obtained in the jurisdiction of the foreign licensor may be difficult to enforce in China, due to the complexity of procedure or absence of an international treaty that is mutually recognised. This problem can be overcome by initiating proceedings in China, but foreign companies are reluctant to do so, possibly because they are less familiar with the law, legal culture, courts and languages of China.

3. How important is IP strategy? To what extent do you help provide an IP strategy for your clients?

Intellectual property has become widely perceived as an important economic asset, the value of which can be enhanced by a proactive strategy. Intellectual property in the forms of patents, trademarks, copyrighted works, industrial designs, trade secrets, geographical indications, like other types of property, can be developed, owned, managed and commercialised to generate an economic return.

Both the government and companies are realising the importance of an IP strategy for enterprises. SIPO, the Standardisation Administration and AQSIQ jointly issued the first Guidelines on Enterprise Intellectual Property Management (企業知識產權管理規範) in form of national standards, which came into force on March 1 2013. These Guidelines will set up guidance for Chinese enterprises to design IP strategy and IP management rules. To help businesses do this, we have established a unique IP Strategy Evaluation System that helps companies to efficiently develop and IP strategy and IP management system.

4. What were some of the biggest and most legally challenging IP cases you were involved with this year?

We have successfully handled a large number of patent, trademark, copyright, trade secret and unfair competition cases – some of them setting Chinese legal precedents.

In the last year, we defended our client MSN in a series of online copyright cases, which are related to copyright infringement of movies on the internet and are controversial due to the new technologies involved and we represented Bayer in an internet defamation case. E-commerce is becoming the import business method for telecom carriers and we advised China Telecom on its e-commerce procedure, contract, and policies. This advice was designed to avoid any legal dispute and ensure the validity and effectiveness of the e-contract.

5. What is your outlook for IP legislation over the next 12 months? What legislation is likely to come out or be issued and how will this affect the market?

The revised Trademark Law is expected to come out in the near future. The revised version of the Trademark Law attempts to address the practical issues in relation to trademark application, trademark administration, protection and enforcement. The trademark law contains three key improvements. First, the procedure for trademark application is facilitated. Secondly, registration in bad faith or free riding is strictly prohibited. Thirdly, more severe punishment is adopted to crack down on trademark infringement. In my opinion, the new Trademark Law is conducive to protecting trademark rights and is more effective in stopping trademark counterfeiting.

6. How can companies effectively deal with trademark squatting?

When combating trademark squatting, confusion is a consideration of enforcement officials. The core of China's Trademark Laws aims to protect against the likelihood of confusion among the relevant sector of the public as to the origin of a product, or as to a certain relationship (for example, an affiliation, connection, association, sponsorship, approval or licence) between different businesses or entities. Establishing confusion is the first step for the company. And, if one company can prove it enjoys prior civil rights including copyright or trade name over the trademark, it shall have an advantage when it attempts to recapture the trademark.

7. If you could offer one piece of practical advice to foreign clients about IP in China – what would it be?

The Internet Corporation for Assigned Names and Numbers (ICANN), launched its New gTLD (generic top level domain) programme on January 12 2012 to enable organisations and individuals to apply to operate their own top level domain name, i.e. the part of an internet address that comes after the dot – for example .com. The response has been enormous, with 1,194 applicants from 60 countries and regions having filed 1,930 applications in various string languages, including English and Chinese. ICANN is expected to issue approval of the first batch of the new gTLDs in August 2013, and fierce competition is likely to arise for the right to register second-level domain names. In anticipation of problems related to cybersquatting and conflicts between or among parties interested in registering the same name as a second-level domain, ICANN has developed a set of rights protection mechanisms (RPMs) for the new gTLDs, including the Trademark Clearinghouse, or TMCH, which enables trademark owners to register their marks and thus qualify for two related RPMs: a so-called “sunrise” registration period and issuance of Trademark Claims notices. During the sunrise period, which is at least the 30-day period before the relevant gTLD is opened to the public, a trademark owner may register a domain name that matches its mark. In addition, if a third party applies to register a domain name that matches the registered mark at least during the 90-day period after the relevant gTLD is opened to the public, ICANN will forward Trademark Claims notices to trademark owners that have registered their marks with the TMCH. Companies should consider these protection mechanisms during this era of information technology.


Author biography

Chen Jihong

Chen Jihong is a partner of Zhong Lun Law Firm. His practice includes IP enforcement and dispute resolution, IP licensing, IP portfolio management, IP due diligence, patent/trademark prosecution, IT/High-tech related legal matters, domain name dispute resolution and TMT matters.

Chen Jihong is now the co-Chair and Secretary General of IT/High-Tech Committee of the All China Lawyers Association, Chairman of the Telecoms Law Committee under Beijing Lawyers Association and IPR Expert to China's National IPR Strategy Office.

Chen has published dozens of professional IP articles and books in Chinese and international journals and newspapers. He is an active IP practitioner and has regularly given lectures in international conferences.

In 2005, he was nominated one of the 10 Best IP/IT Practitioners in China by China Daily newspaper and China e-Commerce Association. In 2011, he was selected as one of the 50 Best Chinese Lawyers by Corporate INTL Magazine. In 2012, Chen was elected one of the National IP Specialists by SIPO, which included only six lawyers nationwide. In 2013, Chen was elected one of the Ten Best IP Lawyers by Beijing Lawyers Association.



|

知识产权战略的重要性

中伦律师事务所的陈际红律师分析过去12个月的重大案件,并探讨《商标法》的修订草案


1. 过去1年,知识产权方面有什么主要的法规出台或最新动态?对您的工作有什么影响?

国务院修订了两部有关著作权的法规:即3月1日实施的《著作权法实施条例》和《信息网络传播权保护条例》。修订后的法规对侵犯著作权的行为,特别是网络侵权,施以更严厉的处罚。

近期,随着中国信息技术的迅速发展,涉及网络知识产权保护的案件有上升趋势,例如,商标权人及域名持有人之间的争议,信息网络传播的作品保护力度不足,以及涉及高新技术和网络技术的不正当竞争等。由于网络侵权案件涉及技术知识,了解先进、复杂的技术知识对解决有关互联网的知识产权争议相当关键。委任兼具法律学位及先进技术知识背景的律师来代理诉讼是至关重要的,因为只有理解技术性的问题,才能更有智慧和更有效地为客户代理诉讼。在提起诉讼前,亦需考虑所有的可行的争议解决方案,尤其是仲裁及调解等替代性解决争议方法。

2.外国公司在知识产权执法方面遇到哪些最大的挑战?

知识产权法赋予一家公司或个人拥有专有的权利,保护其免受侵权或被滥用。知识产权执法是知识产权保护的基石,赋予知识产权法以实际意义,但在中国的外资公司在知识产权执法方面遇到一些重大的挑战。

相比知识产权立法,外国公司对知识产权执法的批评远为严厉。尽管中央政府已采取一系列措施加强执法力度,但地区保护主义、行政官员及法官缺乏知识产权的相关经验、经济发展程度不均衡等因素还是降低了执法的效力。另外,外资公司需要了解的是知识产权在不同地区的执法存在很大差异。在北京、上海等商业化程度高的中心城市,法官具备丰富的经验,有审理非常复杂的知识产权案件的能力,而且地区保护主义也最少。相反,其他地区的法院可能缺乏审理知识产权案件的经验。因此,选择合适的管辖地法院也很重要,幸好中国的司法制度允许在一定程度上选择案件的管辖地法院。

至于跨境商标保护,基于商标权地域性原则,中国法院会要求系争商标在中国法域内驰名,即使在外国公司(即商标的真正持有人)能证明系争商标在大多数其他国家为国际驰名的情况下,仍拒绝为商标给予保护。

很多技术转移/许可协议由外国许可人与中国被许可人签订,在争议解决时,可能引起国内外跨境执行判决的困难。由于复杂的程序或缺乏相互承认的国际条约,在外国许可人的司法管辖区取得的法院判决要在中国执行可能面临一定困难。要解决这问题,可向中国法院申请执行判决,但外国公司或因对中国的法律、法律文化、法院及语言不熟悉,通常不愿意提起诉讼。

3. 知识产权战略有何重要性?您如何协助客户拟定知识产权战略?

知识产权已被广泛视为一项重要经济资产,并且其价值可以通过前瞻性的策略加以提升。与其他类型的产权相似,专利权、商标、著作权作品、外观设计、商业秘密、地理标志等知识产权可以被创设、持有、管理、商业化,以取得经济利益。

政府及企业均认识到知识产权战略对企业的重要性。国家知识产权局、国家标准化管理委员会及国家质检总局,共同印发首项《企业知识产权管理规范》,并成为国家标准,于2013年3月1日实施。《规范》为中国企业提供有关策划知识产权战略及知识产权管理规则的指引。为协助公司处理这方面的事宜,我们设立了一个独特的知识产权战略评估体系,协助企业有效地制定知识产权战略及知识产权管理制度。

4. 可否介绍一下您今年曾处理过的最重大及最具挑战性的知识产权案件?

我们成功处理了大量专利权、著作权、商业秘密及不正当竞争案件,其中一些案件甚至成为中国具有突破性的判例。

去年,我们代表客户MSN在一系列网络著作权案件中担任代理人,案件是关于互联网上的电影作品的著作权侵权,由于涉及新技术,引起了广泛的关注和讨论。我们亦于一起互联网商业诋毁案件中代表拜耳公司。电子商务逐渐成为电信运营商的重要业务模式,我们为中国电信,就有关其电子商务程序、合同及政策提供咨询,以避免法律纠纷,以及确保电子合同的有效性及效力。

5. 您认为知识产权法规在未来12个月将有什么发展?您预计有什么法规出台,对市场有何影响?

修订后的商标法预计将于近期出台。修订版本针对商标申请、管理、保护及执法等实务问题进行了三个方面的完善:第一、加快商标申请程序;第二,严格禁止恶意注册或“搭便车”;第三,加重处罚力度以打击商标侵权。我认为新商标法有利保护商标权利,并更有效阻止商标仿冒。

6. 企业如何能有效处理商标抢注问题?

处理商标抢注问题时,法官或审查员会考虑商标所引起的混淆。中国商标法的重点在于避免相关公众产生混淆的可能性,包括对产品来源的混淆或者特定关系(例如,关联公司、合作、联合、赞助、批准或许可关系)的混淆。公司首先需证明被抢注的商标引起了混淆。另外,如果公司能证明其对系争商标享有著作权或商号权等在先民事权利的,将有利于其夺回商标。

7. 如果您要为外国客户提供一项有关知识产权的具体建议,那会是怎样的建议?

互联网名称与数字地址分配机构(ICANN)于2012年1月12日推出通用顶级域名(gTLD)计划,机构与个人可申请其顶级域名,即互联网地址圆点之后的部分,例如.com。计划推出后反响热烈,共有来自60个国家地区的1,194个申请人以中英文等各种字符串语言提交了1,930份申请书。预计ICANN将于2013年8月批准第一批新通用顶级域名。相信二级域名注册权的竞争将会相当激烈。为应对域名抢注及有关当事人拟申请注册同一域名可能引起的争议,ICANN为新通用顶级域名制定了一系列权益保护机制,包括商标信息交换机构(TMCH),有利于商标持有人注册域名,并享有两项相关权益保护机制的保护:“日出”注册期及商标权利声明。“日出”注册期间,即通用顶级域名向公众开放前至少30日,商标持有人可申请注册与其商标相符的域名。另外,第三方于通用顶级域名向公众开放后90日内申请注册与注册商标相符的域名的,ICANN会将商标权利声明转发给已向商标信息交换机构申请注册域名的商标持有人。在当今的信息科技时代,公司应考虑这些保护机制。

作者简历

陈际红

陈际红为中伦律师事务所的合伙人,业务范围包括知识产权执行及争议解决、知识产权许可、知识产权组合管理、知识产权尽职调查、专利及商标注册、信息技术及高新技术相关法律事宜、域名争议解决及电信、媒体与科技事宜。

陈际红现时为全国律师协会信息网络与高新技术委员会副主任及秘书长、北京市律师协会电信法委员会主任及国家知识产权战略办公室知识产权战略专家。

陈曾为中外报章杂志撰写多篇专业知识产权文章及书籍,为活跃于知识产权行业的法律人员,并定期于国际会议中演讲。

2005年,他被《中国日报》及中国电子商务协会评为“2005信息网络法务人年度十佳”。2011年,他获《Corporate INTL》杂志选为50名最佳中国律师之一。2012年,他被国家知识产权局选为六名国家知识产权专家其中之一。2013年,陈被北京市律师协会选为十佳知识产权律师。

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]