Eight Departments Including CNIPA Jointly Issue "Action Plan for High-Quality Development of the New-type Energy Storage Manufacturing Industry"

information processing, safety control, and other products for new energy storage systems. It primarily focuses on new battery technologies and other energy storage products, as well as various advanced energy storage technologies. This also includes power management chips, power electronic devices, thermal management, and energy control systems. As an emerging field within the electronics and information manufacturing industry, the new energy storage manufacturing sector is a vital part of the modern industrial system.

The "Action Plan" consists of 22 key measures. In terms of enhancing intellectual property protection, it aims to guide China’s new energy storage enterprises to improve the quality of intellectual property creation. The plan focuses on strengthening the use of intellectual property information in key areas such as essential materials, energy storage batteries, and power electronic devices. It also emphasizes conducting patent navigation analysis and accelerating the cultivation of a batch of original and foundational high-value patents, with an aim to enhance capabilities related to standard essential patents.

The plan further guides the industry in improving the market-oriented operation system for intellectual property, supports the establishment of intellectual property operation centers related to new energy storage industries, promotes high-value patent commercialization services, and encourages exploration of patent pool operation models in the new energy storage field. These efforts will collaborate to enhance intellectual property risk management and control, while strengthening the industry’s supply chain and improving efficiency.

Additionally, the plan seeks to support a coordinated development mechanism between patents and standards, strengthen intellectual property protection, and prohibit the abuse of intellectual property to eliminate or restrict competition.

ZLWD Commentary：

The "Action Plan" demonstrates China’s high level of attention to the new energy storage industry, particularly through its systematic approach to intellectual property protection and operations. The plan emphasizes patent strategies and the enhancement of capabilities related to standard essential patents, which will help strengthen the global competitiveness of Chinese companies within the energy storage industry supply chain.

Although the provisions prohibiting the abuse of intellectual property to eliminate or restrict competition aim to promote fair competition, balancing incentives for innovation with market regulation still requires further refinement. Overall, the plan presents a clear direction, but its effectiveness will depend on subsequent policy support and market practices.

Beijing Tongzhou Court Rules in Case of Virtual Streamer's "Person Inside" Revealing Real Name, Orders Streamer to Pay 30,000 RMB for Breach of Contract

behind-the-scenes performer ("person inside") for the virtual streamer and must not disclose her personal identity information. The contract specified a penalty of 300,000 RMB if the virtual streamer's real identity was exposed due to Jiang's negligence or intentional act. Subsequently, Jiang revealed her real name during a live stream. The plaintiff sued Jiang, claiming the act interrupted the company's streaming plans and damaged the virtual streamer's image, seeking 300,000 RMB in damages.

The court held that based on the contract's purpose, content, and industry characteristics, the core of a virtual streamer lies in the separation of the virtual image and the real identity of the "person inside". Fan loyalty highly depends on the mystique of the virtual image, making the confidentiality of the "person inside's" identity crucial. Jiang's negligent act damaged the integrity of the virtual image, had negative effects, and constituted a breach of contract. However, when determining compensation, the court considered that the virtual streamer involved had low traffic, had not gained significant popularity, and the actual losses were relatively small. Due to the lack of fan loyalty, the virtual image still had reuse value. The court ultimately used its discretion to order Jiang to pay 30,000 RMB. The second-instance court upheld the original judgment.

ZLWD Commentary：

The judgment reflects the court's commitment to maintaining the spirit of contracts in the virtual anchor industry, while also balancing actual losses and reasonable compensation. The court recognized that the confidentiality of the "human behind the avatar" identity is a core element in the operation of virtual anchors, which aligns with the industry's characteristics. The decision affirms the importance of privacy and contractual constraints in the virtual economy.

However, in terms of liquidated damages, the court did not fully support the contractual stipulation of 300,000 RMB. Instead, it adjusted the amount to 30,000 RMB based on factors such as the anchor’s traffic and the extent of the damage. This flexibility prevents excessive punitive damages from unduly burdening the individual, while also demonstrating a rational consideration of industry development in judicial practice.

Settlement Reached in "Pokémon" Lawsuit Against Pirated Mobile Game Infringement

Since July 2015, Guangzhou Mai Mou Network Technology Co., Ltd. and Huo Mou Network Technology Co., Ltd., among others, have launched and operated the mobile game Pokémon: Rebirth. The game extensively used design elements from Japan’s Pokémon Co., Ltd.'s Pokémon game. In December 2021, Pokémon Co., Ltd. filed a lawsuit for copyright infringement and unfair competition with the Shenzhen Intermediate People's Court. The court ruled in favor of the plaintiff in the first instance, ordering the defendant companies to pay a compensation of 107 million RMB. After the verdict, Guangzhou Mai Mou Network Technology Co., Ltd. and Huo Mou Network Technology Co., Ltd. were dissatisfied and appealed to the Guangdong High People's Court.

On December 18, 2024, the Guangdong High People's Court held a public hearing for the second instance of the Pokémon case. After further investigation of the facts and clarification of the issues, the panel of judges narrowed the discrepancies between the parties regarding the factual findings, legal application, and compensation calculations, laying a solid foundation for successful mediation.

According to the presiding judge, to ensure the substantial resolution of this foreign-related intellectual property dispute, both the first and second-instance courts relied on the dispute resolution mechanism established with the World Intellectual Property Organization (WIPO) Arbitration and Mediation Center. The courts consulted and invited relevant professionals in the field of mediation to participate, achieving a dual approach of professional mediation and judicial adjudication. Ultimately, through a “model judgment + delegated mediation” approach, the parties reached an agreement on the disputed issues and signed a mediation agreement.

ZLWD Commentary：

The Hangzhou Internet Court’s ruling establishes that generative AI platforms must bear liability for aiding infringement when users utilize their tools to generate infringing content and the platform fails to fulfill its reasonable duty of care. In this case, due to the high recognition of the Ultraman character, the obviousness of the infringement, and the platform’s failure to implement effective preventive measures, the court found the defendant liable for aiding infringement and awarded 30,000 yuan in compensation, though it did not deem the conduct unfair competition. This judgment delineates the legal responsibility boundaries for AI platforms, providing a judicial basis for regulating AIGC content.

CNIPA Rejects 63 Bad-Faith Trademark Applications for "DEEPSEEK" Following AI Model's Popularity

Recently, the DeepSeek AI large model developed by Hangzhou DeepSeek AI Basic Technology Research Co., Ltd. has garnered widespread global attention. Some companies and individuals submitted trademark registration applications to the CNIPA Trademark Office using the publicly known AI model name "DEEPSEEK" or its logo. Some agencies are suspected of providing illicit services, showing clear intent to "ride the coattails" of the trend for improper gain.

CNIPA firmly cracks down on such malicious application behaviors and has lawfully rejected 63 trademark registration applications, including No. 82848449 "DEEPSEEK". (List attached in original).

CNIPA will continue to maintain a high-pressure stance against malicious trademark registration, seriously handle acts violating the principle of good faith, maliciously applying for trademarks for improper benefits according to laws and regulations, resolutely maintain trademark registration order, continuously foster a good business environment, and provide strong support for achieving technological self-reliance and high-quality development.

ZLWD Commentary：

The CNIPA’s rejection of malicious trademark applications, such as those for "DeepSeek," reflects China’s stringent regulation of malicious trademark registration practices and its ongoing strengthening of intellectual property protection. This action not only protects the brand rights of enterprises but also curbs speculative behaviors that seek to profit from trending topics, contributing to the optimization of the business environment and safeguarding the legitimate rights of technological innovations.

However, the issue of trademark squatting remains persistent, highlighting the need for improvements in China’s trademark registration review mechanism and legal enforcement. Currently, the primary response to such behaviors is the rejection of registration applications, but the substantive penalties for malicious applicants and their agencies are limited.

Supreme People's Court Work Report: 494,000 IP Cases Concluded in 2024, a 0.9% Year-on-Year Increase

The Supreme People's Court (SPC) work report indicated that 494,000 IP cases were concluded in 2024, up 0.9% year-on-year. The SPC IP Court has concluded nearly 20,000 technology-related IP appeal cases since its establishment 6 years ago. In 2024, cases involving strategic emerging industries reached 1,233, accounting for 32.3%. Punitive damages were applied in 460 cases involving severe malicious infringement, a 44.2% year-on-year increase.

The report also emphasized the proper handling of AI-related dispute cases according to law, supporting the lawful application of AI, exploring mechanisms for disclosing information on related cases, and punishing acts that disrupt the innovation order under the guise of rights protection.

ZLWD Commentary：

The SPC's work report reflects the continuous strengthening of IP judicial protection in China, particularly the 44.2% increase in the application of punitive damages for malicious infringement, indicating that judicial authorities are intensifying deterrence against IP infringement. This not only helps protect the legitimate rights of innovative enterprises but also enhances China's credibility in the global IP protection system. Notably, the report specifically mentions the handling of AI-related disputes, signaling that China's judicial system is actively addressing the new legal challenges posed by AI technology.

CNIPA and Two Other Departments Decide to Launch Comprehensive Pilot Program for Intellectual Property Finance Ecosystem in Beijing, Shanghai, etc.

To implement the "Five Major Tasks" proposed by the Central Financial Work Conference, support sci-tech enterprises and the cultural industry, and improve IP financial services, the National Financial Regulatory Administration (NFRA), together with CNIPA and the National Copyright Administration of China (NCAC), jointly formulated the "Work Plan for the Comprehensive Pilot Program for Intellectual Property Finance Ecosystem." It was decided to launch the pilot program in Beijing Municipality, Shanghai Municipality, Jiangsu Province, Zhejiang Province, Guangdong Province, Sichuan Province, Shenzhen City, and Ningbo City.

ZLWD Commentary：

The launch of the comprehensive pilot program for the IP finance ecosystem reflects China's strategic layout to promote technological innovation and cultural industry development. By strengthening IP financial services, such as patent pledge financing and copyright valuation trading, it can effectively alleviate the financing 

difficulties of sci-tech enterprises, promote the market-oriented operation of IP, and increase the economic conversion rate of innovation achievements. However, IP finance still faces challenges like difficult valuation and risk control. Especially in different regions with varying market maturity and legal environments, ensuring the replicability and scalability of the pilot program is key.

SPC: Continuously Strengthen Anti-Unfair Competition Judiciary, Promote Inclusion of Special Procedural Law for IP Litigation in Legislative Planning

During an exclusive interview at the National People's Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC) sessions, Tao Kaiyuan, Vice President of the Supreme People's Court (SPC), stated that in order to strengthen judicial measures against unfair competition, the SPC has issued the "Supreme People's Court's Interpretation on Several Issues Concerning the Application of the Anti-Unfair Competition Law of the People's Republic of China." This interpretation provides detailed clarification on general provisions, issues of imitation and confusion, false advertising, commercial defamation, and other relevant matters. It particularly focuses on regulating unfair competition behaviors such as "forced target redirection" and "traffic hijacking."

Tao also mentioned that in the future, the SPC will apply intellectual property laws to appropriately handle intellectual property cases between small and medium-sized businesses and platform companies.

Regarding the inclusion of special procedures for intellectual property litigation in legislative planning, Tao noted that the creation of a special intellectual property litigation procedure law would help establish a more just and efficient trial mechanism. It would promote the centralization of intellectual property jurisdiction and the streamlining of case handling, facilitating the proper resolution of emerging types of cases. Moving forward, he will propose the inclusion of the special intellectual property litigation procedure law in the legislative plan of the Standing Committee of the National People's Congress. The SPC will expedite the drafting of legislative proposals.

ZLWD Commentary：

The SPC’s actions to strengthen judicial measures against unfair competition demonstrate China’s focus on maintaining a fair market environment. In particular, the detailed application of legal standards to new types of unfair competition, such as "forced target redirection" and "traffic hijacking," which have emerged in the digital economy era, will help regulate the market behaviors of internet platforms and protect the rights and interests of small and medium-sized enterprises as well as consumers.