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IPR Enforcement in China
Gervis got a really cool machine.




  Chin             Chan             Chang
Sold it to Chin.
Made $.




  Chin             Chan   Chang
Sold it to Chan.
Made $$.




  Chin             Chan   Chang
Chinese biz skyrocketed.
Made $$$$$.
Takeover bid.


  Chin            Chan     Chang
Chin   Chan   Chang
Chin   Chan   Chang
Gervis




Chin   Chan       Chang
IPR Enforcement in China
IPR Enforcement in China
IPR Enforcement in China
IPR Enforcement in China
IPR Enforcement in China
OBJECTIVES


RIGHTS         HOUSEKEEPING


           TEAM
INFRINGER

INFRINGEMENT

 INDUSTRY
Administrative

Customs

                       Criminal

Mediation

          C/D Letter

Civil
A. ADMINISTRATIVE ACTION
1. Agencies
2. Procedure
3. Pros & Cons
B. CUSTOMS


1. Record Your Rights
2. Train Officers on Your Rights
C. CRIMINAL ACTION
1. Offenses
2. Indictment Threshold
3. Procedure
4. Sentence
Indicted: 5,707
IP offenses      : 3,134
Inferior Products:        774
Illegal Business : 1,747
Others               :      52
D. MEDIATION
1. Weak Rights
2. Save Face


Outsourced mediation: 120 IP cases
IP cases: 73% settled
E. CEASE & DESIST LETTER


1. Weak Rights
2. DJ
F. CIVIL ACTION
All IPs in Year 2011: 60K       (59,612)
Patent:        8K               (7,819)
Trademark: 13K                  (12,991)
Copyright:    35K               (35,185)
Licensing: 0.6K                 (557)
Anti-trust:   1.1K              (1,137)
Others:       2.2K              (2,193)
P 13%
Trial Level IPs
                  T 22%

                  C 59%

                  L 1%

                  A 2%

                  O 3.6%
ET cases = 1,321
HK, MO, TW    = 639
Aliens like you = 682 ~ 1.1%
IPR Enforcement in China
1. When ¨C Time Line
2. Who ¨C Standing
3. What ¨C Infringing Acts
4. How ¨C Proof
5. Pre-trial Motions
6. Remedies
1. TIME LINE
A. Investigation
B. Pretrial Motion in Intermediate Court
C. File a Complaint (w/in 15 days of PM)
D. Docket the case w/in 7 days
E. Serve on D w/in 5 days
F. Filing Defense w/in 15 days
G. Full Trial ? app. 6 ~ 12 mons
1. TIME LINE ¨C
H. Appeal to High Court w/in 15 days
I. High Court ? 3 ~ 6 mons         (7,642)
J. Retrial, Sup Ct, 2 yrs          (305)
2. STANDING
A. Patentee
B. Exclusive Licensee
C. Sole licensee + inaction of the patentee
D. Assignee
3. INFRINGING ACTS
A. Make
B. Use
C. Offer to sell
D. Sell
E. Import
F. Use the method
G. Product directly made using method
H. Contributory Infringement
3.1 DEFENSE


A. Invalidity ? Stay the case; D institutes
   invalidation suit with the Patent
   Reexamination Board
B. Prior art defense
C. Prior use defense
D. Statute of Limitation = 2 years
4. BoF & EVIDENCE
A. Reversed in case of a method of making
   new products (worldwide)
B. TYPES OF EVIDENCE
*Documentary
*Material
*AV
*Testimonial
No discovery.


BoF does not shift if the other party declines
evidence request.


Possession + Unreasonable denial =
unfavorable inference
Official docs ? cool
Testimony ? not cool


Original > Replica


Extraterrestrial Evidence ? N + L
5. PRE-TRIAL MOTIONS


A. Preliminary Injunction   (130, 98%)
B. Evidence preservation    (186, 93%)
C. Property preservation    (20, 100%)


P must pay surety bond
6. REMEDIES
A. Injunction
  *fine¡ª
      Individual: up to 100K RMB
      Entity: 50K ~ 1 M RMB
  Detention for up to 15 days
B. Fee for pre-grant use
C. Damages for post-grant use
IPR Enforcement in China

More Related Content

IPR Enforcement in China

  • 2. Gervis got a really cool machine. Chin Chan Chang
  • 3. Sold it to Chin. Made $. Chin Chan Chang
  • 4. Sold it to Chan. Made $$. Chin Chan Chang
  • 5. Chinese biz skyrocketed. Made $$$$$. Takeover bid. Chin Chan Chang
  • 6. Chin Chan Chang
  • 7. Chin Chan Chang
  • 8. Gervis Chin Chan Chang
  • 14. OBJECTIVES RIGHTS HOUSEKEEPING TEAM
  • 16. Administrative Customs Criminal Mediation C/D Letter Civil
  • 17. A. ADMINISTRATIVE ACTION 1. Agencies 2. Procedure 3. Pros & Cons
  • 18. B. CUSTOMS 1. Record Your Rights 2. Train Officers on Your Rights
  • 19. C. CRIMINAL ACTION 1. Offenses 2. Indictment Threshold 3. Procedure 4. Sentence
  • 20. Indicted: 5,707 IP offenses : 3,134 Inferior Products: 774 Illegal Business : 1,747 Others : 52
  • 21. D. MEDIATION 1. Weak Rights 2. Save Face Outsourced mediation: 120 IP cases IP cases: 73% settled
  • 22. E. CEASE & DESIST LETTER 1. Weak Rights 2. DJ
  • 23. F. CIVIL ACTION All IPs in Year 2011: 60K (59,612) Patent: 8K (7,819) Trademark: 13K (12,991) Copyright: 35K (35,185) Licensing: 0.6K (557) Anti-trust: 1.1K (1,137) Others: 2.2K (2,193)
  • 24. P 13% Trial Level IPs T 22% C 59% L 1% A 2% O 3.6%
  • 25. ET cases = 1,321 HK, MO, TW = 639 Aliens like you = 682 ~ 1.1%
  • 27. 1. When ¨C Time Line 2. Who ¨C Standing 3. What ¨C Infringing Acts 4. How ¨C Proof 5. Pre-trial Motions 6. Remedies
  • 28. 1. TIME LINE A. Investigation B. Pretrial Motion in Intermediate Court C. File a Complaint (w/in 15 days of PM) D. Docket the case w/in 7 days E. Serve on D w/in 5 days F. Filing Defense w/in 15 days G. Full Trial ? app. 6 ~ 12 mons
  • 29. 1. TIME LINE ¨C H. Appeal to High Court w/in 15 days I. High Court ? 3 ~ 6 mons (7,642) J. Retrial, Sup Ct, 2 yrs (305)
  • 30. 2. STANDING A. Patentee B. Exclusive Licensee C. Sole licensee + inaction of the patentee D. Assignee
  • 31. 3. INFRINGING ACTS A. Make B. Use C. Offer to sell D. Sell E. Import F. Use the method G. Product directly made using method H. Contributory Infringement
  • 32. 3.1 DEFENSE A. Invalidity ? Stay the case; D institutes invalidation suit with the Patent Reexamination Board B. Prior art defense C. Prior use defense D. Statute of Limitation = 2 years
  • 33. 4. BoF & EVIDENCE A. Reversed in case of a method of making new products (worldwide)
  • 34. B. TYPES OF EVIDENCE *Documentary *Material *AV *Testimonial
  • 35. No discovery. BoF does not shift if the other party declines evidence request. Possession + Unreasonable denial = unfavorable inference
  • 36. Official docs ? cool Testimony ? not cool Original > Replica Extraterrestrial Evidence ? N + L
  • 37. 5. PRE-TRIAL MOTIONS A. Preliminary Injunction (130, 98%) B. Evidence preservation (186, 93%) C. Property preservation (20, 100%) P must pay surety bond
  • 38. 6. REMEDIES A. Injunction *fine¡ª Individual: up to 100K RMB Entity: 50K ~ 1 M RMB Detention for up to 15 days B. Fee for pre-grant use C. Damages for post-grant use

Editor's Notes

  • #15: The company with the most effective China IP strategies are those whose strategies are intimately linked with their commercial objectives. Looked at her China business plan. Selling existing products. Potential leaks. What evidence do you need. What team do you need. One of the biggest areas of IP leakage in chia is through employees and business partners.
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