China's WTO Updates
Courts Witness Upswing in IPR Protection Cases

China's entry into the World Trade Organization (WTO) has posed new challenges to judicial works, especially in the area of intellectual property rights (IPR) protection, court officials said.

Courts in Beijing have witnessed an increasing number of cases involving IPR protection in recent years, Zhang Lumin, chief judge of the Intellectual Property Right Division of Beijing High People's Court, said in a recent interview.

Overseas-related IPR cases that have been heard and ruled upon in Beijing are increasing, from zero in 1993 to 15 cases in the first 11 months of this year, Zhang said.

In 1993, Beijing led the country in setting up a special IPR division in its high and intermediate courts. Since then, 59 overseas-related IPR cases have been heard, according to court statistics.

More than 30 intermediary and high courts have set up such divisions around the country, mostly in economically advanced regions, Zhang said.

"Faced with the challenges of WTO entry, China is striving to improve its intellectual property legal system to better meet new economic circumstances," Zhang said.

"WTO rules call for judicial transparency, legal system unity and judicial independence, which we must intensify to meet world practices," she said.

Overseas parties will be given the same treatment as locals, and the courts will observe international conventions.

To better co-operate with the global community in IPR protection, China has joined many conventions, such as the Convention Establishing the World Intellectual Property Organization, the Berne Convention and the Madrid Agreement.

More than 32 percent of the overseas-related IPR cases handled by Beijing courts have involved trademark disputes, and more than 25 percent involved patent issues, according to court sources.

The winning parties always ask for a huge compensation, said Cheng Yongsun, a judge of the Beijing High People's Court.

In a recent IPR case, Japanese electronic giant Mitsubishi asked for more than 36.5 million yuan (US$4.4 million) in compensation from a Beijing company that violated its trademark right.

According to the newly revised Trademark Law, the Beijing High People's Court urged the Beijing company to pay Mitsubishi 500,000 yuan (US$60,240) the largest IPR compensation sum ever seen in Beijing, Cheng said.

The amended Trademark Law that took effect December 1 will provide better legal protection for Chinese trademarks as well as overseas ones, Cheng said.

By clarifying the protection of appellation of origin, intensifying the protection of well-known trademarks and providing a judicial remedy in trademark disputes, the new Trademark Law will "better protect the interests of the trademark owners and allow for more severe punishment of infringers," Cheng said.

(China Daily December 25, 2001)

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