II-10 Question: Issues related to intellectual property rights (IPR) have long been a concern of WTO members. What measures has China taken to protect the IPRs of registered trademarks over the last five years since its accession to the WTO? How does its trademark-related legal system work?

A: For the last five years since its accession to the WTO in late 2001, China has been actively fulfilling its commitments in protecting trademark rights, with noticeable results. During this period, China amended its Trademark Law for the second time, and adopted two landmark documents---the Interpretations of the People's Supreme Court on Several Issues Concerning Applicable Laws for Civil Cases Involving Trademark Disputes and the Interpretations on Several Issues Regarding Specific Applicable Laws for Criminal Cases Involving Infringement on Intellectual Property Rights. It also issued standards for trademark examination. These laws and regulations have laid a solid legal foundation for the protection of trademark rights in China.

Meanwhile, the administrations for industry and commerce at all levels have dealt with a large number of trademark violation cases. In 2005 alone, China dealt with 39,107 cases involving trademark infringement and counterfeiting cases, of which 6,607 involved foreign trademarks. Recent years have also witnessed a steady increase in the number of trademark lawsuits filed at courts of various levels nationwide.

In April 2006, five luxury goods brands, Prada, Chanel, Louis Vuitton, Gucci, and Burberry, won a major trademark case in the Beijing Higher People's Court against the Beijing-based Silk Street Market. As a landmark case in many aspects, the high-profile victory of the five foreign companies sent a strong signal to the international business community about the Chinese Government's determination to eliminate trademark infringements.

Since 1978, China has gradually put in place a legal system for protecting trademark rights that is in line with its national conditions and international norms. A strong Chinese character in the scheme is that the protection of trademarks is realized by collaboration between the judicial and the administrative systems. In many countries, the victim of trademark violation can only apply to judicial procedures, which usually takes a long period of time. In China, however, administrative organs can act more quickly with fewer procedures so that an infringement can be immediately stopped. Under this scheme, the rights of trademark holders and consumers can enjoy better protection. In China the majority of trademark infringement cases are dealt with by administrations for industry and commerce according to law.

Native and foreign brands, whether registered in China by a Chinese or a foreigner, enjoy equal treatment in terms of protection in China. This policy has greatly underpinned China's economic prosperity and the boom in trademark registration, attracting a large number of brand registrations filed by foreign companies. According to statistics, the number of trademark applications has rocketed in the last five years, from around 270,000 in 2001 to over 660,000 in 2005. This is no doubt testimony to the improved consciousness of trademark protection in Chinese society, which is part of an all-around effort to build a harmonious society featuring protection of intellectual property rights and fair competition.

(China.org.cn)