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IPR Updates-Say No to Abusing Rights in IPR Infringement Suit
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* Supreme Court Say No to Abusing Rights in IPR Infringement Suit
On 3th of June 2021, the Supreme People's Court of the PRC released the Reply of the Supreme People's Court on the Defendant's Claim for Reasonable Expenses for the Plaintiff's Abuse of Rights in Intellectual Property Infringement Litigation, with immediate effect.According to the reply, in an intellectual property infringement lawsuit, if the defendant submits evidence to prove that the plaintiff's lawsuit constitutes an abuse of rights and damages its legitimate interests, and requests the plaintiff to compensate for the reasonable expenses such as lawyer's fees, transportation fees and accommodation fees, the people's court shall rule in favor of the defendant. The defendant may also file a separate lawsuit to demand the plaintiff's compensation for reasonable expenses.
* Newly amended Patent Law of the PRC Take Effect on 1st of June 2021
Among other revision, Article 42 stipulates: "The duration of patent rights for an invention shall be 20 years, the duration of patent rights for a utility model shall be 10 years and the duration of patent rights for a design shall be 15 years, commencing from the date of application.Where a patent right for invention is granted after three years from the date of request for substantive examination of a patent for invention and after four years from the date of application, the patent administrative department under the State Council shall grant compensation for duration of patent right due to any unreasonable delay in grant of patent rights at the request of the patentee, except for any unreasonable delay caused by the applicant."
Article 71 stipulates: “Where it is difficult to ascertain the losses of the patentee, the gains derived by the infringer and the royalties of the patent, a people's court may determine a compensation amount ranging from 30,000 yuan to 5 million yuan according to the type of patent rights, as well as the nature and circumstances of the infringement act, etc.The compensation amount shall also include reasonable expenses incurred by the patentee to stop the infringement act.In the determination of compensation amount by a people's court, where the patentee has provided proof to its best effort, and the account books and materials relating to the infringement are held by the infringer, the people's court may order the infringer to provide account books and materials relating to the infringement; if the infringer does not provide or provides false account books and materials, the people's court may determine the compensation amount with reference to the claims of the patentee and the evidence provided."
* Newly amended Copyright Law of the PRC Take Effect on 1st of June 2021
Among other revision, Article 54 stipulates: “ Where the copyright or copyright-related rights are infringed, the infringer shall make compensation based on the actual losses suffered by the holder of rights or the illegal income of the infringer; where it is difficult to compute the actual losses of the holder of rights or the illegal income of the infringer, compensation may be made with reference to the royalties for such rights. In the case of intentional infringement of copyright or copyright-related rights, where the case is serious, compensation may be paid ranging from one to five times the amount determined pursuant to the aforesaid method.Where it is difficult to compute the actual losses of the holder of rights, the illegal income of the infringer or the royalties, a people's court shall rule on compensation ranging from 500 yuan to 5 million yuan based on the extent of the infringement.The compensation amount shall also include reasonable expenses incurred by the holder of rights to curb the infringement act.In the determination of compensation amount by a people's court, where the holder of rights has performed the requisite burden of proof, but the account books and materials relating to the infringement act are held by the infringer, the people's court may order the infringer to provide account books and materials relating to the infringement act; where the infringer refuses to provide or provides false account books and materials, the people's court may determine the compensation amount with reference to the claims of the holder of rights and the evidence provided.In the trial of a copyright dispute case, a people's court shall, except under special circumstances, order that the infringing replicas be destroyed at the request of the holder of rights, order that the materials, tools and equipment used mainly for manufacturing the infringing replicas be destroyed without compensation, or order that the aforesaid materials, tools and equipment be prohibited from entering into commercial channels under special circumstances without compensation.”
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