No.113¡¡Jul.28, 2015 |
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Web: www.unitalen.com
E-mail: mail@unitalen.com |
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| Mountain Lushan in Jiangxi
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 China Leads in Trademark Filing for 13 Years in a Row
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| On July 16, the first China Brands Forum was held in Beijing. Junchen Liu, the Deputy Director of State Administration for Industry and Commerce, mentioned at the meeting that China is the largest trademark filing country for 13 consecutive years, with an accumulated amount of 16.84 million applications and 11.25 million registrations by the end of first half of 2015, including 9.51 million valid registrations.
With improved brand value in the local market, Chinese companies are looking ways to promote their brands to international markets too. It¡¯s discussed at the forum that Chinese brands are in face of challenge to improve influence and competitiveness, as well as to maintain sustained growth in global arenas.
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| China IP Strategies Put into Action
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| Ministry of Industry and Information Technology of the People's Republic China (MIIT) has recently published Program for 2014-2020 Directives of State IP Strategies, which will direct governments and organizations at all administrative levels to support the IP right development.
The program focuses on 6 major areas: facilitating IP creation, core technology accumulation and manufacturers¡¯ innovation; maximizing coordination and utilization of IP rights in key industries and promoting Industry structure reform & upgrade; strengthening IP management and competitiveness of market entities; improving environment for innovations; enhancing IP services development; as well as training of IP professionals.
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| SIPO: China Strengthens Patent Enforcement
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| According to State Intellectual Property Office (SIPO), China has had more than 10 thousand patent administrative enforcement cases reported in the first half of 2015, increased by 107.7% over the same period of last year. Among the reported cases, there are 5,473 patent disputes including 5,332 patent infringement cases, increased by 167.6%, and 4,753 patent counterfeiting cases, increased by 65.4%.
It is noteworthy there is a big shift in the proportion of case nature. Compared to 2014 when patent infringement cases vs. patent counterfeit cases was 0.51: 1, now the ratio is turned around and has become 1.14: 1 in the first half of 2015. It demonstrates a more effective enforcement against patent counterfeit on one hand, while implying challenge ahead in face of more complicated patent infringement disputes on the other.
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| SIPO: China Sees Effects in Expedited Enforcement of IP
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| According to SIPO, since the introduction of IP expedited enforcement in late 2012, 6 local IP enforcement centers, including Zhongshan (known for lighting), Nantong (known for home textiles), Chaoyang Beijing (known for design services), Hangzhou (known for pen making), Dongguan (known for furniture) and Shunde (known for consumer electronics), have been set up helping SIPO with preliminary examination of nearly 6,500 design patents and assisting local IP offices in mediating over 1,500 patent infringement disputes.
Over the last two and half years, progress has been made in speeding up the efficiency of IP enforcement and patent examination paces. Under the authorization of local China IP offices, IP enforcement centers carried out speedy mediation process for patent disputes, and established cooperation mechanism with local courts on mutual acceptance of evidence and preposition of settlement; As a result, the handling period of a patent infringement dispute case is reduced from 4 months to 1 month. At the same time, the expedited examination mechanism has shortened the examination period for design patents to 10 working days, making it possible for companies to synchronize patent application with new product time-to-market.
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| McKinsey: China as a Potential Global Innovation Leader |
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| A recent report from McKinsey Global Institute named The China Effect on Global Innovation indicates China as the potential global innovation leader with more than $200 billion spent on R&D in 2014, the 2nd largest investment by any country in absolute term. Meanwhile there are 1.2 million engineers graduating from China¡¯s universities each year, more than the next 5 countries combined. China also leads in patent filing with 825,000 applications in 2013, surpassing the 570,000 applications filed by US.
The report also points out where China is succeeding and where it is not. China is found with greatest strength in customer-focused and efficiency-driven innovations, such as consumer electronics, sun panel batteries. While China has a lot of catching up to do in science- and engineering-based innovations.
The China Effect on Global Innovation
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| Unitalen Represents Sogou in Winning Unfair Competition Case against 360
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Overview Represented by Unitalen attorneys, Sogou has recently won a case against 360 Browser for unfair competition, at the People¡¯s Court of Xi¡¯an Shanxi. In the court¡¯s judgment, 360 Antivirus and 360 Safeguard¡¯s unauthorized act of modifying Sogou Internet Browser setting to use 360 Safety Browser by default, has constituted unfair competition. 360 is ordered with a 1 million Yuan indemnity.
Court¡¯s Judgment
Xi¡¯an People¡¯s Court believed 360 took advantage of internet users¡¯ trust in antivirus software, misleading users to follow the repair operation that modifies default browser setting with a wrongful intent. This has resulted in Sagou¡¯s loss of users and business transaction opportunity to be generated from use of the software. Meanwhile, 360 disregarded users¡¯ intention and forced 360 browser as default browser through 360 Total Security. The above-mentioned acts have violated the honesty and credit principle in Internet industry and common business integrity; and have constituted breach of Article 2 of Anti Unfair Competition Law of China and constituted unfair competition over Sogou.
Based on the judgments, the Court has ordered 360 to stop the above-mentioned acts immediately and pay 1 million Yuan as indemnity to Sogo for economic loss.
Case Highlights
The following two acts accused by Sogou are affirmed as acts of unfair competition in this case:
1. Users using Sogou High Speed as default browser found the following repair suggestions in 360 Antivirus report after running 360 Antivirus disk scan: (1) Invalid HTTP protocols, and (4) IE browser routine functions not working - cannot open web pages. Users were prompted to click on ¡°Fix Now¡±, after which users¡¯ default Sogou browser was modified as 360 browser.
2. Users was able to set Sogo High Speed as default browser before 360 Total Security is installed, but this couldn¡¯t work after 360 Safeguard is installed, as when users chose Sogou as default, 360 Total Security would prompt the alert: a program is trying to modify IE browser setting¡±, and even when the user chose ¡°allow modification¡±, users¡¯ Sogou browser was still replaced by 360 browser.
About Sogou:
Sogou operates a Chinese online search engine named Sogou.com. The company was founded in 2005 and is based in Beijing. It¡¯s reported as the 3rd most popular search engine in China (about 15% market share). They also provide browser, input method, maps and other computer software for Chinese users.
360 (alson known as Qihoo 360) operates the 2nd largest online search engine in China (www.haosou.com) , their products also include 360 Antivirus, 360 Total Security, 360 Browser, cloud service and many other IT software solutions.
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