Trademark Law Amendment Draft: Increased Penalties for Infringement of Exclusive Trademark Rights
Every Economics reporter Li Biao, Every Economics editor Liao Dan
On April 20, at the 10th meeting of the Standing Committee of the 13th National People's Congress, Minister of Justice Fu Zhenghua, on behalf of the State Council, explained the "Draft Amendment to 8 Laws including the People's Republic of China Construction Law".
Among them, regarding the "Draft Amendment to the Trademark Law of the People's Republic of China" (hereinafter referred to as the "Draft"), the explanation introduces that a provision has been added to the first paragraph of Article 4: Trademark registration applications that are not for the purpose of use shall be rejected.
At the same time, the draft adds the obligations of trademark agencies. In the third paragraph of Article 19, it adds a provision that if a trademark agency knows or should know that the applicant's trademark registration application is "not for the purpose of use," it shall not accept the commission.
The regulation of malicious registration is moved forward. In Articles 33 and 44, paragraph 1, provisions are added to include applications for trademark registration not for the purpose of use, and illegal applications or acceptance of commissioned applications for trademark registration by trademark agencies, into the opposition procedure and invalidation declaration procedure as grounds for trademark opposition and declaration of invalidation of registered trademarks.
At the same time, Article 68 stipulates administrative penalties for trademark agencies applying for trademark registration not for the purpose of use, accepting commissions knowing that the client is applying for trademark registration not for the purpose of use, and for malicious application for trademark registration.
The draft also increases the punishment for infringement of trademark rights. For acts of infringement of trademark rights, in the first and third paragraphs of Article 63, the multiple of the amount of compensation for malicious infringement of trademark rights is increased from one to three times to one to five times, and the upper limit of statutory compensation is increased from three million yuan to five million yuan, to provide the right holder with more comprehensive compensation.
The disposal of counterfeit registered trademark goods and materials and tools mainly used for manufacturing counterfeit registered trademark goods is strengthened. Two paragraphs are added to Article 63 as paragraphs 4 and 5, stipulating that when people's courts hear trademark disputes, at the request of the right holder, they shall order the destruction of goods that are counterfeit registered trademarks, except in special circumstances; and order the destruction of materials and tools mainly used for manufacturing counterfeit registered trademark goods, without compensation; or, in special circumstances, order the prohibition of the aforementioned materials and tools from entering commercial channels, without compensation. Goods with counterfeit registered trademarks shall not enter commercial channels after simply removing the counterfeit registered trademarks.
