Dr. Thomas Pattloch, LL.M.Eur.

The new Chinese Patent LawAn overview

Dr. Thomas Pattloch, LL.M.Eur., German Attorney at LawSenior Counsel TaylorWessing

Former Intellectual Property Officer EU Delegation Beijing

2Dr. Thomas Pattloch, LL.M.Eur.

Background

• National IP Strategy 2006-2020• 11th National Program for Long- and Medium-term Scientific and

Technological Development 2006-2010• 11th Five-year Plan for National Economic and Social Development

2006-2010

3Dr. Thomas Pattloch, LL.M.Eur.

Objectives

• Patent quality • Technology transfer and independent innovation • Strengthen enforcement• Introduce better balance of interests

– Bio-piracy/protection of China’s resources– Compulsory licensing

4Dr. Thomas Pattloch, LL.M.Eur.

Patent quality

• Absolute novelty standard introduced, Articles 22(5), 23(3)• Patent evaluation report introduced in infringement procedures

including design patents or utility models, Article 61(2)• “Technicality” requirement i.e. European approach now explicitly

stipulated in the law, Article 2• Stricter requirements on patent claims, Articles 26(4), 27(2), and

design patent applications, Articles 27(1), 59(2)• Restriction of scope of patentability for designs for two-dimensional

designs “mainly serving as an indicator”, Article 25(6)• Double patenting for utility models and invention patents, Article 9(1)• Multiple design applications allowed, Article 31(2)

5Dr. Thomas Pattloch, LL.M.Eur.

Technology Transfer

• Stricter appliance of TIER rules in transfer of patent applications and patent rights to foreigners, Article 10(2)

• Confidentiality examination for filing abroad introduced, Article 20• Employee’s invention/service inventions

6Dr. Thomas Pattloch, LL.M.Eur.

Confidentiality examination

• Questions:– “Completed in China” definition?– “National interest” definition?– Decision on need to keep confidential – in particular because of

national interest and not because of national security - by SIPO or other agency?

– Can third parties rely on lack of confidentiality examination for invalidation?

– No remedy for accidental oversight

7Dr. Thomas Pattloch, LL.M.Eur.

Enforcement

• Broader scope of protection for design patents to include offer for sale, Article 11(2)

• Damage compensation increased to include reasonable enforcement costs, maximum statutory damage 1 million RMB, Article 65

• Interim injunction strengthened, Article 66• Court evidence preservation strengthened, Article 67• Fines for patent passing-off quadrupled, Article 63• Investigation rights of administrative patent authorities strengthened,

Article 64

8Dr. Thomas Pattloch, LL.M.Eur.

Restricting amendments

• Equity principle for unjust enrichment extended to damages paid for invalid patents, Article 47(3)

• Compulsory licensing extended to cover insufficient exploitation without justified reason and adverse effects caused to competition, Article 48(2)

• Compulsory licensing to implement Doha Declaration of TRIPS for access to medicines, Article 50

• Compulsory licensing for semiconductor technology specified, Article 52

• Prior art defence introduced, Article 62• International exhaustion introduced, Article 69(1)• Infringement exemptions broadened with explicit Bolar-type

exemption, Article 69(5)

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Protection of Chinese interests

• Genetic resources stipulations in Article 5(2), 25, 26(5)• Bolar exemption – no patent term extension or supplementary

protection certificate • Compulsory licensing

Dr. Thomas Pattloch, LL.M.Eur.

Thank you!

Dr. Thomas Pattloch, LL.M.Eur., German Attorney at LawIsartorplatz 8

80331 Munich, GermanyT. +49 (0)89 2 10 38 0

F. +49 (0)89 2 10 38 300Email: t.pattloch@taylorwessing.com