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Written by: Mark Schaub Atticus Zhao Mark Fu KWM Corporate & Commercial Group
The manner in which China will regulate data security in the automotive industry has become much clearer.On 20 August 2021, the Cyberspace Administration of China (the “CAC”), together with the National Development and Reform Commission, the Ministry of Industry and Information Technology (MIIT), the Ministry of Public Security, and the Ministry of Transport, jointly issued the Provisions on Management of Automotive Data Security (Trial) (“Management Provisions”), which will take effect on 1 October 2021.The Management Provisions have made a number of changes to the previously circulated Provisions on the Management of Automotive Data Security (Draft) (the “Draft“) which were issued by CAC in May 2021 for public comments. However, one thing that did not change is China’s clear intent that data security of the automotive industry will be strictly regulated.The main update is that the Management Provisions adopt more accurate definitions and terms, and form a clearer framework regarding the protection and regulating of personal information and important data. Also it can be noted that the legislators have taken pains to have the Management Provisions be consistent with other laws such as Data Security Law[1].

This article highlights the key changes made in the Management Provisions:

Continue Reading China Issues New Rules on Data Security in Auto Industry

On August 17, 2021, the China National Intellectual Property Administration (CNIPA) issued “Judgement Standard for General Trademark Violations (Draft for Public Comments)” (hereinafter referred to as the “Standard”) and made it available for public comments. The Standard, which mainly bases on the Trademark Law and the Regulation on the Implementation of the Trademark Law, aims to strengthen operational guidance on trademark enforcement, unify enforcement standards and optimize the innovation environment and business environment. Any comments for the Draft shall be submitted to the CNIPA before October 1, 2021.
Continue Reading China National Intellectual Property Administration issued “Judgement Standard for General Trademark Violations (Draft for Public Comments)”

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.

Written by: Ye Bill, Sun Xing, Yu Yue, Jin Baihe, Ding Ying 

KWM Compliance & Regulatory Group

While large-scale special administrative inspection on royalty payments had not been completed, the PRC customs (“the Customs”) launched a new round of investigation early this year, with an increasing focus on the effects of special relations between buyers and sellers (“Special Relation”) on the determination of dutiable value of imports. The transfer pricing investigation pays close attention to luxury, medicine and mechanical equipment industries. Up to now, many enterprises have received oral or written notices from the Customs requesting explanations on whether and how Special Relation would impact their import price.
Continue Reading A Dialectical Method Of Balancing Customs Supervision And Tax Supervision On Price Of Imports – Twelve Key Questions

In the top ten patent reexamination & invalidation cases of 2020 announced by the China National Intellectual Property Administration (CNIPA), three are related to mechanical technologies.  According to the CNIPA, these cases were selected for their guiding value in certain topics typical for patent examination, as well as the considerable social attention focused on them.  The opinions reflected in the Decisions of these cases would undoubtedly impose great influence on the practices of both substantial examination and invalidation, and can be cited as supporting reference or evidence to benefit similar cases.  Therefore, we summarize below the case brief and typical significance of these cases.
Continue Reading Introduction to 2020 Top Ten Patent Reexamination/Invalidation Cases (Mechanical)

The Supreme People’s Court published a final decision in April, in which the court holds that the court may reduce the damages awarded in the infringement proceeding for the infringing acts taking place before the amendment made to the asserted patent claim, provided that the claim is amended by adding technical features from other claims during the invalidation proceedings, considering the balancing between the public interests and protection for patents. Therefore, it is recommended that the patentee shall be prudent when considering to amend a patent claim by adding features from other claims during the invalidation proceedings.
Continue Reading The SPC’s Precedent Shows that the Amendment to Patent Claims during Invalidation Proceedings by Adding Technical Features of other Claims May Reduce the Damages Awarded in Infringement Proceedings

By Mark Schaub, Serena Guo KWM Overseas Office

A number of offices operated by international organizations in China have been recently visited by the Ministry of Public Security or its local bureaus (“PSB”) officers for operating in a non-compliant manner. Such organizations have been urged by the PSB to establish NGO Representative Offices if they wish to operate in China long term.
Continue Reading Management of Non-Registered NGOs in China

Recently, the Supreme People’s Court of PRC (“SPC”) ruled in the final judgments of two cases of infringement upon utility model patents that even if the infringer had only committed the infringement conduct of offering for sale, it should be also held liable for the damages caused to the right owner in addition to ceasing the infringement.
Continue Reading The SPC Rules that the Infringer Only Offering for Sale the Accused Product Should be Also Liable for Damages