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(i) Persisted in serving the larger interests, and continued to improve upon the policies pertaining to judicial protection of intellectual property
A correct mind-set and appropriate policies are important guideposts for strengthening judicial protection of intellectual property, and for ensuring fair and efficient adjudication of different types of intellectual property cases.
In 2013, the people’s courts have redoubled efforts in implementing the basic policy of “greater protection, classification of cases, appropriate stringency” in judicial protection, and have promptly adjusted and improved upon judicial policies and systems based on changes in the national policies relating to science & technology, economics, industry, culture and trade etc. Based on the nature, function, characteristics and practical needs of the various intellectual property branches, specific judicial policies were enhanced and improved.
The courts have:
§ Focused on building up the momentum on innovation-driven development and improving the capacity for indigenous innovation by strengthening patent protection, and by concentrating on strengthening protection of the technological outcomes of essential and cutting-edge research, emerging strategic industries and modern information technology industries, so as to drive technological breakthroughs and innovation.
§ Focused on nurturing new competitive brand advantages to promote brand innovation by strengthening protection of trademarks and famous marks, and made determined efforts to check infringing behaviours as use of counterfeit marks and malicious trademark squatting.
§ Focused on promoting cultural prosperity and industrial development by strengthening copyright protection, and targeted at protecting splendid cultural resources, cultural innovation outcomes and new cultural forms to encourage indigenous innovation.
§ Focused on creating a fair and credible market environment to induce market dynamism by stepping up competition protection, cracking down on unfair competitive behaviour as counterfeit activities, false publicity, infringement of trade secrets, therefore, facilitated development of a robust and modern market regime.
§ Focused on defending the full rights of rights-holders by increasing the amount of damages awarded, strengthening application of evidence spoliation system and appropriately managing the relationship between statutory damages and discretionary damages for to improve reasonableness in calculation of damages. For criminal cases, focus especially on property sanctions to impose more severe punishment for intellectual property crimes, so as to deprive criminals of the ability and the capacity to recidivate. For example, in the Zong Liangui etc. case involving 28 persons in the use of counterfeit marks for Arawana (“Jin Long Yu”) and Luhua cooking oil brands, the High People’s Court of Henan Province fined the defendants for 27.04 million yuan. This was an effective deterrent and has improved the market environment.
(ii) Persisted in reform and innovation, and continued to improve upon the intellectual property-related adjudication system and work mechanisms
To inject dynamism in the people’s courts intellectual property adjudication operations and ensure that effective institutional safeguards are in place, deepened judicial reform and reform and innovation are necessary. In 2013, the people’s courts have vigorously implemented reform and driven innovation in the intellectual property regime, and have made continued improvements in the adjudication system and work mechanisms.
§ Further optimised jurisdiction for intellectual property cases. Due to continued increase in the number of patent disputes, SPC issued the Decision on Amending the “Several Rules Regarding the Application of Law When Adjudicating Patent Disputes”, which provides for appropriate decentralising of jurisdictional powers for patent cases, and for designating basic people’s courts that meet specific criteria as the first instance court for patent disputes. Also, to streamline jurisdiction for a more tenable structure, certain courts were selected as the court of competence for civil cases relating to patent and technology disputes, and special cases such as those involving well-known marks are flexibility assigned to certain courts based on need.
As at end 2013, 87 intermediate people’s courts have jurisdiction for patent cases, 45 for new plant varieties, 46 for topographies for integrated circuits, and 45 for well-known marks; 160 basic courts are given jurisdiction for general intellectual property cases, and 7 basic courts for adjudicating utility and design patent disputes.
§ Steadily advanced pilot projects for “three-in-one” adjudication of intellectual property disputes. The courts have worked to improve the “three-in-one” pilot project to establish a more systematic, wholesome and synergistic regime, and have guided the local people’s courts to proceed steadily with the pilot project. As at end 2013, the number of participating courts includes 7 high people’s courts, 79 intermediate people’s courts and 71 basic people’s courts.
§ Further improved the technical fact-finding mechanism. The courts have refined the operation procedures for the technical fact-finding mechanisms for forensic examination, expert assistant (zhuanjia fuzhuren) and expert advice, established and improved the work mechanisms for participation in court hearings for expert witnesses and technical experts, and strengthened the procedural and substantive review of forensic opinion and expert opinion. As such, technical fact-finding is increasingly scientific in terms of approach.
The High People’s Court of Zhejiang Province has developed working guidelines for technical experts, and employed 20 technical experts to help resolve the problems relating to technical fact-finding. The High People’s Court of Hubei Province has set up three expert databanks to provide intellectual support for adjudication-related professional issues.
§ Optimised the work of people’s assessors. The participation methods and processes of people’s assessors in hearing cases were standardised, their participation mechanism improved, and additional expert assessors as needed for adjudication of intellectual property cases selected. Thus, the courts have ensured that the people’s assessors exercise their official powers according to law, and effectiveness of their participation improved. The Nanning Intermediate People’s Court in Guangxi Zhuang Autonomous Region has increased its use of expert assessors. Participation of expert assessors in hearing 58 cases involving complex technical issues has improved adjudication quality.
(iii) Persisted in pursuing justice for the people, and continued to expand the scope of judicial services for intellectual property
The people’s courts have conscientiously observed the party’s mass line in intellectual property adjudication, and have taken the initiative to practise justice for the people as a work objective by going into the grass-root level, getting to know the masses, listening to the voices of the people and understanding them, and have continued to improve judicial measures to provide convenience and benefits for the people.
§ Greater guidance on defending rights and litigation procedures. The courts have provided more information on matters such as rights and duties, burden of proof and litigation risks, and have helped rights-holders manage infringement problems and defend their rights rationally.
For example, the Huangshi Intermediate People’s Court of Hubei Province regularly distributes the “Legal Risks Warning Card”, “Handbook on the Risks in Intellectual Property Protection” etc. to local businesses, and has helped companies set up their “rights-protection response mechanism” and “l(fā)itigation guidance mechanism”. The courts have also stepped up efforts in preserving evidence and in collecting evidence ex-officio. Whenever the circumstances satisfy the conditions for evidence preservation or investigation and collection of evidence, the courts would promptly take the appropriate measures to reduce the burden of proof on the part of the rights- holders.
§ Organised circuit tribunals as needed. The High People’s Court of Henan Province has progressively organised circuit adjudication for intellectual property cases. More than 400 cases were heard by the circuit tribunal, thus have successfully dealt with many intellectual property cases of immense complexity, or that the parties were highly antagonistic. More than 2o,000 persons from all walks of life, including deputies to people’s congresses, members of political consultative conferences, teachers and students of tertiary institutions have observed the circuit tribunal. The impact was encouraging.
The Chuzhou Intermediate People’s Court of Anhui Province actively explored the possibility of setting up a circuit tribunal in cities and counties with higher intellectual property cases, and has given full play to its guiding role of the justice system.
The Yili Prefecture branch court of the High People’s Court of the Xinjiang Uygur Autonomous Region has set up a circuit work station for judges at the Korgos Economic and Technological Development Zone, where judges are sent to the work station monthly to adjudicate on-site.