Escalating Foreign IP Cases in the Five Years After China's Entry of WTO

 

 

 

 On January 9, the reporter learned from the Beijing No.1 Intermediate People's Court, in the five years after China joined the WTO the court had accepted 4,535 IP cases, of which 981 involved foreign parties, accounting for 22% (chart ①), in the administrative IP cases winning foreign parties made up 60% (chart ①), and those reached 80% (chart ①) in civil IP cases.  

 

On December 27, 2006, the Beijing No.1 Intermediate People's Court openly tried 17 IP cases involving foreign parties, among them there are 13 well-known foreign businesses including: Warner Brothers,Walt   Disney, U.S. Pfizer Inc., 21st Century Fox and F.A. Premier League. They all received the court verdict as winners.

The large percentage of foreign winners in such cases shows that, on the one hand, China treats Chinese and foreign parties on an equal footing under the principle of "performance of commitment, application of a strict judicature and appropriate protection", and, on the other, a warning bell is sounded to Chinese enterprises in that they must increase their level of IP protection and awareness of law compliance!" says Vice President Su Chi of the Beijing No.1 Intermediate People's Court who has been for years in charge of hearing of IP cases.

 

A lawsuit
  

Greater efforts on judicial protection

Football fans must know this elegant "lion": crown on head, roaring to the left arrogantly, his front right leg stepping on the football, and his tail cocking up in an "S" shape…  
  
That is the logo of the F.A. Premiership. Since its registration in the U.K. in 1992 it has been in use at all England super football matches.  
 
In China the dispute arising from this lion trademark remained for 6 years before its solution.
 
The other party involved is Xiangshi Celebration Co., Ltd. in Xuzhou city of Jiangsu Province. In October 2000 the company registered its trademark "XIANGSHI" (LUCKY LION), with the registered items including sports arrangement, etc. and the trademark logo is an arrogant lion, too. 
 
One month later, when the F.A. Premier League Co., Ltd. applied to the State Intellectual Property Office (SIPO) for registration of its trademark logo "Premier Lion " and use of it for sports-related services, the application was rejected on account that a trademark "LUCKY LION" had been registered before.
  
In December 2001 the F.A. Premier League Co., Ltd. submitted a petition to the State Trademark Review Committee, demanding cancellation of the said trademark "LUCKY LION" on account that the two lions are extremely alike. The committee considered "LUCKY LION" and "Premier Lion" are almost same in shape, and constitute similar trademarks. As "Premier Lion" often appears on Chinese TV shows of England super football contest, it cannot be ruled out that the image of "Premier Lion" is possibly known to the principal applying for registration of its trademark "LUCKY LION", therefore, its registration has One month later, when the F.A. Premier League Co., Ltd. applied to the State Intellectual Property Office (SIPO) for registration of its trademark logo "Premier Lion " and use of it for sports-related services, the application was rejected on account that a trademark "LUCKY LION" had been registered before.In December 2001 the F.A. Premier League Co., Ltd. submitted a petition to the State Trademark Review Committee, demanding cancellation of the said trademark "LUCKY LION" on account that the two lions are extremely alike. The committee considered "LUCKY LION" and "Premier Lion" are almost same in shape, and constitute similar trademarks. As "Premier Lion" often appears on Chinese TV shows of England super football contest, it cannot be ruled out that the image of "Premier Lion" is possibly known to the principal applying for registration of its trademark "LUCKY LION", therefore, its registration has infringed upon the prior copyright of the England Football Association Co., Ltd. on the image of its lion.
  
In October 2005 the State Trademark Review Committee revoked the trademark "XIANGSHI"(LUCKY LION".

The Xuzhou-based XIANGSHI Co., Ltd. disagreed to this judgment, and lodged a lawsuit against the Committee to the Beijing No.1 Intermediate People's Court. The court held that the registration of XIANGSHI trademark had damaged the prior copyright of the "Premier Lion" of the F.A. Premier League Co., Ltd. and therefore rejected the suit of XIANGSHI.
  
In face of success in the action the attorney-in-fact of the F.A. Premier League Co., Ltd. felt very gratified, saying: "compared with the past, China's court has stepped up efforts to protect intellectual property in law and judicature."
 
One proof
  
Open hearing on an equal basis
  
The dispute related to "Premier Lion" represents only one of those cases involving foreign intellectual properties.

Xu Chi says, over the past five years after China's entry to the WTO, IP cases handled by the Beijing No.1 Intermediate People's Court are on an yearly increase with those involving foreign parties tending to make up a high percentage. Take administrative IP cases as example, in the period of 2002 to 2006, the court tried 670 cases involving foreign IP, accounting for 31.8% of the total. In hearing cases the Chinese court treated Chinese and foreign parties on an equal footing, which shows that China has carried out, to the letter, its commitments of "national treatment" to the WTO.  

As required by the WTO, all its members should fulfill the TRIPS. And "national treatment" is fairly one of its important principles, that is, foreign nationals share the same IP as the Chinese do and their IP is under the same effective protection in legal and judicial spheres.  
  
For the purpose of maintaining judicial fairness, Article 63 of the TRIPS sets forth clearly a "principle of transparency", i.e. relevant laws, decrees and final judgment and administrative ruling generally applicable to cases of IP dispute should be disclosed to the public.
 
With the exception of those that should not be heard openly or that do not meet open trial conditions or are so petitioned by the party involved, the Beijing No.1 Intermediate People's Court tries all IP cases, discloses its schedule for open hearing on the "Judicial Protection of IPR in China" and releases all relevant legal instruments on its own network…
  
Some legal experts expressed the view that this form of open hearing is not only applied by Beijing courts but also by those of many other localities such as Shanghai municipality, Sichuan and Shandong provinces, by which the related party's right of knowledge is safeguarded and hearing of IP cases is promoted on a fair and just basis.

 

 

 

2007-01-15

 

 

2007-01-15