The Administrative Protection of Chinese Patent Rights

2021-04-28
Borsam IP
BORSAM IP———————————————

The administrative protection of patent rights refers to the protection given by the state administrative organ to the patentee whose patent right has been infringed. Patent administrative protection has the advantages of simple procedure, convenience and high efficiency, which is conducive to freeing the patentee from the complex, time-consuming and costly rights protection litigation to the greatest extent. Strengthening patent administrative protection can effectively make up for the shortage of judicial resources. The essence of patent lies in the exchange of legal monopoly right through the publicity of technical information. The patent right granted in accordance with the law should receive the protection of the patent right by public power, which is related to the credibility of the government.
 
Article 60 of the Patent Law is the main legal basis for providing administrative protection to patent holders whose rights have been infringed. It stipulates that when the patent right has been infringed, the patentee may request the local administrative department for patent affairs to dispose of it. Generally speaking, the administrative protection of patent rights includes two ways: providing administrative relief and administrative sanctions.
 
The basis and method of administrative relief are stipulated in the Patent Law and the Implementation Rules of the Patent Law. Articles 60, 61 and 64 of the current Patent Law stipulate the ways of administrative relief, i.e., ordering to cease an infringing act, applying to court for compulsory enforcement, mediating the amount of compensation, requiring to produce evidence and investigating the situation. The current rules for the implementation of the Patent Law (2010) on the basis of the relevant provisions of the patent law, detailed the administrative remedies for patent. For example, Article 85 of the Implementing Regulations of the Patent Law (2010) details the types of patent disputes that can be mediated by the patent administration authorities after the parties request mediation.
 
As another way of administrative protection of patent law, administrative sanctions are stipulated in Article 63 of the Patent Law and Article 84 of the Implementing Regulations of the Patent Law (2010). According to the above provisions, the administrative law enforcement departments of patent can impose three types of sanctions on the act of counterfeiting other's patents: ordering corrections and announcing them; confiscating illegal income; and imposing fines. In recent years, administrative sanctions have played an increasingly important role in the administrative protection of patent rights.
 
In addition, the draft amendment of the Patent Law (2019) increases the power of administrative penalty of confiscating the illegal earnings by the patent administrative department, and establishes the power of administrative coercion of "sealing up or withholding" for intentional infringement. These measures will significantly increase the crackdown on intellectual property infringement.
 
 
Appendix:

Patent Law of the People’s republic of China
Article 60. Where a dispute arises as a result of the exploitation of a patent without the authorization of the patentee, that is, the infringement of the patent right of the patentee, it shall be settled through consultation by the parties. Where the parties are not willing to consult with each other or where the consultation fails, the patentee or any interested party may institute legal proceedings in the people’s court, or request the administrative authority for patent affairs to handle the matter. When the administrative authority for patent affairs handling the matter considers that the infringement is established, it may order the infringer to stop the infringing act immediately. If the infringer is not satisfied with the order, he may, within 15 days from the date of receipt of the notification of the order, institutes legal proceedings in the people’s court in accordance with the Administrative Procedure Law of the People’s Republic of China. If, within the said time limit, such proceedings are not instituted and the order is not complied with, the administrative authority for patent affairs may approach the people’s court for compulsory execution. The said authority handling the matter may, upon the request of the parties, mediate in the amount of compensation for the damage caused by the infringement of the patent right. If the mediation fails, the parties may institute legal proceedings in the people’s court in accordance with the Civil Procedure Law of the People’s Republic of China.
 
Article 61. Where any infringement dispute relates to a patent for invention for a process for the manufacture of a new product, any entity or individual manufacturing the identical product shall furnish proof to show that the process used in the manufacture of its or his product is different from the patented process.
        Where any infringement dispute relates to a patent for utility model or design, the people’s court or the administrative authority for patent affairs may ask the patentee or any interested party to furnish an evaluation report of patent made by the patent administration department under the State Council after having conducted search, analysis and evaluation of the relevant utility model or design, and use it as evidence for hearing or handling the patent infringement dispute.
Article 63. Where any person passes off a patent, he shall, in addition to bearing his civil liability according to law, be ordered by the administrative authority for patent affairs to correct his act, and the order shall be announced. His illegal earnings shall be confiscated and, in addition, he may be imposed a fine of not more than four times his illegal earnings and, if there is no illegal earnings, a fine of not more than RMB 200, 000 Yuan. Where the infringement constitutes a crime, he shall be prosecuted for his criminal liability.
 
Article 64. When investigating and prosecuting the suspected act of passing off a patent, the administrative authority for patent affairs may, based on the evidence obtained, query the parties concerned, and investigate the relevant circumstances of the suspected illegal act; carry out an on-the-spot inspection of the site where the party’ s suspected illegal acts took place; review and reproduce the contracts, invoices, account books and other relevant materials related to the suspected illegal act; examine the products relevant to the suspected illegal act and may seal up or withhold the products proved to be passing off the patented product.
        When the administrative authority for patent affairs performs its functions and duties specified in the preceding paragraph in accordance with the law, the interested party shall assist and cooperate and shall not refuse or interfere the performance.
 
Implementing Regulations of the Patent Law of the People’s republic of China (2010)
 
Rule 83. Where any patentee affixes a patent indication on the patented product or on the package of that product in accordance with the provisions of Article 17 of the Patent Law, he or it shall make the affixation in the manner as prescribed by the patent administration department under the State Council.
        Where any patent indication is not in conformity with the provision of the preceding paragraph, the administrative authority for patent affairs shall order to correct it.
 
Rule 84. Any of the following is an act of passing off a patent as prescribed in Article 63 of the Patent Law:
        (1) affixing patent indication on a product or on the package of a product which has not been granted a patent, continuing to affix patent indication on a product or on the package of a product, after the related patent right has been declared invalid or is terminated, or affixing the patent number of another person on a product or on the package of a product without authorization
        (2) sale of the product as prescribed in subparagraph (1);
        (3) indicating a technology or design to which no patent right has been granted as patented technology or patented design, indicating a patent application as patent or using the patent number of another person without authorization, in such materials as specification of product etc. , which could mislead the public to regard the related technology or design as patented technology or patented design;
        (4) counterfeiting or transforming any patent certificate, patent document or patent application document;
        (5) any other act which might cause confusion on the part of the public, misleading them to regard a technology or design to which no patent right has been granted as patented technology or patented design.
        Affixing patent indication legally on a patented product, or on a product directly obtained by a patented process, or on the package of such products before the termination of the patent right, offering for sale or sale of such products after the termination of the patent right is not an act of passing off a patent.
        Where any person sells a product passing off a patent without knowing it , and can prove that it or he obtains the product from a legitimate channel, it or he shall be ordered to stop selling the product by the administrative authority for patent affairs, but be exempted from being imposed a fine.