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Competition Law and Intellectual Property in China edited by Maniatis, Spyros; Kokkoris, Ioannis; Wang, Xiaoye (31st January 2019)

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Edited By: Spyros Maniatis, Ioannis Kokkoris, Xiaoye Wang

From: Competition Law and Intellectual Property in China

Edited By: Spyros Maniatis, Ioannis Kokkoris, Xiaoye Wang

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From: Oxford Competition Law (http://oxcat.ouplaw.com). (c) Oxford University Press, 2015. All Rights Reserved. Subscriber: null; date: 23 October 2019

(p. 277) Index

Please note that ‘IP’ stands for ‘intellectual property’ and ‘IPRs’ for ‘intellectual property rights’

abuse of dominant market position 125–26, 268
under the AML 197–200
abuse 199
dominant position 198
market definition 197
powers to enforce against 200
copyright 108
enforcement cases and private IP actions 207–11
IP litigation 211
NDRC investigations 11, 208–10
SAIC investigations 211
Huawei v IDC case 20, 125–26, 211
influence of investigation decisions and case law on authorities’ guidelines 213
in IP context 215–18
applying differential treatment to similar customers 218
excessive royalties 133, 146, 215
injunctions, seeking 218
refusal to license 216
tying and bundling 217
legislative framework for assessing in IP context 201–5
legislative background 201
supplementary guidelines and regulations 201–5
Microsoft, acquisition of Nokia’s devices and services business 17
NDRC investigations 208–10
InterDigital 210
pharmaceutical industry 210
Qualcomm 208
principle applying to 106–7
prohibition by AML 106
by SEP holder under Chinese law 247
supplementary guidelines and regulations 201–5
SAIC IP Regulation 202
State Council draft IP guidelines 205
access to technologies, concentrations reducing 267–73
ARM/G&D/Gemalto case (2012) 269
Corun/Toyota/PEVE/Sinogy case (2014) 272
General Electric/CSCLC case (2011) 267
Google/Motorola case (2012) 19, 268
MediaTek/MStar case (2013) 269
Merck/AZ Electronic Materials case 272
Microsoft/Nokia case (2014) 269
Nokia/Alcatel Lucent case (2015) 14, 273
Administration Regulation over Technology Import and Export 175
administrative management and dual-track regulation approach 3
Agreement on Trade-Related Aspects of Intellectual Property Rights (2001) see TRIPs Agreement (Agreement on Trade-Related Aspects of Intellectual Property Rights), 2001
Alcatel Lucent, acquisition by Nokia (2015) 14, 273
all elements rule
doctrine of equivalents 43, 44
literal infringement 43
prosecution history estoppel 44
as standard for determining infringement 42–44
anti-competitive agreements and IP licensing 167
comparison of NDRC and SAIC IPRs draft guidelines 188–93
future steps 193
Intel v Dongjin 178–79
disputes 178
final settlement, implication 179
relevant parties 178
legislation and practice following the AML 179–93
comparison of NDRC and SAIC Draft Guidelines 188–93
proposed guidelines 184–89
SAIC provisions 181
Standard Essential Patents (SEPs) 190–91
(p. 278)
legislation and practice prior to AML 169–79
Administration Regulation over Technology Import and Export 175
Chinese laws and regulations 170–77
contract law 171
Foreign Trade Law (1994) 173
international treaties 169
legal framework 169–77
Patent Law 174
practice 193
summary 179
Supreme People’s Court interpretation 177
proposed guidelines 184–89
Draft of Exemption Guidelines 189
Draft of NDRC IPRs Guidelines 185–88
Draft of SAIC IPRs Guidelines 184
regulatory approach of AML 179
Standard Essential Patents (SEPs)
general introduction 190
situations in China 191
Supreme People’s Court interpretation (prior to AML) 177 see also Anti-Monopoly Law (AML)
Anti-Monopoly Commission (AMC)
Anti-Monopoly Guidelines Against Abuse of Intellectual Property Rights (2015) 9–10
enforcement agencies 7
IPRs and the AML 155–56, 158
affiliated with the State Council 4, 107
Anti-Monopoly Guidelines Against Abuse of Intellectual Property Rights (2015)
Anti-Monopoly Commission 9–10
Anti-Monopoly Law (AML)
abuse of dominant market position under 197–200
abuse 199
dominant position 198
market definition 197
powers to enforce 200
anti-competitive agreements and IP licensing following 179–93
proposed guidelines 184–93
regulatory approach of AML 179
SAIC provisions 181
anti-competitive agreements and IP licensing prior to 169–79
Administration Regulation over Technology Import and Export 175
Chinese laws and regulations 170–77
contract law 171
Foreign Trade Law (1994) 173
international treaties 169
legal framework 169–70
Patent Law 174
Supreme People’s Court interpretation 177
application to SEPs enforcement 146
areas not applicable 9–10
burden of proof 7
coming into force (2008) 6
competition-related laws prior to 223
competition-related laws following 226
copyright, burden of proof 115–16
enforcement agencies 7
entry into force (2008) 106
and FRAND royalty 134
Huawei v. IDC 159–61
industrial policy 232, 234
and industrial policy in patent licensing disputes (Huawei v IDC case) 244–47
abuse of dominance by an SEP holder 247
FRAND licensing obligations of SEP holder under Chinese law 245
innovation in 253
Draft AML IPR Guidelines 254–56
and IP Law 9
and IPRs 153
monopolistic conduct, prohibiting 106
origins and purpose 6
problem of Article 55 147
public and private enforcement 7
regulatory approach of 179
scope of application 6–7
selected IPR cases decided under 159
and Standard Essential Patents (SEPs) 125–26
FRAN royalty 134
problem of Article 55 of AML 147
substantive provisions 6
technology sector, application to 149–50 see also intellectual property rights
Anti-Unfair Competition Law of the People’s Republic of China (AUCL)
Anti-Monopoly Law and intellectual property 10
case analysis 11
consumer rights and interests 8–9
history of Chinese intellectual property legal system 2
(p. 279)
internet and e-commerce provisions 8–9
monopolistic acts covered by 8
trademark infringement 57, 64
appellate IP courts, absence of 92
compared to other jurisdictions 93
authorship right, copyright 101, 113–15
barriers to entry (new), concentrations leading to 263–66
Alpha V/Savio case (2011) 264
Baxter/Gambro case (2013) 266
Bayer-Monsanto case (2018) 266
Freescale/NXP case (2015) 266
Pfizer/Wyeth case (2009) 264
Seagate/Samsung HDD and 2012 Western Digital/Hitachi GST cases (2011) 265
UTC/Goodrich case (2012) 265
Bayer Aktiengesellschaft Kwa Investment Co (Bayer), acquisition of Monsanto (2018) 13, 266
FRAND provisions 14
herbicides, non-selective 13–14
obligations 14
relevant product markets 13
Beijing High People’s Court
and absence of IP appellate court 92
circuitry of action problem 83–84
and trademarks 59–60, 61, 62–63
Beijing Intermediate People’s Court
judges of high calibre, ensuring recruitment/retention of 95–96
withdrawal of IP tribunal 94–95
Beijing IP Court 5–6, 26, 39
circuitry of action problem 83–84
copyright 104–5
establishment (2014) 76
Guiding IP Cases system 90–91
judges of high calibre, ensuring recruitment/retention of 95–96
patent infringement/litigation 48, 50, 54
scope of jurisdiction 85
stare decisis judgments 90–91
technical investigation officers in 88–89
trademark infringement 56–57, 58, 59–60, 61, 62–63
Berne Convention for the Protection of Literary and Artistic Works (1992) 2–3
burden of proof
and Anti-Monopoly Law (AML) 7
copyright infringement 113
patent litigation 47
trademark infringement 71
Central Committee of the Communist Party of China (CCCPC) 76, 79
Chengdu IP Court 5–6
China
disclosure procedure, lack of 47
as global leader in patent litigation 40
industrial strategy see industrial policy in China
merger control 149–50
People’s Republic see People’s Republic of China (PRC)
Qing dynasty 1, 55–56
Reform and Opening-up Policy (1978) 40, 102
Song Dynasty 55–56
transformation from planned economy to a market economy 8
World Trade Organization (WTO), accession to 2, 102
China National Intellectual Property Administration (CNIPA)
administrative management and dual-track regulation approach 5
circuitry of action problem 83, 84–85
Chinese People’s Consultative Conference (CPPCC)
National Committee 78–79
Chinese People’s Courts 48, 94–95
on all elements rule 42, 43
case analysis 20
general courts
Beijing Municipality 88–89
Guangdong Province 88–89
IP tribunals set up in 82
relationship with specialized IP courts 87
Shanghai Municipality 88–89
supervision of 87
‘three-in-one’ adjudication model 77–78, 87, 93–94, 95, 96–97
(p. 280)
grass-roots courts 5–6
SPC Circuit Court, Shenzhen 104–5
circuitry of action problem
specialized IP courts 83
claim interpretation, patents 41–42
evidence for interpretation 42
identity of interpreter, determining 42
words 41–42
CNIPA (National Intellectual Property Administration) see China National Intellectual Property Administration (CNIPA)
collective administration organizations (CAOs) 120–21
Communist Party of China (CPC) 78–79
Central Committee 76
competition law 8
compensatory damages, perfection of system 54
competition law
enforcement implications for foreign rights holders 149
competition law, China 8
Anti-Unfair Competition Law of China (AUCL) see Anti-Unfair Competition Law of China (AUCL)
industrial policy, relationship with competition policy 230
legal framework 222–26
merger regulation 235–40
post-AML competition-related institutions and regulations 226
pre-AML competition-related laws 223
scope of Chinese system 8
concentrations 267–73
access to technologies, reducing
ARM/G&D/Gemalto case (2012) 269
Corun/Toyota/PEVE/Sinogy case (2014) 272
General Electric/CSCLC case (2011) 267
Google/Motorola case (2012) 19, 268
MediaTek/MStar case (2013) 269
Merck/AZ Electronic Materials case 272
Microsoft/Nokia case (2014) 269
Nokia/Alcatel Lucent case (2015) 273
new barriers to entry, leading to 263–66
Alpha V/Savio case (2011) 264
Baxter/Gambro case (2013) 266
Bayer-Monsanto case (2018) 266
Freescale/NXP case (2015) 266
Pfizer/Wyeth case (2009) 264
Seagate/Samsung HDD (2011) and Western Digital/Hitachi GST (2012 hard-disk drive saga) cases 265
UTC/Goodrich case (2012) 265
as threat to innovation 258–63
Coca-Cola/Huiyuan case (2009) 258
Dow Dupont case (2017) 262
Freescale/NXP case (2015) 262
MediaTek/MStar case (2013) 261
Seagate/Samsung HDD (2011) and Western Digital/Hitachi GST (2012 hard-disk drive saga) cases 259
Silicon Precision Industries/Advanced Semiconductor Engineering case (2017) 263
consumer rights and interests, Anti-Unfair Competition Law of the People’s Republic of China (AUCL) 8–9
Contract Law of the People’s Republic of China 136, 171
copyright 101
abuse of dominant market position 108
access right 101
authorship right 101, 113–15
collective administration organizations (CAOs) 120–21
Copyright Administration Department, State Council 120–21
current system 102
infringement 108, 113
market definition 108
pro-competitive role of law 101
software protection 108–11
technological development 108–11
technological protection measures 118
Universal Copyright Convention (in 1992) 2–3
World Intellectual Property Organization Copyright Treaty (2007) 2–3, 118
World Intellectual Property Organization Performances and Phonograms Treaty (2007) 2–3, 118, 119–20
Copyright Law of the People’s Republic of China (CCL), 1990 102
amendments 2
current copyright system 103
(p. 281)
damage calculation 71
Draft CCL (2014) 102–3, 119–21
enactment of 2
exclusive rights 105
Implementing Regulations 102–3
software protection 108
core network systems (CNS) 14–15
criminal cases (IP-related), absence of jurisdiction to hear 77, 86, 93
customs protection and dual-track regulation approach 3
damages
patent infringement 54
compensatory 54
monetary 52
trademark infringement 54, 56–57, 70
actual losses 70, 71
amount of damages 70–71
negligence towards losses 70
defences
efficiency, promotion of innovation as 274
injunctions sought by SEPs proprietors 142
patent infringement 45
legitimate source defence 45
prior art defence 45
design patents
application for 34, 35
conditions for granting 29
defining 27
duration 28
grace period 36
lawsuits, status 41
Locarno Agreement Establishing an International Classification for Industrial Designs (1996) 25
ornamental shapes 29
publication and granting of 37
regulation of 27
scope of protection 33
two or more designs of product of same kind 34
differential treatment
abuse of dominant market position in IP context 218
discovery procedure, establishment of 53
distinctiveness requirement, trademarks 60
acquired distinctiveness 61
blurring of distinctiveness 74
distinctiveness as a matter of degree 61
lack of distinctiveness, implications 61
trademark registration 60–61
doctrine of equivalents, patent infringement 43, 44
defining equivalency 44
prosecution history estoppel 45
dominant market position
defining 106
determining whether a proprietor of SEPs holds 126–29
consumer rights and interests 128–29
definition of relevant market 126–28
FRAND royalty and anti-monopoly law 134
geographic scope of relevant product 128
market position of IDC 129
Drexl, Josef 147–48
Dreyfuss, Rochelle C 86–87
dual-track regulation approach for IP in China 3
administrative management 3
customs protection 3
judicial protection 5
Eberhardt, Markus 48
efficiency defence, promotion of innovation as 274
employees’ inventions 30
enforcement agencies 7
European Telecommunications Standards Institute (ETSI)
Intellectual Property Rights Policy 134
evidence, patent infringement
claim interpretation 42
collection 47–48
lack of disclosure procedure in China 47
notarized purchase of infringing product 47
onsite investigation and notarized purchase of sample 48
webpage notarization 47
cross-examination 47
disclosure procedure, lack of in China 47
expert 50
notarized purchase of infringing product 47
onsite investigation and notarized purchase of sample 48
preliminary 49
preservation 48, 49
pre-trial preservation 49
webpage notarization 47
examination of patents
accelerated 38
preliminary 37
re-examination 39
substantive 38 see also patents
(p. 282) fair, reasonable and non-discriminatory commitment see FRAND (fair, reasonable and non-discriminatory) principle
Foreign Trade Law (1994) 3, 173
FRAND (fair, reasonable and non-discriminatory) principle
and Chinese People’s Courts 21
commitments
clearance of concentrations 13
excessive royalties 133, 146
injunctions 140–41, 142
Microsoft, acquisition of Nokia’s devices and services business 18–19
Nokia’s acquisition of Alcatel Lucent 15–16
non-discriminatory principle 132
royalty and contract law 136
Standard Essential Patents (SEPs) 132, 133, 135–36, 140–41, 147
voluntary 141–42
dominant market position 128–29
IPRs and the AML 157
license provisions 15, 19, 245
Microsoft, acquisition of Nokia’s devices and services business 17, 18
purpose of requirements 135
royalties
and Anti-Monopoly Law (AML) 134
case analysis 11
and contract law 136
determining 131
Friendly, H. (US judge) 81–82
Google, acquisition of Motorola Mobility (2012) 19, 268
Android platform 19–20
Standard Essential Patents (SEPs) 125–26, 128–29
grace period, patents 36
Guangdong High People’s Court
and absence of IP appellate court 92
copyright case law 109
Huawei v IDC case 20–21
Small but Significant Non-transitory Increase in Price (SSNIP) test 112
Guangdong Intermediate People’s Court (Shenzhen)
Huawei v. IDC 20–21, 104–5, 125–26
judges of high calibre, ensuring recruitment/retention of 95–96
Guangzhou Intermediate Court
withdrawal of IP tribunal 94–95
Guangzhou IP Court 5–6, 26
copyright 104–5
establishment (2014) 76
judges of high calibre, ensuring recruitment/retention of 95–96
patent infringement/litigation 48, 50
scope of jurisdiction 85
Guiding IP Cases system 77, 96
and absence of IP appellate court 92
Beijing IP Court 90–91
copyright 104–5
establishment 90
identification of cases 90
Supreme People’s Court (SPC) 90, 91–92
usage rate 91–92
hearings, patent infringement 50
Helmers, Christian 48
history of Chinese intellectual property legal system 1
Adjustment Period 2
New Era of Strategic Initiative 2
Passive Acceptance stage 1
Selective Arrangement stage 2
Huawei Technology Co. Ltd. v. InterDigital Technology Corp. judgment (Huawei v. IDC) 146
abuse of dominant market position 20, 125–26
and Anti-Monopoly Law (AML) 159–60
case analysis 11
global implications 22
Guangdong High People’s Court on 20–21
industrial policy and AML in patent licensing disputes before Chinese courts 244–47
abuse of dominance by an SEP holder 247
FRAND licensing obligations of SEP holder under Chinese law 245
IP litigation 211
SEPs from perspective of
IDC market position 129
issues to be resolved following 148
Shenzhen Intermediate People’s Court on 20–21, 104–5, 125–26
Standard Essential Patents (SEPs) 125–26, 129, 147, 148
‘Hundred Days of Reform,’ failure 1
industrial policy in China 229–34
and application of AML to IPRs 243–47
patent licensing disputes before Chinese courts (Huawei v IDC case) 244–47
regulations and guidance concerned with IPR abuses 243
China Manufacturing 2025 (CM2025) 150, 152–53, 154, 165
and competition policy 230
defining 229
(p. 283)
effect on market competition before the AML 232
foreign rights holders 150
goals 152
innovation at core of 252
significance in pre- and post-AML China 232–34
and state-owned enterprises (SOEs) 235–40
China Eastern Airlines-Shanghai Airlines merger 240
China Unicom-China Netcom merger 237
within the AML 234 see also competition law, China
injunctions 140–42
abuse of dominant market position in IP context 218
Civil Procedure Law (CPL) 69–70
defence of 142
patent infringement 51, 54
perfection of preliminary, patent infringement 54
permanent 51
preliminary
patent infringement 51–52, 54
trademark infringement 69–70, 75
SEPs proprietors, sought by 140–42
limitation to injunction sought 141
Orange-Book-Standard 143
Orange-Book-Standard 143–45
pre-condition of application for and defence of injunction 142
trademark infringement 56–57, 69
innovation
access to technologies, concentrations reducing 267–73
ARM/G&D/Gemalto case (2012) 269
Corun/Toyota/PEVE/Sinogy case (2014) 272
General Electric/CSCLC case (2011) 267
Google/Motorola case (2012) 19, 268
MediaTek/MStar case (2013) 269
Merck/AZ Electronic Materials case 272
Microsoft/Nokia case (2014) 269
Nokia/Alcatel Lucent case (2015) 273
in the Anti-Monopoly Law (AML) 253
Draft AML IPR Guidelines 254–56
and Chinese competition law 253–56
AML, innovation in 253
Draft AML IPR Guidelines, innovation in 254–56
concentration as threat to 258–63
at core of industrial policies 252
Draft AML IPR Guidelines 254–56
general principles 255
merger control 256
impact of merger control on 250
and Chinese competition law 253–56
industrial policy 252
interventions, innovation-related issues as grounds for 258–73
access to technologies, concentrations reducing 267–73
concentration, as threat to innovation 258–63
new barriers to entry, concentrations leading to 263–66
promotion of innovation as efficiency defence 274
new barriers to entry, concentrations leading to 263–66
Alpha V/Savio case (2011) 264
Baxter/Gambro case (2013) 266
Bayer/Monsanto case (2018) 266
Freescale/NXP case (2015) 266
Pfizer/Wyeth case (2009) 264
Seagate/Samsung HDD (2011) and Western Digital/Hitachi GST (2012 hard-disk drive saga) cases 265
UTC/Goodrich case (2012) 265
promotion of as efficiency defence 274
threat to, concentration as
Coca-Cola/Huiyuan case (2009) 258
Dow/Dupont case (2017) 262
Freescale/NXP case (2015) 262
MediaTek/MStar case (2013) 261
Seagate/Samsung HDD (2011) and Western Digital/Hitachi GST (20112 hard-disk drive saga) cases 259
Silicon Precision Industries/Advanced Semiconductor Engineering case (2017) 263
integrated circuits
Intellectual Property Treaties of Integrated Circuits (1989) 2–3
Regulations on the Protection of Layout-designs of Integrated Circuits (2001) 2
intellectual property and anti-monopoly law and practice, China 1
anti-monopoly laws and regulations under the AML 6–7
Anti-Unfair Competition Law of the People’s Republic of China (AUCL) 2, 8
case analysis 11–20
Chinese People’s Courts 20
NDRC 11
development history 1
dual-track regulation approach 3, 5
(p. 284)
future steps 22
high-level IP law, transforming to 2
increasing number of IP cases 80 see also Anti-Monopoly Law (AML)
intellectual property rights (IPRs)
and Anti-Monopoly Law (AML) 153
prospects for enforcement and foreign rights holders 165
selected IPR cases decided under 159
comparison of NDRC and SAIC IPRs Draft Guidelines 188–93
Draft of NDRC IPRs Guidelines 185–93
background 185
detailed analyses 186
general introduction 185
Draft of SAIC IPRs Guidelines 184
foreign rights holders, implications of China’s competition law enforcement for 149
AML and IPRs 153
industrial strategy of China 150
prospects for AML enforcement and foreign rights holders 165
selected IPR cases decided under AML 159
intangibility of 141
IP licensing and anti-competitive agreements see anti-competitive agreements and IP licensing
Measures of the General Administration of Customs of China on the Implementation of the Regulations of China on Customs Protection of Intellectual Property Rights 3
Memorandum of Understanding on Intellectual Property Rights between the Governments of China and the United States of America 2
ownership 135
regulations and guidance concerned with abuses of 243
WTO US-China dispute over 102–3
invalidation of patents 39
invention patents
application for
coexistence with utility model patent 29
procedure 33–34
statistics 26
claim interpretation 42
compulsory licenses 32
conditions for granting 28
co-ownership 30
defining 27
duration 28
employees’ inventions 30
existing technologies 28
grace period 36
granting by SIPO 26
‘invention-creations’ 27
inventive step requirement 29, 42
inventiveness 29
major technical advancement 32
new biological material 35
novelty 28
practical use 29
preamble and characterizing portions of claim 35
regulation of 27
right to be named inventor 31
scope of protection 33
Italianer, Alexander 134–35
Jiang, Y. 96
joint ventures 149–50
Judicial Appraisal Center, patent infringement analysis report issued by 50
judicial protection 5
jurisdiction
absence of, in IP-related criminal cases 77, 86, 93
applicable cases 26–27
forum shopping concerns 86–87
patents 26
Regulations on Jurisdiction of the IP Courts 26
specialized IP courts 85, 93
‘three-in-one’ adjudication model 77–78, 87, 93–94, 95, 96–97
Law of the People’s Republic of China Against Unfair Competition (AUCL)
legitimate source defence, patent infringement 45
good faith requirement 46
licensing 31
and anti-competitive agreements see anti-competitive agreements and IP licensing
dependent patents 32
disputes relating to patents under Huawei v IDC 244–47
abuse of dominance by an SEP holder 247
FRAND licensing obligations of SEP holder under Chinese law 245
(p. 285)
FRAND principle 15, 19, 245
insufficient exploitation 31
monopolies 31
national emergencies 31
patents 31
compulsory 31
patent licensing disputes before Chinese courts (Huawei v IDC case) 244–47
public health 31–32
refusal to license 216
Standard Essential Patents (SEPs) 11, 124, 137
trademark infringement 66
unreasonable licensing conditions, imposing 217
likelihood of confusion, trademark infringement 57, 66
Anti-Unfair Competition Law of China (AUCL) 57
first-to-file doctrine 67–68
reverse confusion doctrine 67–68
and similarity 66–67
symbol protection doctrine 66–67
Trademark Law of the People’s Republic of China (TML), 1982 66–67
trademark use 65
Local IPOs (Intellectual Property Offices) 25
Love, Brain J. 48
market definition, and abuse of dominant market position 108
hypothetical monopolist test 112
Small but Significant Non-transitory Increase in Price (SSNIP) test 112
SPC case law 109
Supreme People’s Court (SPC) 109, 110, 111–12
technological development case law 108–11 see also abuse of dominant market position; dominant market position
MediaTek/MStar case (2013)
access to technologies, concentrations reducing 269
threat to, concentration as 261
mergers
control/regulation of 250
and China 149–50
China Eastern Airlines-Shanghai Airlines merger 240
China Unicom-China Netcom merger 237
Draft AML IPR Guidelines 256
industrial policy and state-owned enterprises 235–40
impact on innovation in China
industrial policy 252
Microsoft, acquisition of Nokia’s devices and services business
abuse of dominant market position, possibility of 17
access to technologies, concentrations reducing 269
Android operating system 17
commitments of Microsoft 17
commitments of Nokia 18
conditional clearance (2014) 16
vertical relationship 16–17
Ministry of Commerce (MOFCOM)/Anti-Monopoly Bureau, MOFCOM
administrative management and dual-track regulation approach 4
and Anti-Monopoly Guidelines Against Abuse of Intellectual Property Rights (2015) 9–10
case analysis 11, 13–19
conditional clearance
of Bayer’s acquisition of Monsanto (2018) 13
of Google’s acquisition of Motorola Mobility (2012) 19
of Microsoft’s acquisition of Nokia’s devices and services business (2014) 16
of Nokia’s acquisition of Alcatel Lucent (2015) 14
statistics 13
IPRs and the AML 158
mergers and acquisitions, regulation of 107
prior role 7
and Standard Essential Patents (SEPs) 125–26
Motorola Mobility, acquisition by Google (2012) see Google, acquisition of Motorola Mobility (2012)
Nanjing IP Court 5–6
National Copyright Administration (NCA) 102–3
(p. 286) National Development and Reform Commission (NDRC)
and Anti-Monopoly Guidelines Against Abuse of Intellectual Property Rights (2015) 9–10
case analysis 11
Draft of NDRC IPRs Guidelines 185–93
background 185
compared to Draft of SAIC IPRs Guidelines 188–93
detailed analyses 186
general introduction 185
investigations by 208–10
InterDigital 210
pharmaceutical industry 210
Qualcomm 11–12, 129, 161–63, 208
IPRs and the AML 155–56
Price Supervision and Anti-Monopoly Bureau under 4, 7
prices, regulation of 107
National Intellectual Property Administration (CNIPA) see China National Intellectual Property Administration (CNIPA)
National Intellectual Property High Court
potential establishment 53
National Intellectual Property Strategy 55–56
National IP Protection Working Group 2
National IP Strategy Formulation Leading Group 2
National People’s Congress, Standing Committee 170
copyright 102–3
patents 23, 26, 52
and specialized IP courts 79
Nokia
acquisition of Alcatel Lucent (2015) 14, 273
Microsoft’s acquisition of devices and services business (2014)
access to technologies, concentrations reducing 269
conditional clearance 16
non-functionality, trademarks 62
notarization, patent infringement evidence
Chinese legal system 47
notarized purchase of infringing product 47
notarized purchase of sample, and onsite investigation 48
online shops 47
webpage notarization 47
novelty, patents
absolute novelty standard 28
claim interpretation 42
invention patents 28
prior art defence 45
utility model patents 28–29
online platform, liability in trademark infringement 57, 68
ISPs, responsibilities of 68–69
secondary liability 69
Original Equipment Manufacture (OEM) cases
trademark use 65–66
Paris Convention for the Protection of Industrial Property (1984)
accession to treaties and patents 25
Anti-Monopoly Law and intellectual property 10
Convention priority 36
development history 2–3
one year priority right 32
trademark infringement 58
Trademark Law 55–56
well-known trademarks 72
Patent Cooperation Treaty (1993)
accession to treaties and patents 25
development history 2–3
foreign applicant filing in China 32
patent infringement
all elements rule
doctrine of equivalents 43, 44
literal infringement 43
prosecution history estoppel 44
as standard for determining infringement 42–44
claim interpretation 41–42
evidence for 42
identity of interpreter, determining 42
words 41–42
counterfeits, involving 41
defence 45
legitimate source 45
prior art 45
evidence
claim interpretation 42
collection 47–48
cross-examination 47
disclosure procedure, lack of in China 47
expert 50
notarized purchase of infringing product 47
onsite investigation and notarized purchase of sample 48
preliminary 49
preservation 48, 49
pre-trial preservation 49
webpage notarization 47
(p. 287)
‘Function/Way/Result’ test 44
good faith requirement, legitimate source defence 46
identity of interpreter, determining 42
infringement analysis report issued by Judicial Appraisal Center 50
Judicial Appraisal Center, infringement analysis report issued by 50
legal framework
all elements rule 42–44
claim interpretation 41–42
defence 45
legitimate source defence 45
literal 43
online shops 47, 48–49
prior art defence 45
standard for determining 42–44
uniform standard 44 see also patent litigation
Patent Law of the People’s Republic of China (‘Patent Law’), 1984 2
adoption 23
amendments 2, 23
anti-competitive agreements and IP licensing 174
application procedure 33–34
coexistence between utility model patent and application for invention patent 29
conditions for granting invention and utility model patents 28
co-ownership of invention 30
current version (2009) 23
customs protection 3
damage calculation 71
design patents 29
duration of patents 28
employees’ inventions 30
enactment of 2
entry into force (1985) 23
exclusion from patentability 27–28
foreign applicant filing in China 32
grace period 36
historical background 23
Implementing Regulations 24, 30, 31, 33, 34–35, 37
invalidation of patents 39
‘invention-creations,’ regulation of 27, 28, 30
inventiveness 29
inventor, right to be named 31
legitimate source defence 45–46
licensing 31
compulsory 31, 32
novelty 28
pledges 31
prior art defence 45
status of patent lawsuits 40
termination of patents 39
withdrawal of application 37
patent litigation 40
China as global leader in 40
court hearing 50
discovery procedure 53
evidence
claim interpretation 42
collection 47–48
cross-examination 47
disclosure procedure, lack of in China 47
expert 50
notarized purchase of infringing product 47
onsite investigation and notarized purchase of sample 48
preliminary 49
preservation 48, 49
pre-trial preservation 49
webpage notarization 47
filing of lawsuit 48–49
court hearing 50
evidence preservation 48, 49
infringement analysis report issued by Judicial Appraisal Center 50
pre-trial preservation of evidence 49
technical investigation officers 50
venue 48
injunctions 51, 54
international companies 41
jurisdiction 27
methods 46–52
monetary damages 52
notarization, evidence collection 47–48
Chinese legal system 47
notarized purchase of infringing product 47
notarized purchase of sample, and onsite investigation 48
online shops 47
webpage notarization 47
venue 48 see also patent infringement
Patent Office of the PRC (CPO) 24
Patent Prosecution Highway (PPH) scheme 38
patents 23, 35
accession to international treaties 25
amendments 36
application for 26, 29, 33–34
withdrawal of 37
Chinese applicant filing patent abroad (national security scrutiny) 32
(p. 288)
coexistence between utility model patent and application for invention patent 29
compulsory licenses 31
dependent 32
design see design patents
duration 28
examination
accelerated 38
preliminary 37
re-examination 39
substantive 38
existing problems of Chinese system 52
foreign applicant filing in China 32
grace period 36
‘hold-up’ 137–38, 141–42, 145–46
infringement see patent infringement
invalidation 39
invention see invention patents
inventiveness 29
jurisdiction 26
licenses 31
licensing disputes before Chinese courts (Huawei v IDC case) 244–47
abuse of dominance by an SEP holder 247
FRAND licensing obligations of SEP holder under Chinese law 245
litigation see patent litigation
Notice of Entering Substantive Examination 37
novelty 28, 42
office action 38
Patent Cooperation Treaty (1994) 2–3
Patent Prosecution Highway (PPH) scheme 38
pledge 31
procedure 33–39
abstract 35
accelerated examination 38
amendments 36
application 26, 29, 33
Convention priority 36
grace period 36
numbering of claims 35
office action 38
preliminary examination 37
publication and granting 37, 39
substantive examination 38
termination 39
withdrawal of application 37
project patents 17
publication and granting of 37, 39
re-examination 39
reform of Chinese system, potential 53–54
compensatory damages, perfection of system 54
discovery procedure, establishment of 53
National Intellectual Property High Court, establishment of 53
preliminary injunctions, perfection 54
Regulation on Rewarding Creation and Invention to Rejuvenate the Industry, annulment of 1
requirements for granting 28–33
‘reverse patent hold-up’ 145–46
scope of protection 33
State Intellectual Property Office see State Intellectual Property Office (SIPO)
statistics 26
Strasbourg Agreement Concerning the International Patent Classification (1997) 25
substantive examination 38
Notice of Entering Substantive Examination 37
termination 39
transfer 31
utility model see utility model patents
withdrawal of application 37 see also Standard Essential Patents (SEPs)
People’s Republic of China (PRC) see China
pharmaceutical industry
abuse of dominant market position 210
plant varieties
International Convention for the Protection of New Varieties of Plants (1999) 2–3
Regulations of China on the Protection of New Varieties of Plants (1997) 2
pledges, patents 31
Posner, Richard 135
Price Supervision and Anti-Monopoly Bureau (PSAMB), NDRC
administrative management and dual-track regulation approach 4
enforcement agencies 7
prior art defence, patent infringement 45
prior rights, trademarks 62
prosecution history estoppel
and doctrine of equivalents 45
patent infringement 44
Provisions on Prohibiting the Abuse of Intellectual Property Rights to Eliminate, Restrict Competition (SAIC), 2015 9
(p. 289) Qing dynasty 1
Qualcomm judgment (2013)
bundled sales of wireless communication non-SEPs without justification 162
case analysis 11
competition law 161–63
global implications 22
NDRC investigations 11–12, 129, 208
patent licensing fees, unfairly high 162
unfairly high royalties charged by 125–26
unreasonable restrictions on sale of baseband chips 162 see also National Development and Reform Commission (NDRC)
radio access network (RAN) 14–15
reciprocity principle 17, 32, 173–74
Reform and Opening-up Policy (1978) 40, 102
remedies
patent infringement
compensatory damages, perfection of system 54
injunctions 51, 54
monetary damages 52
preliminary injunctions, perfection 54
trademark infringement 69–70
damages 70
injunctions 69 see also damages; injunctions
reverse confusion doctrine 67–68
royalties
excessive 133, 146, 215
FRAND principle 130–36
and Anti-Monopoly Law (AML) 134
and contract law 136
determining royalties 131
safe harbour rule
trademark infringement 68
Shanghai High People’s Court 92
Shanghai Intermediate Court 94–96
Shanghai IP Court 5–6, 26
copyright 104–5
establishment (2014) 76
patent infringement/litigation 48, 50
scope of jurisdiction 85
Shanghai Pudong New Area People’s Court 77–78
specialized IP courts, China 76
administrative review judicial cases heard 27
appellate courts, absence of 92
background to the establishment of 77
characteristics 87–90
civil and administrative judicial cases heard 26
civil judicial cases heard 27
courts of appeal, absence of 77
criminal cases (IP-related), absence of jurisdiction to hear 77, 86, 93
and distinctive characteristics of IP litigation 81
features 85–87
Guiding IP Cases system 77, 96
and absence of IP appellate court 92
Beijing IP Court 90–91
copyright 104–5
establishment 90
identification of cases 90
Supreme People’s Court (SPC) 90
usage rate 91–92
hearings, patent infringement 50
IP tribunals 77, 78–79, 82
withdrawal of 94–95
judges of high calibre, ensuring recruitment/retention of 77, 95
jurisdiction 26
locations 5–6, 26, 80, 81, 82
National Intellectual Property High Court, establishment of 53
patent litigation 27
rationale for establishment 76, 79–83
circuitry of action problem 83
complexity and technical nature of IP disputes 81
increasing number of IP cases 80
lack of existing judicial consistency 82
policy reasons 79
Regulations on Jurisdiction 26
relationship with general courts 87
scope of jurisdiction 85
shortcomings in system 92–95
absence of IP appellate courts 92
criminal cases (IP-related), absence of jurisdiction to hear 77, 86, 93
ensuring recruitment/retention of high calibre judges 95
technical investigation officers 50, 87
‘three-in-one’ adjudication model 77–78, 87, 93–94, 95, 96–97
venue for action 48
Standard Essential Patents (SEPs) 133, 143
abuse of dominance by holder under Chinese law 247
anti-competitive agreements and IP licensing following the AML 190–91
general introduction 190
situations in China 191
and Anti-Monopoly Law (AML) 125–26
FRAND royalty 134
problem of Article 55 147
defining 124
determining whether a proprietor holds dominant market position 126–29
consumer rights and interests 128–29
definition of relevant market 126–28
FRAND royalty and anti-monopoly law 134
geographic scope of relevant product 128
market position of IDC 129
evaluation of 146–48
FRAND principle
licensing obligations of holder under Chinese law 245
royalties 130–36
Huawei v IDC case 124
issues to be resolved following 148
IDC, market position 129
injunctions sought by proprietors of 140–42
limitation to injunction sought 141
Orange-Book-Standard 143
Orange-Book-Standard 143–45
pre-condition of application for and defence of injunction 142
licenses 11, 21, 124, 137
‘lock-in’ effect 124
Qualcomm judgment (2013) 12
relevant market, defining 126
royalties 12, 137
transfer to third parties 15–16
wireless communications network equipment 14–15 see also patents
standard setting organizations (SSOs)
Bayer acquisition of Monsanto (2018) 13
definition of relevant market 127–28
IPRs and the AML 157
Microsoft, acquisition of Nokia’s devices and services business 17, 18–19
Standard Essential Patents (SEPs), FRAND royalty 130–31, 134, 135–36, 139–40
State Administration for Industry and Commerce (SAIC)
Anti-Monopoly and Unfair Competition Enforcement Bureau 107
Anti-Monopoly Enforcement Guidelines Regarding Intellectual Property, non-completion 9
and Anti-Monopoly Guidelines Against Abuse of Intellectual Property Rights (2015) 9–10
case analysis 11
Draft of SAIC IPRs Guidelines 184
compared to Draft of NDRC IPRs Guidelines 188–93
investigations by 211
IP Regulation 202
IPRs and the AML 155–56
Law of the People’s Republic of China Against Unfair Competition (AUCL) 105
Order No 74 on prohibition of abuse of IPRs (2015 Regulation) 107–8
provisions regarding anti-competitive agreements and IP licensing following the AML 181
provisions regarding prohibition of abuse of IPRs 9
State Administration for Market Regulation (SAMR)
administrative management and dual-track regulation approach 4
and Anti-Monopoly Law (AML) 6, 7
and State Council institutional reform 22
State Council
Anti-Monopoly Commission affiliated with 4, 107
and Anti-Monopoly Law (AML) 6
Chinese applicant filing patent abroad (national security scrutiny) 32
Copyright Administration Department 120–21
draft IP guidelines 205
General Office 25
Institutional Reform Program (2018) 3, 22
Legislative Affairs Office 102–3
Outlines of the State Intellectual Property Strategy 78–79
Patent Administration Department 28, 29
and Patent Office 24
and SAMR 4, 7
State Intellectual Property Strategic Outline 9
State Intellectual Property Office (SIPO)
Board of Review 24
internal organizations 25
and local Intellectual Property Offices (IPOs) 24
Patent Re-examination Board 83–84
(p. 291)
patents
Administrative Measures 38
application for 34
Chinese applicant filing patent abroad (national security scrutiny) 32–33
compulsory licenses 31
design patents 29
Guidelines for Examination of Patents Issues 24
invention patent applications received 26
office action 38
Patent Administration Department 24
Patent Prosecution Highway (PPH) scheme 38
preliminary examination 37
transfer of 31
Regulations of the Main Duties, Internal Structures and Staff 25
renaming from Patent Office of the PRC (CPO) 24
State-Owned Enterprises (SOEs)
and industrial policy 150–51, 235–40
invention patents 32
IPRs and the AML 154
Patents, compulsory licenses 32
Supreme People’s Court (SPC)
on all elements rule 43
anti-competitive agreements and IP licensing prior to AML, interpreting 177
copyright 103, 109
discovery procedure, establishment of 53
doctrine of equivalents 44
Guiding IP Cases system 90, 91–92
injunctions 69–70
Interpretation of the Supreme People’s Court on Several Issues concerning the Application of Law in the Trial of Patent Infringement Dispute Cases (2009) 43, 44, 46
IP tribunal in 77
market definition, and abuse of dominant market position 109, 110, 111–12
Office for the Work on Case Guidance 91–92
Original Equipment Manufacture (OEM) cases 65–66
Outline of the Juridical Protection of Intellectual Property in China (2016–2020) 5
potential reform of Chinese patent system 53
Provisions of the Supreme People’s Court on Several Issues concerning the Application of Law in the Trial of Civil Dispute Cases Arising from Monopolistic Conduct (2012 Provisions) 115–16, 117
SPC Circuit Court, Shenzhen 104–5
supervision by 87
technical investigation officers 50, 87–88
trademark infringement 64, 65–67, 69–70
trademark use 65–66
trial mechanism 5–6
well-known trademarks 73
White Paper on IP Protection Provided by Chinese Courts 80
Work Report of the Supreme People’s Court on Intellectual Property Trials 77
Suzhou IP Court 5–6
Taiwan, Intellectual Property Court 93–94
technical investigation officers
in Beijing IP Court 88–89
patent infringement 50
questioning need for 88
risks associated with 89
role 87–88
use of 87
technological protection measures (TPMs) 118
termination of patents 39
‘three-in-one’ adjudication model 77–78, 87, 93–94, 95, 96–97
Tort Liability Law (TLL) and trademark infringement 68, 69
trademark infringement 63–68
damages 56–57, 70
filing of lawsuit 64
injunctions 56–57, 69
list 63–64
online platform, liability of 57, 68
overview 63
remedies 57, 69–70
symbol protection doctrine 66–67
and Tort Liability Law 68, 69
trademark use 57, 64
use of trademark see trademark use
well-known trademarks see under trademarks
Trademark Law of the People’s Republic of China (TML), 1982
amendments 2, 55–56
current system 55–56
customs protection 3
(p. 292)
damages system 54
distinctiveness requirement 60–61
enactment of 2
Implemental Regulations (TMLIR) 55–56
injunctions 69–70
likelihood of confusion 66–67
prior rights 62, 63
public interest protection 59–60
purpose 63
trademark infringement 64, 69–70
‘WeChat’ case 59–60, 61
well-known trademarks 74
trademark use 64
defining 64–65
and indicative use 64–65
narrow concept in China 65
and normative use 64–65
Original Equipment Manufacture (OEM) cases 65–66
sale of goods 65
trademarks
ability to be registered 57–62
basic function 60–61
certification marks 57
collective marks 57
colour marks 57–58
defining 57
distinctiveness requirement 60
acquired distinctiveness 61
blurring of distinctiveness 74
distinctiveness as a matter of degree 61
lack of distinctiveness, implications 61
trademark registration 60–61
elements of 57
exclusive right to use a registered trademark 63
geographical names, prohibition of use 60
identical, prohibition of use 58–59
infringement see trademark infringement
marks unable to be used as trademarks 58
moral and political influence of use 59
non-functionality 62
prior rights 62
service marks 57
similar to public symbols, prohibition of use 58–59
sound marks 58
three-dimensional 57–58, 62, 64–65
Trade Mark Office (TMO) 56–57, 58, 62–63
Trade Mark Review and Adjudication Board (TMRAB) 56–57, 58, 59–60, 62–63, 64, 83–84
Trademark Law of the People’s Republic of China (‘Trademark Law’) see Trademark Law of the People’s Republic of China (TML), 1982
two-dimensional 57–58
unregistered 57, 72, 74
use of see trademark use
well-known 72–74
defining 73
determining 73
exclusiveness 74
malicious piracy of 62–63
Paris Convention 72
protecting 74
Provisions on the Determination and Protection of Well-Known Trade Marks (PDPWTM) 72
terminology 72
TRIPS Agreement 72
unregistered trademarks 72, 74
transfers, patents 15–16, 31
treaties and conventions 117
accession to, in relation to patents 25
Agreement on Trade-Related Aspects of Intellectual Property Rights (2001) see TRIPs Agreement (Agreement on Trade-Related Aspects of Intellectual Property Rights), 2001
anti-competitive agreements and IP licensing 169
Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purpose of Patent Procedure (1995) 25
Convention Establishing the World Intellectual Property Organization (1980) 2–3, 25
Convention priority 36
Convention Relating to International Exhibitions 36
development history 2–3
Intellectual Property Treaties of Integrated Circuits (1990) 2–3
International Convention for the Protection of New Varieties of Plants (1999) 2–3
Locarno Agreement Establishing an International Classification for Industrial Designs (1996) 25
Madrid Agreement Concerning the International Registration of Marks (1989) 2–3, 55–56
Patent Cooperation Treaty (1993) 2–3, 25, 32
(p. 293)
Strasbourg Agreement Concerning the International Patent Classification (1997) 25
Universal Copyright Convention (1992) 2–3
World Intellectual Property Organization Copyright Treaty (WCT), 2007 2–3, 118, 119–20
World Intellectual Property Organization Performances and Phonograms Treaty (WPPT), 2007 2–3, 118
trial mechanism 5–6
tribunals, IP 77, 78–79, 82
withdrawal of 94–95
TRIPs Agreement (Agreement on Trade-Related Aspects of Intellectual Property Rights), 2001
accession to treaties and patents 25
Border Measures and administrative management 3
copyright 102
development history 2–3
judicial protection 5
reform of Chinese judicial system 79–80
well-known trademarks 72 see also World Trade Organization (WTO)
tying and bundling 217
United States
forum shopping concerns 86–87
Patent and Trademark Office (US PTO) 141–42
specialized IP court of appeal 93
utility model patents 37
application for 33–34
procedure 33, 34
statistics 26
claim interpretation 42
coexistence with application for invention patent 29
compulsory licenses 32
conditions for granting 28
defining 27
duration 28
existing technologies 28
grace period 36
inventive step requirement 29
major technical advancement 32
novelty 28–29
practical use 29
preamble and characterizing portions of claim 35
publication and granting of 37
regulation of 27
scope of protection 33
webpage notarization, patent infringement evidence 47
wireless communications network equipment 14–15
World Intellectual Property Organization Copyright Treaty (WCT), 2007 2–3, 118
World Intellectual Property Organization Performances and Phonograms Treaty (WPPT), 2006 2–3, 118, 119–20
World Trade Organization (WTO)
accession agreement 149–50
Chinese membership 2, 102
Wuhan IP Court 5–6
Yuan, X. 80–81
Zhang, H. 10