China attaches great importance to the protection of intellectual property rights. In order to adapt to the new situations after China's accession to the World Trade Organization, the Chinese government has massively straightened out the relevant laws and regulations on intellectual property rights. At present, China has established a fairly perfect legal system for the protection of intellectual property rights. In 2003, several regulations and measures, such asRegulations of the People's Republic of China on Customs Protection of Intellectual Property Rights,Measures for Implementation of Disciplinary Sanction on Copyright, Measures for Compulsory License for Exploitation of a PatentandMeasures for Management of Agency of Patent, were put out successively. In addition, some rules and regulations or documentation on intellectual property rights not in compliance with the WTO regulations were revised or abolished. The World Trade Organization has adopted the legal review of China's intellectual property rights and the transitional review.

In 2003, the State Administration of Intellectual Property Rights accepted and heard 308487 patent applications, rising 22.1% over last year, and accepted and heard 1171 international applications, increasing by 220 as compared to last year. 182226 applications were awarded patent rights, rising 37.6% as compared to last year.

In 2003, the State Administration for Trademark accepted and heard commodity and service trademark applications reaching 452095, rising 21.6% as compared to last year, which was the year with the most applications in Chinese history.

In terms of copyright protection, copyright administrative management organs at all levels throughout the country have intensified the efforts for protection. In 2003, the State Copyright Bureau organized three nation-wide concentrated special-purpose crackdown actions. The copyright law enforcement departments confiscated 12.9 million pieces of pirated products of various kinds, enforced administrative punishment on 2542 tortious units, with a penalty of 2.81 million yuan, and banned 1981 illegal commercial firms. In 2003, copyright administrative management organs at all levels throughout the country accepted and heard 23013 cases, increasing nearly 2.6 times as compared with last year, with a case concluding rate of 97.46%.

In 2003, the customs all over the country tracked down and seized 756 cases infringing on intellectual property rights, having effectively curbed the illegal acts infringing on intellectual property rights in the course of import and export and having safeguarded the legitimate interests and rights of the proprietors of the intellectual property rights.

I. Participation in international intellectual property agreements

China became a member of the World Intellectual Property Organization in 1980. In 1985, China became a member of the Paris Convention for the Protection of Industrial Property. China was one of the first countries that signed the Treaty on Intellectual Property in Respect of Integrated Circuits, the negotiation of which was concluded in 1989. In 1989, China became a member of the Madrid Agreement Concerning the International Registration of Marks and in 1992, China became a member of the Berne Convention for the Protection of Literary and Artistic Works. In 1993, China became a member of the Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms. In 1994, China became a member of the Patent Cooperation Treaty and a member of the Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks. In 1995, China became a member of the Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure and applied for membership in the Protocols of the Madrid Agreement Concerning the International Registration of Marks. In 1996, China became a member of the Locarno Agreement on Establishing an International Classification for Industrial Designs; and in 1997, China became a member of the Strasbourg Agreement Concerning the International Patent Classification. Besides the above efforts, China participated in the TRIPS negotiations during the Uruguay Round and initialled the Final Act.

II. Application of national and MFN treatment to foreign nationals
China's IPR laws provided that any foreigner would be treated in accordance with any agreement concluded between the foreign country and China, or in accordance with any international treaty to which both countries were party, or on the basis of the principle of reciprocity. China's laws, regulations and other measures ensure national and MFN treatment to foreign right-holders regarding all intellectual property rights across the board in compliance with the TRIPS Agreement.

1. Copyright protection
The Copyright Law, which was promulgated in 1990, established the basic copyright protection system in China together with the Implementing Rules of the Copyright Law (30 May 1991), the Provisions on the Implementation of the International Copyright Treaty (25 September 1992) and other related laws and regulations. In principle, this system was in compliance with the international IPR treaties and practices.

2. Trademarks, including service marks
The Trademark Law, its implementing rules and other relevant laws, administrative regulations and department rules constituted the existing trademark legal system in China. The objective of these laws was to provide protection to right-holders in line with the international conventions and prevailing practices regarding intellectual property rights, which was embodied both in the regulations on the substance and procedures for trademark registration and in the protection of trademark exclusive rights.

3. Geographical indications, including appellations of origin
China fully complies with relevant articles in the TRIPS Agreement on geographical indications.

4. Industrial designs
The industrial design provisions of China's patent law implement substantial portions of the TRIPS Agreement requirements relating to industrial designs. One notable exception was the area of textile designs.

China will incorporate this protection into its law and to provide such protection to domestic textile designs.

5. Patents
China revised its patent law in 1992 for the first time.
China had taken measures to enhance consistency with the TRIPS Agreement in terms of major provisions and protection standards.

6. Plant variety protection
China was a party to the 1978 text of the Universal Convention on the Protection of Plant Varieties ("UPOV"). In March 1997, the State Council formulated and promulgated the Regulation on the Protection of New Plant Varieties, thus offering protection for new plant varieties in a sui generis form consistent with the requirements of the TRIPS Agreement.

7. Layout designs of integrated circuits
China was one of the first countries to sign the Treaty on Intellectual Property in Respect of Integrated Circuits in 1989. The specific Regulation on the Protection of Layout Designs of Integrated Circuits was issued in April 2001 and would be effective on 1 October 2001.

China is strengthening the protection of the layout designs to support the rapid development of the integrated circuit industry.

8. Undisclosed information
Article 10 of the Anti-unfair Competition Law provided that a business operator must not infringe upon trade secrets. Under the same Article, obtaining, using or disclosing another's trade secrets by a third party who clearly knew or ought to have known that the case fell under the unlawful acts listed in the preceding paragraph was deemed infringement upon trade secrets. Trade secrets referred to any technology information or business operation information which was unknown to the public, could bring about economic benefits to the obligee, had practical utility and about which the obligee had adopted secret-keeping measures. Article 219 of the Criminal Law had similar definitions on trade secrets.

1. Civil judicial procedures and remedies
The measures for cracking down on intellectual property piracy were always severe in China. In judicial aspects, courts at all levels were continuously paying attention to the trial of IPR cases.

Where an infringement of intellectual property rights was found in China, the person concerned could bring a lawsuit to a court.

Since 1992, special IPR courts have been set up in major cities such as Beijing and Shanghai on the basis of their specialized collegial panels. According to China's legislation, individuals and enterprises would be held responsible for all their IPR infringing activities and subject to civil and/or criminal liabilities. Where any person violated the IPR of another person and the circumstances were serious, the person directly responsible would be prosecuted for his criminal liability by applying relevant provisions of the Criminal Law. If found guilty, the person directly responsible could be sentenced to a fixed-term imprisonment of no more than seven years or be subject to detention or a fine.

2. Administrative procedures and remedies
Most IPR enforcement in China was done through administrative actions.
At present, different agencies were responsible for IPR policy formulation and implementation. The State Intellectual Property Office (SIPO) was responsible for patent approval; the Trademarks Office under the State Administration for Industry and Commerce (SAIC) was responsible for trademarks registration; the Copyright Office was responsible for copyright policy making; SAIC was responsible for anti-unfair competition, including the protection of trade secrets; the State Drug Administration (SDA) was responsible for administrative protection of pharmaceuticals; the General Customs Administration was responsible for border measures; the Ministry of Agriculture and the State Administration of Forestry were responsible for protection of plant varieties; the Ministry of Information Industry was responsible for the protection of layout designs of integrated circuits; and the State General Administration of the People's Republic of China for Quality Supervision and Inspection and Quarantine and SAIC were responsible for combating counterfeiting activities. Other agencies like the agency for press and publications, the people's courts and police were also involved in the protection of IPR in China.

The Trademark Law provided that in the event of any infringement of the right to the exclusive use of a registered trademark, the infringed right‑holder could request the administrative department for industry and commerce at or above the county level for disposition. The relevant administrative department for industry and commerce had the power to order the infringer to stop the infringing act immediately and to compensate the infringed right‑holder for its or his losses. SAIC and its local agencies above the county level could also impose a fine upon the infringer. The Patent Law provided that the patentee and interested party could request the administrative authority for patent affairs to handle the infringing act. The administrative authority could order the infringer to stop the infringing act immediately and mediate on damages at the request of the parties concerned. The Copyright Law provided that the copyright administration department could subject anyone who committed acts of infringement to such administrative penalties as confiscation of unlawful income from the act or imposition of a fine.

3. Special border measures
On 5 July 1995, the State Council of the People's Republic of China had issued special legislation in respect of border measures for enforcement of intellectual property rights ¨C the Regulations of the People's Republic of China Governing Customs Protection of Intellectual Property Rights ¨C which came into effect on 1 October of the same year. According to this legislation, China's Customs offices must take measures to intercept importation or exportation of goods that were proved to be infringing the rights of trademarks, patents or copyrights legally protected in China. China's Customs offices were granted authority to investigate any suspected shipment and confiscate the goods in case infringement was proved.