China IP SME Helpdesk Newsletter

While trade secret cases are complicated and time consuming, sometimes there are also success stories. In this article, China IP SME Helpdesk external expert Jamie Rowlands and his colleagues Ivy Liang, Vivian Desmonts and Evelyn Zhang discuss the case of Jiaxing Zhonghua Chemical Company vs. Wanglong Group, in which the largest trade secret infringement case compensation was awarded to the trade secret holder. Read further to learn how to enforce your trade secrets in China. Article written by Jamie Rowlands, Partner at Gowling WLG jamie.rowlands@gowlingwlg.com

On Wednesday 22 September, the Chinese Government issued the 15-Year Plan for IPR Protection. The plan aims to accelerate legislation on IPR in new technologies, including big data and AI. To achieve this “the country will also formulate and revise laws and regulations on strengthening the protection of business secrets, improve the legal system for regulating the abuse of IPRs, and improve legislation covering monopoly practices and unfair competition related to IPRs.” Improvements in China’s IP laws and regulations will also benefit foreign IP holders wishing to do business in China.

The protection of Geographical Indications has the potential of increasing trade in GI products, benefitting the EU and Chinese GI producers. While the EU-China Agreement on Geographic Indications came to force only in March 2021, Xinhua News is already reporting the benefits of the Agreement. According to Xinhua News “since the signing of the agreement on Sept. 14, 2020, agri-foods like Gannan navel oranges, Qianjiang crayfish, Wuchang Rice, Champagne of France and Munich beer have become increasingly popular in Chinese and European markets.”

Good IP news from Taiwan – the Taiwan Intellectual Property Office (TIPO) has updated its classification list of industrial designs in accordance with the latest edition of the World Intellectual Property Organization’s Locarno Classification for Industrial Designs. If you plan to apply for the design rights in Taiwan, make sure to check out this announcement and the latest edition of the Locarno Classification for Industrial Designs. TIPO started receiving applications under the new classification from 1st of September 2021.

The State Administration for Market Regulation has recently drafted guidelines for revising China’s E-commerce Law and submitted these to public comments. The proposed revisions take a tougher stance towards IP infringements on e-commerce platforms and increase the responsibilities of those platforms, especially when it comes to removing infringing content. Experts estimate that “the harsher regulatory stance might cause some short-term headwinds for e-commerce platforms, but its focus on well-regulated, rather than runaway, growth would illuminate the path to more sustainable development for the world's largest e-commerce market”.