Nikon Succeeds in Combating the Trademark Infringement in Non-video Classes

—Judicial Solutions to the Conflict between Company Name and Trademark Right in China 

Highlight: The free-riding on the well-known trademark is not rare in China for the startups’ eagerness of rapid development, some ones may even register such marks as their company names. Bridge IP Commentary will introduce you the key elements in the trademark  right protection for trademark owner.

Recently, China’s Supreme Court released the Annual Ten IPR Cases in China, among which a case concerning the conflict between company name and well-known trademark heard in Xi’an Intermediate People’s Court of Shaanxi Province gets the attention of Bridge IP Commentary. In the case, a company established on 28th March, 2000 in Jinghua City of Zhejiang Province altered its name to Zhejiang Nikon Co., Ltd., which mainly sells bikes and scooters and applied for trademark registration. That discontented century-old Nikon Corporation (TYO:7731) and aroused the legal battle. Zhejiang Nikon was finally sentenced to abandon the registration, alter its infringing name and take the compensation liability.

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How Could McDonald’s Beat Free Rider of Trademark in China?

Highlights:This article introduces the case initiated by McDonald’s to protect its trademark right against malicious imitation and the related laws and regulations in China, also the legal suggestions from Bridge IP Commentary to McDonald’s in the case that to protect its right basing on the general vocabulary defined in the Trademark Law and the copyright of its trademark.


Recently, the McDonald’s (NYSE: MCD) administrative litigation against the imitation of its trademark by a Beijing company attracts the media’sattention. Several years ago, the trademark “wonderful and its graph” (hereinafter referred to trademark “W”)was registered by  the company in the State Administration of Industry and Commerce, and the registered ranges include restaurant, café, research and development, clothing design and so on. On finding the trade mark and the judgment of similarity with its “M”, McDonald’s then filed an opposition against the trademark to the Trademark Review and Adjudication Board(hereinafter referred to the Trademark Board) under the State Administration of Industry and Commerce for re-examination. The Trademark Board finally decides to cancel the registration of the trademark “W” in the field of restaurant, café, cocktail party service, hotel, bar, teahouse service, however, while to maintain the registration in clothing design and package design. Therefore, MacDonald filed an administrative litigation to the Beijing First Intermediate People’s Court to cancel the decision of the Trademark Board.

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Malicious Squatting of Trademarks in China Will Be Curbed

                                —Comment I on the revision of China Trademark Law 

Highlights: The Comment One on the draft of China Trademark Law amendment. The new regulation expands the scope of malicious squatting of trademarks and the protection on well-known ones, while it still leaves an ambiguous space for application.

The draft of China Trademark Law amendment (the “Draft”) is issued by the Legislative Office of State Council (LAO), a working body to the State Council assisting the Premier in handling legislative affairs and other legal affairs, for the public comments. After study on the draft, Bridge IP Commentary will make series analysis on it.

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China Begins to Try Out Intellectual Property Pledge System

Highlight:China’s new policy on intellectual property pledge,which will help startup firms in technology or creative industries but increase the risks for the banks.

For more innovation and settlement on fund shortages with startups in the technology and creation industry, the Guidance on Financial Support on Revitalization and Development of Culture Industry was issued on 19th March, 2010, by which the collaboration is established between the government of China and more loans to support with company culture is also demanded.

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The Rapid Development of Trademark Registration in Middle China

According to Henan Daily, data released by the Administration of Industry and Commerce in Henan, a province in middle China, shows that the amount of trademark registration has been rapidly increasing and the conscious awareness on trademarks have been enhancing also, though it still falls behind the more developed areas. Henan is located in middle China, the province with the second largest population in the country, having residents of more than 9.3 million at the end of 2007.

By June, 2011,118,000 trademarks had been effectively registered in Henan, up from 58,000 by the end of 2007.

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Trademark or Company Name, Which One is on Priority in China?

Highlight: To introduce the laws and regulations concerning the conflict between trademark and company names in China and matters in need of attention regarding foreign companies applying for in trademarks.

Case study: Beijing Baoma (北京宝马), the company of BMW Group’s first agent in mainland China and the first one translated BMW to the current popular Chinese name Baoma (宝马), which means speeding horse and has become a vivid symbol of their vehicles, was demanded to change its name by BMW Group, under the pressure that even more the parties may get litigated against each other.

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More Attention on Brand Protection in West China

Highlights: To introduce the brand protection system in China, involving protection on registered trademark, well-known trademark regulated in Trademark Law as well as on noted trademark, famous trademark and top brand provided in local regulations.

According to Chinese media, Lanzhou Administration for Industry & Commerce in Gansu Province of West China launched the first noted trademark selection from August, 2011, and anyone owning registered trademark, whether an individual, corporation or other organizations, may participate in the selection. The report also says the noted trademark system in Lanzhou will be gradually established for more Gansu famous trademarks and China well-known trademarks in the city. Such news shows that more and more attention is being paid to brand construction and intellectual property protection in the relatively less-developed western region of China.

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Can Apple Register iMessage trademark in China?

HIGHLIGHTS: Apple recently applied trademark registration for its “iMessage” in U.S., and no doubt such registration will also be conducted in China soon. Bridge IP Commentary will analyse the prospect for such registration in China and also introduce the related local trademark laws and regulations. 

It is reported that Apple (NSDQ: AAPL) filed three different trademark applications for “iMessage” with the USPTO recently. iMessage is Apple’s newly developed instant messaging software basing on mobile internet devices.

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How to improve the success rate of trademark registration in China?

Highlight: Foreign companies should ask the Chinese trademark agency to take trademark retrieval and give advice of feasibility of the trademark keyword before applying the trademark.

The most frequently consulted question by foreign companies to us is that what measures could be taken when trademark application is refused in China.

    In accordance with our experiences, it is more difficult to get the trademark that has been refused approved, however, under most circumstances, the basic success rate for trademark application can be known through the prior trademark retrieval service. For the avoidance of any influence on company’s brand strategy from application failure, alternative names or together-applied backup names are suggested to those trademarks difficult to apply.

The rejection of trademark application may cause large losses and damages to enterprises’ brand strategy. Generally, the company tends to schedule the brand strategy, including brand positioning, advertisement and protection before unveiling the product. However, it may cost 1 to 1.5 years from application to registration or rejection due to administrative refusal, which may challenge the brand strategy of the company shall the company was unprepared.

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How to Combat Knockoffs on Taobao.com

Highlights: Introduce the way for foreign trademark, patent and copyright owners to combat knockoffs on Chinese biggest online sales website Taobao.com

Taobao.com, the biggest online transaction website in China, signed the copyright protection memo with International Intellectual Property Alliance (IIPA) in Beijing on 1st, Sep., promising to combat infringement on copyright. (news related, in Chinese)

In 2010, the number of online products of Taobao.com has been more than 800 million, with trade volume of 400 billion. Just like eBay, Taobao.com only provides the platform for online transaction instead of sale by itself.

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Regulation for Computer Software Protection (2013.2.25 updated)

Contents
Chapter I General Provisions
Chapter II Software Copyright
Chapter III Licensing and Transfer of Software Copyright
Chapter IV Legal Responsibility
Chapter V Supplementary Provisions
Chapter I General Provisions
Article 1 For the purposes of protecting the rights and interests of computer software copyright owners, regulating beneficial relations in the development, dissemination and use of computer software, encouraging the computer software development and application and promoting the advance of the software industry and the information-based national economy, and in accordance with the Copyright Law of the People’s Republic of China, this Regulation is formulated.
Article 2 In this Regulation, computer software (hereinafter cited as the software) shall mean computer programs and their documentation.
Article 3 Meanings of the following expressions in this Regulation:
1. Computer program shall mean a sequence of code-based instructions that can be executed by such devices having information processing capacity as computer for achieving a certain result, or a sequence of symbol-based instructions or expressions that can be automatically converted into a sequence of code-based instructions. The source program and the object program in a computer program shall be an identical work.
2. Documentation shall mean the written materials and diagrams, such as the program design specifications, flow charts and operating manual, which are used to describe the contents, elements, design, functions and specifications, development, testing results and operating method of the program.
3. Software creator shall mean the legal person or other organization which actually organizes to create or directly creates the software and assumes responsibility for that software; or the natural person who creates the software by virtue of his own resources and assumes responsibility for that software.
4. Software copyright owner shall mean the natural person, legal person or other organization that shall enjoy copyright in the software under the provisions of this Regulation.
Article 4 The software protected by this Regulation must be independently created by the creator and has been already fixed on any form of tangible medium.
Article 5 The software created by Chinese citizens, legal persons or other organizations shall have copyright under this Regulation, regardless of whether or not it is published.
The software of foreign or stateless persons shall have copyright under this Regulation, if it is first distributed in the territory of China.
The copyright in the software of foreign or stateless persons under the agreements concluded with China by the countries to which the creators belong or in which the creators reside habitually or under the international conventions to which China is a member state shall be protected by this Regulation.
Article 6 Protection for software copyright offered by this Regulation may not be extended to the ideas, processing operations, operating methods or algorithm concepts for creating the software.
Article 7 Software copyright owners may acquire registration from the software registration agencies acknowledged by the copyright administrative department under the State Council. The registration certificate issued by the software registration agencies shall be the preliminary evidence for the registration.
The acquisition of software registration shall be subject to the payment of fees. The fee schedule is to be specified by the copyright administrative department under the State Council in collaboration with the competent department of price under the State Council.
Chapter II Software Copyright
Article 8 Software copyright owners shall enjoy the following rights:
1. The right of publication, that is, the right to decide whether or not to make their software available to the public;
2. The right of authorship, that is, the right to indicate the creators’ identity and to sign their names on their software;
3. The right of alteration, that is, the right to add or delete the elements of their software or to alter instructions or expression sequences;
4. The right of reproduction, that is, the right to make one or more copies of their software;
5. The right of distribution, that is, the right to supply the originals or copies of their software to the public in the form of sale or gift;
6. The right of rental, that is, the right to license other persons to use their software temporarily, except where their software is not the key subject matter of the rental;
7. The right of dissemination through information networks, that is, the right to supply their software to the public in the form of wire or wireless, in order to make the members of the public to obtain their software on the time or in the place selected;
8. The right of translation, that is, the right to convert their original software from a natural language into another; and
9. Other rights that shall be enjoyed by software copyright owners.
Software copyright owners may license other persons to exercise their software copyright and shall have the right to accept compensations.
Software copyright owners may, wholly or partly, transfer their software copyright and shall have the right to accept compensations.
Article 9 Software copyright shall belong to the software creators, unless otherwise specified in this Regulation.
Failing proof to the contrary, natural persons, legal persons or other organizations named in the software shall be the creators.
Article 10 The ownership of copyright in the software that was jointly created by two or more natural persons, legal persons or other organizations shall be stipulated in a written contract by the co-creators.
In the absence of such a written contract or an explicit stipulation in the contract, any of the co-creators may enjoy the copyright in the part he created if that software can be separated for use. Notwithstanding, his exercise of copyright may not be extended to the whole copyright in that software.
If that software cannot be separated for use, the copyright in it shall be jointly enjoyed by the co-creators and exercised by negotiation among them. In the case of failure of negotiation and without due grounds, one party may not prevent the other party from exercising the rights other than the right of transfer. Notwithstanding, profits thus received shall be distributed among all the co-creators reasonably.
Article 11 The ownership of copyright in the software that was created under the commission of other person shall be stipulated in a written contract by the commissioning and commissioned parties. In the absence of such a written contract or an explicit stipulation in the contract, the copyright in that software shall belong to the commissioned party.
Article 12 The ownership and exercise of copyright in the software that was created pursuant to a task assigned by a State organ shall be stipulated in the project task document or contract. If no explicit stipulation is made in the project task document or contract, the copyright in that software shall belong to the legal person or other organization that accepts the task.
Article 13 Under any of the following circumstances, the copyright in the software that was created by a natural person within the term of his duty in the legal person or other organization shall belong to the legal person or other organization.The legal person or other organization may give praises and rewards to the natural person who created the software:
1. The software was created for the purpose determined in the duty;
2. The software so created is the predictable or natural result in the activities of duty; or
3. The software was created mainly by virtue of such material and technical resources as fund, special equipment or undisclosed special information of the legal person or other organization and for which the legal person or other organization shall assume responsibility.
Article 14 The copyright in the software shall be commenced from the date on which the software is created.
The term of protection for the copyright in the software of the natural person shall be the life of the natural person and fifty years after his death, and shall end on 31st of December of the fiftieth year after his death. If the software was created jointly, the term of protection shall end on 31st of December of the fiftieth year after the death of the last surviving natural person.
The term of protection for the copyright in the software of the legal person or other organization shall be fifty years and shall end on 31st of December of the fiftieth year after the first publication of the software. However, if the software has not been published within fifty years from the date of creation, it shall not be protected by this Regulation.
Article 15 If the software copyright belongs to the natural person, the software copyright successor in title may, after the death of the natural person and within the term of protection, succeed to the rights other than the right of authorship offered by Article 8 of this Regulation according to the relevant provisions of the Succession Law of the People’s Republic of China.
If the software copyright belongs to the legal person or other organization, but the legal person or other organization changes or terminates, the copyright shall, within the term of protection specified in this Regulation, belong to the legal person or other organization that assumes the rights and liabilities of the original legal person or other organization. In the absence of such legal person or other organization, the copyright shall belong to the State.
Article 16 Owners of lawful copies of software shall enjoy the following rights:
1. To load the software into such devices having information processing capacity as computer according to the operational need;
2. To make back-ups for avoiding damage to the copies. These back-ups may not be provided to other persons for use in any way. Once the owner loses the ownership of the lawful copies, he shall be responsible for destroying all the back-ups; and
3. To make necessary modifications in order to use the software in the practical application environment for computers or to improve the functions of the software.
The software so modified may not, however, be provided to the third party without the license of the software copyright owner, unless otherwise stipulated in the contract.
Article 17 Without the license of and payment to the software copyright owner, a person may use software for learning and studying the design idea and principle of the software in the form of loading, display, transmission or storage.
Chapter III Licensing and Transfer of Software Copyright
Article 18 The licensing of software copyright shall be in possession of a contract for licensing.
The licensee may not exercise the right that has not been licensed by the software copyright owner in the contract for licensing.
Article 19 If a software copyright is licensed to other persons to exclusively exercise, the parties concerned shall conclude a contract in writing.
In the absence of such a contract in writing or an explicit stipulation on exclusive license in the contract, the right so licensed to exercise shall be considered as the non-exclusive right.
Article 20 If a software copyright is transferred, the parties concerned shall conclude a contract in writing.
Article 21 The contracts for licensing other persons to exclusively exercise the software copyright or the contracts for transferring the software copyright may be registered at the software registration agencies acknowledged by the copyright administrative department under the State Council.
Article 22 Chinese citizens, legal persons or other organizations that license or transfer the software copyright to the foreign persons shall comply with the relevant provisions of the Regulation of the People’s Republic of China on Administration of Import or Export of Technologies.
Chapter IV Legal Responsibility
Article 23 Except as otherwise provided in the Copyright Law of the People’s Republic of China and this Regulation, any one who commits any of the following infringing acts shall, upon the situation, stop the infringement, eliminate the effect, make a public apology, compensate for loss and bear other civil responsibilities:
1. Without the licensing by the software copyright owner, to publish or register his software;
2. To publish or register another person’s software as his own;
3. Without the licensing by the co-creator, to publish or register the software created jointly as one created by his own;
4. To sign his name in another person’s software or to alter the name indicated therein;
5. Without the licensing by the software copyright owner, to alter or translate his software; or
6. Other acts of infringing the software copyright.
Article 24 Except as otherwise provided in the Copyright Law of the People’s Republic of China, this Regulation or other laws or administrative regulations, any one who, without the licensing by the software copyright owner, commits any of the following infringing acts, shall, upon the situation, stop the infringement, eliminate the effect, make a public apology, compensate for loss and bear other civil responsibilities; if his act prejudices the social and public interests, the copyright administrative department shall order him to stop the infringing act, confiscate of his illegal gains, confiscate and destroy the infringing copies and may concurrently impose a fine; if the circumstances are serious, the copyright administrative department may concurrently confiscate of the key materials, tools and equipment for making the infringing copies; if his act prejudices the Criminal Law, he shall, according to law, be demanded for criminal responsibility under the provisions of the Criminal law on crimes of infringing on the copyright and crimes of selling the infringing copies:
1. To reproduce, wholly or partly, the software of the copyright owner;
2. To distribute, rent or disseminate through information networks the software of the copyright owner to the public;
3. Intentionally to escape from or disrupt the technical measures adopted by the copyright owner for protecting his software copyright;
4. Intentionally to delete or alter electric data for software right management; or
5. To transfer or license another person to exercise the software copyright of the copyright owner.
In addition, the infringer who commits the act under subparagraph 1 or 2 of the paragraph above shall be concurrently imposed a fine of 100 yuan per copy or one time but not exceeding five times the value of the copies; the infringer who commits the act under subparagraph 3, 4 or 5 of the paragraph above shall be concurrently imposed a fine not exceeding 200,000 yuan.
Article 25 The amount of compensation for infringing the software copyright shall be determined under the provisions of the Copyright Law of the People’s Republic of China.
Article 26 The software copyright owner who has evidences to prove that another person is committing or will commit an act of infringing his right which can cause a damage to his legitimate rights and interests if that act is not prevented promptly, may apply to the people’s court for ordering to stop the act and adopting property preservation measures in accordance with the provisions of Article 49 of the Copyright Law of the People’s Republic of China before he initiates the action.
Article 27 For the purpose of preventing the infringing act and under the situation that the evidence can be lost or difficult to obtain afterward, the software copyright owner may apply to the people’s court for evidence preservation in accordance with the provisions of Article 50 of the Copyright Law of the People’s Republic of China before he initiates the action.
Article 28 Publishers or producers of software copies who fail to offer evidences to prove official authorization for their publication or production, or distributors or renters who fail to offer evidences to prove the legal sources for their distribution and rental, shall bear legal responsibility.
Article 29 Similarity of a creator’s software with the software already published due to the limited number of available forms of expression shall not constitute the infringement on the copyright in the software already published.
Article 30 The software copy holder who is unknown or has no reasonable grounds to know that his software is an infringing copy shall not bear the responsibility for compensation; however, he shall stop the use or destroy the infringing copy.
If the cease of use and destruction of the infringing copy has caused a serious loss to the copy user, the latter may continue the use after he makes a reasonable payment to the software copyright owner.
Article 31 All disputes in respect of the infringement on the software copyright may be mediated.
All disputes in respect of the contracts for software copyright may be applied for arbitration to the arbitration organizations pursuant to the arbitration clauses in the contracts or written arbitration agreements concluded afterwards.
The parties concerned may bring the action directly before the people’s court in the absence of an arbitration clause in the contract or in the absence of a written arbitration agreement concluded afterwards.
Chapter V Supplementary Provisions
Article 32 The infringing acts committed prior to the entry into operation of this Regulation shall be handled under the relevant provisions in force of the State at the time when they were committed.
Article 33 This Regulation shall enter into operation on January 1, 2002.
The Regulation on the Protection of Computer Software promulgated on June 4, 1991 by the State Council shall be repealed on the same day.

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ADMINISTRATIVE PROCEDURE LAW OF THE PEOPLE’S REPUBLIC OF CHINA

Chapter I     General Provisions

Chapter II    Scope of Accepting Cases

Chapter III   Jurisdiction

Chapter IV    Participants in Proceedings

Chapter V     Evidence

Chapter VI    Bringing a Suit and Accepting a Case

Chapter VII   Trial and Judgment

Chapter VIII  Execution

Chapter IX    Liability for Compensation for Infringement of Rights

Chapter X     Administrative Procedure Involving Foreign Interest

Chapter XI    Supplementary Provisions

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