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1Introduction 1

1.1 Intellectual Property Rights in China 1

1.2 Scope of This Book 2

1.3 History of Patent Law in China 2

1.4 Modern Patent Law 3

1.5 Patents in China 3

1.6 Weaknesses in the Chinese Patent System 4

2Sources of Patent Law 7

2.1 Principal Legal Provisions Covering Patent Law 7

2.2 Other Relevant Legislation 8

2.3 Amendments to the Patent Law 9

2.4 Renumbering of Articles After Amendment 9

2.5 Transitional Provisions Applying to the Most Recent Amendments 9

2.6 Case Law 10

2.7 Supreme Court Judicial Interpretations and Opinions 11

2.8 Interpretations and Opinions of the Lower Courts 12

3Introduction to Chinas Administrative and Judicial Patent Systems 13

3.1 Introduction 13

3.2 Administrative System 13

3.3 Judicial System 13

3.4 State Intellectual Property Office 14

3.5 Patent Review and Adjudication Board 15

3.6 Structure of the Chinese Judicial System 16

3.7 Intellectual Property Chambers 17

3.8 Courts That Handle Patent Cases 17

3.9 Appeals 18

3.10 The Judiciary 18

3.11 Adjudication Committees 19

4Administrative Enforcement 21

4.1 Administrative Enforcement 21

4.2 The Procedure for SIPO Administrative Actions 22

4.3 Mediation by the SIPO 25

4.4 General Administration for Customs 27

5Patents 31

5.1 Introduction 31

5.2 Types of Patents 31

5.3 Filing Requirements 32

5.4 Term of Protection 33

5.5 Grace Periods 34

5.6 Patent Examination Guidelines 34

5.7 Preliminary Examination 35

5.8 Substantive Examination 36

5.9 Rejection 37

5.10 Re-Examination 38

5.11 Appeal of the Re-Examination Decisions to the Court 39

6Grounds for Invalidating a Patent 41

6.1 Introduction 41

6.2 Statutory Grounds 41

6.3 Definitions of Invention and Utility Model 42

6.4 Confidentiality Examination 43

6.5 Novelty 44

6.6 Inventiveness 48

6.7 Practical Applicability 51

6.8 Sufficiency of Disclosure 52

6.9 Claims Must Be Supported by the Description 54

6.10 Amendments 56

6.11 Claims Must Contain the Essential Technical Features 58

6.12 Divisional Applications Must Not Go Beyond Scope of Original Application 59

6.13 Law, Morality, or Public Interest 59

6.14 Breach of Law or Regulations Relating to Genetic Resources 61

6.15 Prohibited Inventions 61

6.16 Earlier Application 62

7Patent Revocation Proceedings 63

7.1 Introduction 63

7.2 Application for Revocation 63

7.3 Invalidation Procedures 64

7.4 Grounds for Invalidation 68

7.5 Evidence 69

7.6 Oral Hearing 74

7.7 Appeal of PRAB's Invalidation Decision 75

7.8 Effect of a Final Invalidation Decision 77

8Civil Litigation in China 79

8.1 Introduction 79

8.2 Summary of Civil Proceedings 79

8.3 Judging Panel 79

8.4 Filing Fees 79

8.5 The Complaint 80

8.6 Acceptance of the Complaint 81

8.7 Service of the Complaint 81

8.8 Defense 82

8.9 Proceedings in the Absence of a Party 82

8.10 Mediation 82

8.11 Evidence Collection and Admissibility 83

8.12 Evidence Exchange 83

8.13 Trial 84

8.14 Judgment 85

8.15 Appeals 85

8.16 Effect of an Appeal 87

8.17 New Evidence on Appeal 87

8.18 Review of the Decision by the Supreme Court or Procuratorate 87

9Preliminary and Interlocutory Issues 89

9.1 Introduction 89

9.2 Powers of Attorney 89

9.3 Limitation Periods 91

9.4 Jurisdiction 93

9.5 Search Reports for Utility Model and Design Cases 96

9.6 Pretrial or Interim Injuctions 97

9.7 Asset-Freezing Orders 100

9.8 Declaration of Non-Infringement 100

9.9 Stay of Infringement Proceedings 101

10Evidence 105

10.1 The Importance of Evidence 105

10.2 Permitted Evidence 106

10.3 Best Evidence Rule 107

10.4 Notarized Evidence 107

10.5 Foreign Evidence: Notarization and Legalization 108

10.6 Foreign Language Evidence 108

10.7 Expert Evidence 108

10.8 Evidence Preservation Orders 109

10.9 Evidence Collection by the Court 111

10.10 The Burden of Proof Does Not Shift If the Other Party Does Not Comply with an Evidence Request 111

10.11 Penalties for Destroying Evidence 111

10.12 Investigations by the Parties 112

10.13 Inadmissibility of Illegally Obtained Evidence 113

10.14 Admissibility of Pretext or Trap Purchases 114

11Patent Infringement Litigation—Invention Patents and Utility Models 117

11.1 Introduction 117

11.2 The Rights of Patentees and Related Injured Parties to Bring Action 118

11.3 Acts of Infringement 119

11.4 Indirect Infringement 120

11.5 Joint Infringement 121

11.6 Reverse Burden of Proof If the Patent Relates to a Method of Making a New Product 122

11.7 Claim Interpretation 122

11.8 Doctrine of Equivalents 125

11.9 File Wrapper Estoppel 128

11.10 Interpretation of Claims to Rectify Mistakes 129

11.11 Proving Infringement 129

12Defenses 131

12.1 Types of Defense 131

12.2 Invalidity *13212

12.3 Non-infringement *13212

12.4 PriorArt Defense 133

12.5 Exhaustion of Rights 134

12.6 Prior Use Defense 134

12.7 Temporary Entry into China 136

12.8 Research and Development 136

12.9 Clinical Trials 136

12.10 Innocence 137

12.11 Limitation Defense 138

12.12 Breach of Anti-Monopoly Law 138

12.13 Patent Incorporated into Standard 139

13Design Patents 141

13.1 Introduction 141

13.2 Stay of Infringement Proceedings 141

13.3 Grounds for Invalidating Design Patent 141

13.4 Definition of Design 142

13.5 Design Rights Shall Not Belong to an Existing Design 143

13.6 Identical or Not Substantially Different Designs 143

13.7 Conflict with Prior Legal Rights 145

13.8 Two-Dimensional Designs that Mainly Serve as Indicators 145

13.9 The Design Drawing Should Clearly Identify the Design 146

13.10 Amendments Beyond the Scope of the Initial Application 146

13.11 Contrary to Law or Social Morality, or Detrimental to the Public Interest 146

13.12 Identical Invention-Creation 147

13.13 Infringement of Design Patents 147

13.14 Designs Incorporated into Other Products 149

13.15 Defenses 149

13.16 Prior Art Defense 150

13.17 Damages 150

14Remedies 151

14.1 Remedies Available in China 151

14.2 Injunctions 152

14.3 Circumstances in Which an Injunction Will Not Be Granted 152

14.4 Reasonable Fee for Pre-Grant Use 154

14.5 Damages for Post-Grant Infringement 154

14.6 Eliminating Ill Effects 159

14.7 Apology 159

14.8 The Enforcement of Damages Awards 159

14.9 The Enforcement of Injunctions 159

Concluding Remarks 161

Tables 163

Patent Applications 163

Patent Infringement Litigation 164

Patent Prelitigation, Litigation Official Court, and Enforcement Cost Projections 165

Appendices169

1.Patent Law of the People's Republic of China 169

2.Implementing Regulations of the Patent Law of the People's Republic of China 191

3.Interpretation by the Supreme People's Court on Several Issues Regarding Legal Application in the Adjudication of Patent Infringement Cases 245

4.Several Provisions of the Supreme People's Court on Issues Relating to Application of Law to Adjudication of Cases of Patent Disputes 251

5.Several Provisions of the Supreme People's Court for the Application of Law to Pre-trial Cessation of Infringement of Patent Right 259

6.Supreme People's Court Opinion on Certain Issues with Respect to Intellectual Property Judicial Adjudication Under the Current Economic Situation 265

7.List of Courts with Jurisdiction to Handle Patent Cases 281

Table of Csaes283

Tanle of Legislation285

Insex287