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Privileged and Confidential © 2019 Han Kun Law Offices. All Rights Reserved.
Design Protection in China
Nov. 8, 2019
Lili WU, Partner
Privileged and Confidential 1
HAN KUN
Design Registration
Cross Border Issues
Design Enforcement
Agenda
Privileged and Confidential 2
HAN KUN
*Source: CNIPA Website
New Patent Applications Statistic Data
Huge new patent applications each year! Start to slow down from 2019
2014 2015 2016 2017 2018 2019.01-2019-06
Utility model 868,511 1,127,577 1,475,977 1,687,593 2,072,311 1,005,686Invention 928,177 1,101,864 1,338,503 1,381,594 1,542,002 571,282Design 564,555 569,059 650,344 628,658 708,799 330,876
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
New Patent Applications Received by CNIPA
first half of 2019
9.4%
Quantity has been enough, Quality of patents becomes priority in CNIPA since 2019
Privileged and Confidential 3
HAN KUN
*Source: CNIPA Website
New Patent Applications Statistic Data
Many foreign new cases are received by CNIPA
2014 2015 2016 2017 2018 2019.01-2019.06
Invention 127,042 133,613 133,522 135,885 148,187 77,847Utility model 7,458 7,863 7,682 7,786 8,451 4,247Design 16,127 17,578 18,395 17,841 19,702 9,709
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
New Applications by Foreign Applicants
8.6%first half of 2019
Privileged and Confidential 4
HAN KUNDesign Prosecution Timeline
Chinese Patent Office
Filing ……Grant
RejectOA1 OA2 OA3
Patent Reexamination
Board (PRB)
Pre-reexamination … Reexamination
DecisionOA1 OA2 Oral
hearing
Court Beijing IP Court IP Tribunal of Chinese Supreme Court
Retrial Tribunal of Chinese Supreme
Court
Privileged and Confidential 5
HAN KUNNew Patent Applications Statistic Data
*Source: CNIPA Website
Pendency of design applications in CNIPA is around 4 months!
Cost: 500 USD
Annuity for 10 years: 2,500 USD
Privileged and Confidential 6
HAN KUNDesign Practice Comparison
Solid lines
Broken lines
Shading lines
Partial design
Photographs Photographs
Solid lines
Broken lines
Shading lines
Partial design
Privileged and Confidential 7
HAN KUNDesign Practice Comparison
Partial design (Broken line not allowed in China)
RCD000161971Furniture
DM/095424Seat
Privileged and Confidential 8
HAN KUNDesign Practice Comparison
Design (adaptive amendment before CN filing)
OR
Privileged and Confidential 9
HAN KUNDesign Practice Comparison
GUI design
Privileged and Confidential 10
HAN KUN
Design Registration
Cross Border Issues
Design Enforcement
Agenda
Privileged and Confidential 11
HAN KUN
Hague Agreement concerning the International Registration of Industrial Designs
− China has not yet subscribed the Hague Agreement concerning the International Registration of Industrial Designs. Therefore, the only way to seek protection of a design in the country is through the national filing of the registration.
International Exhaustion
− According to Article 69 of the CPL, “None of the following circumstances shall be deemed an infringement upon a patent right: using, promising to sell, selling or importing any patented product or product directly obtained under the patented process after the said product is sold by the patentee or by its (his) licensed entity or individual”. Therefore, China adopts the international exhaustion principle, and the products that are imported into China lose the protection by the CPL if they have been legally obtained by the importer.
Cross-Border Issues
Privileged and Confidential 12
HAN KUN
Transfer of design patent right
− Both the design patent and the design application can be transferred. All transfers must be confirmed in writing and registered before the CNIPA. The transfer will only be valid and effective after its recordation.
License
−As to the license of the design patent, it is not required to be recorded before the CNIPA.
Cross-Border Issues
Privileged and Confidential 13
HAN KUN
Design Registration
Cross Border Issues
Design Enforcement
Agenda
Privileged and Confidential 14
HAN KUN
Generally four ways
− On Line Complaint
− Send the complaint to e-commerce platform
− Foreign court decision is very helpful
− Customs Seize
− Administrative Enforcement (SAMR)
− Patent Litigation
Design Patent Enforcement
Privileged and Confidential 15
HAN KUNNew Court Cases Statistic Data
Many new IP cases were received by Chinese courts
*Source: White paper regarding IP protection in China (SPC, 2013-2018)
Privileged and Confidential 16
HAN KUN
Injunction
Damage
Design Patent Litigation in China
Privileged and Confidential 17
HAN KUN
Injunction
− Permanent injunction
− Almost automatic once there is infringement
− Preliminary injunction
− Very likely if the infringing product is the same or very similar as the design patent
Design Patent Litigation in China
Design patent Infringing product
Privileged and Confidential 18
HAN KUN
Damage
− (1).Lost profit of the plaintiff
− (2).Illegal gaining of the infringer
− (3).Reasonable royalty
− (4).Statutory damage of up to 1 million RMB (about 140K USD) if the above (1) to (3) cannot be decided.
− (5) Punitive damage of up to 5 times of damage for bad faith infringement according to the draft of amendment of Patent Law
Design Patent Litigation in China
Privileged and Confidential
THANKSLili [email protected]: (86) 13511006372Telephone: (86 10) 8516 4266Facsimile: (86 10) 8525 5511 / 55229/F, Office Tower C1, Oriental Plaza, 1 East Chang An Ave., Beijing 100738, P. R. Chinawww.hankunlaw.com
