China’s New Ecommerce Law: What this will mean for Consumers, Operators and Providers

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shutterstock_167099189Today’s blog post has been kindly drafted for us by our China IPR SME Helpdesk expert Mr. Daniel Albrecht from Starke Beijing. In this article, Mr. Albrecht gives a comprehensive overview on the latest changes in China’s new e-commerce law that will inevitably effect the activities of consumers, operators as well as providers. 

China’s Ecommerce Market 

In accordance to analysis by digital marketing researcher eMarketer, cross-border Ecommerce in China was due to hit USD 85.76 billion in 2016, up from USD 57.13 billion in 2015. Furthermore the China Internet Network Information Center (CNNIC) reported 710 million Internet users in June 2016. Notably, 40 per cent of China’s online consumers are buying foreign goods and eMarketer estimated the amount of money that each of them would have spent an average of USD 473.26 in 2016. 

If the projection that cross-border Ecommerce will have a compound annual growth rate of 18 percent through to the end of the decade — reaching an estimated USD 222.3 billion — will come true, the consequence would be that China’s Ecommerce market will catch up with those of the US, Britain, Japan, Germany and France combined by 2020. 

China’s New Ecommerce Law 

As the Ecommerce market is constantly changing and undoubtedly its major impact on social life and the current economy cannot be denied, it seems to be necessary to provide a legal framework to give answers to upcoming questions within the scope of Ecommerce. 

Hence a new Ecommerce law is in progress and drafts are waiting to be adopted. The new law shall remedy the current situation by promoting the Ecommerce market’s development, putting things straight and satisfying all the parties’ interests. These central ideas are laid out in Article 1 of the recent draft law and shall summarize simultaneously the political objectives pursued by this law. 

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IPR in the Tourism Industry in China

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According to the United Nations World Tourism Organization, China is the fastest growing tourism source market in the world, as Chinese middle class is getting more affluent and it is increasingly able to afford traveling abroad. At the same time, China’s domestic tourism market is also growing in a fast pace, boasting 10% average annual growth rate.[1] Furthermore, as Chinese Government is committed to developing the tourism sector, plenty of business opportunities can arise for the European SMEs. In today’s blog-post, the China IPR SME Helpdesk will look into what EU SMEs should do to protect their IPR in the tourism sector in China.

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However, there are some significant restrictions for foreign-invested companies wishing to engage in Chinese ‘outbound’ tourism market, as all foreign-invested entities need to apply for a special license with the China National Tourism Administration. The application process is lengthy and currently only few foreign-invested companies are allowed to operate on China’s outbound tourism market.

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IP Considerations for ICT Industry in South-East Asia

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The ICT sector is considered to play a pivotal role in supporting regional integration and connectivity efforts between the countries in South-East Asia. The latest ASEAN ICT Industry Masterplan 2016-2020 aims to propel ASEAN towards a digitally-enabled economy that is secure, sustainable, and transformative and to enable an innovative, inclusive and integrated ASEAN Community[1]. The ICT industry is one of the sectors presenting major business growth opportunities for EU SMEs in South-East Asia.

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IP TIPS and WATCH-OUTS in Indonesia

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indonesiaIn this blog post, we will provide you with all the basics you need to successfully protect your Intellectual Property Rights in Indonesia. Known for its diverse and rapidly growing market, Indonesia provides opportunities for many European SMEs interested to expand their business into South-East Asia. This blog post will give a concise overview of IP tips and watch-outs for Indonesia – enjoy.

General IP TIPS and WATCH-OUTS in Indonesia

  • Indonesia recognises ‘well–known’ trade marks (recognition of this is made on a case-by-case basis), but only to the extent that they may be used to prevent a third party from registering a similar trade mark, at least in theory. Often, ‘bad-faith’ registrations (intentionally registering someone else’s pre-existing IP) get registered by third parties and the rightful owner has to go through the expensive process of filing proceedings in the commercial court to cancel these bad-faith registrations.
  • When the need arises to enforce rights through the authorities, it is best that IP rights owners be aware of recent media coverage of corruption cases in Indonesia. The fact that corruption cases have been surfaced demonstrates the government’s efforts at cleaning up corruption cases; however it is still worth discussing a potential corruption risk with your attorney when enforcing your rights via the authorities.
  • Because IP rights enforcement in Indonesia can still be problematic, it is essential to register your rights there in order to stand a chance of defending them. Intellectual Property Rights are territorial in nature, which means that registrations in one country’s jurisdiction are not automatically enforceable in others, and therefore registrations in multiple countries may be necessary, particularly for businesses looking to internationalise. Indonesia operates under a ‘first-to file’ system, meaning that the first person to file an IP right in the Indonesian jurisdiction will own that right once the application is granted.

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Trade Marks in China: Q&A for the International Comparative Legal Guide to Trade Marks 2017

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For any EU SME operating in China, Trade Marks will be an important IP asset to have. So in order to meet any questions you might have, our China IPR SME Helpdesk expert Mr. Charles Feng from East & Concord Partners based in Beijing has kindly drafted for us a very useful and informative blog post on Trade Mark Protection in China. In this comprehensive Trade Mark guide, our Q&A with Mr. Feng will give you all the answers you need on Trade Mark protection in China. 

1          Relevant Authorities and Legislation

1.1       What is the relevant trade mark authority in your jurisdiction?

The Trademark Office (“TMO”), which is affiliated with the State Administration for Industry and Commerce, is the authorised government agency in charge of trademark administration including examinations of trademark applications, oppositions as well as the cancellation of trademark registrations for three years of non-use.  The Trademark Review and Adjudication Board (“TRAB”) oversees the examination of various applications for appeals against the TMO’s decisions, as well as trademark invalidation matters.

In addition, local Administrations for Industry and Commerce (“AICs”) or Market Supervision Administrations (“MSAs”) are in charge of the administrative enforcement of trademark rights.

People’s Courts have jurisdiction over trials for trademark-related administrative or civil litigation.

1.2       What is the relevant trade mark legislation in your jurisdiction?

The most fundamental legislations include the Trademark Law of the People’s Republic of China (“PRC Trademark Law”), the Implementing Regulations of the PRC Trademark Law as well as multiple Judicial Interpretations related to trademark law which are issued by the Supreme People’s Court.

In addition, the Anti-Unfair Competition Law of PRC provides protection to unregistered marks such as distinctive names, packaging or decoration of famous goods.  The criminal code provides protection against counterfeiting activities where the illegal turnover exceeds a certain amount.

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