On 18 August 2021, the Supreme People’s Court of the P.R.C. issued the “Interpretation of the Supreme People’s Court on Several Issues Concerning the Application of the Anti-Unfair Competition Law of the People’s Republic of China (Draft for Comments)” (hereinafter referred to as the “Draft for Comments”) for public review and opinions. The Draft for Comments represents the Supreme Court’s first move of making comprehensive amendment[1] of the “Interpretation of the Supreme People’s Court on Several Issues on the Application of Law in Hearing Civil Cases Regarding Unfair Competition” (hereinafter referred to as the “2007 Judicial Interpretation of the Anti-Unfair Competition Law” or “2007 Interpretation”), which has been in effect since 2007. The Draft for Comments accommodates the 2017 and 2019 amendments of “Anti-Unfair Competition Law of the People’s Republic of China” (hereinafter referred to as the “Anti-Unfair Competition Law”) and reflects on and summarizes the relevant rules in judicial practice over the past few years.
Continue Reading Highlights of the Draft for Comments of the Judicial Interpretation of the Anti-Unfair Competition Law of the PR.C.
Big Change of the Definition of Commercial Bribery
By Harry Liu, Sam Li, Olivia Xia King & Wood Mallesons’ Dispute Resolution group
On 4 November 2017, the Anti-Unfair Competition Law Amendment (“AUCLA”) was ratified by the Thirtieth Meeting of the Standing Committee of the Twelfth National People’s Congress after three rounds of review[1]. It will come into effect on 1 January 2018. It has greatly improved the Anti-Unfair Competition Law (“AUCL”) which was enacted back in 1993.
Commercial bribery, as an integral concern of the AUCL, has been in the spotlight during the amendment process.
Continue Reading Big Change of the Definition of Commercial Bribery
Amendment to China’s Anti-Unfair Competition Law
By Shi Bisheng King & Wood Mallesons’ IP group.
On 4 November 2017, the 30th Meeting of the Standing Committee of the Twelfth National People’s Congress of the People’s Republic of China passed an amendment to the Anti-Unfair Competition Law of the People’s Republic of China (“Anti-Unfair Competition Law”), which will come into effect on 1 January 2018. This is the first major amendment to the Anti-Unfair Competition Law since its implementation in 1993, and it will have a significant impact on businesses in China.
Continue Reading Amendment to China’s Anti-Unfair Competition Law
Highlights of the Draft Amendment to China’s Anti-Unfair Competition Law: Abuse of a Comparatively Advantageous Position
By Susan Ning, Hazel Yin, Han Wu, Lingbo Wei King & Wood Mallesons’ Commercial & Regulatory Group
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On February 25th 2016, the State Council published the Anti-Unfair Competition Law (Draft Amendment) (the law hereinafter the “AUCL”, the draft amendment hereinafter the “Draft”) for public comments. Certain issues have arisen since the implementation of AUCL in 1993, for example, new types of unfair competitive behaviors have been under-regulated and the penalties do not have enough deterrent effects. Also, since 2008, the enactment of the Antitrust-Monopoly Law (“AML”) has resulted in overlaps and inconsistent standards of application.
The Draft not only clarifies some traditional anti-unfair competition behaviors listed in the AUCL, but also provides regulation of new types of unfair competition conducts. The current AUCL has 5 chapters 33 articles while the Draft involves amendment to 30 articles. The Draft strikes out 7 articles, adds 9 articles, and totals 35 articles. It mainly amends and improves 6 behaviors (passing off, commercial bribery, misleading advertising, infringement of business secret, sales with giveaway and commercial defamation), and adds two behaviors (abuse of comparatively advantageous position and unfair competition on the internet). Additionally, the draft substantially increases penalties on unfair competition behaviors.
Continue Reading Highlights of the Draft Amendment to China’s Anti-Unfair Competition Law: Abuse of a Comparatively Advantageous Position
China Focuses on Bribery and Corruption in Multinational Companies
By King & Wood Mallesons’ International Dispute Resolution Group
In recent years, several large multinational pharmaceutical companies have been found to be in violation of the Anti-Unfair Competition Law. Compliance in the area of commercial bribery is increasingly a focus of the Chinese authorities. Most recently, pharmaceutical companies have been punished in China for commercial bribery. Not only the companies, but also individual employees who have violated Chinese law, are being charged and prosecuted.
The State Administration of Industry and Commerce, as well as the administrative agencies of industry and commerce at lower levels, are primarily responsible for the enforcement of the anti-commercial bribery laws. The focus has been enforcement of the Anti-Unfair Competition Law and the Interim Provisions on Prohibition of Commercial Bribery (“Interim Provisions”).
Continue Reading China Focuses on Bribery and Corruption in Multinational Companies
The relation between Domain Name Registration and Trademark infringement
By King & Wood Mallesons’ Trademark Group
WeiChai Power Co. Ltd. (“WeiChai Co. Ltd.”) has been using “WeiChai” as their well-known company name and trademark. WeiChai Co. Ltd. filed a complaint at the Domain Name Dispute Resolution Center against SHENZHEN PANGU INVESTMENT GUARANTEE CO. LTD. (later changes its name to GUO ZHONG CO. LTD.) for their registered “weichai.cn.” domain name. On 30 January 2011, the Domain Name Dispute Resolution Center ruled that the domain name should be transferred to WeiChai Co. Ltd. Dissatisfied with the ruling, GUO ZHONG CO. LTD. initiated a civil action before the Beijing First Intermediate People’s Court,
Continue Reading The relation between Domain Name Registration and Trademark infringement
MIIT Issues Revised Draft Rules Governing Competition in Internet Industry
By Susan Ning and Yin Ranran
On 27 July 2011, the Ministry of Industry and Information Technology ("MIIT") issued for public comments draft rules entitled Provisions on Administration of Internet Information Services (Draft for Comments) ("Draft Rules").
The Draft Rules are based on an earlier draft entitled Interim Rules for Supervision and Management of Internet Information Service Market ("Interim Rules") released by MIIT on 12 January 2011.1 The Draft Rules mainly set out the code of conducts for an internet information service provider ("IISP") vis-à-vis its competitors and consumers.
Continue Reading MIIT Issues Revised Draft Rules Governing Competition in Internet Industry
MIIT Issues Guidance to Maintain Fair Competition Order among Basic Telecom Operators on College Campuses
By Susan Ning and Yin Ranran
On June 30, the Ministry of Industry and Information Technology ("MIIT") issued the Opinion on Regulating Conducts of Basic Telecoms Enterprises on College Campuses ("MIIT Opinion"). The MIIT Opinion governs specified conduct by basic telecom enterprises1 -in relation to unfair competition issues within college or university campuses.