以下文章来源于中伦文德律师事务所 ，作者中伦文德

With the booming development of the live broadcasting industry, copyright issues related to the use of music in Internet live broadcasting have drawn attention. How do people pay for the music rights in the live broadcast room? How much would it be? There has been a lack of specific industry standards and reference basis. On July 25, China audio-visual copyright management association released the temporary pay standard for streaming live audio recordings. Article 45 of the newly amended Copyright Law adds the "rewarding right" for music producers. The use of music recordings in live online streaming requires not only the payment of copyright fees to the obligee of the music works, but also the payment of copyright fees to the producers of the recordings.

The core of the discussion on the "rewarding right" is how to determine the standard of remuneration. The China Audio and Video Copyright Management Association, as the copyright collective management organization, announced remuneration standard for the use of music in the broadcast room. The obligor would be the live streamer and the streaming platform. The platform would be the first obligator, while the platform and streamer would share the cost. The types of streaming accounts are divided into using karaoke songs plus background music, streaming accounts using background music alone and e-commerce streaming accounts using music. The annual, quarterly and monthly charging standards are RMB 300, RMB 83 and RMB 29; RMB 100, RMB 26, RMB 10; RMB 10000, RMB 2777, RMB 980.

Guo Kun, deputy director-general of the China Audio and Video Copyright Management Association said that the fee standard should be considered based on several factors, such as the way we use music, our dependence on music, and the streamer's own income and affordability.

Under the guidance of the National Copyright Administration, the China Audio and Video Copyright Management Association, together with the China Audio and Video and Digital Publishing Association, has conducted three rounds of rate negotiations with the Supreme People's Court, legal professionals, experts and scholars, and representatives of live streaming platforms since last November. Currently, some platforms have taken the initiative to fulfill their copyright responsibilities and recognize the rate standards in the negotiation. Some platforms also disagree on some standards.

The use of music on the internet should be regulated

The main application scenario of "rewarding right" on the Internet is the living streaming. A large number of online celebrities have become popular by singing and playing songs in live streaming, and the live streaming platform has gathered a large number of users, but among them, the infringement incidents of using music works emerge endlessly. Reporters found that some streamers did not know, unauthorized use of music during streaming is an infringement act

A streamer said that they always download music from music apps and use bluetooth to play in the streaming room.

Guo Yanhu, a lawyer from Beijing Jinshi Law Firm said that the use of other people's music works as background music or direct singing of their music works by streamer would not fall into the category of reasonable use, but would be considered as infringement. Some streamer even set up a playback function, allowing the public to watch the streaming. This kind of behavior violates the copyright owner's right of information network transmission. Therefore, even if we pay as a member to download a certain music work, the use is also restricted, it can not be arbitrarily extended to the scope of commercial use, otherwise may be an infringement act.

For the broadcast room music copyright fees problem, the streamer also made their concerns.

Some streamers think the use of music while streaming shall not be charged. They supposed that the platform should bear the copyright fee, because the platform has been deducted the income they made from streaming.

Yao Huanqing, deputy secretary general of China Intellectual Property Law Society and professor of Renmin University of China stated that after the online platform signed this payment agreement with the collective management agency, the music database is open to the streamers, who can also obtain such music music at a low cost. If such a synergy can be achieved, it may actually have some benefits to the development of the whole network ecology.

We will improve the online audio and video copyright system Reasonably balance the rights and interests of all parties China's online live-streaming users reached 703 million in 2021, according to the Statistical Report on Internet Development in China. How to not only protect the legitimate rights and interests of music rights holders, but also promote the vigorous development of Internet content production. Although no final consensus has been reached on the trial payment standard, the exploration and negotiation in the industry field are still under way.

Music copyright right holders generally welcome the payment standard, and expect that the payment method will enter the implementation stage as soon as possible, so as to solve the problem of individual rights protection.

Jiang Tao, director of China Private Performance Alliance and head of a music production company: We protect our personal rights. Every studio should cover data collection and evidence collection, which is a long cycle, and at the same time requires a lot of labor costs and cash costs, so it is difficult to overcome the gap between rights protection. We appeal to this matter, and advance it to this substantive stage of execution.

Representatives of the Internet platform said that at present, the Internet platforms all hope that the industry will introduce standards to solve the copyright-related problems, and expect the collective management organizations to further consider more types of live broadcast rooms on the basis of the pan-entertainment live broadcast rooms and e-commerce live broadcast rooms, and further refine the corresponding payment standards.

According to the data released by the International Recording Industry Association, the revenue of the music recording industry in the Chinese mainland region will reach 7.1 billion yuan in 2021. According to the estimated payment standard for the trial of Internet live broadcast recording products, the music recording industry may increase the copyright revenue of 2.2 billion yuan. Worldwide, more than 140 countries recognize the exclusive right or remuneration of recording producers in broadcasting and performing. Through reciprocal agreements between collective management organizations, Chinese music will be protected worldwide. At the same time, China's music copyright awareness will be further enhanced.

Yao Huanqing, deputy secretary-general of China Intellectual Property Law Society and professor of Renmin University of China: We should work together to protect the rights and interests of our creators, protect the rights and interests of our consumers, and enable our platform to develop under a more sound system. The whole society actually needs to achieve a virtuous circle in this circle.

Improve the copyright system 

of online audio and video

Reasonable balance the rights 

and interests for all parties 

China's online live broadcast users reached 703 million in 2021, according to the Statistical Report on China's Internet Development. The key is to not only protect the legitimate rights and interests of music rights holders, but also promote the booming development of online production. Although there is no final consensus on the trial payment standards, exploration and consultation within the industry are still ongoing.

Music copyright holders generally welcome the payment standard and expect the payment method to enter the implementation stage as soon as possible to solve the problem of individual rights protection.

Jiang Tao, director of China Private Performance Alliance and head of a music production company held the view that when it comes to rights protection for individuals, the evidence collection procedure would be very lengthy. It is also very costly. Such payment shall be implemented thoroughly.

The representative of the streaming platform said that at present, the platform hopes that the industry will issue standards to solve copyright-related issues, and expects the organization to further consider more types of streaming rooms and further refine the corresponding payment standards on the basis of the two live broadcasting types of pan-entertainment broadcast rooms and e-commerce broadcast rooms.

According to the data released by the certain organisations, the revenue of music recording industry in China has reached RMB 7.1 billion in 2021. It is estimated that the music recording industry may increase the copyright revenue of RMB 2.2 billion according to the trial payment standard for live streaming recording products. In the worldwide, there are more than 140 countries around the world to recognize the recording producers in streaming, performance of the exclusive rights or paid rights. China music will be protected worldwide through reciprocal agreements between collective management organizations. Meanwhile, China's music copyright awareness will be further enhanced.

Yao Huanqing stated that we should work together to protect the rights and interests of our creators and consumers, so that our platform can continue to develop under a more sound system. In fact, the whole society needs to realize a virtuous circle in this.

ZLWD Commentary：

The trial implementation of the payment standard for live audio recordings will standardize the use of Internet music, reduce infringement, enhance China's music copyright awareness, protect the rights and interests of creators, and develop the live broadcasting industry under a more sound legal system. 

On July 28, 2022, China Intellectual Property Research Association approved and issued a series of group standards for intellectual property appraisal, such as Intellectual Property Appraisal Management Code (T/CIPS 001-2022), Patent Identification Code (T/CIPS 002-2022) and Trademark Appraisal Code (T/CIPS 003-2022), and were made public on the national group standard information platform.

A series of group standards on intellectual property appraisal are formulated to implement the work requirements on establishing and improving the system for inspection and appraisal of intellectual property infringement disputes in the Outline of Building Great Power in the Intellectual Property Industry (2021-2035) and the 14th Five-Year Plan for the Protection and Application of Intellectual Property Rights. It is also a significant progress in promoting the issuance of relevant national standards and group standards for intellectual property appraisal in accordance with the work arrangement under the Guiding Opinions on Strengthening the Appraisal of Intellectual Property issued by the State Intellectual Property Office. The issuance of a series of group standards on intellectual property appraisal can provide a standard basis for intellectual property appraisal institutions and appraisers to carry out appraisal activities, is of great significance to promoting the professional and standardized development of the intellectual property appraisal industry, and strengthening the role of intellectual property appraisal in technical support for intellectual property protection.

The Intellectual Property Appraisal Professional Committee of China Intellectual Property Research Association is a self-regulatory organization of the intellectual property appraisal industry. In March 2021, the Intellectual Property Appraisal Professional Committee launched the formulation of a series of group standards, and organized industry institutions to participate in the compilation of the series of group standards. The currently promulgated Regulations for the Administration of the Appraisal of Intellectual Property, the Regulations for the Appraisal of Patent and the Regulations for the Appraisal of Trade Marks include, among others, the basic requirements for the IP appraisal institutions, the appraisal procedures, as well as the specific implementation standards for the appraisal of patent and trade marks. The main purpose is to provide guidance for the routine appraisal activities of the IP appraisal institutions. In the next phase, the Specialized Committee of Intellectual Property Appraisal of the China Intellectual Property Society will continue to formulate the group standards for such fields as trade secrets and copyright so as to promote the professional and standardized development of the IP appraisal industry.

ZLWD Commentary：

The release of a series of group standards on intellectual property appraisal is a significant progress in the protection of intellectual property in our country, which is conducive to promote the specialization and standardization of the appraisal work in intellectual property fields and strengthen the protection of intellectual property in our country.

On 26th of July, the NIPA announced the 23rd patent award list.  Among them, one invention patent that has been granted the speedy authorization through the preliminary examination channel of the Intellectual Property Protection Center of Guangdong Province. The patent number ZL202010160162.7,  has been awarded the Gold Award of China Patent. The patent is named Nucleic Acid Detection Kit for Novel Coronavirus ORF1ab Gene and is owned by Guangzhou Da'an Genetics Co., Ltd.

At the initial stage of the outbreak of COVID-19 pandemic, Guangzhou Da'an Gene Co., Ltd. responded quickly, and developed a rapid detection kit for COVID-19 nucleic acid within a short time. At the end of February 2020, Guangzhou Da'an Gene Co., Ltd. raised an urgent need for speedy patent authorization and protection to Guangdong Intellectual Property Protection Center. The Intellectual Property Protection Center of Guangdong actively played its role for the preliminary examination of anti-epidemic patents and promptly establish connections with companies, so as to guide them to complete the record-filing of enterprises rapidly.

On March 5, 2020, the company submitted the pre-examination application for invention patent of novel coronavirus ORF1ab gene nucleic acid detection kit to Guangdong Province Intellectual Property Protection Center. The pre-examiner of the Guangdong Intellectual Property Protection Center immediately launched a comprehensive search on the day of acceptance, proposed targeted amendments, guided the enterprise to revise and improve the application documents, and guided the applicant to submit a formal application in accordance with the standardized format and requirements, so as to ensure that the patent application entered the fast examination channel of the State Intellectual Property Office in the shortest possible time, guaranteeing the most appropriate scope of protection while obtaining rights efficiently.

The invention patent entered the rapid review channel of the State Intellectual Property Office on March 10,2020, and was authorized on May 18,2020. The patent rapid pre-examination channel of Guangdong Intellectual Property Protection Center provides a strong intellectual property protection for the rapid listing of the patent product.

The patent for the invention entered the fast-track examination channel of the State Intellectual Property Office on March 10, 2020, and was granted on May 18, 2020. The Guangdong Intellectual Property Protection Center's patent fast pre-examination channel provided strong intellectual property protection for the fast market launch of the patented product.

Since the Guangdong Intellectual Property Protection Center launched the patent fast pre-examination service in May 2019, the cumulative number of enterprises and institutions on record in the new generation information technology and biological industries has reached 4,642, and over 13,000 patent pre-examination applications have been accepted, with a total of more than 8,200 patents having been pre-examined and qualified to enter the fast examination channel, and more than 5,700 patents having been granted fast authorization. In the next step, Guangdong Intellectual Property Protection Center will continue to play its professional advantages, actively respond to the urgent need of intellectual property protection of innovation subjects, effectively play the role of patent pre-examination fast track, and strive to provide more efficient, convenient and high-quality intellectual property services for innovation subjects in the province.

ZLWD Commentary：

During the pandemic, Guangdong Intellectual Property Protection Center assisted the enterprise and authorized the invention patent of the new coronavirus ORF1ab gene nucleic acid detection kit through the fast review channel, which safeguarded the enterprise's intellectual property rights and provided efficient and convenient intellectual property services for the enterprise, providing reference and setting an example for other regions' intellectual property services.

On July 28, the NIPA and Bank of China jointly held the launching ceremony of the special event "Zhihui Xing" in Beijing. The first batch of trademark pledge loans were signed simultaneously in 12 branch venues including Beijing, Liaoning, Shanghai, Jiangsu and Zhejiang. A number of trademark pledges have helped key industries to achieve the results of relief efforts.

The "Zhihuixing" special campaign was launched at the end of June this year. It is an innovative measure jointly launched by the State Intellectual Property Office and Bank of China to help the development of key industries such as catering, cultural tourism, etc., which have been greatly affected by the new crown pneumonia epidemic. The event plans to use about 3 months to organize more than 100 trademark pledge-related activities, and 10 key provinces will lead other places to participate together, and strive to benefit more than 1,000 small and micro enterprises and individual industrial and commercial households in key industries.

Lu Pengqi, deputy director of the State Intellectual Property Office, said at the launching ceremony that since the launch of the "Zhihui Xing" special campaign, it has received positive responses from local intellectual property departments and branches of Bank of China. It is hoped that all localities will seize the time window of the third quarter of this year, fully mobilize the enthusiasm of the grassroots, make full use of relevant financial products and preferential policies, carry out in-depth corporate survey visits, policy presentations, matchmaking and related convenient services, and strengthen data empowerment. , to expand the promotion of activities in various ways, to better assist the development of small and micro enterprises in key industries, and contribute to stabilizing the economic market.

Wang Wei, Vice President of Bank of China, said that with the strong support of the State Intellectual Property Office, Bank of China's intellectual property finance work has been carried out in an efficient and orderly manner. The special activity of "Zhihui Xing" aims to give full play to the potential kinetic energy of intellectual property finance, and provide "blood transfusion" for more small and micro enterprises, especially to help key industries such as catering, cultural tourism, etc., which have been seriously affected by the epidemic, get out of the predicament of the epidemic as soon as possible. It is hoped that this activity will effectively enhance the attention of the whole society to the value of trademarks, fully stimulate the enthusiasm of enterprises to create and use trademarks, and help more and more century-old shops and "golden signboards" continue to emerge.

At present, the special activity of "Knowledge and Benefit" is being promoted in an orderly manner. The participating provinces will continue to organize special activities and actively extend to cities, counties and grassroots branches.

ZLWD Commentary：

The State Intellectual Property Office and the Bank of China launched the "Zhihui Xing" activity to provide trademark pledge loans for some small and medium-sized enterprises, especially key industries such as catering, cultural tourism, etc. Stimulate the development of enterprises and stabilize the economy.

As of the end of June this year, the top three technical fields in terms of the number of valid invention patents in my country are computer technology, measurement and digital communication, accounting for 9.4%, 7.6% and 6.8% of the total; the top three in terms of growth rate are information technology Management methods, computer technology and medical technology increased by 78.5%, 32.3% and 27.1% respectively. At a recent press conference held by the State Council Information Office on the statistical data of intellectual property-related work in the first half of 2022, Hu Wenhui, deputy director of the State Intellectual Property Office, said, "The enhanced patent reserves in emerging technologies have supported the digital transformation of the economy and society, and also enhanced the health and well-being of the people."

At present, the development of emerging technologies represented by cloud computing, big data, artificial intelligence, etc. is in the ascendant, especially in our country. Digital technology-related industries are an important part of it. According to Ge Shu, Director of the Strategic Planning Department of the State Intellectual Property Office, by the end of 2021, the number of valid invention patents in my country's digital economy core industries will reach 977,000, 2.8 times that of 2016, accounting for 35.2% of the domestic valid invention patents.

As an important innovation subject, enterprises have shown a strong impetus in promoting the innovation and development of the digital economy. Ge Shu introduced, "From the perspective of the main body of innovation, the effective number of invention patents in the core industries of the digital economy of enterprises accounts for 73.1% of the domestic ones, and has become the main force driving the development of my country's digital economy.

China has shown good development in the field of core technologies of the digital economy. Taking artificial intelligence as an example, in 2021, China's AI invention patents authorized in the world's five largest intellectual property offices in China, the United States, Europe, Japan and South Korea reached 57,000, which is 5.1 times more than in 2016, with an average annual growth of 38.5%. Recently, the German Patent and Trademark Office released a report showing that in 2021, in the field of digital communication and other technologies related to digitalization, China's patent application disclosures in Germany increased significantly compared with the previous year, and its dominant position has been consolidated.

China's patent reserves in the field of emerging technologies are increasing, supporting the digital transformation and development of the economy and society to travel steadily and far. At the same time, China's intellectual property protection efforts are also evolving in line with the development of emerging technology fields. The "Outline for the Construction of a Strong Intellectual Property State (2021-2035)" released last year contains a special chapter, clearly proposing "to build a system of intellectual property rules in emerging fields and specific fields that is responsive and reasonably protected"; the "14th Five-Year Plan "The National Intellectual Property Protection and Utilization Plan mentions in the section of improving intellectual property protection policies that the intellectual property protection system for new fields and new industries such as big data, artificial intelligence and gene technology should be improved; and the 14th Five-Year Plan for Patent and Trademark Examination emphasizes that the patent examination guidelines should be improved continuously. The "14th Five-Year Plan for Patent and Trademark Review" emphasizes the need to improve the mechanism of regular revision of patent examination guidelines, to pay continuous attention to the development needs of new fields and new industries such as big data, artificial intelligence and gene technology, and to improve patent examination standards in a timely manner.

Ge Shu said, "In the next step, the State Intellectual Property Office will conscientiously implement the decisions and arrangements of the CPC Central Committee and the State Council, carry out in-depth research and practical exploration of intellectual property protection systems in new fields and new formats such as big data and artificial intelligence, and promote the implementation of data intellectual property rights. Protect the project, enhance the core kinetic energy of the innovation and development of the digital economy, and help create new advantages of digital economy in China."

ZLWD Commentary：

In recent years, big data, cloud computing and artificial intelligence technologies have been developing at a high speed, and China, as a representative country for research and development of such technologies, has been strengthening its patent reserves in this technology field, which shows China's dominant position and good development trend in this field, and will also help China's economic and social digital transformation development. 

Recently, five companies from the Netherlands, Singapore, China and Japan were awarded the first World Intellectual Property Organization (WIPO) Global Awards. Among them, there are 2 companies from China, namely Suzhou Ruipaining Technology Co., Ltd. (hereinafter referred to as Ruipaining) and Shanghai Xinlong Optoelectronics Technology Co., Ltd. (hereinafter referred to as Xinlong Optoelectronics). In terms of the number of winning companies, China took two seats, making it the country with the largest number of winners in the first WIPO Global Awards. Why did Chinese SMEs perform so well? What are the secrets of China's innovative enterprises to ride the wave of success? In this regard, our reporter interviewed Liu Hua, Director of WIPO China Office, judges of the WIPO Global Awards and representatives of relevant award-winning enterprises to explain the innovation stories behind the awards of Chinese SMEs.

First-ever award, selected globally for distinction

The inaugural WIPO Global Awards are aimed at SMEs, the backbone of the global economy, for their intellectual property achievements and for providing business solutions that contribute to economic, social and cultural progress.  Liu Hua said, "To further enhance the fairness, impartiality, rigor and comprehensiveness of the judging process for the inaugural WIPO Global Awards, WIPO invited seven experts from Peru, Nigeria, Jordan, China, the United States, Estonia and Singapore, representing a wide range of technology, business, culture, government and civil society organizations, to form a diverse and independent and regionally representative international jury."

As a senior international cooperation expert in China, Dong Songgen, Vice President of China Association for International Cooperation of Small and Medium Enterprises, was invited to participate in the judging of the WIPO Global Awards. Dong introduced that " from December 2021, the international jury received 272 applications from 62 countries, and after more than six months of rigorous selection, 20 companies were shortlisted, including six from China; two of the five finalists were from China, Chinese companies showed considerable strength, achieving a win-win situation in terms of the number of shortlisted companies and award winners. "　

"In recent years, China has attached great importance to the development of small and medium-sized enterprises. Relevant government departments have attached great importance to the role of intellectual property rights in the process of enterprise development. In addition to financial support and industrial guidance, they have also given support in the protection and application of intellectual property rights. Innovation is more dynamic and dynamic." Dong Songgen said that China's small and medium-sized enterprises are the most active subjects in economic development, and relevant departments have continuously introduced effective policies and measures to encourage them to use intellectual property tools in market competition, create brands, safeguard rights and interests, and play the role of a dynamic force of scientific and technological innovation in economic development.

Small and medium-sized enterprises perform well with the policy support "During the epidemic, the global tourism, catering and transportation sectors were affected, but at the same time the global innovative and creative activities bucked the trend, with industry sectors such as biotechnology, telemedicine and mobile payment flourishing, among which, Chinese SMEs performed spectacularly." Liu Hua said that in the era of mass entrepreneurship and innovation, the improvement of China's intellectual property system has provided rich soil and nutrients for SMEs to innovate and develop.

Founded in 2009, Ripaining has submitted patent applications and obtained more than 100 patents in the United States, Germany, Japan and other countries focusing on fully digital radiation detection and imaging technology, with its new digital sampling technology developed independently. "As a 'small but sophisticated' company, we have won a number of innovations such as the Chinese Patent Gold Medal." Chen Fang, general manager of Ripening, introduced that the company is committed to widely sharing invention and innovation with related industries through technology licensing, continuously exporting technologies and products with independent intellectual property rights, and striving to become a national brand with international competitiveness.　

Xinlong Optoelectronics was founded in 2010, specializing in the design, production and marketing of architectural lighting equipment, the company has obtained more than 100 patents in the field of all-LED technology, and was named as a 2021 "small giant" enterprise by the Ministry of Industry and Information Technology of China. "The company's LED landscape lights use self-developed ZOOMNEO algorithm electronic zoom technology, the use of high-precision spectral tester and color calibration algorithm, etc., to make up for many shortcomings in the industry." Wei Min, general manager of the international department of Coretronic, said the company has always practiced the concept of R&D, innovation, low-carbon and environmental protection, and the intellectual property protection allows the company to travel steadily and far.。

"Today, Chinese SMEs have become one of the most active economic elements of China's innovation economy, and also provide inexhaustible power for China to build an innovative country." Liu Hua said that China's active participation in the formulation of intellectual property rules under the framework of the World Intellectual Property Organization has responded to the international development needs of Chinese innovation subjects, and provided a high-quality business environment and policy guarantee to stimulate SMEs and other innovation subjects to continue their R&D and innovation and participate in international competition.

ZLWD Commentary：

The two Chinese SMEs won the first World Intellectual Property Organization (WIPO) Global Award, showing that my country has attached great importance to and supported the development of SMEs in recent years, especially in the protection of intellectual property rights. More technologies and products with independent intellectual property rights will further promote the prosperity of my country's economy.

On the afternoon of August 5, the launching ceremony of the Shanghai (Pudong) IPR service station for companies to be listed on the science and technology innovation board was held in Pudong New Area. Mr. Chen Qun, Vice Mayor of Shanghai, Mr. Hang Yingwei, the Deputy Secretary General of Municipal Government, Deputy Secretary of Pudong District Committee and Mayor of Pudong New Area, Mr. Rui Wenbiao, Director of Shanghai Intellectual Property Office, Mr. Yu Chen, Deputy Director of Pudong New Area, Mr. Lu Xuesheng, Deputy Mayor of Pudong New Area, and Mr. Dong Guoqun, Deputy General Manager of Shanghai Stock Exchange attended and jointly launched the Shanghai (Pudong) IPR Service Station for companies to be listed on the Science and Technology Innovation Board. Lei Xiaoyun, Director of the Department of Application and Promotion of the State Intellectual Property Office, delivered a speech via video.

Hang Yingwei said in his speech that in recent years, under the guidance and support of the state and the city, Pudong New Area has continuously deepened the reform of the pilot free trade zone, accelerated the construction of science and technology innovation centers, and carried out a series of innovations exploration around the creation, protection and application of intellectual property rights. At present, Pudong New Area is fully implementing the spirit of the 12th CPC Congress, further playing the role of "Ace" to promote the work of the leading district to deepen development. The establishment of an intellectual property service station for companies to be listed on the Science and Technology Innovation Board is an important task to implement the Central Government's "Leading District Opinions", which fully reflects the affirmation and encouragement of the relevant state and municipal departments to Pudong's intellectual property work. Pudong New Area will follow the goals of "standardization, specialization, and branding", build service stations with high standards, serve high-quality science and technology enterprises, and promote the development of "complete system, sound system, superior environment, leading level" of the international intellectual property center city to better demonstrate Pudong's role and make Pudong's contribution.

Lei Xiaoyun said in his speech that the construction of Shanghai (Pudong) Intellectual Property Service Station for enterprises to be listed on the Science and Technology Innovation Board is another pragmatic initiative to implement the central government's policy of high-level reform and opening up of Pudong New Area and intellectual property rights to serve economic development, as well as another important exploration of Pudong New Area to deepen the construction of intellectual property rights operation service system and support enterprise innovation and financing. A strong IPR is important for a strong enterprise, and IPR is important for an enterprise to achieve listing on the Science and Technology Innovation Board. The State Intellectual Property Office will, as always, support Shanghai and Pudong's exploration of intellectual property reform, and support the Shanghai (Pudong) Intellectual Property Service Station for enterprises to be listed on the Science and Technology Venture Board to play an active role in radiation and leadership. We hope that Pudong New Area will take the service station as the basis, under the guidance of Shanghai Intellectual Property Office and the support of Jiangsu Center of the IA, give full play to the advantage of being close to SSE, target the painful and difficult issues of intellectual property rights of enterprises to be listed on the STB, extend the service chain, improve the depth of service, create a service benchmark and a national model, and make positive contribution to building the core of intellectual property rights for high-quality development of science and technology-based enterprises.

Rui Wenbiao said in his speech that the establishment of the Shanghai (Pudong) IPR Service Station for enterprises to be listed on the Science and Technology Innovation Board is a concrete action to implement the major decision to build a leading Pudong district and an important element to implement the key tasks of the cooperation meeting between the municipal government and the State Intellectual Property Office. The "Regulations on Establishing a High Level Intellectual Property Protection System in Pudong New Area of Shanghai" provides a clear rule of law guarantee for the establishment of the service station. The Shanghai Intellectual Property Office, together with all relevant parties, will support the Pudong Service Station to further help enhance the "quality" of innovation, guide enterprises to effectively use intellectual property tools to improve the efficiency of innovation and accelerate the layout of innovation results; further help build up the "advantage" of innovation, and further support the establishment of the Pudong Service Station. We will further help to optimize the "ecology" of innovation, optimize the supply of IPR public services for the whole country at multiple levels, and escort all kinds of innovative enterprises to become bigger, better and stronger.

At the launching ceremony, Shanghai Intellectual Property Office, Shanghai Stock Exchange, Jiangsu Center for Collaboration in Examination of Patent Office of State Intellectual Property Office and Pudong New Area Intellectual Property Office jointly released the "Action Plan for Promoting the Construction of IPR Service Station for Enterprises to be Listed on the Board", which specifies eight important initiatives, including supporting innovation subjects to cultivate high-value patent portfolios, strengthening IPR dispute response and rights protection assistance, providing It will provide one-stop IPR services for enterprises to be listed on the board in a comprehensive, whole-chain and life-cycle manner.

As the first IPR service station for enterprises to be listed on the Science and Technology Venture Exchange Board, the Pudong Service Station will provide IPR inquiry and counseling, IPR assessment and evaluation services for enterprises to be listed nationwide.

In the next step, the Municipal Intellectual Property Office, together with all relevant parties, will take the implementation of the Action Plan as the starting point, further strengthen the synergy and resource gathering, integrate the service resources such as fast review and priority review of patents, regularly publish the "White Paper on the Intellectual Property Status of Enterprises to be Listed on the Science and Technology Innovation Board", support the Pudong Service Station to better perform its functions, fully serve the growth of science and technology enterprises and promote high-quality economic development.

ZLWD Commentary：

The construction of the Shanghai (Pudong) IPR service station for companies to be listed on the Science and Technology Innovation Board is conducive to promoting the economic development of China's IPR services, improving the efficiency of innovation, contributing to the development of IPR for relevant enterprises, and also making IPR-related services more convenient, diversified and comprehensive. 

Recently, the NIPA concluded two major cases of administrative rulings on patent infringement disputes, ruling on whether the respondent infringed the ZL201510299950.3 invention patent right owned by Boehringer Ingelheim Pharmaceuticals (hereinafter referred to as Boehringer Ingelheim). This is the first batch of patent infringement dispute cases with significant impact in the country handled by the State Intellectual Property Office at the request of the patentee or interested party.

On June 1, 2021, the amended Patent Law came into effect, giving the State Intellectual Property Office (SIPO) this central authority at the legislative level. The State Intellectual Property Office then conducted a study on the specific system of administrative adjudication of major patent infringement disputes, combined with the practical experience of local intellectual property offices in administrative adjudication, and formulated and released the Measures for Administrative Adjudication of Major Patent Infringement Disputes (hereinafter referred to as the "Adjudication Measures"). The actual implementation of the system is of great concern to all sectors of society.

As one of the important ways of patent administrative protection, administrative adjudication of patent infringement disputes has the characteristics of strong professionalism, high efficiency and low cost, and plays an important role in guaranteeing fast, accurate and real patent protection. The settlement of the first batch of major administrative adjudication cases of patent infringement disputes further enriched the relevant system practice and provided a vivid "sample" for the construction and improvement of the system system.

The person in charge of Boehringer Ingelheim said, "This administrative ruling on major patent infringement disputes was promoted in strict accordance with the relevant deadlines of the Ruling Measures, and demonstrated a high degree of professionalism and efficiency in both the filing and handling of the case, and in the appropriate and clear determination of each dispute. The ruling ordered the infringer to immediately stop all infringing acts and was enforceable nationwide, fully reflecting the strength of enforcement of administrative rulings on major patent infringement disputes, and providing a strong guarantee for safeguarding the legitimate rights and interests of right holders, stopping infringement in a timely manner, and shaping a fair market order."

The first cases have made positive demonstrations on procedural issues such as filing procedures, oral hearing procedures, suspension conditions, relationship with invalidation procedures, enforcement and disclosure, and judicial remedy channels for administrative rulings on major patent infringement disputes. It also has certain reference value in the substantive part of the ruling on the conditions of acceptance of major patent infringement dispute cases, whether the drug listing behavior is a promised sale and the exceptions to infringement under the patent law.

Under the protection environment that patent infringement disputes can be solved by administrative and judicial "dual-track", how to strengthen the connection between administrative adjudication procedures, other administrative procedures such as patent invalidation and judicial litigation procedures, and promote the unification of administrative enforcement and judicial adjudication standards is a topic that needs to be thoroughly explored in practice.

The reporter noted that there are two focal topics for discussion on the procedural aspects of administrative rulings on major patent infringement disputes: First, for patent infringement disputes that belong to the relationship between the parent case and the sub-case, can the sub-case be submitted to an administrative ruling when the parent case is submitted to a judicial decision? The second is whether the administrative ruling of such cases that constitute infringement will affect the outcome of patent invalidation and other judicial proceedings?

According to Professor Lai Xiaopeng, a professor of the School of Civil and Commercial Economics of China University of Political Science and Law, for the former, the batch of cases in the ruling made it clear that if there are differences between the parent case and the sub-case patent infringement dispute in terms of facts and reasons of the case, scope of patent protection and evidence involved in the case, the two do not belong to the same patent infringement dispute. Therefore, the fact that the court accepted the parent patent infringement dispute does not of course exclude the administrative organ from accepting the divided patent dispute, and vice versa. This definition rule is appropriate and reasonable, and guarantees the "multiple choice" of patent infringement dispute resolution.

For the latter, according to Lai Xiaopeng, case law does not apply in China, and the same is true in administrative rulings. He said that both administrative organs and judicial organs shall make separate rulings in accordance with the facts of the case in accordance with the provisions of the Patent Law, the Implementing Rules of the Patent Law and other laws and regulations. The result of administrative ruling can be judicially remedied through administrative litigation. In both rule constraints and institutional safeguards, administrative enforcement and judicial adjudication standards will be required to remain consistent.

In addition, as for the first batch of cases involving infringement disputes after the drugs have been licensed and actually marketed, the administrative ruling on major patent infringement disputes has formed an important supplement to the drug patent linkage system, which can resolve disputes that fail or cannot enter the drug patent linkage mechanism.

ZLWD Commentary：

The first batch of major patent infringement dispute administrative adjudication cases were based on the central authority given to the State Intellectual Property Office at the legislative level by the amended Patent Law, in strict compliance with the law, which fully reflected the enforcement of China's administrative adjudication of major patent infringement disputes, safeguarded the legitimate rights and interests of right holders, and provided a reference for subsequent case adjudication. At the same time, it improved the patent system in the relevant areas of the cases, which is of great significance.

Recently, the NIPA has identified the first batch of 38 national demonstration cities and 72 national pilot cities for the construction of strong intellectual property rights, with a pilot demonstration time frame from July 2022 to June 2025. These cities will play the role of the Bureau's provincial and municipal linkage, gather the advantageous resources in various aspects, and jointly build a regional highland for intellectual property work.

ZLWD Commentary：

At present, China has stepped into a new journey to build a powerful intellectual property country. In order to implement the deployment requirements of the Outline for Building a Powerful Country with Intellectual Property Rights (2021-2035) and the 14th Five-Year Plan for the Protection and Application of National Intellectual Property Rights on "Deepening the Construction of Strong Province and City with Intellectual Property Rights," the State Intellectual Property Office upgraded the national intellectual property pilot demonstration work as a whole to the pilot demonstration work of building a powerful country with intellectual property rights, and selected the first batch of pilot demonstration cities for building a strong city with intellectual property rights.

Recently, the Jiangsu Intellectual Property Office, together with the Copyright Bureau of Jiangsu and the Jiangsu Association of Industry and Commerce, jointly formulated the "The Measures for Administration of "Legal Copy" Demonstration Projects, which was officially issued. The measures point out that the provincial "genuine goods" demonstration projects include "legal copy" demonstration projects include "legal copy" community, "legal copy" demonstration industries and “legal copy" commitment enterprises, aimed at guiding the management of business districts, industry associations and corresponding enterprises to strengthen the protection and management of intellectual property rights. The program is organized on the principle of combining government guidance and self-discipline of market players, strict management and effective services, and regular selection and elimination of winners and losers.

ZLWD Commentary：

Measures stressed that Jiangsu ‘s "legal copy" demonstration projects should effectively fulfill four commitments. First, not to produce, sell counterfeit patents or infringement of other patents products. Second, not to produce, sell infringement of the exclusive right to use registered trademarks and other violations of the relevant provisions of the trademark law products. Third, not to produce, sell, disseminate infringing copyright products, works. Forth, not to take unfair competition means to participate in market competition.

This Newsletter is produced by Economic and Legal Development

Research Centre for Guangdong-Hong Kong-Macao Greater BayArea For Your Reference Only.

Editorial Board: Wei LIN，Simon TANG，Lisi ZHOU，Yu DENG，Yuming LI，Oyagi，Gong CHEN，Ning NING，Zhao LIU，Xiaoyun Su

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