On August 31, China’s State Administration for Market Regulation (SAMR) announced to solicit public opinions on the "Decision on Amending the E-Commerce Law of the People's Republic of China (Exposure Draft)". The General Administration of Market Supervision stated that to strengthen the protection of intellectual property rights, regulate the platforms' order, and promote the sustainable development of e-commerce, it plans to amend Articles 43 and 84 of the E-Commerce Law.
This modification is in four aspects: First, the waiting period after counter-notification has been extended. "E-commerce platform operators shall promptly terminate the measures taken if they have not received a notice of complaint or lawsuit within fifteen days after the transfer statement reaches the intellectual property rights holders" to "within 20 working days the transferring statement reaches the intellectual property right holder, if e-commerce platform operators has not received a notice of complaint or lawsuit, the measures taken shall be terminated in a timely manner."
Second, to alleviate the possible transaction losses caused by the excessively long counter-notification waiting period, a provision has been added: if the operator on the platform provides a guarantee to compensate for the losses caused by potential intellectual property infringement, the e-commerce platform operators may temporarily suspend the measures taken.
The third is to add a provision: If the operator on the platform submits a false statement that there is no infringement, which causes the increased loss of the right holder, he shall double the liability for compensation.
Fourth, in Article 84, "If the circumstances are extremely serious, the relevant departments may restrict them from carrying out relevant network business activities, until the relevant license for network operations is revoked." is added to "the legal liability of e-commerce platform operators failing to take necessary measures by law towards operators infringing intellectual property rights on the platform".
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