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China IP Law. Straight From THE Judge’s Mouth.

Posted in Events, Legal News

By: Rebecca Carlson

NOTE: Rebecca is a new lawyer at the Harris & Moure law firm and this is her first post on this blog. Rebecca recently graduated from the University of Washington School of Law with a J.D. degree and an L.L.M. (advanced law degree) in East Asian Studies. Rebecca is fluent in Japanese and also speaks Mandarin, Korean and Swedish. 

I recently attended an informative presentation at the University of Washington School of Law by Justice Kong Xiangjun, entitled “Intellectual Property Enforcement in China.” Justice Kong is the Chief Judge of the Intellectual Property Tribunal, Supreme People’s Court (SPC) of China, and a widely published Ph.D. of Law. In his presentation, he provided a basic overview of China’s court system and discussed practical issues and recent trends in intellectual property litigation in China.

Court System Overview 

Unlike the American model, which includes both federal and state court systems, China has a single court structure with four levels. The level in which to file a case depends on the type of case and the amount in controversy. Therefore, in all cases, including those involving IP, one of the important initial decisions is to determine the appropriate court in which to file suit. In this regard, IP cases can be heard in IP tribunals, such as the IP Tribunal of the SPC, where Justice Kong serves.

In areas that require highly specialized knowledge, such as IP, the court can decide to appoint a technical expert to sit on the panel to provide insight into the case. The expert has an equal vote in the ruling as the judges.

IP Law Overview

Chinese IP legislation was written to correspond with international IP treaties. Therefore, such treaties are a good reference point for Chinese IP legal research. In addition, Justice Kong pointed out that China judges are able to issue general interpretations of legislation when ruling, even if the interpretation is not at issue in a given case. These general interpretations have the same effect as legislation, and, therefore, must be taken into account in any legal argument.

Trends in China IP

Justice Kong emphasized two recent trends in China IP litigation. First, Chinese companies, in addition to foreign companies, are filing suit for IP enforcement in increasing numbers. Second, plaintiffs are requesting monetary damages, in addition to or in lieu of injunctive relief, with greater frequency. And indeed, courts are awarding ever higher amounts.  

Administrative v. Court Track 

When considering IP enforcement in China, one can file for an administrative hearing or in court. Justice Kong discussed the pros and cons of both options. In general, the administrative track is faster, but the factual analysis is less comprehensive and the application of law is less predictable. In turn, the court track is slower, but the factual analysis is very thorough—each level of court will make findings of both law and fact—and the rulings on the law are more predictible.

The highlight was an extensive Q&A session in which Justice Kong provided detailed responses to a variety of highly specific questions; some of the information is included above. After the presentation, I spoke with my former professor, Professor Dongsheng Zang, who facilitated Justice Kong’s invitation to the UW. His goal is to encourage and build on presentations like this one to create an ongoing, in-depth dialogue on international and Chinese law at the University of Washington. I share in his enthusiasm.

Dan’s Note: Seattle Trademark lawyer extraordinaire, Michael Atkins of the Seattle Trademark Lawyer blog attended the same presentation and he wrote on it as well, in a post entitled, “China’s Chief Justice Discusses China IP Law at Microsoft Symposium.“ 

  • http://www.kungfupandalawsuit.com Terence Dunn

    Dear Ms. Carlson:
    I have an interesting and creative question about IP litigation in China:
    Can a foreign national file (non-Chinese citizen) file suit in China against an American corporation doing business in China?
    I am a Chinese American with family roots in Hong Kong (paternal geneaology) and Zhenjiang (Maternal lineage), a U.S. citizen and the plaintiff in potentially landmark litigation against American film companies Dreamworks Studios LLC and Dreamworks Animation SKG Inc. in Los Angeles Superior Court for breach of implied-in-fact-contract relating to the “Kung Fu Panda” film franchise (which happened to have caused controversy amongst Chinese cultural leaders in 2008 when the first film was released.) which my damages expert may assess to be worth near $6 billionUS.
    My question: can I through my direct blood relations in Hong Kong and Zhenjiang establish domicile in China and file suit against the Dreamworks defendants in one of the IP Tribunals of the SPC? The foundational facts of my case are presented on this website, http://www.kungfupandalawsuit.com.
    Thank you for your guidance, opinion, or referral.
    Sincerely,
    Terence Pang-Yen Dunn
    Twitter: “KungFuPandaCr8r”

  • Cheap Mike

    Sounds like it was an interesting presentation. I am impressed such a high level judge is getting out and talking like that. I think it bodes well for IP in China.

  • zhanglei

    Basically a case that can be filed with a Chinese court requires that there is a legitimate connection with a selected court, which includes contracting place, contract implementation place and place where a breaching action happens, etc., and that the defendant has executable assets in China. China law does not require that a plaintiff has such connection with a selected court.

  • Matthew H.

    It is great reading both your post and Mr. Atkins’ post as yours is more China-centric and his is more trademark-centric, just as I would have expected. Thanks for the post and thanks for the link.