Gavin Howe
In 2014, China established specialized IP courts in Beijing, Shanghai, and Guangzhou to improve its IP protection landscape. This was a significant step in strengthening IPR protection enforcement and enhancing the quality, consistency, and speed of decision-making in IP-related cases. The establishment of these courts was a milestone in China's recent efforts to improve IP protection and followed the issuance of the IP Strategy in 2008, which aimed to make China a country with a high level of IP creation, utilization, and protection by 2020. Since then, the system has expanded to include more specialized IP tribunals and courts across the country, demonstrating China's commitment to enforcing IP laws and stimulating innovation.
| Characteristics | Values |
|---|---|
| Year of establishment | 2014 |
| Locations | Beijing, Shanghai, Guangzhou |
| Types of cases handled | Civil and administrative litigation relating to patents, new plant varieties, integrated circuit layout designs, technical secrets, and computer software ("Type 1 cases") |
| Administrative appeals against agency actions under the State Council or local governments in relation to copyrights, trademarks, and unfair competition ("Type 2 cases") | |
| Civil litigation involving the recognition of well-known trademarks ("Type 3 cases") | |
| Jurisdiction | Exclusive original jurisdiction over Type 1 and Type 3 cases |
| Burden of proof | Lowered for plaintiffs, who must exhaust reasonable efforts to demonstrate the infringer's profits |
| Subpoenas | More willing to grant plaintiffs' motions to subpoena third parties |
| Damages | More willing to award damages compared to the past |
| Judicial reform | Part of China's roadmap to become a country with a high level of IP creation, utilization, and protection by 2020 |
| Expansion | 20 specialized IP tribunals across the country as of 2017 |
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What You'll Learn
China's IP Strategy
In 2008, China announced the Outline of its National IP Strategy, which set a roadmap for China to become a country with a high level of IP creation, utilization, and protection by 2020. This strategy included a commitment to judicial reforms, and in 2014, China established specialized IP courts in Beijing, Shanghai, and Guangzhou. These courts were designed to try cases involving patents, technical secrets, computer software, new plant varieties, and more. In 2017, the system expanded to include 20 specialized IP tribunals across the country.
China has also been active in negotiating IP rules in regional trade agreements and is a signatory to several international treaties on IP issues, including the Madrid Agreement for the International Registration of Trademarks and the Beijing Treaty on Audiovisual Performances.
While China has made significant progress in its IP Strategy, there are still some inconsistencies and issues with the expertise of some courts to deal with complex IP cases. Additionally, local protectionism may sometimes dilute the strength of central legislation or law enforcement.
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IP Court Locations
The Chinese legislature approved a resolution to establish specialized IP courts in Beijing, Shanghai, and Guangzhou in 2014. These courts have independent public judicial bodies and operate as intermediate courts in the hierarchy of the Chinese judicial system. The Beijing IP Court has exclusive jurisdiction over appeals from administrative decisions concerning the grant and confirmation of IP rights, including patents, trademarks, new plant varieties, and integrated circuit layout designs.
The Shanghai IP Court has explored diversified mechanisms for dispute resolution, signing cooperation agreements with mediation organizations and industrial associations. The Guangzhou IP Court is also expected to handle a large number of IP cases, as the province of Guangdong accounts for a significant portion of IP cases filed in China annually.
In 2017, four new specialized IP tribunals were established in Nanjing, Suzhou, Chengdu, and Wuhan, with 20 specialized IP tribunals across the country by 2019. These tribunals are administratively part of the intermediate people's court in their respective cities but hold cross-regional and exclusive subject matter jurisdiction over IP cases.
In 2019, Hangzhou established an AI-based Internet Court to adjudicate internet-related IP claims and e-commerce disputes, with parties appearing via videoconference. By 2020, the Chinese government aimed to expand the intellectual property court system to cover the entire country.
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Subject Matter Jurisdiction
In 2014, China established specialised intellectual property (IP) courts in Beijing, Shanghai, and Guangzhou. These courts were set up to try civil and administrative litigation relating to patents, new plant varieties, integrated circuit layout designs, technical secrets, and computer software.
The specialised IP courts have subject matter jurisdiction over specific types of cases, known as "Type 1", "Type 2", and "Type 3" cases. Type 1 cases involve civil and administrative litigation related to patents, new plant varieties, integrated circuit layout designs, technical secrets, and computer software. Type 2 cases involve administrative appeals against agency actions under the State Council or local governments regarding copyrights, trademarks, and unfair competition. Type 3 cases involve civil litigation over the recognition of well-known trademarks. The IP courts have exclusive original jurisdiction over Type 1 and Type 3 cases.
The Beijing IP Court has broader subject matter jurisdiction than the Shanghai and Guangzhou IP Courts. In addition to Type 1, Type 2, and Type 3 cases, the Beijing Court has exclusive jurisdiction over appeals from administrative decisions related to IP rights, compulsory licenses, and other administrative decisions under the State Council.
Since the establishment of the first specialised IP courts in 2014, China has expanded its system to include more courts and tribunals across the country. By 2017, there were 20 specialised IP tribunals, with more being established in subsequent years. These tribunals are administratively part of the intermediate people's court in their city, but they have cross-regional and exclusive subject matter jurisdiction over IP cases.
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IP Tribunal Expansion
China has been reforming its IP regime since the 1980s, with the goal of improving its regulatory structure to encourage national innovation and compete based on human and intellectual capital. In 2008, China announced the Outline of National IP Strategy, which set a roadmap for China to become a country with a high level of IP creation, utilisation, and protection by 2020. This included a commitment to judicial reforms, such as the establishment of specialised IP courts.
In 2014, China established its first specialised IP courts in Beijing, Shanghai, and Guangzhou, marking a significant step towards strengthening IP protection enforcement. These courts were designed to try complex cases involving patents, technical secrets, computer software, new plant varieties, and integrated circuit layout designs. By 2017, the system expanded to include four new specialised IP tribunals in Nanjing, Suzhou, Chengdu, and Wuhan, and by 2019, there were 18 specialised IP tribunals across several provinces.
The expansion of IP tribunals has improved the quality, consistency, and speed of decision-making in IP cases. For example, the Beijing IP Court used a large team of judges, assistants, and clerks to handle a high volume of cases, demonstrating the specialised knowledge and experience required for IP adjudication. The establishment of these tribunals also reflects the increasing demand from foreign and Chinese firms for efficient resolution of IP disputes.
In 2019, the Chinese SPC inaugurated an IP tribunal in Beijing, which has the highest judicial authority over patent cases and other highly technical IP issues. This national-level IP tribunal of appeal has been applauded as a significant step towards improving China's IPR regime and stimulating innovation, similar to the impact of the US Court of Appeals for the Federal Circuit.
China's IP tribunal expansion is part of its effort to adapt to international IP protection standards and enhance its enforcement mechanisms. These reforms address issues of inconsistency, long litigation durations, and the need for specialised knowledge in IP law, with the ultimate goal of fostering a fair business environment and stimulating domestic innovation.
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International Influence
The establishment of specialized IP courts in China is a significant development in the country's intellectual property (IP) landscape and has international implications. China has been working towards strengthening its IP protection and enforcement, with a notable increase in IP cases prosecuted criminally in Chinese courts from 2005 to 2015. This trend suggests tougher enforcement of IP laws, which has also been influenced by international agreements and China's commitment to improving its regulatory structure.
China's accession to the World Trade Organization in 2001 and its adoption of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) incentivized policymakers to enhance the country's regulatory framework and encourage national innovation. The TRIPS agreement serves as the basis for China's domestic IP law, leading to significant domestic policy reforms and improvements in IP protection.
The establishment of specialized IP courts in Beijing, Shanghai, and Guangzhou in late 2014 marked a milestone in China's efforts to improve its IP judicial system. These courts were designed to handle complex IP cases and address the issue of inconsistency in previous courts, where some lacked the expertise to deal with such cases effectively. The specialized IP courts have exclusive jurisdiction over specific types of cases, including civil and administrative litigation relating to patents, new plant varieties, technical secrets, and computer software.
The international influence of China's specialized IP courts can be observed in several ways. Firstly, foreign firms have been increasingly successful in litigating patent infringement suits in China, winning approximately 70% of the time from 2006 to 2011 and rising to about 80% in the late 2010s. This trend indicates that China's improved IP protection measures, including the establishment of specialized IP courts, have created a more favourable environment for foreign companies to protect their intellectual property rights in the country.
Secondly, China's commitment to strengthening IP protection has been recognized internationally. In 2012, China hosted the China-ASEAN Seminar on the Protection of Intellectual Property Rights, Traditional Knowledge, and Genetic Resources, showcasing its active participation in regional discussions on IP protection. Additionally, China's general approach in addressing IP issues in international forums includes maintaining TRIPS Agreement standards and occasionally joining proposals from other developing countries to oppose further increases in IP standards.
Lastly, China's establishment of specialized IP courts has set a precedent for other countries to follow. As China continues to enhance its IP protection measures and resolve IP disputes more effectively, other nations may look to China's specialized IP courts as a model for improving their own IP judicial systems. The establishment of these courts demonstrates China's dedication to IP protection and its willingness to adapt and innovate its legal framework to meet international standards.
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Frequently asked questions
Specialized IP courts in China are courts that deal with intellectual property cases. These courts have been established in Beijing, Shanghai, and Guangzhou.
The Chinese legislature approved a resolution to establish these courts on 31 August 2014. The Beijing IP Court opened in November 2014, the Guangzhou IP Court in December 2014, and the Shanghai IP Court in January 2015.
The specialized IP courts were established to improve IP protection in China. They aim to enhance the quality, consistency, and speed of decision-making in complex IP cases.
The IP courts have original jurisdiction over civil and administrative litigation relating to patents, new plant varieties, technical secrets, and computer software. They also handle administrative appeals and civil litigation involving trademarks and unfair competition.
The specialized IP courts currently cover Beijing, Shanghai, and the province of Guangdong, which account for about 55% of the total IP cases filed in China annually. However, there are plans to expand their reach across the country.
