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Intellectual Property Protection in Guangdong in 2003
By Mr. LI Zhongduo, Director of
Office of Intellectual Property Protection Committee of the People’s Government of Guangdong Province on April 26, 2004
In 2003, the People’s Government of Guangdong Province continued strengthening protection for intellectual property rights (hereafter called IPR or IP); it put in enormous efforts, notably, in promoting the public awareness of IPR, fortifying the construction of the IP system, and intensifying suppression of IP infringement activities; as a result, new advancement in IP protection has been achieved.
1. Judiciary Protection for IPR Further Consolidated
In 2003, Guangdong courts, in adherence to principles of uniformity in law enforcement, equality in protection, and balance of interests, solved and closed large quantities of cases equitably and efficiently, helping create for a fair, open competition environment for the advance of the market economy in Guangdong, as well as providing a firm legal guarantee for economic, technological, and cultural exchange and cooperation between home and abroad. According to statistical calculation, the courts at different levels in Guangdong received a total of 1024 IP cases of first instance, increasing 38.4% over the previous year, accounting for one sixth of the national total; of this number, patent cases totaled 395, trademark cases 460, technical contract cases 35, and other cases 17. In 2003 altogether 910 IP cases of first instance were settled and closed, an increase of 48.7% as against 2002, and moreover, the Provincial High Court solved a total of 192 IP-related cases of second instance, an increase of 24.7% over the previous year; the total worth of the object of these lawsuits reached 139.555 million RMB.
In an attempt to make IP-related judiciary work commensurate with the actual situation with Guangdong’s social, economic development, the Provincial High Court, on the basis of sufficient investigation and feasibility study, issued the Notification on Authorizing Grassroot Courts in Guangzhou, Shenzhen, and Foshan to Receive Civil IP Lawsuits of First Instance, whereby the local courts in Guangzhou’s Dongshan District, Shenzhen’s Nanshan District and Foshan’s Nanhai District were to receive IP-related civil lawsuits starting from January 1, 2004. This measure further improved and innovated Guangdong’s judiciary mechanism for IP protection, constituting a significant exploration nationwide.
2. Crackdown on Criminal Infringement and Piracy Escalated
The Public Security authorities in Guangdong, by organizing special-purpose actions and coordinated crackdown campaigns, and closely supervising severe and influential cases, kept escalating the intensity in combating criminal activities of IP infringement, and secured prominent accomplishments. In 2003, altogether 288 cases were registered, involving 170 million RMB worth of goods; 217 cases, or three quarters of the total, were cracked, saving for the country an economic loss of 14 million RMB. On January 22, 2003, the Provincial Public Security Department organized Guangzhou and Shenzhen public security agencies to have successfully cracked a highly severe criminal case of IP infringement, where an organized group headed by Zou Yuanyi manufactured and marketed counterfeit printer cartridges of EPSON, HP and other famous brands; the security force destroyed 8 fake production and sale centers, captured 16 suspects (including the group leader Zou Yuanyi, hard-core members Zhou Yonghui and Gui Liqing), ten of whom were criminally detained, and in addition, seized 34 machines for producing counterfeit printer cartridges, along with 1,272 thousand fake printer cartridges of EPSON, HP and CANON brands, involving over 70 million worth of goods. On August 17, 2003, Dongguan Municipal Public Security force cracked a severe case of counterfeit smuggling, whereby destroying a warehouse of fake commodities, and seizing 8 suspected criminals, along with 2993 cartons of fake cigarettes of HONGTASHAN, SUPERKING and other famous brands in addition to a large quantity of counterfeit handbags and pirated CDs.
During the special period of “April 26” (the World Intellectual Property Day), the Provincial Public Security Department organized a series of special actions against crimes of IP infringement; the security force across Guangdong cleared up key areas, key markets, and key products, and in four cities (Guangzhou, Dongguan, Zhuhai, and Jiangmen) alone, the Public Security force seized and investigated 18 cases of manufacturing and marketing pirated CDs and audio-visual products, whereby 21 counterfeit production hubs were demolished, 108 suspects captured (17 of whom criminally detained), 2,450,000 (2 million and 450 thousand) CDs seized along with over 60,000 pirated books, 46 manufacturing machines and plenty of fake cosmetics, cigarettes, wine, liquor, printer cartridges and other articles, involving altogether over 82,220,000 (82 million and 200 thousand) RMB worth of goods. In addition, counterfeit goods seized by the Dongguan Public Security authority included approximately 50,000 fake marks of “MONY”, around 30,000 fake MONTAGUT shorts, 110 counterfeit ROLEX watches, and 2700 bottles of liquor counterfeiting the TUO brand.
As directed by the Guangdong Government, the Provincial Public Security Department, beginning October 29, 2003, via organizing the Public Security agencies all over Guangdong, launched a five-month campaign against producing and selling fake cigarettes. During the campaign, public security authorities at all levels, in close cooperation with Tobacco Marketing administratration agencies, cracked a number of severe and influential cases. According to statistical data, during the action period, a total of 102 cases were cracked, where 857 suspects were captured and, among them, 458 criminally detained, 212 arrested, and 44 sentenced; 129 counterfeit cigarettes manufacturing pits smashed up, and 290 machines for making fake cigarettes seized; the worth of goods involved totaled over 130,054,000 (130 million and 54 thousand) RMB.
3. New Success in Patent Work Achieved
In 2003, the number of patent applications and grants in Guangdong, on the basis of relatively large numbers, continued to grow rapidly, i.e. at a rate of 25.7% and 28.4% respectively in relation to 2002, reaching 43186 and 29235, accounting for one sixth and one fifth of the national total. Of these, the number of patent applications for invention was 6181, increasing 61.8% over the previous year, a record high rate of growth; this made the mix of all the three categories of patents closer to optimum. The patent application filings of Guangdong enterprises are 14510, up 23.3%. In high-tech spheres such as the IT industry, some core technologies with independent IPRs started to emerge; for instance, a GSM-related invention patent in the communications technology owned by ZTE in Shenzhen received the National Patent Gold Award 2003, thus breaking the record of zero on behalf of enterprises in Guangdong. Moreover, Guangdong province also received 10 National Patent Excellent Awards 2003, accounting for 10.6% of the national sum.
The patent administration agencies at various levels across the province further perfected their organization, strengthened law enforcement, and improved capability of settling IPR dispute cases. In 2003, a total of 556 patent-related cases of diverse kinds were received; of those cases, 356 were patent dispute cases, 292 settled and closed, 200 cases of IP infringement investigated and punished, and altogether 1292 person-times dispatched for these actions.
4. Trademark Management Effective and Fruitful
March 1, 2003 marked the 20th anniversary of the promulgation and enforcement of China’s Trademark Law; wide-spread publicity work was initiated in all parts of the province, and the corporate and social awareness of trademarks saw constant enhancement. The number of applications for trademark registration continuously grew at a stable rate. In 2003 trademark applications across the province totaled 76528, up 22.4% over the previous year, accounting for 17 % of the total nationwide; the number of trademark grants was 38708, up 22.1% over the previous year, accounting for 16% of the national sum. By the end of 2003, the accumulated registered trademarks in Guangdong reached 245663, ranking the first nationwide for nine straight years.
In order to implement the Famous Brands strategy and fortify protection of well-known trademarks, the Provincial Administration for Industry and Commerce (AIC) recognized 216 Guangdong Famous Trademarks, and renewed recognition as such of 77 trademarks that had been recognized as Guangdong Famous Trademarks and, at the end of duration, applied to renew the recognition. From 1997 up to 2003, the Provincial AIC had recognized altogether 487 Guangdong Famous Trademarks in seven batches, exerting positive influence on the economic growth of local areas.
For fortification of trademark protection, the AICs at all levels in Guangdong intensified law enforcement and severely cracked down on trademark infringement and counterfeiting, scoring positive results in protecting trademarks as IPRs. In 2003, a total of 2011 cases of trademark infringement and counterfeit were investigated, 268 of which were general cases of illegal activities, and 1743 cases of trademark infringement and counterfeit; altogether over 9,010,000 (9 million and 10 thousand) pieces of trademark-infringing marks seized, 110 tons of goods destroyed, 23,960,000 (23 million and 960 thousand) RMB fined, and 3 people transferred to the Public Security authority for criminal charges.
5. Progress in Copyright Protection Prominent
Copyright administration agencies made prominent progress in safeguarding the market order and combating infringement and piracy. Altogether 16,045 copyright-related cases were received, of which 15986 were solved and closed, 194 mediated, 15640 punished, and 133 transferred; a total of 19,770,000 (19 million and 770 thousand) pieces (copies, sheets, articles) of pirated products seized, among which 1,520,000 (1 million and 520 thousand) were books, 244,000 journals, 3,109,000 (3 million and 109 thousand) software, 12,400,000 (12 million and 400 thousand)audio-visual products, 2,396,000 (2 million and 396 thousand) electronic publications, and 90,000 other pirated articles.
In 2003 copyright administration agencies at various levels, cooperating with relevant authorities, launched 4 special copyright protection campaigns, concentrating on clearing up pirated textbooks, audio-visual products, and software; altogether 4534 person-times were dispatched for law enforcement, 47 markets checked, 2223 software shops examined, 167 firms closed, and 562616 pieces/ sets of pirated software seized, thus forcefully suppressing illegal actions of infringement and piracy, and helping rectify the software market.
To repress piracy and protect authentic products, the Provincial Copyright Bureau issued the Ordinance on Prohibiting Marketing of Pirated Software; to suppress the dissemination of pirated software on the Internet, some relevant authorities jointed issued the Ordinance on Prohibiting Distribution of Disseminating Software. Notably, the Provincial Copyright Bureau also took the initiative, in alliance with the Provincial Public Security Department, the Provincial Information Technology Industry Department, the Provincial Administration for Industry and Commerce, promoted the governmental utilization of authentic software; currently, the work has been completed of authentic software application training, self-check, examination, and installation for 42 departments of the provincial government
6. Achievements in Customs IP Protection Significant
In 2003, Guangdong Customs Office, by carefully implementing the instructions of the General Administration for Customs and the Provincial Government in strengthening IPR protection and, working under the guideline of “administering by the rule of law, safeguarding the national interests, serving the economy and promoting development”, strengthened the awareness of IPR border protection on the basis of establishing and improving operation mechanism, made full use of the pivotal role of information and intelligence, intensified comprehensive management as well as cooperation with Hong Kong Customs in IP protection, actively launched diverse special law enforcement actions, maintained strict suppression on IP infringing goods crossing borders; as a result of these efforts, significant achievements were witnessed in terms of safeguarding a healthy import/export environment and the legal interests of IP owners.
In 2003, altogether 339 cases were seized and investigated by Guangdong Customs, up 85.2% over the previous year, involving 32,160,000 (32 million and 160 thousand) RMB worth of goods. Among those cases, 330 were related to trademark infringement, involving 31,370,000 RMB worth of goods; eight to patent infringement, 790,000 RMB; one to Olympic marks. Seventy-four cases were seized smuggling over 10,000 CDs, involving altogether 70,980,000 (70 million and 980 thousand) CDs, two illegal CD production lines, capable of manufacturing 11,000,000 (11 million) CDs were destroyed. These law enforcement actions, apart from effectively suppressing IP infringement activities, protecting IP owners’ interests, and safeguarding normal trade order, further optimized the environment for investment in Guangdong Customs areas.
7. Great Progress Made in IP Protection in Audio-Visual Market
In 2003, the culture administration departments in Guangdong, via appropriately raising standards for entry into market and strictly conducting qualification check, arranged re-examination and re-registration of audio-visual business organizations. Through this process, closed a number of small-scale, scattered, sub-standard audio-visual business units were closed, and the number of audio-visual businesses was reduced to 6500 from nearly 9000. Meanwhile, illegal activities in audio-visual business were strictly investigated and prosecuted; any business making or marketing over 100 pieces of IP infringing audio-visual products would be revoked of the business license, and rectification of the audio-visual market proved successful.
All through the year, a total of 126,000 person-times were dispatched for law enforcement by culture administration agencies jointly with relevant authorities; they checked 22,000 audio-visual business units, seized 75,880,000 (75 million and 880 thousand) pieces of illegal audio-visual products, revoked the business licenses of 29 units, closed a lot of illegal audio-visual shops, and seized 335 suspects. During the whole year, the culture administration departments, along with Guangdong Customs and the Public Security force, seized 32 illegal CD production lines capable of manufacturing 173,000,000 (173 million) CDs.
8. Counterfeit Production and Sale Effectively Suppressed.
In 2003, the Quality Supervision agencies in the province, taking as the main theme ‘Combating Counterfeit and Protecting Famous Brands’, concentrating on special-field rectification, initiated a series of special-purpose actions for investigation. Guangdong Quality Supervision administration agencies at all levels dispatched nearly 120,000 person-times for law enforcement. In sum, 3085 cases of on-the-spot punishment were handled; 9,827 cases were received for investigation, of which 7,730 were settled and closed; 9,103 production and sale units were investigated and punished; 724 counterfeit manufacturing and marketing centers smashed up. In all those cases, a total of 224,000,000 (224 million) RMB worth of commodities were involved, and 25,440,000 (25 million and 440 thousand) RMB worth of counterfeit and shoddy goods directly destroyed. In addition, 48 cases were transferred to the Public Security authorities for further handling. Illegal acts of counterfeit production and sale were effectively suppressed.
9. Public IPR Awareness Enhanced via Joint Law Enforcement & Focused Publicity
In 2003, during the April 26 (World Intellectual Property Day) period, the provincial government Office of Intellectual Property Protection Committee and the provincial Counterfeit Crackdown Office, in concert with the Department of Public Security, Department of Culture, Intellectual Property Office, Administration for Industry and Commerce, Copyright Bureau, and Guangdong Customs Administration, initiated a series of actions across the province for law enforcement and publicity work, actions with the main theme of ‘strengthening IP protection and safeguarding market economic order’. As planned in these actions, key markets were checked, cases of IP infringement were publicly investigated and prosecuted, and pirated CDs and counterfeit products were collected for destruction in public. This campaign lasted more than thiry days, and the departments concerned closely cooperated with one another, fulfilling the purpose of ‘integrating law enforcement, publicly and education’ and scoring prominent achievements. During the period, the press at home and abroad presented wide-spread coverage, thus creating a fairly satisfactory atmosphere of IP protection and apparently contributing to the enhancement of the public awareness of IP protection.
10. New Harvests Seen in Guangdong-Hong Kong Cooperation in IP Protection
In recent years, as the trade between Guangdong and Hong Kong advances continuously, IPR-related problems have been gradually coming to the fore. Therefore, agencies for IP administration and protection in Guangdong and Hong Kong strengthened exchange and cooperation; with efforts on both sides, intellectual property was listed into the formal discussion topics at the Sixth Conference on Guangdong-Hong Kong Cooperation, and hence, the Expert Group on Guangdong-Hong Kong Cooperation in IP Protection was established. The Expert Group, according to its work mechanism, was to hold regular meetings, and in 2003, initiated a series of cooperation programs, whereby the first Expert Group conference was successfully held, the Guangdong-Hong Kong-Macao Online IPR Database built and opened for public use, the ‘No Fakes Pledge’ movement promoted in Guangdong and Hong Kong, three IP symposiums successfully held with nearly one thousand participants, and investigation and research of IP issues in Guangdong and Hong Kong conducted in cooperation. Through communications, the field of IP cooperation widened gradually, contributing to a closer trade relation between the two regions.
In terms of bilateral IP protection, the Customs administrations in Guangdong and Hong Kong continued to consolidate and fortify the already existent mechanism of communication, and meanwhile boldly tried building brand-new modes of cooperation; by means of regular meetings, correspondence, telephone contacts, intelligence exchange, and joint actions, the Customs of both regions reaped new harvests in cooperating to check IP infringement and piracy. According to statistic data, in 2003, the Customs of both sides exchanged more than 100 pieces of intelligence, cooperated in investigating dozens of cross-border cases of IP infringement, checked and followed up nearly 200 manufacture authorizations, launched three joint large-scale actions for cracking down on IP infringement and piracy, examined over 4000 vehicles and 12000 passengers crossing borders, investigated and seized 65 cases along with over 17000 pirated compact discs.
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