Following acceptance of the State Council Institutional Reform Plan, China’s IP Administration (CNIPA) has been elevated to a top level institution and a National Data Bureau will be established
Date: 10 March 2023
On 10 March, the National People’s Congress approved the Institutional Reform Plan (Plan) that had been introduced by the State Council on 7 March. The Plan provided that, in order to accelerate the building of an intellectual property powerhouse and comprehensively improve intellectual property creation, use, protection, management and services, the China National Intellectual Property Administration (CNIPA), currently managed by the State Administration for Market Regulation (SAMR), would be elevated to an institution directly under the State Council. After the adjustment, the market regulation comprehensive law enforcement teams would still be responsible for trademark, patent and other law enforcement in their respective fields, with relevant enforcement work receiving professional guidance from the CNIPA.
The Proposal also mentioned that, considering the significant role of digital resources and the digital economy in economic and social development, the building of a modern economic system, and the formation of new competitive advantages for the state, a National Data Bureau would be established, administered by the National Development and Reform Commission (NDRC). The National Data Bureau will be responsible for coordinating and promoting the establishment of the basic data system, and advancing the planning and building of digital China, digital economy, and digital society. The responsibilities related to data previously undertaken by the Office of the Central Cyberspace Affairs Commission and the NDRC will be transferred to the National Data Bureau.
Source: The State Council of the People's Republic of China
Intellectual Property Court of the Supreme People’s Court Issues 2022 Annual Report
Date: 30 March 2023
On 30 March 2023, the Supreme People’s Court (SPC) issued the Annual Report of the Intellectual Property Court (IPC) for 2022. The Report states that in 2022 the IPC accepted a total of 6183 technology-related intellectual property appeal cases and monopoly appeal cases, an increase of 18% compared to 2021. Analysis of the cases shows a continuous increase in the number of infringement cases; a decline in the number of administrative cases; a large number of cases involving strategic emerging industries; as well as the Court’s strengthened functional role at all trial levels.
The 1338 new cases involving strategic emerging industries accounted for 30.4% of all newly accepted cases, an increase of 3.5% compared to 2021. Among these cases, the number involving new industries and new fields, such as new generation information technology, biomedicine, high-end equipment manufacturing, standard essential patents, drug patent linkage, layout design of integrated circuit, and new plant varieties, increased considerably.
Source: The Supreme People’s Court
State Administration for Market Regulation (SAMR) Issues Four Supporting Regulations for the Anti-monopoly Law
Date: 25 March 2023
Recently, the State Administration for Market Regulation (SAMR) issued four supporting regulations pursuant to the amended Anti-monopoly Law: the Regulation on Prohibiting Acts Abusing Administrative Powers to Exclude or Restrict Competition; the Regulation on Prohibiting Monopoly Agreements; the Regulation on Prohibiting Acts Abusing Dominant Market Positions; and the Regulation on the Review of Concentrations of Undertakings. The four Regulations will come into effect on 15 April 2023.
The Regulations focus on the following: (1) clarification of the relevant provisions of the Anti-monopoly Law, e.g. specifying the scope of the subject of competing business operators in horizontal monopoly agreements; (2) optimization of the regulatory enforcement procedures, e.g. setting up procedures for suspension, termination and case report filing in the investigation of monopoly agreements, and the abuse of dominant market positions; and (3) strengthening the legal liabilities of relevant subjects, e.g. clarifying the responsibilities and obligations of the notifiers of concentrations of undertakings, and their agents.
Source: The State Administration for Market Regulation
Bayer receives Compensation of 24.3 Million Yuan (approx. US$ 3.53 million) in Settlement of Patent Infringement Case relating to High-pressure Syringe Needles
Date: 11 March 2023
Recently, Bayer reached a settlement with a Shenzhen pharmaceutical and medical device company (the Company), in a patent infringement action in the Nanjing Intermediate People’s Court relating to Bayer’s high-pressure syringe needles. Bayer has received a settlement payment of 24.3 million yuan (approx. US$ 3.53 million) from the Company.
In 2016, Bayer had filed a patent infringement lawsuit against the Company in the Beijing Intellectual Property Court for infringement of the same patent. In that case the Court upheld Bayer’s claim and ordered the Company to pay 1 million yuan (approx. US$ 145,300) for economic loss and 320,000 yuan (approx. US$ 46,500) for reasonable expenses, the highest legally mandated compensation amount prior to the Patent Law being revised in 2020. The decision was upheld on appeal. After receiving the final judgment, however, the Company continued to sell the same infringing products in Nanjing, which prompted Bayer to commence patent infringement proceedings the Nanjing Intermediate People's Court. Under the Court's mediation process, the Company signed a settlement agreement with Bayer and agreed to pay compensation of 24.3 million yuan (approx. US$ 3.53 million), the highest compensation amount ever paid to a patentee in a patent dispute case in China's medical device field.