Cyberspace Administration of China - Measures for Standard Contracts for Cross-border Transfer of Personal Information
Issued by: Order No. 13 of the Cyberspace Administration of China
Date: February 22, 2023
The transfer of personal data out of China is permitted in certain specific circumstances, one of which is pursuant to a Standard Contract. The ‘Measures for Standard Contracts for Cross-border Transfer of Personal Information’ recently issued by the Cyberspace Administration of China (CAC), and due to take effect on 1 June 2023, contain a template Standard Contract and detailed information as to how these transfers can be made.
According to the provisions, operators of non-critical information infrastructures, i.e. those not operating a key network or information system where the loss or leakage of data may seriously endanger national security or social stability, may transfer personal data out of China pursuant to a Standard Contract, provided they meet the following conditions: (1) they have processed the personal information of less than 1 million persons; (2) since 1 January of the previous year they have transferred to foreign entities the personal information of less than 100,000 persons; and (3) since 1 January of the previous year, they have transferred to foreign entities sensitive personal information of less than 10,000 persons. The Measures provide that personal information processors meeting these requirements must carry out a protection impact assessment before transferring the data. They also contain provisions relating to the negotiation and filing of Standard Contracts, and a template of the Standard Contract which includes definitions and basic elements of the contract; the contractual obligations of the personal information processor and the overseas recipient; the impact of the policies and regulations on the protection of personal information in the overseas recipient's country or region on the performance of the contract’; the rights and related remedies of the subject of personal information; as well as the termination of the contract, liability for breach of contract, dispute resolution and other matters.
Source: Cyberspace Administration of China
Statistical Analysis of China's Automotive Patent Data 2022 Showing the Improvement of Innovation Quality of Automotive Patents
Date: February 6, 2023
The China Automotive Intellectual Property Promotion Center recently released its Statistical Analysis of China's Automotive Patent Data 2022, which summarizes the development trend in Chinese automotive patents in 2022 based on AutoPat’s data.
In 2022, the number of published Chinese automotive patents was 362,200, up 12.94% year-on-year, of which 94,500 were invention patents, up 12.77% year-on-year. Given China’s increased focus on patent quality and improvements in the patent examination process, this remarkable patent growth rate reflects improvement in the innovation quality of China’s automotive patents.
The proportion of patents in the automotive field relating to new energy vehicles and intelligent networked vehicles was 41.95%, with a year-on-year increase of 13.32% and 19.77% respectively. Among traditional industries, electronic and electrical appliances, body and body accessories and engines are still the key focus.
The Statistical Analysis of China's Automotive Patent Data 2022 also includes several lists which rank the top 20 independent vehicle groups and enterprises producing finished vehicles, on the basis of the number of their authorized and published patents. Among these enterprises, Dongfeng Moto Corporation, BYD Co., China First Automobile Works (FAW) were the top three for the number of authorized invention patents in 2022, while Dongfeng Moto Corporation, China FAW and Changan Auto were the top three for the most published invention patents.
Source: Automotive Intellectual Property
CALB Loses in Patent Infringement Action brought by CATL - Ordered to Pay 36.8 Million Yuan (approx. US$ 5.3 million)
Date: February 21, 2023
There are six patent lawsuits between Chinese battery makers, CALB and CATL, all with CATL as the Plaintiff.
According to its announcement on the Hong Kong Stock Exchange on 21 February 2023, CALB has been unsuccessful in one of the first instance cases. The CATL patent involved in the case relates to lithium-ion battery technology. The application was lodged with CNIPA on 28 April 2018, and the patent granted on 28 August 2020. In 2021, CATL filed a lawsuit against CALB and Fuzhou Cangshan Aian Automobile Sales & Service Co., Ltd. in the Fuzhou Intermediate People’s Court.
According to the judgment, CALB’s sales of power battery products infringed CATL’s patent rights. CALB was ordered to stop selling the infringing products and to compensate CATL in the sum of RMB 35.8 million (approx. US$ 5.2 million) for economic loss; RMB 798,000 (approx. US$ 115,000) for unauthorized use during the provisional protection period; and RMB 202,700 (approx. US$ 29,500) for reasonable expenses, totalling approximately RMB 36.8 million (approx. US$5.3 million).
In its announcement, CALB stated that the product involved in the case is at the end of its life cycle and has been replaced by new products with better performance; thus, the lawsuit will not have an adverse impact on the company's production and operation.
Meanwhile, CALB plans to appeal to the Supreme People's Court.
Source: Sina Finance
China's First Case Involving Commercial Game Boosting and the Anti-addiction Regulations for Minors
Date: February 24, 2023
In its service agreement, Tencent stipulates that game accounts should not be used for commercial purposes such as game boosting, a practice whereby a skilled game player is paid to have access to a gamer’s account, usually in order to boost his/her ranking.
In this case Tencent brought an unfair competition case against a boosting service company operating the Dailianbang App, which encouraged and induced users, including minors, to pay for its boosting services, particularly in relation to Tencent’s mobile game Honor of Kings, by offering cashback and other incentives. By using this boosting service, minors could obtain access to adult accounts and play games that are only available to adults, thus bypassing the anti-addiction regulations, which were introduced to limit the amount of time young people spend playing video games.
Tencent claimed a total RMB 4.5 million (approx. US$ 650,000) compensation, arguing that not only did the game boosting service put the operation of the game at risk of being investigated, but was also contrary to the public interest. The App operator, in defence, argued that game boosting is a service provided to game players and does not constitute unfair competition.
In its decision, the Pudong Court found that the App generated profits by entering into game boosting transactions in relation to online games in which others had rights and interests. This constituted an act of unfair competition. Further, that by allowing minors to access adult games it contravened China’s anti-addiction regulations. The Court ordered the Defendant to cease the unlawful activity immediately and pay compensation of RMB 985,000 (approx. US$ 143,000). This is the first case in China related to commercial game boosting and China’s anti-addiction system for minors.
Source: Technology China