Supreme People’s Court Issued White Paper on IPR Protection by Chinese Courts in 2009

　　On April 20, 2010, the Supreme People’s Court of PRC issued a white paper on Intellectual Property Protection by Chinese Courts in 2009. This white paper briefly introduced the intellectual property protection in China in the last 30 years and summarized the judicial protection of IPR in 2009. In the white paper, the Supreme Court provided the latest statistics of judicial cases of IPR.

IPR-related cases of first instance between 1985 and 2009

　　Between 1985 and 2009, the People’s Courts had totally concluded 166408 IP-related civil cases of first instance, while 6387 IP-related administrative cases of first instance and 14509 IP-related criminal cases of first instance were decided by the courts.

Clearance rate of first instance civil IP cases

　　The quality and efficiency of judicial decisions on IP cases have improved over the years. The clearance rate of first instance IP civil cases increased from 75.35% in 2003 to 85.35% in 2009. Appeals fell from 59.38% in 2003 to 48.82% in 2009. Likewise, cases remanded or decisions reversed at the second instance reduced from 15.19% in 2003 to 6.00% in 2009, and retrials fell from 0.80% in 2003 to 0.33% in 2009.
　　Court mediation has also proven to be an effective means of dispute settlement. In recent years, more than 50%, on the average, of intellectual property civil cases were settled through court mediation at first instance.

Enhanced the effectiveness of judicial protection for IP

　　The People’s Courts have taken a prudent yet effective approach to using pre-trial provisional measures, and have imposed civil sanctions on infringement according to law. Between 2002 and 2009, a total of 808 applications for pre-trial preliminary injunction in IP-related cases were admitted by local courts, 84.18% were granted approval; 1312 applications for pre-trial preservation of evidence were admitted, 93.72% were granted approval, 527 applications for pre-trial preservation of property were admitted, 96.04% were granted approval.

Bettered the capacity in providing judicial protection for IP

　　The People’s Courts have endeavored to build a robust adjudication organization, a stronger team of judges, and high level of professionalism for intellectual property protection. In August 1993, the Beijing Intermediate and High People’s Courts became the first courts in the country to introduce dedicated Intellectual Property Divisions. In October 1996, the Supreme People’s Court set up its Intellectual Property Division. At present, all High People’s Courts, almost all Intermediate People’s Courts and all Primary People’s Courts with civil jurisdiction for intellectual property cases have created dedicated intellectual property divisions. According to statistics dated October 2008, local courts had established a total of 298 separate intellectual property divisions and 84 intellectual property panels in civil divisions, and staffed 2,126 specialized intellectual property judges (currently, among the general courts, there are 31 High People’s Courts, 409 Intermediate People’s Courts, and 3119 Primary People’s Courts).

New progress in IP protection in 2009

　　The number of civil cases relating to intellectual property has increased rapidly over the years, much faster than the other categories of civil and commercial cases.
　　In 2009, first instance IP civil cases admitted and closed by all local courts were 30,626 and 30,509 respectively, a year-on-year increase of 25.49% and 29.73% respectively. Total disputed value of newly admitted cases of first instance was 3,084,950,000 yuan (USD 452.25 million). Of the newly admitted cases, there were 4,422 on patent, 8.54% increase from 2008; 6,906 on trademark, 10.80% increase from 2008; 15,302 on copyright, 39.73% increase from 2008; 747 on technology contracts, 19.9% increase from 2008; 1,282 on unfair competition, 8.19% increase from 2008; and 1,967 on other intellectual property, 46.79% increase from 2008. For IP-related civil cases where foreign parties are involved, the total number of closed cases was 1,361 in 2009, 19.49% more than last year; for cases involving Hong Kong, Macao or Taiwan, the number was 353, 56.89% more than last year. Newly admitted and closed intellectual property cases of second instance for the year were 5,340 and 5,492 respectively, and the respective year-on-year increases were 12.21% and16.88%. Newly admitted and closed retrial cases were 100 and 107 respectively, declining by 1.96% and 50.7% respectively from last year. In addition, since the implementation of the Anti-Monopoly Law on 1 August 2008 and until the end of 2009, total admitted and closed monopoly-related civil cases of first instance were 10 and 6 respectively.
　　In 2009, the Supreme People’s Court admitted 297 IP-related civil cases, and closed 390 cases (including carried over cases). Of these, the newly admitted cases for retrial application totaled 230, and a total of 319 (including carried over cases) retrial application cases were closed. Hence, the Supreme People’s Court has fulfilled its duty of supervision and guidance in intellectual property adjudication for all local courts.

Quality and efficiency of adjudication has continued to improve

　　Clearance rate of IP-related civil cases at first instance in all local courts rose from 2008’s 81.73% to 2009’s 85.04%; appeals fell from 2008’s 49.32% to 2009’s 48.82%. Retrials fell from 0.44% in 2008 to 0.33% in 2009, while reversal of decisions at appeal also fell from 6.20% in 2008 to 6.00% in 2009. Clearance rate of civil cases relating to intellectual property at the Supreme People’s Court increased from 55.93% in 2008 to 88.64% in 2009, an improvement of 32.71%.
　　The courts have also leveraged the special role of provisional measures. In 2009, a total of 59 applications for pre-trial preliminary injunction in IP-related cases were admitted by local courts, 85.42% were granted approval; 237 applications for pre-trial preservation of evidence were admitted, 98.72% were granted approval; 56 applications for pre-trial preservation of property were admitted, 100% were granted approval. In general, the courts have been supportive of the use of provisional measures to protect intellectual property, as reflected in the percentage of approvals granted.
　　In 2009, 3,660 criminal cases relating to intellectual property infringement were closed, 10.04% more than last year. The number of individuals on whom the courts’ decisions became effective was 5,836, 8.31% higher than last year; of which, 5,832 persons were found guilty, 8.28% higher than the previous year. Among the closed cases, 1,007 were convicted for crimes of intellectual property infringement, 1.1% higher than last year, and decisions were effective on 1,605 persons, 3.14% lower than last year; 646 were found guilty of producing and selling counterfeit and inferior goods (involving infringement of intellectual property right), and the decisions were effective on 1,114 persons; 1,973 were found guilty of illegal business operations (involving infringement of intellectual property right), and the decisions were effective on 3,076 persons; the remaining 34 were found guilty of other crimes relating to infringement of intellectual property, and decisions were effective on 41 persons.

Judicial review of IP administrative cases

　　In 2009, local courts nationwide admitted 2,072 and closed 1,971 IP administrative cases of first instance, an increase of 92.92% and 90.99% respectively over the previous year. Of these, 688 new patent cases were admitted, 19.03% more than last year; 1,376 trademark cases, 184.3% more than last year; 4 copyright cases, a drop of 42.86% from 2008; and 4 cases on other subjects. The Supreme People’s Court admitted 54 such new cases and closed 56 (including carried over cases).
　　Administrative litigation cases relating intellectual property are basically cases concerning the grant or validation of patent or trademark, where the defendants are principally two entities: the Patent Re-examination Board under the State Intellectual Property Office, and the Trademark Review and Adjudication Board under the State Administration for Industry and Commerce.
　　The number of IP-related administrative cases was a record high, and caseload for the courts was significantly heavier in 2009. Based on statistics, there were 626 new patent-related administrative cases of first instance admitted by the Beijing First Intermediate People’s Court, and 594 such cases closed by the same, an increase of 20.38% and 34.69% respectively from the previous year. For the Beijing High People’s Court, 361 new patent-related administrative cases of second instance were admitted, and 337 closed, an increase of 11.42% and 17.01% from last year. For trademark-related administrative cases, the Beijing First Intermediate People’s Court admitted 1,346 new first instance cases and closed 1,222, 209.42% and 333.33% respectively higher than last year. As for the Beijing High People’s Court, 465 such new second instance cases were admitted, and 416 cases were closed, an increase of 144.73% and 195.03% respectively over the previous year.