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Sanctions Targeted Serious Breach of Trust in Patent Field

Those devoid of credibility will be severely punished. Recently, 38 central government agencies including the National Development and Reform Commission jointly issued the Memorandum of Cooperation on Joint Punishment on Seriously Dishonest Parties in the IP (Patent) Field, providing that one or more measures of the 38 punishment measures shall be imposed upon those exercising serious breach of trust in the patent field. "These measures will serve an irreplaceable function on improving creation, utilization, protection and service level of IP and will further facilitate building a standard, market-oriented and internationally-friendly environment for creation, investment and business, vigorously motivating opening-up and increasing China's economic competitiveness," a principal from the China National Intellectual Property Administration (CNIPA) said.


"The memorandum thoroughly implements the decisions and arrangements of strengthening IP creation, protection, utilization and promoting the development of a social credit system made by the Central Party Committee and the State Council and will greatly enhance the effectiveness, linkage and systematization of punishment. It is an important way to strengthen oversight during and after the event and improve the credit system for IP. It is also an important measure to improve IP system and the social governance ability in IP field." He introduced that joint punishment was composed of five measures including intensifying supervision, canceling the qualification of evaluation, not being permitted to enjoy the patent fee reduction and prioritized examination implemented by CNIPA, and 33 measures including limiting the eligibility of government funds, qualifications and consumption of high-end goods and services jointly carried out by various departments. The punishment will be inflicted upon those parties of serious breach of trust in the patent field including repeated patent infringements, failure to comply with court order, serious violation during representing clients, loaning patent agent qualification certificate, abnormal patent applications and producing falsifying documents.


Insiders believe that the memorandum manifests the country's confidence and determination to strictly protect IP. The severe punishments to the breach of trust in IP inspires innovators to respect IP and will benefit the shaping of the climate of respecting and valuing IP, establishing the country's image in respecting IP and creating a sound business environment. The listed six serious breaches of trust behaviors have been problems refusing to go in patent filed for an extended period of time. The joint punishment practice is a severe and precise blow to the problems including abnormal patent application and failure to comply with court order. 


Source: China IP News, CNIPA

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