What Change on Online Copyright in Exposure Draft of China Copyright Law? I

By Luo Yanjie

In recent, the exposure draft of the Copyright Law (the “exposure draft”) has been the hot spots among the public, and many revisions of it have arisen wide argument, among which the most debated parts are the coercive license of the music works in Article 46 and extension management of the copyright collective management organization in Article 60 and 70. On the other hand, it also comes to our attention that rare discussion has been made on the revision concerning the right to the information communication by networks in the exposure draft, which however has been modified a lot. Although such modifications are seems to be a little bit “theoretical”, no one could deny it’s major influence in the future practices. And considering the increasing position of the internet in spreading the copyrighted works, it’s unfair to neglect the revision on the right to the information communication by networks.

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Data on IPR Development in China, 2011

In recent, the News Office of the State Council held a news conference (note: the link is in Chinese), releasing the data on China IPR development in 2011, and the details are as follows:

Under the unified deployment of special acts by the State Council in combating the IPR infringement and the production and selling of the fake and substandard products, the filed cases in the administration of each level are 155, 900 with the involved amount of CNY 3.43 billion, 1, 702 cases were transferred to judicial organs and 9, 135 shelters were shut down.

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Will Collective Management Organization Be Liable For Its Unauthorised Liscense?

Recently, the copyright law exposure draft’s publishing has stirred the opinions among the copyrighters, among which the extension of management related to the copyright collective management organization has being boycotted by most musicians. The case judged by Ningbo Intermediate People’s Court recently over the no right to the authorization is very representative. This post will analyze the case and the regulations of “extension of management” in the exposure draft:

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Music Website in China: What Influence from Latest Copyright Law and Judicial Interpretation

Recently, the exposure draft of Copyright Law PRC (the “Exposure Draft”) has been the hot topic of the public, and also there comes the argument on the modification of some articles. In last week (20th April, 2012), the Supreme People’s Court released the Regulations on the Several Issues on the Law Application in Hearing the Civil Dispute of Infringement against the Right of Information Communication by Nerworks (exposure draft) (the “Judicial Interpretation”), and the document mainly intends to make kind of interpretation on the application of the right of information communication by networks. Then, what influence will come to local music websites shall both the Exposure Draft and the Judicial Interpretation are passed? The following is our opinions on it (the picture is the logo of QQ Music, one of the main music website in China):

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China Copyright Law’s Revision May Help Open Source Software Right Protection

Q&A on Open Source Software

Our lawyers are consulted by netizens of the open source software issue, and the following is the detail of the consultancy:

1. A question about the lawsuit object. Why the lawsuit concerning the open source software as a joint works shall be the necessary colitigation, and demands the participation of all the authors?

A: Please check the following regulation, several opinions on the application of China Civil Litigation Procedure Law by supreme people’s court.

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Netease VS. Tencent: Copyright Conflict on News APP Design

Recently, the copyright battle on the APP design between Netease (NASDAQ: NTES) and Tencent (SEHK: 700), two major internet companies in China, has been widely reported by local medias, and today’s essay is the digest of the news report and the comments from us.

According to the news of Sina Tech on 12th April afternoon (note: the link is in Chinese), Netease stated its news app has been plagiarized by Rencent and demanded the latter to withdraw the infringing app. It’s also mentioned in Netease’s statement that the Tencent News App for iPhone 2.0 version plagiarizes the layout, comment page, picture page’s design, including the app function and the appearance design.

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Is Microsoft Involved in Corruption in China in Genuine Software Trend?

According to the report of local media in China (note: the link is in Chinese), the genuine software trend led by China authority has aroused corrupt, and the officers of Shenyang copyright department, a city in North China, have been punished for their misfeasance in the introduction of genuine software, and Microsoft Inc and its local sales agents are also involved in the scandal.

The Discipline Inspection Committee of CPC in Shenyang City and Shenyang Monitor Department recently investigated a case of forced purchase by cybercafé owner with the pressure from Shenyang Culture and Broadcast Administration. And the investigator claimed the scandal is the inharmonious sound in the construction of software environment, and also an unwise measure damaging the interests of enterprise and social public. The chief office of copyright office of Shenyang Culture and Broadcast Administration Pan Hai Long failed to follow the local regulation “Program on Promoting the Genuine Software Using in Cybercafes” in the administrative act, which demands the group buying, central purchasing and public bidding, and negotiated the purchase price directly with Microsoft accompanied with staffs from the industry association.

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How Chinese Companies Deal with Warning Letters from Adobe?

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Analysis on the Data of Microsoft’s Combat against IPR Infringement

On 23rd February 2012, an article Michael Jordan Wants Respect for his Brand in China in Business Week reported Michael Jordan’s lawsuit against China Qiaodan Sports in China, and said that “After all, China is notorious as a haven for intellectual property rights (IPR) piracy. Microsoft (MSFT), to name just one example, has struggled for years to fight against unauthorized versions of Windows and Office. What makes Michael Jordan think he can succeed where Bill Gates has failed?”

But on 21st March, Mr. Simon L. K. Leung, Chairman and CEO of Microsoft China stated on the interview by Wallstreet Journal that the situation is improving and he credited a campaign against piracy led by China’s Ministry of Commerce, and said an increasing number of state-owned enterprises are using licensed software.

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SIMENS Benefits: A Breakthrough of the Legal Compensation Limit on Pirate Software Litigation

As reported (note: the link is in Chinese), SIMENS PLC Software won the copyright dispute over its software against Excelstor Technology (Excelsor), a company headquartered in Shenzhen, in Shenzhen Intermediate People’s Court, with a sentence to stop the infringement and compensation of 1.16 million yuan for the infringement. There are two eye catching points in this case: 1) the court aided SIMENS in evidence preservation to detain the computers of Excelsor’ s design department, which are detected of NX Unigraphics copyrighted by SIMENS, and that is rare in the cases of this kind; 2) the judged compensation surpassed the legal limit. The post today mainly focuses on the 2nd point. (the image today is the logo of SIMENS)

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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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How to Resolve Online Video Copyright Disputes in China: Administration Supervision or Lawsuit?

How to combat video infringement, by administrative supervision or lawsuit? We’ve got different answers from the company and the government, and the following is the news related:

NEWS 1: By the report of tech.ifeng.com on 29th December, 2011, Mr. Charles Zhang, CEO of SOHU, stated that the best way to improve the protection on copyright is the lawsuit. His comment is during the heated battle on video copyright between Youku (NYSE: YOKU) and Tudou (NASDAQ: TUDO).

Actually, SOHU does not stop in the words. Early in 2009, SOHU initiated China Internet Video Anti-Piracy Association, and accompanied with joy.cn started the first copyright war against the infringement by the leading company in the industry like Youku, Tudou and Xunlei. Afterwards, there saw a rocketing price of the films or TV programs.

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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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How to Combat the Infringing Steve Jobs Doll in Chinese Market

—Does Chinese Makers of Steve Jobs  Action Figures Constitute Crime?

As The Telegraphy reports, the Chinese company In Icons met with the legal challenge of the Apple (NASDAQ:AAPL, LSE:ACP) threatening to sue it if it doesn’t cease making Steven Jobs action doll.

I have done a research on the biggest C2Cwebsite, TaoBao, finding at least two hundreds web selling Steven Jobs action figures with various sizes, the prices of which range from 4 dollars to 100 dollars that are much cheaper than 99.99 dollars of In Icons. Obviously, the Apple and the owner of right of Steven Jobs’s likeness shall combat the infringing products in China.

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Blizzard Suing against “WoW” Regredit and Chinese Law on Anti-Regredit

Highlights: Civil litigation as Blizzard uses this time is rarely adopted by Chinese game companies as a way to combat against game regredit. With the same logic as those game players who would rather choose regredit, those companies would rather choose another way, in their opinion, more convenient, quick, efficient and be once for all, for why they shall choose a more time and expense costing solution? Actually, Chinese game companies generally combat against the haunting regredit by directly reporting the cases to the police, charging the creators of regredit for crime of illegal business specified in the Criminal Law.

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