Tax Preferential Policy in China’s Animation Industry

It is reported by SECURITIES DAILY (note: the link is in Chinese) that there will be adjustment on tax policy in China animation industry. In recent, China Ministry of Finance and the State Administration of Taxation jointly issued a new policy supporting the animation industry, which introduces the VAT and the preferential business tax. And less tax and taxation of the both VAT and business tax will be made hereby.

I. For the sales of the independently developed animation software by the company of the general tax payer itself, the VAT shall be levied at the rate of 17% first, and the exceeding 3% amount of the actual tax bearing will be refunded. That’s the so called levy-refund policy.

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The Name on the Notorious List Could Also be the Well-known Trademark in China

Analysis on the Establishment of Well-known Trademark of Silk (秀水)

Recently, China Trademark Office, a branch of State Administration of Industry and Commerce announced the list of newly established well-known trademark of 2011, and the mark of Silk(“秀水” read as Xiu Shui or known as Silk)applied by Beijing Silk Street Market Co., Ltd (the “Silk Company”) was on it. Therefore the mark Silk gains the highest domestic trademark honor. Silk Company, the owner of the trademark stated on its official Weibo (twitter like website in China) account that “it is another milestone on the road of intellectual property autonomous development of Silk Market, and that will boost the development of brands of Silk Market based on the Silk mark.

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Complaints from China IT Tycoon: Weak Protection over IPR Jeopardizes Industry Innovation

According to the report of Nandu Daily, Mr. Ding Lei, the CEO of NetEase (NASDAQ: NTES) and the representative of People’s Congress in China stated on the conference of Guangdong People’s Congress that despite the innovation could make customers more satisfied and bring more market share to the company, which is also the impetus to the company, it’s also haunted with the dilemma of “more innovation more suffering” due to the weak protection on IPR by the state.

According to Ding’s words, the lawsuit on the infringement against the company may last for years, therefore the proceeding may be a suffering to the company; moreover, the judged compensation may be very low even the infringed company wins the lawsuit. “Previously, Baidu stately posted the works of Han Han in its product Baidu Wenku, and why? The reason could only be the poor combat on the infringement”, said Mr. Ding.

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Apple Lost the Trademark Opposition against Red Apple Trademark after the Proceeding for 10 Years

According to the report of hc360.com (the news is in Chinese), Beijing High People’s Court adjudicated the final judgment on the trademark opposition filed by Apple Inc (Apple) against Zhejiang Red Apple Electronic Co., Ltd. (Zhejiang Red Apple) on 28th November, 2011, Ltd, rejecting Apple’s opposition on the defendant’s registered trademark in class 9 of CCTV monitor. Till then the proceeding of the case for 10 years is finally ended up.

Early in November of 2002, Zhejiang Red Apple’s application of red apple trademark was approved by China Trademark Office, and afterwards opposed by Apple, who demanded no approval for the mark, for the similarity between the red apple image and the first applied Apple trademark. Despite the opposition, the trademark office approved the application and issued the “Image Trademark Opposition Ajudication”, (2007) Trademark Yi Zi No. 3887 on 27th August, 2007.

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The Interpretation on the Ceased Use for Three Consecutive Years in China Trademark Law

It’s regulated in China Trademark Law that when the registered trademark is ceased for use for three consecutive years, the trademark office shall order him to rectify the situation within a specified period or even cancel the registered trademark. And the understanding on the ceased use is the most consulted question to us. In fact, such article was once referred in the administrative adjudication made by the Supreme People’s Court of China, and that may help us in understanding the article.

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The Complicated Legal Problems concerning the Likeness of Jobs

Could the deceased’s right of likeness be protected in China?

Our website has posted the article How to Combat the Infringing Steven Jobs Doll in Chinese Market, introducing the Chinese laws and regulations regarding the infringement of right of likeness according to this event. Later, we read an American legal professional’s comment, Apple Won’t be Able to Stop Steve Jobs Action Figure from Going on Sale in Most States, saying Apple’s legal claim is largely bogus. While people can indeed own rights to their likeness, those rights usually apply only to living people. Unlike other forms of intellectual property like patents or copyrights, image rights do not survive beyond the grave in most places.

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Legal Issues concerning Trademark during the Exhibition in China

In recent, more and more Chinese companies is developing their business outside China and thereby brings more chances for exhibition. Meanwhile, with the rapid economy development on China, the exhibition sponsored by China becomes more and more influential. Such exhibitions have become the key occasion for the release of new product and technology of the companies in China and abroad, which followed by many legal problems with the IPR matters are the most prominent ones. Bridge IP Law Commentary today will give our analysis on the issues related to the exhibition trademark.

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Apple: iPhone 4S Arrives in China on January 13

China Trademark Application Examination Period Decreased to 10 Months

As reported by Xinhua.com, it was released on the China Industry and Commerce Administration Conference on 26th, December, 2011 that the trademark examination period is further shortened to the current 10 months calculating from the documents submitting to the examination due, and on the other hand, the trademark opposition and dispute hearing could be finished within 18 months, which has reached the level of U.S.A and Japan.

For the rapid development in the economy, the trademark application in China surpassed the annual examinable amount around 2000, which then led to the overstock. And the examination period was prolonged to more than 3 years by the end of 2007. On that account, the administration took series measures to promote the process, and consequently, the examination period was reduced to less than 1 year by the end of 2010.

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The Extension of the iPad Trademark Battle: Proview Charged iPad Distributor GOME in China

According to Guangzhou Daily, the widely concerned iPad trademark conflict is oiled by the battle between Proview and GOME (HKEx: 00493), the distributor of iPad. And the new dispute has been brought to the Shenzhen Futian People’s Court and heard on 30th, December, 2011.

Shenzhen Proview claims itself the legal trademark owner of iPad, and as investigated, GOME sold the tablet with iPad trademark in its stores with no license from GOME, therefore, the misconduct of GOME shall be the trademark infringement. Thereby, Proview demands GOME stop selling the tablet, destroy all the marks or package related to the infringement, cancel any propaganda concerning iPad and take all the expenses on the investigation, evidence collection and other reasonable costs.

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Techweb: iPhone 4s Launches in China Next Month, Siri Maintained

The China edition iPhone 4S will be put on sale on 6th, January with Siri maintained, as stated in Weibo by Techweb, a Chinese IT media. The price of the device will be the same as the that of iPhone 4 when put on sale, 4999 yuan ($ 792) of the device only and 5880 yuan ($932) of the contract price, which has the contract of 2 years or 3 years. And one thing shall be noticeable that the Siri is maintained.

Previously, as rumor says, Siri is most likely to be deleted for the smart search service may touch the deadline of politics in China, and that was heatedly discussed in China.

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Matters for Attention in the Trademark Opposition

Recently, the Qiaodan Company (Qiaodan is the pronunciation of Michael Jordan’s name), a Chinese domestic sporting goods manufacturer, confronted trademark troubles on IPO in China, because Nike has opposed to 8 trademarks of Qiaodan, claiming that it might lead to the confusion with Nike’s “Air Jordan”. Nevertheless, such opposition was refused by China Trademark Office, and Nike filed no administration lawsuit afterwards.

The opposition filed by Nike to Qiaodan is based on the provision of the China trademark law:

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The Officer of U.S. Consulate Visited Bridge IP Law Commentary

On 20th December, Mr. Steven Duke (杜史文), Vice Consul of U.S.A, visited DeBund Law Offices/Bridge IP Law Commentary for the survey on the IPR protection in China.

On the meeting with the Consul, Mr. You Yunting introduced the IPR protection in China and replied the questions interested by the visitor, which mainly include the national treatment of foreign companies in IPR dispute settlement, the destroy of knockoff model through judicial way, the copyright of video-sharing programs, the transaction and transfer of patent, the protection of trade secret and the development of IPR judge and lawyers in China.

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What Has The UGG Trademark Application in China Told us?

—How to Comprehensively Protect Application for Famous Brands’ Trademarks

Recently some Chinese media have reported that many B2C websites such as 360buy are selling the alleged knockoff UGG snow boots. The Deckers Outdoor Corporation (the “Deckers”), the manufacturer of UGG Australia, claims its exclusive ownership of the UGG trademark and those boots promoted and sold in the name of UGG but without its license are counterfeits. In today’s post, Bridge IP Law Commentary would analyze the dispute of UGG trademark by relevant China laws and regulations.

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Increased Penalty for the IPR Protection after China Criminal Law Revision


As reported, Mr. Jiang Zengwei, the deputy minister of China Commerce Ministry, replied on the press conference on 13th, December that China will enhance the strength of the IPR infringement punishment from 6 aspects, including the completion on the civil evidence rule and increasing the penalty sum.

The specific measures include to research the revision on the criminal law for the strengthened deterrence with more scientific description on the crime; to draft the current effective measures into the judicial interpretation; to increase the penalty sum as times of the infringing products’ value; to complete the civil evidence rule; to research the increase on compensation; to research the application conditions for the great amount, serious consequence and serious circumstance in the criminal law for the more feasibility of the law.

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