The First Criminal Case on Internet Video Copyright Infringement in China

Highlights: to introduce the first criminal case on the internet infringement, and also the analysis on the relevant laws and regulations in China. 

As one of the biggest video websites in China, the openV.com, which claims being able to provide multi-platform VOD services through mobile phone, computer and television, has been prosecuted for criminal offenses, with the website itself and six staffs are brought to the court. OpenV has been the first video website put subject to criminal liability for unauthorized film and television works on demand services. This unprecedented case shocks the industry currently with widespread infringements, and also shows the determination to combat internet infringement of China government.

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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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Introduction on Chinese laws concerning the Invasion of Privacy by Malicious Android Apps

Highlights: More and more malicious APP on Android phones have been spotted, to prevent the legal rights and interests of smart phone users in China, Mr. You Yunting, the founder of Bridge IP Commentary gives his suggestions and analysis.

With the popularity of smart phones, it comes to the security companies’ attention that more and more APP malwares are hitting Android phones as well as the jailbroken iPhones. And unlike surreptitious charge, the unauthorized uploading of personal data is difficult to be perceived by the user for less time and flow hereby taken.

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What’s behind Gucci’s elegance?

                       —Gucci faces the allegations of sweatshop

Highlights: Gucci is claimed to maltreat its employees in China, which even leads to miscarriage of pregnant workers, thus not only impedes Italian luxury brand the expansion in China, but also brings the arbitration and demands for huge compensation.

Gucci, the luxury giant, recently becomes the subject of criticism for it being claimed by former employees of Shenzhen flag-store to be a sweatshop, and the maltreating includes overtime work without fair compensation, unethical treatment for pregnant workers, double compensation for stolen goods, etc. (News related)

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The Patent Application of 2-Dimensional Bar Code in China

According to the New York Times, 2-dimensional bar code technology has been applied in some television shopping programs in USA, where a scan of the onscreen 2-dimensiaonal bar code would put the product directly in the viewer’s shopping cart. In the mobile internet age, 2-dimensional bar code technology could enjoy a wide application area, however, that also necessarily leads to the battle of intellectual property on such technology just like other patent competitions over mobile technology.

The 2-dimensional bar code technology has been rapidly developing in recent years in China. According to the preliminary retrieval by Bridge IP Commentary concerning the application of 2-dimensional bar code in China on October 9th, 2011, there were over 650 patents applied with the 2-dimensional as the key word, and through preliminary analysis, these patents have the following characteristics:

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How Sony Can Avoid Copyright Risk?

Highlights: The article analyzes the case that SONY sued for the infringing content of internet Video-On-Demand service integrated in TV set and the provisions of port principles in China Copyright Law.

It is reported that SONY (TYO: 6758, NYSE: SNE), along with a VOD website, was sued by a Chinese cartoon company (the “copyright owner”), and Beijing Dongcheng District People’s Court has accepted the suit.

As news­ reports, the copyright owner claimed that SONY integrated the internet unicast service software in certain type of its TV set. Furthermore, with SONY’s TV set instruction, the consumer could watch the content of infringing program after registering the serial number of TV online and an account with a website in sequence.

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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 than 1 Trillion of Software Revenues in First 8 Months 2011

The China Ministry of Industry and Information Technology (“MIIT”) released the economic statistics on software industry of first 8 months in 2011 on 26th September, 2011, which shows that the revenues of China software industry has totaled 1.112 trillion Yuan（1 USD equivalent of 6.5 RMB）by the end of August, with a year-on-year growth of 30.5%.

From January to August, the revenues of information consulting service and data processing & operation service has respectively achieved 103.2 and 150.1 billion Yuan, basing on a year-on-year raise of 38.5% and 35.7%. Furthermore, such revenues were up to 23% of the software industry revenues, 3 percentage points higher than that of the same period in 2010.

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The Copyright Registration in China Could Be FREE?

 —- Analysis on the Registration System of Copyright in China

Highlight: The copyright registration may enjoy subsidies from the government in some regions in China. Meanwhile, the registration is also kind of solid protection regarding copyright.

News reports indicate that Provisional Measures on Administrative Subsidy on Copyright Registration in Ningbo City will be enforced from this October; the subsidy covers the registration fee of PC software, cosmic works, online games and other legal and popular works.

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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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Can Pandora Legally Operate in China?

Highlights: To introduce the legal restrictions on foreign companies to invest in service of operating online music in China and the practical ways that multinationals provide local online music services in China. 

As recent news says, the streaming subscription music website Pandora (NYSE:P) will enter into P.R. China, and is head-hunting a capable CEO. However, Pandora’s online music service by China laws shall be categorized as telecom value-added service as well as internet culture service. Though the foreign investment in telecom value-added service is legally permitted, the internet culture service remains banned.

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