China Releases Draft Regulation to Guide Handling of Foreign-Related Intellectual Property Disputes

CHANG TSI
Insights

August20
2024

Recently, the Ministry of Justice of China released the Regulations of the State Council on the Handling of Foreign-Related Intellectual Property Disputes (Draft for Public Comment) to solicit opinions from the public. The consultation period is from July 29, 2024, to August 28, 2024. Unlike previous laws and regulations concerning foreign-related IP disputes and the application of law, this Draft focuses on the IP disputes encountered by Chinese citizens and organizations in their foreign-related business activities, aiming to guide and assist them in handling such disputes.

The Draft consists of 12 articles, with the core content mainly covering the following five aspects:

1.    Clarifying the guidance and services provided by government departments at different levels for handling foreign-related IP disputes, and encouraging civil organizations to build platforms for foreign-related IP rights protection assistance.
2.    Stipulating that administrative departments should improve the public service system for IP information and the database of foreign laws and regulations, providing the public with information inquiry services and warning signs.
3.    Clarifying that administrative departments should establish sound institutions and procedures for guiding the handling of foreign-related IP disputes, providing strategic guidance and rights protection assistance for such disputes.
4.    Supporting commercial mediation organizations and arbitration institutions in participating in the resolution of foreign-related IP disputes, and encouraging law firms and IP service agencies to set up branches and joint operations abroad.
5.    Requiring enterprises to strengthen compliance management, explicitly enhancing publicity and training to improve their ability to handle foreign-related IP disputes.

In recent years, with China’s continuous opening-up and the ongoing advancement of the "Belt and Road" initiative, the number of Chinese enterprises going global has been increasing, and the frequency of Chinese enterprises encountering IP disputes overseas has significantly risen. The Draft aims to further clarify the responsibilities and tasks of government departments in handling foreign-related IP disputes, while also setting clear requirements for enterprises, including compliance management. Since 2015, the China National Intellectual Property Administration has been guiding the construction of an overseas IP information platform, and in 2019, it established the National Overseas Intellectual Property Dispute Response Guidance Center. If the Draft is eventually adopted, there will be more options and institutional guarantees for handling foreign-related IP disputes.

Leslie Xu
Counsel | Attorney at Law | Head of Shanghai Office
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