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IPR Toolkit
Disclaimer: Inclusion of material in this IPR Toolkit does not constitute legal advice and is not a substitute for advice of legal counsel. This information is subject to change according to the laws of the People's Republic of China. The U.S. government will strive to update and improve this IPR Toolkit as information becomes available and as United States government resources allow. Additionally, the United States Department of Commerce, its employees, and its contractors, assume no legal liability for the accuracy or, completeness, or usefulness of any information, resource, or process contained disclosed herein.
CopyrightThis section covers: - Legislation
- Coverage - What Does Copyright Protect?
- Registration
- Market Entry Planning
- Enforcement Approaches - How to Address Infringement?
- Administrative Adjudication
- Civil Litigation
- Criminal Prosecution
- Customs
- Other Sources of Protection
- Ask the Experts
- Frequently Asked Questions
- Collection of Copyright-Related Legislation
LegislationThe Copyright Law of the People's Republic of China (hereafter “Copyright Law”), adopted September 7, 1990 and implemented June 1, 1991, was the first law authorizing the administration and protection of copyrights. The State Council approved Regulations for the Implementation of the Copyright Law (Implementing Regulations) May 24, 1991. On October 27, 2001, the Copyright Law was amended by the Standing Committee of the National People’s Congress with new Implementing Regulations put into effect September 15, 2002. On July 24, 2003, the National Copyright Administration of China promulgated the Measures for the Implementation of Copyright Administrative Penalties (hereafter “The Measures”). The Measures became effective on September 1, 2003. New measures were promulgated on May 7, 2009. Specific legislation for the protection of computer software initially took effect in October 1991, later revised in December 2001, effective January 2002. Specific measures on the Registration of Computer Software were issued in February 2002. Legislation relevant to copyright protection in China also includes Regulations on Customs Protection of Intellectual Property (issued in 2003), which introduced border enforcement of intellectual property rights, and the Regulations for Protection of Lay-out Designs of Integrated Circuits, promulgated in 2001. Recent copyright rules address the issues of copyright protection on the Internet. The National Copyright Administration (NCA) and the Ministry of Industry and Information Technology (MIIT) jointly promulgated the "Administrative Measures on Internet Copyright Protection," which came into effect on May 30, 2005. Furthermore, in 2006 the State Council promulgated the “Regulations on the Protection of the Right of Dissemination through Information Network,” effective July 1, 2006. In 2007, China acceded to the WIPO Copyright Treaty and the WIPO Performances and Phonograms Treaty. In October 2002, the Supreme People's Court issued an interpretation on adjudicating civil copyright disputes. For more detailed information on China's amended Copyright Law, please see the Ask the Experts section below.
Coverage - What Does Copyright Protect?Under Article 3 of the Copyright Law, copyright protection is provided to the following:
- Written works;
- Oral works;
- Musical, dramatic, “quyi” - a genre of Chinese performing art, choreographic and acrobatic works;
- works of fine art and architecture;
- Photographic works;
- Cinematographic and works created by virtue of an analogous method of film production;
- Drawings of engineering designs and product designs, maps sketches and other graphic works and model works;
- Computer software; and
- Other works specified by laws and administrative regulations
Copyright holders in China maintain the following exclusive rights:
- Right of publication
- Right of authorship
- Right of alteration
- Right of integrity
- Right of reproduction
- Right of distribution
- Right of rental
- Right of showing
- Right of exhibition
- Right of performance
- Right of broadcast
- Right of communication through information network
- Right of making cinematographic work
- Right of adaptation
- Right of translation
- Right of compilation
- Any other right a copyright holder is entitled to enjoy
The Copyright Law provides that the works of foreigners that are first published within China or first published in a country which is a member to an international treaty with China enjoy copyright protection under Chinese law for a term of 50 years, or the life of the author plus 50 years in the case of an individual author. The term for moral or personal rights, such as the right of accreditation, is perpetual. In addition, a publisher enjoys a 10-year term of protection for original designs of a publication. Article 2 of the Copyright Law also provides that works of foreigners first published outside of China are protected under international copyright conventions or bilateral agreements to which China is a party. China is a member and has ratified the following agreements:
- Berne Convention for the Protection of Literary and Artistic Works (since 1992)
- Convention for the Protection of Producers of Phonograms Against the Unauthorized Duplication of Their Phonograms (since 1993)
- Paris Convention for the Protection of Industrial Property (since 1985)
- World Intellectual Property Organization Convention (WIPO) (since 1980)
- WIPO Copyright Treaty (since 2007)
- WIPO Performances and Phonograms Treaty (since 2007)
What doesn't the Copyright Law protect? Article 5 of the Copyright Law states that the following works will not be afforded copyright protection:
- Laws and regulations, resolutions, decisions and orders of State organs, other documents of a legislative, administrative or judicial nature, and their official translations
- News on current affairs
- Calendars, numerical tables and forms of general use, databases, and formulas
In addition, Article 6 of the Copyright Law requires that the State Council shall separately enact measures on copyright protection for these works.
RegistrationUnlike patent and trademark protection, copyright holders need not register to obtain copyright protection for their works. For foreign copyright holders, protection is extended to works of individuals from those countries belonging to international copyright conventions or bilateral agreements of which China is a member. China's National Copyright Administration (NCA), additionally, adopted the Provisional Measures for Voluntary Registration of Works on December 31, 1994. As a result, copyright holders seeking copyright protection may wish to voluntarily register their works to establish preliminary evidence of ownership. A Chinese copyright holder can voluntarily register with the local copyright administration office, which will examine the application. If the application is qualified, the local office will issue a certificate of copyright to the applicant. Foreign copyright holders may only register with the Copyright Protection Center of China in Beijing. The registration of a copyright license with the local copyright administration is an administrative formality, but may be required as part of the procedure to remit license/royalty payments abroad. Articles discussing the registering of a copyright may be found on the Copyright Protection Center’s Web at www.ccopyright.com.cn. This site contains information on the use of copyrights, as well as articles on recent governmental legislation and foreign copyright protection.
Market Entry PlanningAs the Chinese economy continues to grow and China implements its World Trade Organization (WTO) commitments, more and more small and medium-sized U.S. firms have sought - and found - opportunities to sell their goods in China. With U.S. exports to China increasing approximately 20 percent since 2001, more and more U.S. firms have questions about how to succeed in the Chinese market. At the top of many of their lists is how to protect their intellectual property. Since joining the WTO, China has strengthened its legal framework and amended its laws and regulations regarding IPR. Nonetheless, China continues to be a haven for intellectual property counterfeiters and pirates. Thus, it is extremely likely that if a product sells in China, it will thereafter be counterfeited or pirated in competition with the legitimate product. A well-developed, comprehensive IPR strategy should thus be a major part of the business plan of any company or individual looking to do business in or with China. An individual or firm must identify its IPR, protect it and control it. At a minimum, such a strategy should include the following: For more detailed guidance on market entry strategies, please see the Ask the Experts section below.
Enforcement Approaches - How to Address Infringement?Infringement of copyrighted material is widespread in China, and its effects can be injurious to business interests. The following briefly describes the tools available in China to enforce copyrights.
Three Types of Action Against InfringersChina's copyright protection system provides both judicial and administrative protections for rights’ holders. 1. Administrative Protection The Measures for the Implementation of Copyright Administrative Penalties (“The Measures”) provides that NCA, and the agencies of local governments, which possess the administrative enforcement authority over copyright matters, may impose administrative penalties. NCA set up a nation-wide hotline 12390 to accept complaints against piracy. Notably, NCA and local copyright administrative agencies can issue administrative penalties on infringers, but do not have authority to award civil damages or criminal penalties to rights’ holders. NCA and local copyright administrative agencies may, however, serve as mediators in the determination of damages; in some instances, the mere initiation of an administrative action may provide the necessary impetus for the parties to reach a mutually satisfactory settlement. Initiating an Administrative Action: The relevant copyright authority may commence an administrative action on its own initiative or upon receiving an application from a copyright owner, another interested party, or any party with relevant information. When filing a complaint, the complainant should present the following: · a written application, including names and addresses of both complainant and respondent, the date when the complaint is filed, and a statement of facts and reasons providing the basis of the application is based. In cases where the complainant is an entity, the name and position of its legal representative or person in charge should be provided. · (b) the certificate of identification of the complainant, as well as the power of attorney and the certificate of identification of the agent if the complainant entrusts an agent with the complaint; · (c) the preliminary proof of the ownership, such as the manuscript of the work, a copy of the published work with the name of the complainant as the author, a registration certificate for the work, a contract under which the complainant acquires a right, a certificate issued by an authentication organ, etc.; and · (d) the infringement evidence, including the infringing copies, the accounts, contracts or processing or producing documents involved in the infringement, the notaries deed proving the infringement, the relevant photos, etc.
Within 15 days of receiving the application, the copyright authority will decide whether to accept the application and notify the applicant. If the copyright authority rejects the application, it must disclose the reasons for its decision. Investigation of the Case and Collection of Evidence: Upon accepting an application to commence an administrative proceeding, the copyright authority shall designate at least two enforcement officers to handle the case. If either of the officers has an interest in the matter, that individual shall recuse him or herself; otherwise, either party may request that the officer be recused from the case. During an investigation, enforcement officers may undertake any of the following steps to collect evidence:
- Inspect and copy documents, files, account books and other written materials relating to the alleged infringement
- Compile written statements from witnesses
- Take samples of the allegedly infringing product
- Seize and maintain the allegedly infringing product
- Seek assistance from other copyright authorities and professional experts
The Administrative Proceeding: Upon conclusion of an investigation, the enforcement officers assigned to the case will submit a Copyright Administrative Penalty Opinion (Opinion) to their department in charge. The Opinion must set forth the following:
- The facts constituting the violation
- All evidentiary materials
- The recommended penalty
- The reasons and bases for the recommended penalty
The copyright authority will then notify the respondent of the following:
- The fact that a copyright administrative decision will be made
- The reasons and basis for a decision as put forth by the complaining party
- The respondent’s right to issue a statement and put forward counter-evidence
- Other rights the respondent may be entitled to under law
If the respondent chooses to present a statement and counter-evidence, it should be submitted within three days after notice is received, and should be accompanied by a statement of facts and reasons and all evidentiary material. T he copyright authority will review the statement and counter-evidence, and verify the facts, reasons and evidence submitted by the respondent. The copyright authority will then examine the entire case file and issue its decision in a timely manner. According to the gravity of the infringement, the decision may include: (a) imposing administrative penalties on the infringer; (b) exempting the infringer from administrative penalties if the infringing act is minor; (c) not imposing administrative penalties on the infringer if the alleged infringement is not established; or (d) transferring the case to the appropriate judicial authority if the infringement is suspected to be a crime. Available Penalties: Any penalty finally imposed must not be more severe than the penalty recommended in the Opinion, and can include any of the following:
- Administrative fines;
- Warnings;
- Injunctions prohibiting the production and distribution of infringing products;
- Revocation of business or operational licenses;
- Confiscation of unlawful income arising from the infringement;
- Confiscation of the infringing products and the materials, tools and equipment used in their production;
- Reference to relevant authorities for criminal investigation; or
- Other administrative penalties as stipulated by relevant laws and regulations.
If the infringing act has resulted in the previous imposition of a fine by another authority, the copyright authority may not impose a fine for the same act. Depending upon the specific circumstances of the case, however, it may impose any of the other types of administrative penalties listed above. In any case, the imposition of administrative penalties will not absolve a defendant of civil or criminal liability for the same act. Enforcement: A party has the right to appeal the imposition of an administrative penalty. The filing of an appeal, however, does not stay the enforcement of the penalty. | Other Administrative Protections: A rights’ holder who finds that infringing copies will be imported from abroad or exported out of China may request Customs to take appropriate protective measures in accordance with the Regulations of the People's Republic of China on the Customs Protection of Intellectual Property Right. |
2. Civil Litigation Civil actions are available for all types of copyright infringement and, unlike administrative or criminal proceedings, may be initiated directly by an individual or legal person without the intercession of a government authority or court. Either the copyright owner or its exclusive copyright licensee has standing to bring a civil action in the Chinese courts and may demand that the infringing activities cease and that the infringer pay damages. Initiating a Civil Action: To commence a civil suit, a written complaint must be submitted to a People's Court specifying the following: - The complainant's name and address
- The name and position of its legal representative (if applicable)
- The nature of the claim and the facts upon which the claim is based
- Evidence and sources of the evidence
- The names and addresses of witnesses
Within seven days after the written complaint is submitted, the People's Court will examine the complaint and determine whether it fulfills the basic requirements, and if so, the case will be accepted for hearing and the relevant parties will be notified. The defendant must submit a response within 15 days after receiving the complaint by official service of process. The court will send a copy of the response to the plaintiff within five days of its receipt. If the defendant fails to submit a defense the court will proceed to determination without the defendant. Injunctive Relief: The Copyright Law makes various forms of injunctive relief available to a plaintiff to help mitigate the harm that can result simply due to the time lag between the filing of a suit and the issuance of a court decision. The court can order a preliminary injunction or other property preservation measures if the plaintiff can demonstrate that an infringement has or is about to occur, and that failure to stop the infringement would cause irreparable damage to the plaintiff's lawful interests. If the plaintiff believes that evidence may be destroyed or made difficult to obtain at a later date, the plaintiff may also request the court to adopt measures to preserve evidence. If the court imposes property or evidence preservation measures, the plaintiff will be required to post a bond equal to the value of the items seized. The court must rule on an application for injunctive relief within 48 hours, and the order will be executed immediately. With respect to relief ordered prior to the commencement of an action, if the plaintiff fails to file suit within 15 days from when relief is granted, the court shall order the withdrawal of the injunctive measures. Evidentiary Requirements and Burden of Proof: There is no Chinese counterpart to the U.S. concept of discovery. In China, each party is responsible for presenting evidence to support its claims. In the event that a party is unable to obtain evidence due to "objective circumstances," or if the People's Court considers certain evidence to be relevant to a case, the court can, on its own initiative, collect the evidence itself. All evidence must be presented in court and subject to cross-examination. The right to determine the authenticity and validity of evidence rests solely with the court. In cases involving publication, distribution or rentals, the vendor (who is typically the alleged infringer) must prove that the product being published, distributed or rented has been legally licensed. This allocation of the burden of proof makes it very difficult for vendors to avoid liability by pleading ignorance of their supply chain, while easing a plaintiff's difficulties in obtaining hard evidence to support a case. Available Remedies: Possible civil remedies include the following: - Cessation of infringing activities
- Elimination of the effects of the infringement
- Issuance of a public apology
- Confiscation of unlawful gain, infringing products and assets used in furtherance of the infringement
- Compensation for damages suffered
- Any combination of the above
In calculating damages, the injured party should be compensated for actual losses. To assist in calculating damages, the Supreme People's Court issued an Interpretation of the Supreme People's Court of Several Issues Relating to the Application of Law to the Trial of Civil Copyrights Disputes, effective October 15, 2002. If actual losses are difficult to calculate, the compensation can be determined based on the infringer's illegal gains. Compensation should include reasonable expenses incurred by the injured party to curb the infringement. If neither actual losses nor illegal gains can be determined, the court may award compensation up to RMB500,000. 3. Criminal Prosecution The Criminal Code of the People's Republic of China (Criminal Code) provides guidance on all areas of criminal prosecution. The supplemental 1994 Resolution of the Standing Committee of the National People's Congress Concerning the Punishment of Crimes of Copyright Infringement was the first official guidance as to the types of copyright infringement that would be deemed sufficiently egregious to warrant criminal prosecution. Article 452 of the Criminal Code abolished this resolution effective October 1, 1997, and Article 217 of the Criminal Code of the PRC now governs the area of criminal punishment. Pursuant to Article 217, the following acts done for the purpose of reaping profits will be given criminal punishment: - Reproducing and distributing, without the permission of the copyright owner, his other written works, musical works, cinematic works, television works, video works, computer software and other works
- Publishing a book for which another person has the exclusive publishing rights
- Reproducing and distributing, without the permission of the phonographic or video graphic producer, his or her phonographic or video graphic work
- Producing and selling a work of art bearing the forged signature of another
In 2004, the Supreme People’s Court (hereafter “SPC”) and the Supreme People’s Procuratorate (hereafter “SPP”) issued the “Interpretation Concerning Some Issues on the Specific Application of Law for Handling Criminal Cases of Infringement upon Intellectual Property Rights,” determining the threshold for prosecuting crimes of IP infringement. According to Article 5 of this Interpretation, whoever, for the purpose of making profits, commits any of the acts of infringing upon copyright as described in Article 217 of the Criminal Law, with the amount of illegal gains to be no less than RMB 30,000, shall be deemed to have generated a “relatively large amount of illegal gains”; in any of the following circumstances, he/she/it shall be deemed to have caused “other serious consequences”, thus shall be sentenced to a fixed-term imprisonment for not more than three years or criminal detention for the crime of infringing upon copyright, and/or be assessed a pecuniary fine:
(1) The amount of illegal business operation volume is no less than RMB 50,000;
(2) Without permission from the copyright owner, he/it reproduces and distributes the copyright owner’s literal works, musical works, film, television or video products, computer software or other works with the total of no less than 1,000 copies;
(3) Other circumstances in which the consequences are serious.
In 2007, the SPC and the SPP issued the Interpretation Concerning Some Issues on the Specific Application of Law for Handling Criminal Cases of Infringement upon Intellectual Property Rights again, to lower the threshold for prosecuting the crimes of IP infringement. According to Article 1 of this Interpretation, the “other serious circumstance” mentioned in Article 217 of the Criminal Law shall refer to any for-profit duplication and/or distribution, without permission from the copyright holder, of the literal, musical, cinematic, television or video works, computer software or other works of the copyright holder with at least 500 copies of duplicates in total.
| Administrative litigation: In China, if a citizen, legal person or other entity considers that its lawful rights and interests have been infringed upon by a specific administrative act of an administrative agency or its personnel, he/she or it shall have the right to bring a suit before a People's Court in accordance with the Administrative Procedure Law of the PRC. |
Other Sources of ProtectionCopyright holders can also file complaints for copyright infringement with the Office of National Anti-pornography and Anti-illegal Publication Working Group or their local offices. After receiving the complaints, the office will transfer them to the correct agency which has the jurisdiction over the case for handling.In 2006, Intellectual Property Complaint Centers were set up in 50 cities. At these centers, consumers and rights’ holders may lodge complaints about counterfeit goods and report copyright infringement and other intellectual property-related violations. A hot line with the unified telephone number 12312 has also been created and the online reporting platform is located at www.ipr.gov.cn. Foreign rights’ holders can also find useful information regarding China’s copyright protection at http://www.chinaipr.gov.cn/ .
Ask the Experts Disclaimer: Inclusion of material in this IPR Toolkit does not constitute legal advice and is not a substitute for advice of legal Counsel and is subject to change according to the laws of the People's Republic of China. The U.S. Government, The United States Government will strive to update and improve this IPR Toolkit as information becomes available and as United States Government resources allow. Additionally, the United States Department of Commerce, their its employees, and its contractors, assume no legal liability for the accuracy or, completeness, or usefulness of any information, resource, or process contained disclosed herein. Links to External Web Sites: Links to web sites outside the United States Federal Government or the use of trade, firm, or corporation names within the United States Department of Commerce web sites are provided for the convenience of the user. Such links or use does not constitute an official endorsement or approval by the United States Government of any private sector web site, product, or service.
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