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HAN,YuFeng
Chinese-style discoveryP A R T T W O
Preliminary injunction and permanent injunction
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New IP Court of China Supreme Court
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Forum-shopping over Technical Cases
Forum shopping over Technical Cases
P A R T O N E
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��������������������������������������������������������������������������� �������������������������������������ArticleArticle 5
LawsuitsLawsuits filedfiled againstagainst infringementinfringement ofofof patentpatent rightright shallshall bebe triedtried byby thethe People'sPeople's CourtCourt atatat thethe placeplace ofofofof infringement
oror placeplace ofofof residenceresidence ofofof thethe DefendantDefendant.
TheThe placeplace ofofof infringementinfringement shallshall includeinclude:include: thethe placeplace ofofof manufacturing,manufacturing, use,use, offeringoffering forfor sale,sale, salesale ororor importationimportation ofofof the
allegedalleged productsproducts whichwhich infringedinfringed uponupon anan inventioninvention oror utilityutility modelmodel patentpatent rightright;right; thethe placeplace ofofof implementationimplementationimplementation of
useuse ofof patentedpatented method,method, thethe placeplace ofof implementationimplementation ofof use,use, offeringoffering forfor sale,sale, salesale oror importationimportation ofof products
derivedderived directlydirectly pursuantpursuant toto thethe patentedpatented methodmethod;method; thethe placeplace ofof implementationimplementation ofof manufacturing,manufacturing, offeroffer forfor sale,
salesale oror importationimportation ofofof designdesign patentpatent productsproducts;products; thethe placeplace ofofof implementationimplementation ofofof patentpatent counterfeitingcounterfeiting.counterfeiting. TheTheThe placeplace of
occurrenceoccurrence ofofof infringementinfringement outcomeoutcome ofofof thethe aforesaidaforesaid infringementinfringement actsacts.
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ArticleArticle 6
WhereWhere aa plaintiffplaintiff filesfiles aa lawsuitlawsuit onlyonly againstagainst thethe manufacturermanufacturer ofofof infringinginfringing productsproducts andand notnot againstagainstagainst thethe seller,seller, the
placeplace ofofof manufacturingmanufacturing andand thethe placeplace ofofof salesale ofofof thethe infringinginfringing productsproducts areare different,different, thethe People'sPeople's CourtCourtCourt atatatat thethe place
ofof manufacturingmanufacturing shallshall havehave jurisdictionjurisdiction;jurisdiction; wherewhere thethe manufacturermanufacturer andand thethe sellerseller areare namednamed asasas thethe cococo-co-defendantsdefendantsdefendants of
thethe lawsuit,lawsuit, thethe People'sPeople's CourtCourt atatat thethe placeplace ofofof salesale shallshall havehave jurisdictionjurisdiction.
WhereWhere thethe sellerseller isis aaa branchbranch ofof thethe manufacturer,manufacturer, thethe plaintiffplaintiff filesfiles aaa lawsuitlawsuit atat thethe placeplace ofof salesale againstagainstagainst the
manufacturermanufacturer ofofof thethe infringinginfringing productsproducts forfor manufacturingmanufacturing andand salesale ofofof infringinginfringing products,products, thethe People'sPeople'sPeople's CourtCourt at
thethe placeplace ofofof salesale shallshall havehave jurisdictionjurisdiction.
Preliminary injunction and permanent injunction
Preliminary injunction and permanent injunction
P A R T T W O
Act Preservation
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����Articles 100 and 101 of the Civil Procedure Law of PRC have added provisions on the conduct
preservation before and during the prosecution, and extended the conduct preservation system to all
civil fields�
Judicial Interpretation issued :Several Rules of the Supreme People's Court on Legal Matters Concerning the Implementation of Stopping the Patent Right Infringement Before Filing A Lawsuit and Interpretation of the Supreme People's Court Concerning the Application of Laws for Stopping Acts of Infringing upon Registered Trademark Rights and for Attachment of Evidences Before An Action Is Instituted
In order to fulfill the WTO commitments, according to the provisions of the TRIPS Agreement on interim measures, Article 66 of the Patent Law, Article 65 of the Trademark Law and Article 50 of the Copyright Law have all added conduct preservation Provisions.
The Provisions of the Supreme People's Court on Several Issues concerning the Application of Law in Examining Cases Involving conduct Preservation in Intellectual Property Disputes as adopted at the 1755th meeting of the Judicial Committee of the Supreme People's Court on November 26, 2018 are hereby promulgated and shall come into force on January 1, 2019.
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2 0 A A D A A A
Case summary
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���preservation��������� Unstable state of patent rights
The patent might be partially or completely invalidedDid not infringe patent involved
The claims of the plaintiff are entirely or partially not supporteded
Guarantees Sued separately
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Case summary
Positive effect
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Article 66 Where the patentee or stakeholder can show proof to prove that others are implementing
or will be implementing an infringement of patent rights, and his/her legitimate rights and interests will
suffer from irreparable damages if such infringement or impending infringement is not stopped
promptly, the patentee or stakeholder may, prior to filing a lawsuit, apply to a People's Court to adopt
measures to order that the relevant acts be stopped.
An applicant shall provide guarantee when making an application; where a guarantee is not provided, the
application shall be rejected.
When there is an error in the application, the applicant shall compensate the counterparty for the losses
incurred due to stopping of the relevant acts.
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Article 11
The people's court shall examine the application for reconsideration filed by the interested party as to the following aspects:
(1) whether or not the act which is being committed or will be committed by the party against whom an application is filed
constitutes an infringement of patent right;
(2) whether or not taking the relevant measure will cause irremediable damages to the legal rights and interests of the applicant;
(3) the content of the information that related to the applicant's provision of the guaranty; and
(4) whether or not to the order the party against whom an application is filed to stop the relevant act would impair the public
interests.
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Article 16
! When executing the pre-litigation measure to stop the act of patent infringement, the people's
court may, according to the application of the interested party, simultaneously preserve the
evidence.
Article17
! Where the patentee or the interested party institutes proceedings against patent infringement, when
simultaneously requesting for stopping the act of patent infringement in advance, the people's
court may first make the ruling on the request.
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Case summary
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Positive effect
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Case summary
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Case summary
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Article 51 Under the circumstances where evidence may be destroyed or is difficult to obtain evidence in the
future, a copyright holder or a holder of copyright-related rights may, for the purpose of curbing infringement acts,
apply to a People's Court for preservation of evidence prior to filing a lawsuit.
Article 30 When taking the pre-trial measures, a People's Court shall handle the matter with reference to the
provisions of the Interpretations of the Supreme People's Court on the Application of Laws Concerning the Pre-
trial Injunctions to Cease Infringement on Exclusive Rights to Use Registered Trademarks and Preservation of
Evidence.
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Case summary
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Opinion
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Article 65
Where a trademark registrant or a stakeholder has evidence to prove that others are implementing or
are going to implement infringement of its exclusive rights to use registered trademarks, and that it will
suffer irreparable damage of its legitimate interests if the infringement is not stopped promptly, it may,
prior to the lawsuit, apply to the People's Court pursuant to the law for an order to stop the relevant
act(s) and for property preservation measures.
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Article 1
Pursuant to Articles 57 and 58 of the Trademark Law, a trademark registrant or interested party may apply to the
people's court for a pre-litigation injunction to cease infringement of the exclusive right to use a registered
trademark or for the preservation of evidence.
Interested parties that may apply include licensees under trademark licensing contracts and lawful successors to
registered trademark property rights. Among licensees under registered trademark licensing contracts, those under
exclusive licensing contract may independently apply to people's courts whereas those under sole licensing
contract may only apply if the trademark registrant does not apply.
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Case summary
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Effects
Why is Apple still selling iphones in China?
! In the ruling, only the four accused companies need to stop selling the banned phones
! Apple prosecuted that the software or system in those phones has been updated, which means the prohibited
phones are no longer infringing.
! It is the mobile phone that is clearly prohibited in the ruling, not the software or system in the banned phones.
! If Apple Inc. confirmed that the system is no longer infringing after the update, Apple should file a lawsuit to
confirm non-infringement.
Execution of the act preservation
! Infringement has happened and continues to happen
! Opinion 1: injunction should be executed by the defendant themselves
! Opinion 2:injunction could be executed by the court
! Infringement has not happened
! Opinion : injunction could not be executed by the court since the infringement has not happened yet
! Refuse to execute a judgment or order" Compulsory Measures against Obstruction of Civil Procedures"
Impose a fine or detention, etc.
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Article 100
For cases in which the action of a party to the lawsuit or any other reason causes difficulty in enforcement of a judgment or causes
other harm to the litigants, a People's Court may, pursuant to an application by a counterparty litigant, rule on preservation of its
property or order the counterparty to undertake certain acts or prohibit the counterparty to undertake certain acts; where the
litigants do not make an application, a People's Court may rule that preservation measures be adopted where necessary.
A People's Court adopting preservation measures may order the applicant to provide guarantee, where the applicant does not
provide guarantee, the People's Court shall rule that the application to be thrown out.
Upon acceptance of an application, the People's Court shall make a ruling within 48 hours under urgent circumstances; where
the People's Court rules that preservation measures shall be adopted, the ruling shall be forthwith enforced.
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Article 101
In the event of urgent circumstances where the legitimate rights and interests of a stakeholder will be subject to irreparable
damages if the stakeholder does not forthwith apply for preservation, the stakeholder may, prior to filing of lawsuit or application
for arbitration, apply to the People's Court at the location of the properties to be preserved or the respondent's domicile or a
People's Court which has jurisdiction for the case for adoption of preservation measures. The applicant shall provide guarantee,
where the applicant does not provide guarantee, the People's Court shall rule that the application be thrown out.
Upon acceptance by an application, the People's Court shall make a ruling within 48 hours; where the People's Court rules that
preservation measures shall be adopted, the ruling shall be forthwith enforced.
Where the applicant failed to file a lawsuit or apply for arbitration pursuant to the law within 30 days from adoption of
preservation measures by the People's Court, the People's Court shall lift the preservation.
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Article 6
Any of the following circumstances where the interests of the applicant will be compromised if the injunction isnot enforced forthwith shall be deemed to fall under "the situation is urgent" stipulated in Article 100 and Article101 of the Civil Procedural Law:
(1) the applicant's trade secrets are on the verge of being disclosed illegally;
(2) the applicant's personal rights such as right to publish, privacy etc; are on the verge of being compromised;
(3) the disputed intellectual property is on the verge of being disposed illegally;
(4) the applicant's intellectual property is being or is on the verge of being compromised at time-sensitiveoccasions such as a trade fair;
(5) a time-sensitive hot show is being or is on the verge of being compromised; or
(6) any other circumstance which necessitates forthwith enforcement of injunction.
Article 7
The People's Court shall consider the following factors when reviewing an application for injunction:
(1) whether the applicant's request has factual basis and legal basis, including whether the validity of the
intellectual property to be protected is stable;
(2) whether the failure to enforce injunction will cause the legitimate rights and interests of the applicant to suffer
irreparable injury or will cause difficulty in enforcement of the ruling;
(3) whether the injury suffered by the applicant as a result of the failure to enforce injunction will exceed the
injury suffered by the respondent as a result of enforcement of injunction;
(4) whether the enforcement of injunction will compromise public interest; and
(5) any other factors can be considered.
Article 8
The People's Court shall consider the following factors when reviewing whether the validity of the intellectual
property to be protected is stable:
(1) the types or attributes of the rights involved;
(2) whether the rights involved have been subject to substantive examination;
(3) whether the rights involved are in the invalidation or revocation procedure, and the possibility of the said
rights being declared invalid or being revoked;
(4) whether the rights involved comprise a dispute over ownership; and
(5) any other factors which may cause the rights involved to be unstable.
Article 10
For injunction involving an intellectual property or unfair competition dispute, any of the following circumstances
shall be deemed to fall under "irreparable injury" stipulated in Article 101 of the Civil Procedural Law:
(1) the respondent's action will compromise the applicant's goodwill, personal rights such as right to publish,
privacy etc. and cause irreversible injury;
(2) the respondent's action will make it difficult to control the infringement action and evidently aggravate the
applicant's damages;
(3) the respondent's infringement will cause the applicant's relevant market share to be evidently reduced; and
(4) cause the applicant to suffer any other irreparable injury.
Chinese-style discoveryChinese style discovery
P A R T T H R E E
��������������Article 64 Litigants shall be responsible for providing evidence for their assertions.
Moreover, there are more detailed regulations to explain this basic principle in the
Interpretations of the Supreme People’s Court on Application of the “Civil
Procedural Law of the People’s Republic of China”.
Article 64 (Civil Procedural Law of the People’s Republic of China (Amended in 2017))
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Article 99 A People's Court shall determine the duration for presentation of evidence during the
preparatory phase for the trial. The duration for presentation of evidence may be negotiated by the
litigants and shall be submitted to the People's Court for approval. The duration for presentation of
evidence People's Court shall be not less than 15 days for cases of first instance which follows
general procedures, and not less than 10 days for cases of second instance for which a litigant
provides new evidence.
Article 99 Interpretations of the Supreme People’s Court on Application of the “Civil Procedural Law of the People’s Republic of China”
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manufacturing method is in the hands of the defendant, and it is difficult for the
plaintiff to obtain through normal marketing.
2. In the computer software infringement cases, the Computers which are installed
with the infringed products are often obtained in the office of the defendant.
3. In addition, the plaintiff cannot provide direct evidence of their actual losses which
are caused by the defendant's infringement and the evidence of gains derived by the
infringer is also in the hands of the defendant.
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2008Article65 the compensation (applied in order)A. the actual losses of the holder of patent rights
B. the gains derived by the infringer from the infringement
C. a multiple of the royalties of such patent.
D. People's Court may determine a compensation amount ranging from RMB10,000 to RMB1 million according to the type of patent rights, the nature of infringement and the circumstances, etc.
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A. the rights holder has provided preliminary evidence of gains
B. if the relevant evidence are held by the infringer
C. the People's Court may order the infringer to provide the said accounts books and materials;
D. the infringer refuses to provide without a proper reason or provides false accounts books and materials,
E. ascertain the gains derived by the infringer from the infringement based on the assertion of the rights holder and the evidence provided.
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DRAFT AMENDMENTS (2019)
Article71the compensation (add part)A. For malicious infringement of patent rights, in serious cases, the compensation amount shall be determined in accordance with the aforesaid method based on one to five times of the determined amount.
B. Compensation amount of more than RMB 100,000 but less than RMB 5 million based on the extent of the infringement.
C. The provisions of Article 27 have written into the provisions of the Patent Law.
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The principle of high possibility
Several Provisions of the Supreme People's Court on Evidence for Civil Actions (Revision 2008)
Article 7 Where there are no specific statutory provisions and it is not possible to determine which party is responsible for producingevidence pursuant to these Provisions or any other judicial interpretation, the people's court may determine the burden of proof under the principles of fairness, integrity and good faith and in light of such factors as the party's ability to produce evidence.
Notice of the Supreme People's Court on Issuing the Opinions on Issues concerning Maximizing the Role of Intellectual Property Right
Trials in Boosting the Great Development and Great Prosperity of Socialist Culture and Promoting the Independent and Coordinated
Development of Economy(2011)
The patentee can prove that the alleged infringers have manufactured identical products but are unable to prove after reasonable
efforts that the alleged infringers have used the patented method, if it may be determined that the identical products are highly likely
produced in the patented method on the basis of the specific circumstances of the cases and in light of known facts and common
sense, the patentee may no longer be required to provide further evidence in accordance with the relevant judicial interpretations on
civil evidence; under the circumstances, the alleged infringers shall be required to provide evidence that their methods for producing
the products are different from the patented method. In light of the difficulties in proving infringement of patented methods, evidence
preservation measures shall be adopted in accordance with law to appropriately reduce the burden of proof on the method patentees.
Attention shall be paid to protecting the interests of respondents to prevent a party from abusing the evidence preservation rule to illegally
obtain trade secrets of others.
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Article7the people's court may determine the burden of proof under the principles of fairness, integrity and good faith
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The principle of high possibility
Article7the people's court may determine the burden of proof under the principles of fairness, integrity and good faith
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Article7the people's court may determine the burden of proof under the principles of fairness, integrity and good faith
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Where a patent infringement dispute involves a patented invention for manufacturing method of a new product, organisations or individuals manufacturing the same product shall show proof to prove that their product manufacturing method differs from the patented method.
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The burden of proof in any infringement proceedings shall be determined under the following rules:1. in an action for infringement of a patent for the manufacturing process of a new product, the entity or individual that produces the same product is responsible for producing evidence proving that their own manufacturing process is different from that of the patent holder.
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New IP Court of China Supreme Court
IP Court of China Supreme
P A R T F O U R
' ' ' ' ' ' ' '' ' ' ' '
Since the latest regulations announced by the Supreme People's Court on December 28, 2018, the Supreme
People's Court established an intellectual property court to uniformly examine the specific appeals throughout
the country, such as patents with strong technical expertise. According to different object of the litigation,
different type of the case, domicile of the parties, and other factors, the higher people's courts, the intellectual
property courts, and the intermediate people's courts may all be the first-instance court or the second-instance
court of the case. And we will introduce the New jurisdictional rules when the higher people's courts,
intermediate people's courts and intellectual property courts are the first or second instance courts.
' ' ' ' ' ' ' '' ' ' ' '
Article 1 The Supreme People's Court establishes the Intellectual Property Court to take charge of hearing of
appellate cases of patent and other intellectual property requiring specialty.
The Intellectual Property Court is a standing judicial body established by the Supreme People's Court, which is
based in Beijing.
The judgments, rulings, mediation documents and decisions rendered by the Intellectual Property Court are the
judgments, rulings, mediation documents and decisions of the Supreme People's Court.
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