2002-2003 Intellectual Property Right Protection in Beijing

Introduction

Intellectual property work in Beijing showed a healthy upward trend of development in the years of 2002 and 2003.  The Beijing Municipal People’s Government conducted extensive IP public education campaigns, intensified IP administration and protection, constantly promoted the building of IP enforcement system and exercised tremendous efforts to regulate and standardize market economy order.  Consequently, the public awareness of IP protection as well as the amounts of patent and trademark applications grew rapidly, playing crucial parts in increasing Beijing’s core competitiveness, further expanding openness to the outside world and promoting the developments of science, technology and economy and all-around advancement of the society.  With a view to optimize the environment for development in the capital and continuously improve the intellectual property work, it is required to establish a regular publication system for the White Book on Intellectual Property Right Protection in Beijing (hereinafter referred as the White Book), for better transparency of IP enforcement and supervision from the public.  

Subject to the requirements of No.68 Notice of the State Intellectual Property Office (SIPO) and the specific condition of Beijing, Beijing Intellectual Property Office organized the drafting of the White Book.  In the course of the drafting, those white books on IPR protection published by other provinces were referenced and consultations with several other IP-related institutions were held. 

The White Book offers a panoramic view of the work of the competent Beijing IP authorities in 2002-2003 biennium, in particular, reflected the contributions made by these authorities on fighting IP violations, protecting the legitimate interests of IP right holders and maintaining market economy order.  

I.Beijing  Municipal People’s Government Attaches Great Attention to IPR Protection

Beijing Municipal People’s Government has always been attaching great attention to IPR protection, prioritizing it as an important task to enhance the city’s all-around competitiveness and to improve its environment for investment.  In accordance with the Chinese IP legal system, the Municipal Government respected and protected the legitimate interests of the IP right holders including foreign nationals. 

In 2001, in an effort to strengthen IP protection in an all-around fashion, the Municipal Government issued the Opinion on Strengthening IP Work (Document No: Jing Zheng Fa [2001] 47).  In April 2003, in its documents, the Opinion on Further Optimizing Environment for Development and the Implementing Plan for Further Optimizing Environment for Development, the Municipal Government explicitly indicated: intensifying IP protection, firmly cracking down on all kinds of IP violations, handling IP disputes in a timely manner, effectively restraining the phenomena of counterfeiting and piracy, and promoting R & D of science and technology and technological innovations.  Strengthening IP protection, safeguarding the legitimate interests of the IP right holders and creating an open, fair and orderly market environment were all treated as important elements for further optimizing the capital’s environment for development.  On several occasions, the city’s Party Secretary Mr. Liu Qi and Mayor Mr. Wang Qishan delivered important instructions, concerning the IP issues such as foreign-related IP case, regulation and standardization of market economy order and protection of IPRs owned by foreign-funded companies.  The city’s People’ s Congress and Political Consultative Conference actively promoted the acceleration of IP legal construction and IP administration by the vehicles of field studies, proposal-raising, bill-submitting and supervision.  In 2000, the number of member units of the Beijing Intellectual Property Task Force grew from 14 municipal government departments to 25.  The establishment of a unified and effective IP coordination mechanism is playing an increasingly crucial role in integrating the strengths of different departments with distinct functions such as IP administration and law enforcement, intensifying the raid of IP violations, maintaining market economy order, promoting cooperation and communication with overseas IP organizations and institutes.  

In order to elevate the public’s IP legal awareness and create a social environment of respecting and protecting IP, the IP-relevant municipal departments, by taking advantage of the celebration of the April 26 World Intellectual Property Day, conducted large-scale series of publicity campaigns: using the media of radio, television, newspaper, journal and Internet to publicize IP laws and regulations from multiple angles; holding large publicity and consultation activity; hold the exhibition of achievements of copyright-related trade in Beijing area; hold the exhibition of real-life items of pirated software; hold training courses, lectures and presentations.  These departments also publicized IP knowledge to the citizens by conducting joint enforcement operations and other activities, in an effort to increase the city public’s awareness and capacity in protecting their IP interests and taking advantage of the WTO rules to get involved in international competition.  

In October 2002, Beijing Intellectual Property Office (BJIPO), the Chinese Chapter of the International Intellectual Property Protection Association (AIPPI), Beijing Intellectual Property Society and Chinese Council for the Promotion of International Trade (CCPIT) Patent and Trademark Agency jointly held the 2002 Beijing International Intellectual Property Symposium.  Beijing Vice Mayor Ms. Lin Wenyi, Special Advisor to the Director General of the World Intellectual Property Organization (WIPO) Mr. Jürgen Schmid-Dwertmann, Deputy Commissioner Mr. Tian Lipu of the State Intellectual Property Office (SIPO) and Deputy Commissioner Mr. Shen Rengan of the National Copyright Administration of China (NCAC) attended the opening ceremony.   

In April 2003, responsive to the issues such as the establishment of the awareness of good faith and discipline and a rapid response mechanism after occurrence of infringement, which were proposed by some transnational corporations during the Seventh Discussion between Municipal Leaders and Representatives from Transnational Corporations, and also with a view to implement an instruction from Vice Mayor Mr. Fan Boyuan, who was responsible for the municipality’s IP affairs, BJIPO Director General Ms. Liu Dongwei headed a team to visit the General Electric Corporation, listening to the corporation’s positions on IPR protection.  As a consequence of this meeting and after extensive survey, the BJIPO, jointly with the Beijing Administration for Industry and Commerce (BAIC), Beijing Copyright Administration (BCA) and Beijing Customs, formulated the Measures on Further Optimizing Capital’s IPR Protection Environment.  

In 2003, in an effort to implement the deployment by the State Leading Group on Regulating and Standardizing Market Economy Order, and follow the spirits of the Notice on Protecting IPR and Conducting Special Operations to Raid Counterfeiting Activities, a notice issued by the Municipal Leading Group on Regulating and Standardizing Market Economy Order, the BJIPO, BAIC, BCA and Beijing Police Department (BPD) jointly conducted operations to raid counterfeiting activities within the city’s jurisdiction, mainly hitting illegal activities such as counterfeiting and faking patents, counterfeiting registered trademarks, sale of merchandise labeled with counterfeiting well-know trademarks, production and sale of pirated books, phonograms, computer software, street hawking of pirated CDs and illicitly printing of best-selling books.  

On 27 October 2003, the Zhongguancun National Intellectual Property System Model Park was officially established by the SIPO and Beijing Municipal Government.  Efforts will be made to further establish an effective IP administration system and an operation mechanism to facilitate the formation of a reasonable IP protection environment in the Park. Presently, six organizations, Zhongguancun Intellectual Property Promotion Department, SIPO’S Beijing Patent Receiving Office, IPR Roving Tribunal, BAIC’s Trademark Representative Office to the Park, BCA’s Software Copyright Registration Center and Copyright Service Center reside in Zhongguancun and have began their services in IP administration and highlighted protection.  

On 31 October 2003, Beijing High People’s Court held a press conference on the online launch of the IPR cases’ judgment papers of the Beijing court system.  Vice President Mr. Zhu Jiang made relevant introductions.  All IPR cases judgment papers of the entire Beijing court system have been put online since 1 November 2003.  

From 26 to 28 November 2003, commissioned by the NCAC, the BCA organized the Roving Seminars on Right of Communication to the Public of the WIPO Copyright Treaty and WIPO Performances and Phonograms Treaty. Experts from Switzerland, Hungary, the United States, Japan and WIPO spoke at the seminars and discussed on the relevant issues with Internet businessmen, judges, scholars and copyright administrators from Beijing. 

II. Significant Achievements in IP Administrative Enforcement

Patent Protection

From 2002 to 2003, BJIPO received 58 patent disputes involving all kinds of patents, 9 related to invention, 28 related to utility model and 21 related to industrial design, 6 related to foreign entities and 15 related to counterfeiting and faking patents.  BJIPO also focused on inspecting patented goods in large and medium sized department stores, supermarkets and wholesale markets for small goods while completing the reinforcement and regulation of the 50 No Faking Patents Stores in cooperation with the Municipal Department of Commerce, keeping the sources of the goods with faking patents under check.  According to the sample statistics on the goods affixed with patent labels circulated in the Beijing area, the percentage of goods with faking patents in the entire circulation dropped from 25% in 1997 to 5.29% in 2002. 

The BJIPO intensified IP protection at conferences and exhibitions. On 17 October 2002, BJIPO received the request for mediation from the Germany-Based Barmag AG on the infringement of its invention patent rights from three companies from Zhengzhou, Shanghai and Hangzhou whose textile machineries exhibited during the China Textile Machinery Exhibition, and adopted measures immediately to stop the conducts of IP infringement in a timing and effective manner.

In April 2003, following the deployment of the SIPO, the BJIPO established the Patent Agents Disciplinary Committee to stiffen supervision of any illegal conduct while offering agency service and standardization of the conducts and service of agencies.  By the end of 2003, the number of patent agencies in the city had reached 123, 24 of which offered foreign-related services. 

Trademark Protection

The BAIC intensified the enforcement of high-profile and major trademark counterfeiting and infringement cases.  From 2002 to 2003, the entire BAIC system handled 2,285 cases involving trademark counterfeiting and trademark infringements, imposed fines of 9.04 million yuan, detained goods valued 80.78 million yuan, removed and destroyed 2.4 million (sets) infringing trademark labels and transferred 6 persons to the judicial authorities. 

After the implementation of the new Trademark Law and its Implementing Regulations in 2002, BAIC organized several its sub-administrations to conduct large-scale enforcement activities, confiscating over 20,000 counterfeiting garments in Dahongmen Garment Trade City and removed store plates of 10 grill restaurants which infringed the trademark San Qian Li (Three Thousand Miles).  

In April 2003, BAIC received a complaint from the UK-based Frederick Warne Co & Ltd, suing two publishers infringing its trademark proprietorship.  Officers from The Trademark Sections of the Dongcheng and Xicheng Sub-administrations overcame the difficulties posed by the SARS outbreak and adopted timing measures, stopping the infringing conducts from worsening and protecting the legitimate interests of foreign trademark right holders.  The company sent an honorary flag and a gratitude letter, highly rating the IPR protection by the Municipal Government. 

Copyright Protection

From 2002 to 2003, BCA handled 41 cases of administrative enforcement, imposed fines of 1.123 million yuan, settled 66 copyright disputes, and saw through 2.25 million yuan damages to copyright holders with a case resolution rate of over 90%.  In 2003, BCA confiscated 422,529 copies of phonograms, and over 600,000 copies of infringing software.  In addition, BCA highlighted on the implementation of the Notice on Accelerating the Use of Licensed Software in the Engineering, Inspecting and Designing Industries during the Process of Regulating and Standardizing Market Economy Order, organizing inspection of several closely-watched companies.  The BCA also listed regulation of pre-installation of infringing software, raid of illegally reproducing and using software, and promotion of the use of licensed software as its priorities and stuck tightly with this plan.  

In 2003, the  BCA, in cooperation with the Municipal Science and Technology Commission, BPD and BAIC formulated the Opinions on Intensifying Computer Software and from September to December, as part of the 2003 special operations to raid software piracy in an immense manner, BCA organized a 100-day operation ─ Operation Maple Leaf.  Consequently, the copyright order in the Beijing software market improved significantly with the reinforcement of regulating achievements in pre-installed software by computer manufacturing companies, correction of the conducts of illicitly reproducing software by end users, promotion of the use of licensed software, in-depth supervision of distribution of works on the Internet. 

In September 2003, the Municipal Government granted powers to the Culture Commission of the districts and counties in the aspects of administration and administrative enforcement.  An important stride for the reform of the copyright administration mechanism had been taken.

III.  Intensification of Judicial Protection of Intellectual Property

From 2002 to 2003, the IP Tribunals under the Courts of Law at all levels within the city’s jurisdiction received 1,999 IP cases of the first instance and resolved 1,975 cases of the first instance.  Among the first instance IP cases received, 1,012 cases were related to copyright, accounting for 50%; 473 to patent, 24%; 212 to technological contract, 11%; 167 to unfair competition, 8%; 139 to trademark, 7%.

On 18 December 2002, the Beijing High People’s Court resolved the case, INTETLGO AG (Note: a Swiss company) suing Tianjin Kegao Toy Co for copyright infringement, holding the plaintiff’s Lego toy blocks possessing certain level of originality and should be deemed as applied art works.  The same types of toys made by the defendant violated the copyright of the plaintiff.  Pursuant to the Copyright Law and the Regulation on Implementing International Copyright Treaties, the defendant was ordered to stop infringement, apologize in public and pay 50,000 yuan monetary damages to the plaintiff. 

Beijing Courts not only pledged to ensure the impartiality of its judgments, but also attached ultimate attention to the social effects of the cases held.  In October 2003, after a successful mediation by the High Court, a high-profile case, France-based Lacoste Corporation suing Crocodile T-shirt Ltd of Hong Kong for trademark infringement, ended up on a note of satisfaction.  Both parties voluntarily reached a settlement agreement on the use of the trademark E Yu (Crocodile) while highly rated the level of judicial protection of intellectual property in Beijing.  

IV.  Customs Strengthens Border Measures for Intellectual Property Protection

In 2002, Beijing Customs investigated and handled 2 infringement cases, both of which were related to trademark infringement, involving a value of 80,000 yuan.

In 2003, Beijing Customs strictly carried out the Implementing Rules for IP Protection at Beijing Customs, and Communication and Coordination Measures between the Legal Affairs Division of the Beijing Customs and Customs on Duty for the Handling of IP Infringement Cases, improved the IP contact point mechanism of the Beijing Customs and strengthened the publicity of IP, enabling more enterprises to have a newer and deeper understanding of the administrative enforcement of the customs.  In 2003, Beijing Customs investigated and handled 9 infringement cases, which were related to copyright and trademark infringement, involving a value of 80,000 USD. 

V. Intensification of Intellectual Property Protection in Phonogram Market

In recent two years, by stiffening the administration of licenses for movie projection and the timing of movies’ showing in theaters, the Beijing Culture Department effectively reduced the phenomenon of illegal reproduction of pirated movie copies as well as reinforcing the inspection of the use of phonograms in entertainment markets and video-playing places.

VI. Significant Achievements in Intellectual Property Protection by the Police Departments (Public Security Authorities)

In 2002, the entire Municipal Police system investigated and handled 2,600 cases of printing, selling and distributing illegal publications, confiscated 4.22 million copies of illegal publications and arrested 3,826 suspects.  The Beijing Police Department conducted four special operations by phases and with different focuses, dispatching over 20,000 officer times.

In 2003, the entire Municipal Police system investigated and handled 1,655 cases related to print and sale of pornographic and pirated illegal publications, confiscating 4.75 million pirated books and magazines, phonograms, and arresting 2,252 suspects.  In the entire year, the Police cracked down on 87 wholesale dens, which sold at least 10,000 copies of pornographic and pirated phonograms, and confiscated over 3.7 million copies of illegal publications of all kinds.

VII. New Developments in Eliminating Illicit UL Labels

In 2002, Beijing Administration for Inspection and Quarantine at Entries and Exits investigated and found 378,600 pieces of goods with a value of 12 million yuan, affixed with faking UL labels and destroyed 2.886 million pieces of faking UL paper labels.  

In 2003, Beijing Administration for Inspection and Quarantine at Entries and Exits investigated and found 61,600 pieces of goods valuing 110,000 USD, affixing faking UL labels.  The goods in question included cast-iron pipes for fire-fighting purpose, rechargeable batteries, night-lights and electric motors.  

VIII. Full-Scale Olympics-related Intellectual Property Protection

Every interested municipal authority paid great attention to the protection of Olympics-related IPRs by strictly enforcing the Regulation on the Protection of the Olympic Symbols and Beijing Regulation on the Intellectual Property Protection of Olympics-related IPRs, organizing a series of special inspections, finding and handling numerous infringing activities and confiscating a number of infringing products.  The actions drew relatively significant public responses.  

In 2002, BAIC received 99 cases related to the Olympic symbols, imposed fines of over 310,000 yuan and removed 27 infringing labels.  In the meantime, during the one-month special operation for the protection of Olympic symbols, 609 large-sized advertisement billboards were cleared, advertisement carrying the mark, Embrace the Olympics on 67,000 taxis were ordered to remove within a time limit, 130,000 pieces of merchandises and packages with infringing symbols were detained. 

In 2003, BAIC received 45 cases related to the infringement of the Olympic symbols and imposed fines of 530,000 yuan.  On the second day of the issuance of the Olympiad emblem, Jing Yin (Beijing Seal), the Administration organized a check of T-shirts with counterfeiting Jing Yin, smothering the emergence of counterfeiting in time. 

In 2003, considering the IP protection status in Beijing custom areas, Beijing Customs formulated the Frequently-Seen IPRs Protection List of Beijing Customs, assisted by the risk platform of the custom areas, strengthened inspection and check of goods dubious of infringing IPRs and prioritized the protection of the Olympic symbols and relevant brands as a key task for IPR protection. 

In 2003, the Beijing Culture Department strictly scrutinized when a performance involved the use of the Olympics-related IPRs and sent officers to inspect the contents of performances on site, ensuring no incidents involving infringement of the Olympics-related IPRs in the city’s performance market. 

Conclusion

In 2004, in an effort to provide a more optimized environment for both domestic and transnational companies, following the requirements of WTO and other international rules, with the implementation of the Outline on Developing and Protecting IP in Beijing as the pivotal task, the Municipal Government will endeavor to build Beijing into a nation-leading area with strong creative vitality, firm IP basis, rich resources, effective protection and smooth circulation of goods.