China's New Interpretation of the Anti-Unfair Competition Law

Summary 

---

|

• Article 2 of the Interpretation lowers the threshold for rights protection because it serves as an explicit legal basis for business operators but it can also increase the possibility of infringement.
• Article 3 of the Interpretation defines "business ethics" as a code of conduct commonly accepted and recognized in a specific business field and provides some factors to be taken into consideration when determining whether there is a violation of business ethics.
• Articles 4-15 of the Interpretation provide further explanations and guidance on "acts of confusion", including the meaning of "special connection with another party", the application of various types of "acts of confusion", and the legal liability of persons involved in "acts of confusion".
• Articles 21 and 22 of the Interpretation clarify two online unfair competition acts: "forcing a URL redirection" and "interfering with users" while still leaving room for flexibility.

On March 17, 2022, the Supreme People's Court published the Interpretation on Several Issues Concerning the Application of the <PRC Anti-Unfair Competition Law> (the Interpretation) (关于适用《中华人民共和国反不正当竞争法》若干问题的解释), which became effective on March 20. The Interpretation responds to a variety of contentious issues in judicial practice under the PRC Anti-Unfair Competition Law (the AUCL) (中华人民共和国反不正当竞争法).

A "business operator" and "other business operators" under the definition have a competitive relationship, which is a prerequisite in unfair competition cases especially when unfair competition acts involve data issues