WORLD TRADE  
ORGANIZATION  IP/C/W/483 
23 October 2006 
 
 (06-5100) 
Council for Trade-Related Aspects 
of Intellectual Property Rights Original:   English 
 
 
 
TRANSITIONAL REVIEW MECHANISM OF CHINA 
 
Communication from China  
 
 
 The following communication, dated 20 Oct ober 2006, from the Delegation of the People's 
Republic of China, providing information specified  in Annex 1A to its Protocol on Accession, is 
being circulated in the context of the transitional review mechanism under Section 18 of that Protocol. 
 
 
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(a) Modifications to the  Copyright Law, Trademark Law and Patent Law, relevant 
implementing rules that cover all areas included in the TRIPS Agreement and bring 
these measures into full conformity with the TRIPS Agreement, as well as protections to 
undisclosed information. 
 
1. Copyright 
 On 12 October 2005, the Supreme People's Court of China and the Supreme People's 
Procuratorate jointly issued a Reply on Relevant Issues concerning Audio-visual Products Involved in 
the Handling of Criminal Cases of Infringing upon Copyrights , which went into effect on 18 October 
2005.   On 18 May 2006, the State Council issued the Regulations on the Protection of the Right of 
Communication through Information Network , which was brought into effect on 1 July 2006.  The 
Regulations will contribute further to the regulation of activities relating to the spread of works on the 
internet, to the enhancement of the copyright prot ection on the Internet, and will promote the further 
development of the Internet industry.  2. Trademark 
 On 26 September 2005, the State Administration of Industry and Commerce promulgated the 
Rules for Trademark Review (second revision) . 
  On 31 December 2005, the State Administration of Industry and Commerce and the Committee of Trademark Review jointly issued the Trademark Review and Review Standard . 
 
 On 10 January 2006, the Ministry of Commerce, the State Administration of Industry and Commerce and the State Intellectual Property Office (SIPO) promulgated the Measures on Protecting 
the IPR of Exhibition . 
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   On 13 January 2006, the Provisional Rules on Promoting the Join and Cooperation in 
Combating the Infringement of th e Exclusive Rights to Use Trademarks , issued by the Ministry of 
Public Security and the State Administration of Industry and Commerce, went into effect.  3. Patents 
 On 29 November 2005, the State Intellectual Property Office issued the Measures on the 
Compulsory Licensing for Exploitation of Patents Relating to Public Health  in accordance with the 
Decision on Implementation of Para graph 6 of the Doha Declaration on the TRIPS Agreement and 
Public Health adopted by the WTO General C ouncil on 30 August 2003.  The Measures went into 
effect on 1 January 2006. 
 
 On 24 May 2005, the State Intellectual Property Office issued the Guidelines for Patent 
Examination , which went into effect on 1 July 2006. 
 
(b) As stated in the report, China is strengtheni ng law enforcement in respect of IPR by way 
of more effective administrative penalties. 
 
 In August of 2004, the State Council led a one-year nationwide special action on IPR protection.  In early 2005, the State Council decided to prolong the special action until the end of 2005.   From November 2004 to December 2005, the pub lic security authorities across China staged  
"Mountain Eagle" Action to combat IPR infringement, with the following achievements:  among 
3,534 cases of IP infringement reported and inves tigated, 3,149 cases were closed;  5,981 suspects 
were apprehended;  total va lue concerned amounted to RMB 2.65 billion and the redemptive 
economic loss amounted to RMB 1.3 billion.  In the special action to combat piracy, public security 
authorities seized and destroyed 17 illegal CD production lines in 2005. 
 
 During the special action, press and publication authorities investigated and dealt with 10,442 
cases of copyright infringement with a total va lue concerned of RMB 230 million, seized and 
destroyed 3,879 cases of pirate copies and outlawe d 14,000 illegal business ope rators.  The patent 
authority investigated and dealt with 3,923 cases of  patent counterfeiting, of which 515 cases involved 
counterfeiting the patent of anothe r person and 3,078 cases involved pa tent infringement.  The culture 
authority investigated and dealt with some 10,000 cases, seized and destroyed 180 million illegal 
audio and video products, and outla wed 7,559 illegal business operators. 
  In 2005, 4,413 IPR criminal cases were accepted by procuratorial organs  upon application for 
arrest on a nationwide basis, of which 3,389 cases we re authorized;  4,645 cases were accepted upon 
prosecution initiatives transferred by public securi ty authorities, of which 3,490 cases were 
prosecuted.   In 2005, the courts across the nation received  3,567 criminal cases involving IP infringement, 
production of counterfeit and inferi or goods and illegal business opera tion, of which 3,529 cases were 
closed.  During the same period, the courts acro ss the nation received 13,424 first trial civil cases 
involving IPR infringement (of which 13,393 cases we re closed), and 575 first trial administrative 
cases involving IPR infringement.   In 2005, 39,107 trademark count erfeit cases were investigated and dealt with by industry and 
commerce administrative authorities at all levels.  During the same period, 50,787,500 pieces/sets of 
illegal marks were seized and destroye d, 18,414 molds, printing plates and other tools directly used in 
trademark infringement were confiscat ed, 7,346.75 tons of infringed pr oducts were destroyed, up to  IP/C/W/483 
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  RMB342 million in fines were imposed and 236 ca ses involving 215 persons were transferred to the 
judicial proceedings.   In 2005, a total of 1,210 intellectual propert y infringement cases involving import and export 
goods with a total value concerned up to RMB99.78 m illion were investigated and dealt with by the 
customs offices across China.  
  
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