State Administration for Market Regulation, Decision on Amending the «PRC Electronic Commerce Law» (Draft for Comments)

国家市场监督管理总局关于修改〈中华人民共和国电子商务法〉的决定 (征求意见稿)

September 10, 2021 | BY

Susan Mok

Draft E-Commerce Law accords greater protection to IP rights holders

Issued: August 31, 2021

Main contents: The Draft proposes to amend Article 43 to read: "If an e-commerce platform operator does not receive notice of the intellectual property rights holder having lodged a complaint or instituted a legal action within 20 days after the forwarded statement reaching the rights holder, it shall, in a timely manner, terminate the measures that it took.", extending the waiting period from 15 days to 20 days.

A paragraph is also added to Article 43: "Where a platform merchant provides security to be used to compensate for potential losses arising from intellectual property infringement, the e-commerce platform operator may temporarily suspend the measures it has taken. If a platform merchant submits a fraudulent declaration to the effect that it has not committed infringement, thereby increasing the loss incurred by the rights holder, it shall be liable for double the liability for compensation."

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