EU Chamber of Commerce in China issues the Seventh Annual Position Paper

     On September 11, 2007, the European Union Chamber of Commerce in China (EUCCC) promulgated its annual European Business in China Position Paper in Beijing. This is its first position paper since China’s full entry into the WTO following the five-year transition period.
     Mr. Joerg Wuttke, president of the European Chamber, commented: “With continuous excellent economic growth, the commercial climate in China is still attractive to European business. But the investment climate for foreign enterprises, which are operated in China, is becoming more and more complex and challenging. There is some actual progress in the legal and regulatory systems, but some enterprises in certain fields, such as technological transfers, are facing new or more complex requirements. The protection of intellectual property is still the focus.”
     A series of newly issued laws and regulations clarify the rights and obligations of foreign enterprises which are operated in China. As for this, EUCCC expresses its agreement. But at the same time, it also recognizes that the implementation of the new laws still needs more relevant systematic measures for improvement. This position paper provides the European enterprises’ latest analysis for the current Chinese commercial climate and more than 100 relevant suggestions.
     This paper is written and edited by the whole working group of EUCCC. The chamber expects this paper will be helpful for the Chinese government to improve the investment climate for both domestic and foreign enterprises through improving transparency, ensuring equal treatment and building up policy change forecasts.
     Mr. Michael O’Sullivan, Secretary General of the European Chamber, points out that: “We firmly support the progress of the Chinese economy going forward and the policy of developing the domestic market, improving the efficient use of energy resources, making more effective environmental protection policies and reducing unfair social phenomena in practice. We believe that European enterprises are able to make positive contributions for China to achieve these aims and that they are making efforts on this now. So we encourage China to further open the market in order to offer a commercial climate under which both domestic and foreign enterprises may compete fairly.”
     The European Business in China Position Paper will be presented to the Chinese government and supervising authorities, the European Commission, all EU member governments and numerous Chinese and European commercial organizations and enterprises.
     The members of EUCCC will also head for Brussels to introduce this paper to high-ranking officials of the European Commission after this position paper is promulgated formally in Beijing. (Harry Yang/China IP)

The Whole Country Implements the “Good Faith Prospering Commerce Publicity Month” in September 2007

     On September 13, 2007, the Organizing Committee of the National Publicity Month Movement organized relevant departments to convene the “Good Faith Prospering Commerce Publicity Month” news conference. The State Administration for Industry and Commerce, State Food and Drug Administration, State Administration of Foreign Exchange, China Customs and other relevant government authorities introduced their own process for establishing a credit system, announced the working achievement of striking commercial frauds in important fields and publicized the “red list” and “black list” for industrial supervision.
     The “Good Faith Prospering Commerce Publicity Month” in 2007 (Publicity Month Movement) was initiated jointly by the National Office of Rectification and Regulation and Standardization of Market Economic Order, the Central Propaganda Department, National Development and Reform Commission, Ministry of Commerce of the People’s Republic of China, Ministry of Health of the People’s Republic of China, General Administration of Customs, State Administration of Taxation, State Administration for Industry and Commerce, General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China, State Administration of Radio, Film and Television, State Food and Drug Administration, State Administration of Foreign Exchange, China Council for the Promotion of International Trade, China Enterprise Confederation, and China Consumers’ Association, as well as other organizations. This movement is carried out from September 1, 2007 to September 30, 2007 through all of China. This is the third year that this movement has been carried out since it began in 2005. The aim is to put into practice the Opinions of the General Office of the State Council Concerning the Building of a Social Credit System（Guo Ban Fa No.17 [2007]）and relevant departments’ Opinions Concerning Carrying out the Movement of Good Faith Prosperity Commerce, （Zheng Gui Ban Fa No.26 [2006]）to strengthen the establishment of credit and good faith in government, commerce and society, to greatly advocate the working concept of “ ethical commerce” in the economic field and to build up the good faith consciousness in the entire society.
      This year’s movement is comprised of a series of activities, which mainly are as follows:
      On September 4, the Organizing Committee of National Publicity Month Movement held its “faithful commercial” high-ranking forum in Shanghai.
      On September 14, Chinese and Japanese government officials, experts and scholars in the field of credit management and excellent service held a seminar about the system of credit.
      From September 19 to September 21, the National Office of Rectification and Regulation and Standardization of Market Economic Order, China Council for the Promotion of International Trade and American Association of International Finance, Credit and International Business（FCIB）jointly held “The Fourth Chinese International Credit and Risk Management Conference ” in Shenzhen. The topics involved a discussion of the concrete measures, system and credit risk management procedures in the course of enterprises’ going international, and study of corresponding methods and risk-avoidance measures with respect to markets at home and abroad.
      Furthermore, in the streets and central squares in cities such as Fuzhou, Zhenzhou, Chengdou, Guangzhou and Dongguan, there will be road show about “ethical commerce”, covering among other subjects: an exhibition about credit construction, entertainment performance, explanation of relevant legal policy, relevant departments’ on-site consultation, introduction to a typical enterprise’s credit circles, and mutual activity among the public.

The Fourth Small and Medium-sized Enterprises Intellectual Property Exposition

     On September 15-18, the fourth China International Small and Medium-sized Enterprises Exposition was held in Guangzhou. In the exposition, intellectual property protection was an attractive point. The Governor of Guangdong Province, Mr. Huang Huahua, said that the next China exposition will continue setting up an exhibition section for intellectual property protection.
     According to Mr. Yao Guanghai, Assistant Secretary General of the State Office of Intellectual Property Protection, China pays great attention to intellectual property protection. This is the first time that China set up an exhibition section for intellectual property protection in the China exposition, with the first purpose to publicize intellectual property protection through the China exposition, and the second purpose to advance the work of intellectual property protection in small and medium-sized enterprises through combining the contents of the China exposition.
     It is noted that the exhibition section of the intellectual property protection worksite also provides consulting services. Relevant people from the Guangdong Administration for Industry and Commerce, Guangdong Copyright Administration, Guangdong Intellectual Property Administration and agencies guided the enterprises on how to efficiently utilize, manage and protect their intellectual property. During the Exposition, the staff accepted more than 70 consultations from small and medium-sized enterprises’ right owners and the public. The consulting hotspots included the application procedure for patents and trademarks, and procedures for use, administration and complaints.
     During the Exposition, 4,256 small and medium-sized enterprises from 31 countries and regions converged together, exhibiting, negotiating and trading on the products, techniques and services. (China Intellectual Property Newspaper)

People’s Court Will Strengthen its Intellectual Property Judicial Protection
     On September 18, it was noted from the National Court Intellectual Property Judgment Symposium that the Chinese court system will practically strengthen its judicial protection for intellectual property by further carrying out the comprehensive compensation principle, reducing legal cost and increasing the damages of infringement.
     Mr. Cao Jianming, Deputy Chief Justice of the Supreme People’s Court, said at this meeting that: “We should let the patentee receive comprehensive compensation for its loss and the reasonable costs for safeguarding its rights strictly in accordance with law, regulations and judicial interpretations.” In the past five years, the People’s Court implemented the comprehensive compensation principle for intellectual property infringement and increased compensation, and as a result the amount of compensation kept rising and the regulated maximum compensation was applied in some cases.
     Furthermore, the Patent Law Enforcement Examination Report of the Standing Committee of the National People's Congress in 2006 required the establishment of a system of infringement compensation which is more useful for protecting the patentee’s legal rights and interests.
     As for this, Mr. Cao points out that the patentee’s compensation liability and burden of proof should be reduced appropriately according to law.  However, the infringing party shall be punished severely by civil sanction besides civil liabilities for intentional infringing act and imitation and piracy with serious consequences.  (Official website of State Intellectual Property Office of the People’s Republic of China)

The “2007 China High-Tech Products Exhibition” Is Held in Kazakhstan

     On September 19-22, the “2007 China High-Tech Products Exhibition” was held in Astana, capital of Kazakhstan, with the theme of “innovation, cooperation and win-win”.
      Both China and Kazakhstan paid great attention to this exhibition. Enterprises from China and Kazakhstan actively participated in this exhibition. There were about 300 products from China and Kazakhstan, and the exhibition covered an area of 3000 square meters with 150 exhibition locations. This is the first time for the Chinese government to lead and hold a high-tech products exhibition in Kazakhstan.
      In August 2005, the Torch Center of the Ministry of Science & Technology and Urumqi National Level High and New Technology Industrial Development Zone advocated the establishment of the “China Strategic Alliance for High-Tech Industrial Development of Central Asia Market”, which has 53 members now. This exhibition is organized and operated by the Alliance. (Xinjiang Economic Newspaper)

The “State Intellectual Property Soft Science Seminar” was Held in Jilin Province

     On September 11-14, the “State Intellectual Property Soft Science Seminar” was held by State Intellectual Property Office in Changchun, Jilin province. Present at this seminar were about 60 experts and scholars from the office，universities and research institutes from the provinces, municipalities and municipalities directly under the State Council.
     The seminar analyzed the current international and domestic situation concerning intellectual property and the new tasks for intellectual property soft science research, including summarizing the achievements of intellectual property software science researchers and existing issues in recent years, bringing forward good opinions and suggestions on how to strengthen intellectual property soft science research and further managing work for the future.
     During the seminar, 21 units from the Center for Information Study of Chinese Academy of Social Sciences, Nankai University, Zhejiang Provincial School of Communist Party, Research and Development Center for Intellectual Property Rights, Beijing Chao Yuan Commerce Consultant Limited Company, National Research Center for Science & Technology for Development, Foreign Economics and Trade University, Huazhong University of Science and Technology, Zhejiang Industrial and Commercial University, School of Intellectual Property Rights of Shanghai University, Patent Office of State Intellectual Property Office, and State Intellectual Property Office Patent Reexamination Board reported and communicated their respective tasks, which included the base, tactics, applications, and research. The research content covers macroscopical and microcosmic levels of intellectual property. The research methods are related to economics, management, finance, technical innovation and other subjects.
     The attending experts and research personnel expressed that this kind of seminar may help researchers to discover existing problems in research, to widen the scope of thought about research and to use the research methods for other tasks, as well as for reference at the same time. This is very helpful for a researcher’s work and establishes a good foundation for cooperation between government and college research institutions, as well as between college research institutions and other institutions in the future. (Website of State Intellectual Property Office of the People’s Republic of China)

Intangible Cultural Heritage Protection Law Is to Be Drafted

     On September 19, during the State Intangible Cultural Heritage Protection Working Conference convened in Huangshan of Anhui province, Mr. Zhou Heping, Deputy Minister of the Ministry of Culture disclosed that in this July, the Ministry of Culture and the Legislation Office of the State Council went to Yunnan and Fujian provinces for a special investigation of the legislative work concerning intangible cultural heritage protection. In accordance with the relevant working plan, the Intangible Cultural Heritage Protection Law is expected to be drafted by the National People’s Congress next year.
     According to the introduction, Yunnan, Guizhou, Guangxi, Fujian, Jiangxu, Zhejiang and Ningxia have already passed the Bylaw of Intangible Cultural Heritage Protection. The effective regional legislation and protection work promote the national legislation for intangible cultural heritage protection.
     In May, 2006, China publicized the first group of nation-level intangible cultural heritage. At present, each province, municipality and municipality directly under the State Council in China has a list of province-level intangible cultural heritage. There are 3,832 items altogether. The system of nation-level, province-level, city-level and country-level intangible cultural heritage is in the process of gradually coming into being.
     From 2002 until now, the accumulative amount of investment put into intangible cultural heritage protection by the Central Government has reached RMB 236 millions, and RMB 80 millions has been expended for the work of protecting nation-level intangible cultural heritage. At the same time, each province,, autonomous region and municipality directly under the State Council  has also strengthened investment for intangible cultural heritage protection. ( www.Xinhuanet.com)

National Place Name Database Center is Established in Kunshan

     Currently, the relevant institution of the Ministry of Civil Affairs decided to set up the National Place Name Database Center in Kun Shan Channel Network Service Limited Company. It is known that the national place name database center covers national 4-level administrative institutions. The center will provide training and a debugging service of place name database updating, data exchange and system collection for 3,524 cities, counties and regions all over the country.
     Kun Shan Channel Network Service Limited Company is a high-tech enterprise. Its series of Pridemap software platforms independently developed by it responds to the nation’s requirements for national geographical information system security, which filled the gap in Jiangsu province. The Leading Group of National Place Name Public Service Project of the Ministry of Civil Affairs agrees that the General Staff Surveying and Mapping Master Station and this company shall jointly assume the technical service of national place name database and set the national place name database software technical service center. (www.Xinhuanet.com)

China’s First Lateral Airplane ARJ21 is Exhibited in Beijing

      China’s first lateral airplane ARJ21 with full proprietary intellectual property rights was exhibited in the Beijing Aviation Expo 2007 opened on September 19.
      According to the introduction by Mr. Chen Jin, Deputy General Manager of Avici Commercial Aircraft Co., Ltd., the promoter of ARJ21, both the design and manufacture of ARJ21 have already reached top international levels. It can not only adapt to the complex flying conditions in China’s western airports，but also has comfortable and roomy cabins. It is reliable and safe, not very costly in use and have common parts with the main 150-seat airplanes.
      According to the plan, ARJ21 will be completed and out of the production line at the end of this year. The first flight –test will be in March 2008; it will gain a certificate for flight and begin to be delivered to consumers in the third quarter of 2009. Until now, 71 ARJ21airplanes have been ordered.
      Chen Jin said that although the main market for this new lateral ARJ21airplane is in China, he also aims to widen the market to some countries in Africa, Asia and South Africa. Attending a famous international exposition, which brings together aviation magnates, is an important approach for the ARJ21 airplane to widen its overseas markets. Previously, through the Asian Aerospace in early September, many civilian and military participants from many countries already have expressed their interest in the ARJ21 airplane after seeing the ARJ21airplane showpiece. (www.Xinhuanet.com)

FICPI China Seminar Opened in Beijing

     On September 19, FICPI China Seminar was opened in Beijing. About 300 international IP experts attended the seminar. At the opening ceremony, Mr. He Hua, Vice President of State Intellectual Property Office (SIPO) said that this seminar provided a platform for IP lawyers and professionals from China and other countries and regions to communicate with and learn from each other, which would be beneficial to the interactive communication between Chinese patent examiners and other foreign IP lawyers, improving the capability to deal with the rapidly developing international IP fields.
     This seminar is the first held by FICPI in China, focusing on the differences and latest developments with respect to the preparation of patent specifications, writing of claims and patent rights protection in China, Europe and USA.
Before the seminar, Mr. He Hua met Mr. Danny Huntington and others. Both parties cordially communicated about legal issues in the IP field and the training of patent examiners.
     FICPI is a professional organization of internationally practicing IP lawyers with over 100 years of experience and enjoys a good reputation in the industry. Its members are from 80 countries and regions worldwide. In April 2006, upon the approval of SIPO, the China branch of FICPI was formally established. (China Intellectual Property Newspaper)

The 50th Anniversary of the First IP Agency in China

     On September 24, the CCPIT (China Council for the Promotion of International Trade) Patent & Trademark Law Office celebrated its 50th anniversary in Beijing. The Office is the foreign-related IP agency with the longest history and largest scale. Its predecessor is CCPIT Trademark Agency which was established in 1957 under the approval of the State Council. As the first IP agency in China, its development reflects the 50-year history of China’s IP agency. Trademark cases dealt with by the Office each year increases from dozens to several hundreds, and the business covers new applications, renewals, modifications, transfers, permits, objections, disputes and reexaminations and international registrations. At the beginning, there were only about 400 foreign-related patent agency cases each year. In 2001, the number of cases rose to over 10,000.
     In the highly competitive IP agency business, the Office takes a leading position in China, and has been accredited as the Best IP Law Firm in China by the international IP magazine Intellectual Property Management for 8 consecutive years.
     The Office is an active participant in China’s IP legislation. It participated in the research and legislation of a series of IP laws and regulations on patent, trademark and copyright. On the basis of the practice in the past dozens of years and research achievement of foreign IP legislation, they provide much valuable advice to the making and perfection of legislation, contributing greatly to China’s IP legislation.
Currently, China has more than 600 patent agencies, among which 148 agencies are engaged with foreign-related patent agencies. About 8,000 people are qualified for patent agents and 4,500 have professional practice certificates as patent agents.  (By Harry Yang / China IP)

WTO Voluntarily Organizes Expert Investigation Team on Sino-US IP Dispute

     At the conference of the WTO Dispute Settlement Body (DSB) on September 25, the US again requested the WTO to organize an expert team to investigate the Sino-US IP dispute. China expressed its regret concerning this.
     Tthis April, the US brought a lawsuit against China for the so-called IP problems to WTO and requested, for first time in August, the establishment of an expert team, but the request was rejected by China according to relevant rules. After the second request, however, the expert team shall be established automatically.
     After the DSB conference on September 25, Mr. Lu Xiankun, counselor of the Permanent Mission of China to the WTO， said that since the appearance of the Sino-US IP dispute in April, China has stated relevant principles in several cases. During the negotiation of this case, China also expressed great sincerity. China believes that, after a 30-year effort, especially through entry into WTO, China’s existing IP legislation is fully consistent with WTO rules. Mr. Lu said the intention of the US is to put additional obligations to developing members of the Agreement on Trade-Related Aspects of Intellectual Property Rights，which is against the provision of Article 1 which states: “Members shall be free to determine the appropriate method of implementing the provisions of this Agreement within their own legal system and practice”. China objects to the US’s move and believes that other developing members will not accept the consequences arising from this.
      Mr. Lu states that China will actively respond to the litigation according to WTO rules in the interest of China. Meanwhile, China reiterates that the Chinese government is consistent in IP protection. China’s efforts and measures in IP protection are for both the international trends and the need for developing China’s economy. According to the strategy of developing a new innovative country, China will enhance IP protection. As a developing member, China is willing to contribute to IP protection along with other members.  (www.Xinhuanet.com)