07 June 2016
Shanghai
Reporter: Mark Dugdale

SIPO clarifies joint liability in administrative proceedings


China’s State Intellectual Property Office (SIPO) has clarified that original equipment manufacturers (OEMs) and commissioning parties can be held jointly liable for patent infringement in administrative proceedings.

SIPO has issued Guidelines for the Determination of Patent Infringements (for Trial Implementation), which took effect in May, in a bid to clarify certain issues, including infringement liability during administrative proceedings, which local IP offices can institute. Local IP offices have the power to order infringers to stop infringing and issue fines.

But different local IP offices have issued conflicting guidance on certain issues, including the potential liability of OEMs and those that commission them to manufacture products, according to April Chu, associate in Shanghai at CMS China.

According to Chu, the guidelines confirmed that the OEM “infringes the patent right of the patent owner regardless of whether these infringing products are exported abroad or sold in China”.

She added: “The guidelines make it clear that although the commissioning party does not directly produce infringing products, its act of entrusting the OEM to produce such products also constitutes a ‘production activity’ under [China’s] Patent Law. Therefore, the commissioning party and the OEM shall be jointly liable for patent infringement.”

“The above stipulation aims at strengthening the protection of patent rights in [China] since it can prevent Chinese infringers from making use of the OEM model to avoid their liabilities for patent infringement.”

More Asia news
The latest news from IPPro Patents
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Trump fires forward in China IP investigation
15 August 2017 | Washington DC | Reporter: Barney Dixon
US President Donald Trump has signed a memorandum asking the US Trade Representative to examine whether China should be investigated for alleged intellectual property malpractice
SIPO launches new IP rights centre
03 August 2017 | Shanghai | Reporter: Barney Dixon
The centre will focus on providing fast protection for rights in the manufacturing and biopharmaceutical industries
China streamlines patent filing
02 August 2017 | Beijing | Reporter: Barney Dixon
The rules, which went into effect on 1 August, will reduce filing burdens and improve the efficiency of administrative services in specific fields
New Zealand joins GPPH
24 July 2017 | Wellington | Reporter: Barney Dixon
New Zealand is the latest member of the Global Patent Prosecution Highway, joining 17 other countries participating in the agreement
Spruson & Ferguson launches Melbourne trademark office
12 June 2017 | Melbourne | Reporter: Barney Dixon
Law firm Spruson & Ferguson has opened a boutique trademark office in Melbourne, Australia
IP Group invests in Australian innovation
07 June 2017 | Canberra | Reporter: Barney Dixon
UK-based intellectual property investment company IP Group has committed AUD 200 million (USD 151.1 million) to Australia’s Group of Eight coalition
China could establish appellate IP court
15 May 2017 | Chengdu | Reporter: Barney Dixon
The court would be modelled on the US Court of Appeals for the Federal Circuit and cover mainly technology-related issues