State Intellectual Property Office (SIPO) and State Administration for Market Supervision (SAMS) issue Measures for Calculating Illegal Business Amount in Trademark Infringement Cases

In order to thoroughly implement the decisions and arrangements of the Party Central Committee and the State Council on comprehensively strengthening intellectual property protection, unify law enforcement standards, and standardize the calculation of illegal operating amounts, the "Measures for Calculating the Illegal Operating Amount in Trademark Infringement Cases" have been formulated according to the "Trademark Law of the People's Republic of China", the "Implementing Regulations of the Trademark Law of the People's Republic of China", and other regulations.

The "Measures for Calculating the Illegal Operating Amount in Trademark Infringement Cases" apply to trademark administrative law enforcement departments when dealing with trademark infringement cases where the party's conduct has been deemed to constitute trademark infringement. According to Article 5 of these measures, the value of infringing goods that have been sold is calculated based on the actual sales price. 

The value of infringing goods that have not been sold is calculated based on the average actual sales price of the infringing goods that have been identified; if the average actual sales price cannot be ascertained, it is calculated based on the listed price of the infringing goods. If the actual sales price cannot be ascertained or the infringing goods are not priced, it is calculated based on the market median price of the infringed goods during the infringement period. For goods that have been manufactured but have not yet been affixed with infringing registered trademark logos, if there is conclusive and sufficient evidence to prove that the goods will infringe upon the exclusive right to use a registered trademark of others, their value shall be included in the illegal operating amount.

ZLWD Commentary：

The detailed provisions on the calculation of the illegal operating amount have resolved disputes and prominent issues that existed in the process of law enforcement in the past. This enhances the standardization and operability of law enforcement, enabling law enforcement departments to have a basis and rules to follow when dealing with trademark infringement cases, thereby improving law enforcement efficiency and credibility.

Beijing Intellectual Property Court Holds International Open Day and Releases Achievements in Judicial Protection of Intellectual Property

The Beijing Intellectual Property Court held an International Open Day event, focusing on the achievements of intellectual property judicial protection, and released the "Reference for Handling Documents of Qualification of Foreign-related Case Subjects" (2024 Edition) and the "Analysis of Patent Granting and Confirmation Trials (2014-2024)". This event showcased the development achievements of the Beijing Intellectual Property Court over the past decade, including litigation facilitation services, the enhancement of specialized trial capabilities, and deep involvement in global intellectual property governance.

The "Reference for Handling Documents of Qualification of Foreign-related Case Subjects" (2024 Edition), with the Civil Procedure Law and its judicial interpretations, as well as the relevant requirements of the Supreme People's Court on the implementation of the Convention on the Elimination of the Requirement of Legalization for Foreign Public Documents as the main thread, systematically elaborates the basic principles and methods for proving the qualification of foreign-related litigation subjects. It is organized by country, covering eighteen countries and regions in five continents: Asia, Europe, the Americas, Oceania, and Africa.

It provides a detailed list of documents required for proving subject qualification and the procedures for notarization and certification, featuring convenience, practicality, and internationality. It offers clear guidance for foreign-related parties to handle notarization and certification materials in a standardized and efficient manner. As the exclusive jurisdiction court for administrative cases of patent granting and confirmation nationwide, as of September 2024, the Beijing Intellectual Property Court has accepted a total of 14,345 administrative cases of patent granting and confirmation, with an average annual growth rate of 5.65%. 

The "Analysis" released this time selects 58 typical cases of patent granting and confirmation, such as the "Case of the Coil Iron Core Structure of an Electromagnetic Needle Selector" and the "Case of the Method for Preparing SGLT2 Inhibitors", and extracts 20 case analyses with guiding value. It provides specific explanations from the perspectives of determining distinctive technical features, overall inventive concept, interpretation of claims, functional defining characteristics, and amendments beyond scope, embodying principles such as fully respecting and scientifically evaluating the technical contributions of inventions and creations, accurately interpreting and determining the content of patent applications and the scope of patent protection, and effectively guiding applicants to improve the quality of patent application documents, laying a solid foundation for the protection and utilization of patent rights.

ZLWD Commentary：

The International Open Day event held by the Beijing Intellectual Property Court and the two documents it released are of great significance. They not only showcase judicial protection achievements and international influence but also facilitate foreign-related parties, optimize the business environment, improve trial quality, and strengthen intellectual property protection efforts.

The State Administration for Market Regulation announced the first batch of typical cases of special anti-monopoly law enforcement actions in the field of peoples livelihood in 2024, involving the Avanci patent pool monopoly risk reminder and urging case

The State Administration for Market Regulation (“SAMR”) has carried out special law enforcement actions on outstanding issues that are strongly reflected in the field of peoples livelihood, and adopted reminders, urges, investigations and corrections to deal with key issues such as supplier monopoly, patent pool monopoly, monopoly agreements, abuse of market dominance, and abuse of administrative power to exclude and restrict competition. Among them, the "Reminder and Urge" part covers the case of "the SAMR reminds and urges the monopoly risk of the Avanci patent pool in accordance with the law". The details are as follows:

Since 2022, the SAMR has received many reports about the Avanci patent pool, reflecting that the Avanci patent pool abuses its dominant position in the wireless communication standard essential patent vehicle package licensing service market, damages fair competition in the market, and affects the innovation and development of the automotive industry. After verification in accordance with the law, understanding that the Avanci patent pool and related patentees understand the operating rules and licensing status of the patent pool, listening to the opinions and suggestions of relevant enterprises, and conducting in-depth analysis and demonstration, the SAMR determined that there was a monopoly risk in the operation of the Avanci patent pool.

On June 27, 2024, the SAMR, in accordance with the Anti-Monopoly Law of the Peoples Republic of China and the Notice of the SAMR of the Office of the Anti-Monopoly and Anti-Unfair Competition Commission of the State Council on Establishing the Anti-Monopoly "Three Letters and One Letter" System, met with Avanci The relevant person in charge delivered the "Reminder and Urging Letter" face to face to remind the Avanci patent pool of the monopoly risks existing in the process of licensing essential patents for automotive wireless communication standards. It is urged to conscientiously carry out risk investigation, take effective measures, do a good job in preventing and rectifying relevant problems, and strengthen anti-monopoly compliance construction in accordance with the Anti-Monopoly Law of the Peoples Republic of China and relevant laws and regulations.

The so-called "three books and one letter", namely, the Letter of Reminder and Urging, the Notice of Interview, the Notice of Investigation, and the Decision of Administrative Punishment (Business Entity)/Administrative Proposal (Administrative Organ), are aimed at the specific suspected monopoly situation. The severity of the situation increases in turn. This reminder and urging is a pre-event and in-process supervision measure taken by anti-monopoly law enforcement agencies in accordance with the law, which is conducive to guiding and standardizing the patent pools legal and compliant operation, preventing monopoly risks, maintaining fair competition market order, and promoting the healthy development of industry standards. The case also contributes to playing an active and leading role in fair competition governance in the field of global standard essential patents.

ZLWD Commentary：

The SAMR’s anti-monopoly enforcement action against the Avanci patent pool reflects its emphasis on and active response to monopoly issues in the field of peoples livelihood. Through the method of "reminding and urging", it not only effectively reminds enterprises of possible monopoly risks, but also promotes their compliance operations and maintains a fair competition environment in the market. This measure marks the forward-looking and flexibility of anti-monopoly law enforcement, which can effectively prevent potential market improper behaviors and promote industrial innovation and healthy development. At the same time, this case provides a useful reference for compliance governance in the global patent field, emphasizing the importance of the enforcement of anti-monopoly regulations to market order.

The Yixing Court in Wuxi, Jiangsu Province used the "Copyright AI Intelligent Trial" system for the first time to determine the copyright infringement dispute of purple clay teapot design

The plaintiff is a purple clay practitioner who sells self-designed purple clay teapot works online and offline. In 2022, the plaintiff found that the defendant sold 21 highly similar products on the online platform, with sales reaching 6.2 million yuan, so he will be told to the Yixing Court in March 2024, requiring the defendants store to immediately stop selling related products and pay compensation. 2 million yuan.

Considering the problem of "difficulty in proving evidence" in Zisha intellectual property litigation, after the case was accepted, the presiding judge actively applied the "copyright AI intelligent trial" system promoted by the Supreme Peoples Court to conduct "single-picture traceability", "innovation comparison" and "similarity comparison" of relevant Zisha works through "searching pictures by pictures" and massive data pools to form a plagiarism check report. According to the report, 21 teapotos were published for the first time in the plaintiffs online stores, and some works showed design inspiration, creative sources and production videos when published. This effectively assisted the presiding judge in determining the original ownership of the plaintiffs purple sand works.

Finally, under the auspices of the judge, the two parties reached a mediation agreement, and the defendant immediately stopped selling products that infringed the plaintiffs copyright, compensated the plaintiff for economic losses and reasonable rights protection expenses totaling 800,000 yuan, and apologized to the plaintiff.

"Copyright AI Intelligent Trial" was officially launched on April 22, 2021. It was developed by the Peoples Court of Keqiao District, Shaoxing City, Zhejiang Province. It is a system that uses digital technology to empower judicial trials. In April this year, "Copyright AI Intelligent Trial" was officially launched in Shanghai, Jiangsu Province, Zhejiang Province, Anhui Province, Shandong Province, and Guangdong Province, which is an effective attempt of digital technology to assist intellectual property trials.

ZLWD Commentary：

For the first time, Yixing Court applied the "Copyright AI Intelligent Trial" system to deal with copyright infringement cases of purple clay teapot design, demonstrating the innovative application of digital technology in intellectual property protection. The system effectively solves the problem of "difficulty in giving evidence" in the purple sand industry and improves the trial efficiency through functions such as "searching pictures by pictures". In the case, AI technology helped the judge confirm the original ownership of the plaintiff, and finally led to mediation between the two parties. This case not only provides strong support for the intellectual property protection of teapot design, but also opens up new ideas for copyright trial in other fields, and promotes the deep integration of justice and science and technology.

Shandong Issues Implementation Measures for the Implementation Plan of the Intellectual Property Protection System Construction Project

In order to implement the Implementation Plan of Intellectual Property Protection System Construction Project jointly issued by nine departments including the State Intellectual Property Office, strengthen the protection of the entire chain of intellectual property rights, build a large-scale protection work pattern, and help the provinces green, low-carbon and high-quality development, recently, Shandong Provincial Market Supervision Bureau (Intellectual Property Office) and eight departments including the Propaganda Department of the Provincial Party Committee jointly issued the Implementation Measures for Strengthening the Implementation Plan of the Construction Project of Intellectual Property Protection System.

Combining with the actual situation of our province, the "Implementation Measures" puts forward 13 items of 66 specific work measures from the aspects of improving the laws and policies system of intellectual property protection, strengthening the judicial protection system of law enforcement, deepening the social co-governance system, and improving the management system, and defines the division of responsibilities to ensure that all tasks are implemented.

ZLWD Commentary：

The implementation plan for the construction of the intellectual property protection system issued by the Shandong Provincial Market Supervision Bureau jointly with multiple departments aims to strengthen the protection of the entire chain of intellectual property rights and promote green, low-carbon and high-quality development. This plan combines local conditions, from improving laws and policies, strengthening law enforcement protection, deepening social co-governance, clarifying the division of responsibilities, and ensuring that all tasks are implemented. This marks that Shandong has taken an important step in building a big pattern of intellectual property protection, and provides a solid guarantee for promoting innovation and healthy market development.

The SAMR held a centralized signing event for the "Self-Discipline Convention for E-Commerce Platform Operators on Improving the Level of Intellectual Property Protection"

On September 20th, the SAMR held a centralized signing event for the Self-Discipline Convention for E-commerce Platform Operators to Improve the Level of Intellectual Property Protection (hereinafter referred to as the Self-Discipline Convention). A total of 81 e-commerce platforms across the country participated in the signing, and representatives of 23 e-commerce platforms signed contracts in the SAMR.

The "Self-Discipline Convention" was initiated and promoted by the SAMR. It is a commitment document voluntarily signed and implemented by all e-commerce platforms. This document clarifies specific requirements for e-commerce platforms to fulfill their intellectual property protection obligations, and enhances the operability of relevant provisions of the Trademark Law of the Peoples Republic of China and the E-Commerce Law of the Peoples Republic of China. The majority of e-commerce platforms should further improve the platform system rules, refine the workflow, and take more effective measures to protect intellectual property rights according to the commitments. Market supervision departments at all levels should strengthen guidance and supervision to ensure the effective implementation of the contents of the Convention.

At the signing ceremony, representatives of platform companies read out the Self-Discipline Convention and made statements. Responsible comrades from relevant departments and bureaus of the SAMR and the Intellectual Property Protection Department of the State Intellectual Property Office participated in the signing activities.

ZLWD Commentary：

The State Administration for Market Regulation (SAMR) has promoted the signing of the "Self-Discipline Convention on Enhancing Intellectual Property Protection by E-Commerce Platform Operators," underscoring its strong commitment to intellectual property protection. This self-discipline convention not only provides e-commerce platforms with clear responsibilities and operational guidelines, helping to raise their awareness of intellectual property protection, but also promotes fair competition in the market. Through voluntary signing and guidance from regulatory authorities at various levels, the implementation of the convention will effectively enhance the compliance and accountability of e-commerce platforms.

The State Intellectual Property Office released the "Statistical Monitoring Report on Chinas Patent-Intensive Industries". The added value of patent-intensive industries exceeded 15 trillion yuan, and 70% of invention patents were produced

The "Report" compiles relevant data on Chinas patent-intensive industries from 2018 to 2022. Specifically, in 2022, the added value of Chinas patent-intensive industries will exceed 15 trillion yuan, with an average annual growth rate of 9.36% from 2018 to 2022, which is 2.37 percentage points higher than the average annual growth rate of current GDP prices during the same period; From 2018 to 2022, among patent-intensive industries, the average annual growth rate of the added value of the information and communication technology service industry and the information and communication technology manufacturing industry, which are representatives of emerging industries, will reach 14.86% and 10.23%, achieving double-digit growth.

At the same time, Chinas R&D investment in patent-intensive industries will continue to increase from 2018 to 2022. In 2022, the internal expenditure of industrial R&D expenses will reach 1.14 trillion yuan, 2.23 times that of non-patent-intensive industries, and the proportion of new product sales revenue in operating income will reach 37.02%, 15.85 percentage points higher than that of non-patent-intensive industries.

Patent-intensive industries have also produced the effect of driving employment. In 2022, the number of people employed in Chinas patent-intensive industries will be 49.1665 million, an increase of 460,100 over 2021. The number of employees in patent-intensive industries accounted for 6.70% of the total number of employees in society, an increase of 0.52 percentage points over 2018.

ZLWD Commentary：

The "Statistical Monitoring Report on Chinas Patent-Intensive Industries" released by the State Intellectual Property Office shows that the rapid growth of patent-intensive industries and their positive contribution to the economy highlight the key role of intellectual property rights in promoting industrial development. In 2022, the added value of this industry will exceed 15 trillion yuan, far exceeding the GDP growth rate, indicating that innovation-driven results are obvious, especially the double-digit growth in the field of information and communication technology, which further highlights the vitality of emerging industries.

International Symposium on Judicial Protection of Intellectual Property Rights held 

On October 18th, the International Symposium on Judicial Protection of Intellectual Property Co-sponsored by Beijing Intellectual Property Court and Peking University International Intellectual Property Research Center was held in Beijing. The theme of the conference is "Innovation, Cooperation and Win-Win-Judicial Protection of Intellectual Property Rights under High-level Openness", which aims to explore the frontier hot issues of judicial protection of intellectual property rights and contribute wisdom and strength to promoting global intellectual property governance and improving the level of judicial protection of intellectual property rights. More than 30 judges, experts and scholars from China, South Korea, Britain and the United States attended the meeting. This seminar highlighted Chinas firm determination and remarkable achievements in the field of judicial protection of intellectual property rights, and provided valuable Chinese experience for the future development of the global intellectual property governance system.

Liu Shuangyu, President of Beijing Intellectual Property Court, presided over the opening ceremony. He Zhonglin, Vice President of the Intellectual Property Court of the Supreme Peoples Court, Ren Xuefeng, Vice President of Beijing Higher Peoples Court, and Yang Ming, Deputy Director of Peking University International Intellectual Property Research Center delivered speeches.

During the discussion session, the participants spoke in turn and conducted in-depth discussions on three topics: "Intellectual Property Protection Boosts the Development of New Productive Forces", "Global Governance of Intellectual Property in the Digital Economy Era" and "Specialized Courts and Judicial Reform of Intellectual Property". At the closing ceremony, Liu Shuangyu concluded that, as the first batch of specialized intellectual property courts in China, Beijing Intellectual Property Court will soon be established for ten years. It will continue to uphold the principle of openness and tolerance, strengthen international exchanges and cooperation, constantly improve its trial ability and level, and work with colleagues from all walks of life to explore new modes and methods of intellectual property protection, so as to contribute more Chinese wisdom and Chinese solutions to promoting global intellectual property protection.

ZLWD Commentary：

This seminar is an important measure of China in the field of global intellectual property protection, which shows Chinas emphasis on intellectual property protection and the spirit of international cooperation. By focusing on cutting-edge issues, the conference promoted the development of the global intellectual property governance system and provided a platform for the international contribution of Chinese wisdom and solutions.

In the first half of 2024, the State Administration for Market Regulation investigated and dealt with 19,000 cases of trademark infringement and patent counterfeiting, and carried out about 40,000 law enforcement actions against key physical markets with high incidence of infringement and counterfeiting

The SAMR issued a document stating that in the first half of 2024, the market supervision department organized and carried out special actions such as intellectual property law enforcement, further strengthened the governance of key areas, key commodities, and key markets, actively exerted the deterrent effect of administrative law enforcement, and effectively protected the legitimate rights and interests of rights holders and consumers, maintained market economic order, and created a good business environment.

From January to June 2024, various special operations investigated and dealt with a total of approximately 235,000 related cases, including 19,000 cases of trademark infringement and patent counterfeiting, and approximately 40,000 law enforcement actions were carried out against key physical markets with high incidence of infringement and counterfeiting.

It is worth noting that the above three data are compared with the data of the same period in 2023 (a total of 210,000 related cases were investigated and dealt with, 17,100 cases of trademark infringement and patent counterfeiting, and about 11,300 law enforcement actions were carried out against key physical markets with high incidence of infringement and counterfeiting) All achieved growth, reflecting the market supervision departments further strict crackdown on intellectual property infringement.

ZLWD Commentary：

The SAMR has made positive progress in cracking down on intellectual property infringement. Data show that the intensity of law enforcement and the number of cases handled have increased. This not only enhances the deterrent effect on infringement, but also creates a safer business environment for enterprises and consumers. It is worth noting that although law enforcement is strengthening, it is still necessary to continue to pay attention to potential infringements in the market to ensure the effective protection of intellectual property rights and promote the healthy development of the market economy.