{"id":546,"date":"2020-07-05T22:19:49","date_gmt":"2020-07-05T22:19:49","guid":{"rendered":"http:\/\/www.chinaiplawupdate.com\/?p=546"},"modified":"2021-03-08T05:10:35","modified_gmt":"2021-03-08T05:10:35","slug":"china-releases-draft-amended-patent-law-for-comment","status":"publish","type":"post","link":"https:\/\/www.chinaiplawupdate.com\/2020\/07\/china-releases-draft-amended-patent-law-for-comment\/","title":{"rendered":"China Releases Draft Amended Patent Law for Comment"},"content":{"rendered":"<p><a href=\"http:\/\/www.npc.gov.cn\/\">China’s National People’s Congress<\/a> has released <a href=\"http:\/\/www.npc.gov.cn\/flcaw\/userIndex.html?lid=ff80808172b5fee8017313b6232c2b55&from=timeline\">Amendments to the Patent Law (Second Review Draft)<\/a> for comment on July 3, 2020.\u00a0 Comments are due August 16, 2020.\u00a0 The draft amendment to China’s patent law will significantly increase damages by introducing punitive damages, raising the statutory damages, and increasing the statute of limitations.\u00a0 Major amendments to the patent law focus on designs, damages, patent term adjustments, patent term extensions and patent linkage.<!--more--><\/p>\n<p><span style=\"text-decoration: underline;\">Design Patents<\/span><\/p>\n<p>Amended Article 2 redefines the definition of design to include partial design. Specifically, “designs mean, with respect to a product, new designs of the shape in whole <strong><em>or in part<\/em><\/strong>, pattern, or the combination thereof, or the combination of the color with shape and pattern, which are rich in an aesthetic appeal and are fit for industrial application.”<\/p>\n<p>Amended Article 42 amends the design patent term from 10 years to 15 years from filing. In contrast, the U.S. provides 15 years from the date of grant. The U.S. has joined the <a href=\"https:\/\/www.wipo.int\/hague\/en\/\">Hague System for the International Registration of Industrial Designs<\/a>, and the required design patent term for contracting parties is 15 years from registration per Article 17 of the <a href=\"https:\/\/www.wipo.int\/treaties\/en\/text.jsp?file_id=285214\">Geneva Act of July 2, 1999<\/a>.\u00a0 The Hague System, of which most of North America and Europe are already <a href=\"https:\/\/www.wipo.int\/export\/sites\/www\/treaties\/en\/documents\/pdf\/hague.pdf\">contracting parties<\/a>, provides for registering up to 100 designs in 74 contracting parties covering 91 countries, through the filing of one single international application.<\/p>\n<p><span style=\"text-decoration: underline;\">Patent Damages<\/span><\/p>\n<p>Patent damages should significantly increase with the proposed amendments to Article 71. Amended Article 71 introduces punitive damages of five times of actual damages for intentional infringement. The recently-passed <a href=\"https:\/\/www.chinaiplawupdate.com\/2020\/05\/chinas-new-civil-code-includes-punitive-damages-in-intentional-intellectual-property-infringement\/\">Civil Code introduced punitive damages<\/a> in Intellectual Property law cases and article 71 codifies the actual amount.\u00a0 Article 71 also increases maximum statutory damages to 5 million RMB (~$707 thousand USD) from 1 million RMB, when actual damages are hard to prove.\u00a0 \u00a0Finally, per Article 71, the People’s Court can order a defendant to provide evidence for damages calculation and if the defendant does not provide evidence or provides false evidence, the People’s Court can rely on evidence provided by the plaintiff.<\/p>\n<p><span style=\"text-decoration: underline;\">Patent Term Adjustment<\/span><\/p>\n<p>Amended Article 42 adds for patent term adjustment due to delay in examination by the <a href=\"http:\/\/www.cnipa.gov.cn\/\">China National Intellectual Property Administration<\/a> (CNIPA) reduced by delays by the applicant (e.g., presumably by taking an extension to reply to an Office Action).\u00a0 Specifically, CNIPA should grant an invention patent within 4 years from filing and 3 years from request for examination.\u00a0 Similarly, the <a href=\"https:\/\/www.uspto.gov\/\">U.S. Patent & Trademark Office<\/a> (USPTO), per\u00a0 <a href=\"https:\/\/www.uspto.gov\/web\/offices\/pac\/mpep\/mpep-9015-appx-l.html#d0e303482\">35 U.S.C. \u00a7154<\/a>, must similarly grant a patent within 3 years from filing (similar to China’s 3 years from request for examination since this is not a separate process in the US). However, the USPTO must also issue a first Office Action or Notice of Allowance within 14 months of filing in addition to several other requirements enumerated in 35 U.S.C. \u00a7154.\u00a0 Note that, as drafted, an applicant must request the adjustment and the adjustment is not automatically given as in the U.S.<\/p>\n<p><span style=\"text-decoration: underline;\">Patent Term Extension<\/span><\/p>\n<p>Amended Article 42 also provides for patent term extension due to regulatory delays in pharmaceutical approvals.\u00a0 The new provision adds a maximum extension of 5 years subject to a maximum patent term of 14 years from market launch. Like patent term adjustments mentioned above, the patentee must request the extension.<\/p>\n<p><span style=\"text-decoration: underline;\">Statute of Limitations<\/span><\/p>\n<p>The statute of limitations of patent infringement is increased to three years from two years in Article 74.\u00a0 This compares with six years in the U.S. per <a href=\"https:\/\/mpep.uspto.gov\/RDMS\/MPEP\/e8r9#\/e8r9\/d0e305948.html\">35 U.S.C. \u00a7 286<\/a>.<\/p>\n<p><span style=\"text-decoration: underline;\">Patent Linkage<\/span><\/p>\n<p>Amended Article 75 introduces a patent linkage system for pharmaceuticals. However, as <a href=\"https:\/\/chinaipr.com\/2020\/07\/04\/translation-of-draft-patent-law-available\/\">Mark Cohen explained in his blog post<\/a>, “this draft lacks an incentive provision for a generic to successfully challenge an innovator through granting of a first generic marketing exclusivity due to a successful challenge to the patents.”<\/p>\n<p><span style=\"text-decoration: underline;\">Grace Period<\/span><\/p>\n<p>Amended Article 24 provides for a 6-month grace period when an invention is “is publicized for the first time for public interest purposes in time of national emergency or exceptional circumstances.”\u00a0 The 6-month grace period for disclosure at certain exhibitions and conferences as well as non-consenting third party disclosures remain.<\/p>\n<p>The text and comparison table can be found at the National People’s Congress website <a href=\"http:\/\/www.npc.gov.cn\/flcaw\/userIndex.html?lid=ff80808172b5fee8017313b6232c2b55&from=timeline\">here <\/a>(Chinese) and at Mark Cohen’s blog <a href=\"https:\/\/chinaipr.com\/2020\/07\/04\/translation-of-draft-patent-law-available\/\">here<\/a> (English).<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-549\" src=\"http:\/\/www.chinaiplawupdate.com\/wp-content\/uploads\/2020\/07\/PatentLawDraft-1024x952.jpg\" alt=\"\" width=\"840\" height=\"781\" srcset=\"https:\/\/www.chinaiplawupdate.com\/wp-content\/uploads\/2020\/07\/PatentLawDraft-1024x952.jpg 1024w, https:\/\/www.chinaiplawupdate.com\/wp-content\/uploads\/2020\/07\/PatentLawDraft-300x279.jpg 300w, https:\/\/www.chinaiplawupdate.com\/wp-content\/uploads\/2020\/07\/PatentLawDraft-768x714.jpg 768w, https:\/\/www.chinaiplawupdate.com\/wp-content\/uploads\/2020\/07\/PatentLawDraft.jpg 1052w\" sizes=\"(max-width: 709px) 85vw, (max-width: 909px) 67vw, (max-width: 1362px) 62vw, 840px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p class=\"excerpt\">China’s National People’s Congress has released Amendments to the Patent Law (Second Review Draft) for comment on July 3, 2020.\u00a0 Comments are due August 16, 2020.\u00a0 The draft amendment to China’s patent law will significantly increase damages by introducing punitive damages, raising the statutory damages, and increasing the statute of limitations.\u00a0 Major amendments to the patent law focus on designs, damages, patent term adjustments, patent term extensions and patent linkage.<\/p>\n<p class=\"more-link\"><a href=\"https:\/\/www.chinaiplawupdate.com\/2020\/07\/china-releases-draft-amended-patent-law-for-comment\/\" class=\"button\">Continue Reading<\/a><\/p>","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31,7,5],"tags":[],"coauthors":[22],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - 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