Zhang Zhigang:
Director of the Executive Office of the National Leading Group on IPR Protection, Vice Minister of Commerce
Ladies and Gentlemen,Good morning.
It was here that I briefed you on China’s IPR protection campaigns on September 6 last year. In the past 10 months, law enforcement bodies and judiciary authorities have been working closely on forceful actions. Local governments made careful preparation and took effective actions. A magnificent momentum and sound situation has shown up.
With regard to the result of law enforcement, the number of cases uncovered by enforcement bodies at various levels, the number of cases transferred from administrative bodies to public security offices, the number of arrest and prosecution approved by prosecuting authorities and the number of judged and convicted cases made by courts at various levels showed a certain degree of year-on-year increase. At the end of 2004, the Supreme People’s Court and the Supreme People’s Procuratorate promulgated the Interpretation on Several Legal Issues concerning Applicable Laws to IPR Infringement Cases which lowered the threshold of criminal penalty on IPR perpetration. This move explicitly indicates the resolve of the Chinese government to battle against infringement and piracy and its consistent standpoint of protecting intellectual property.
In pivotal areas of protection like trademarks, patents and copyright, administrative enforcement authorities at various levels placed focus on key fields such as export commodity fairs, OEM production and import and export trade of goods, and conducted a series of straighten-out activities. Up to now, industrial and commercial administrations have investigated and handled 24189 trademark infringement cases and imposed fines of 157 million yuan. Press and publishing authorities, cultural offices, copyright administration and public security offices have confiscated 167 million sets of illegal AV products and pirated products, destroyed 24 illegal CD production lines and closed down 2960 illegal printing workshops. In details, the Ministry of Culture destroyed 63.35 million pirated compact discs. Patent authorities uncovered 1115 patent imitation cases and 153 patent counterfeit cases. Customs offices have uncovered 949 cases related to import and export of IPR-infringed goods, involving a total value of 73.04 million yuan.
In a bid to intensify criminal strike on IPR perpetration, the Ministry of Public Security carried out the operation “Mountain Eagle” aimed at infringement of right to exclusive use of trademark and straighten-out campaigns aimed at piracy. During the operation “Mountain Eagle”, public security authorities throughout the country successfully uncovered more than 1000 cases involving IPR infringement, in which over 2600 suspects were captured and subject value exceeded 860 million yuan. Most of these cases involved infringement of famous international and domestic brands with products ranging from assembled cars, automobile spare parts and electronics to foodstuff, pharmaceuticals, means of agricultural production, tobacco and alcohol, apparel and cosmetics. Over 50 out of these cases were grave, notorious cross-border perpetration that had far-reaching effect and involved large value.
The Supreme People’s Procuratorate has tightened its grip on the filing of criminal cases involving production and selling of fakes and IP infringement, the issuing of warrants for arrests, and prosecution. Since the special campaign was launched, procuratorate offices have advised the transfer of 1257 suspected criminal cases involving the production and distribution of fake and shoddy products and IP infringement from administrative enforcement bodies to public securities authorities, dealing with 1483 persons. They have scrutinized the investigations by public securities authorities into 868 filed cases, involving 1111 persons. Between January and May 2005, 882 persons involving the production and selling of fake and shoddy products were warranted for arrest. The figures were up 51.5% relative to the same period last year. 844 persons cases were prosecuted, up 45% respectively over the same period last year. 340 suspects in IP crimes were arrested against warrants, rising 58.9%comparatively. 258 of them were prosecuted, up 20.6% comparatively. The numbers of cases endorsed for arrest and prosecution have seen relatively notable rises. Meanwhile, procuratorate offices also intensified the investigation into and sanctions against misconduct of officials behind infringement cases. 41 persons were dealt with in 41 cases.
People’s courts across the country have fully served their role as judges in IP crimes. They have processed and closed a large number of IP cases. In the first five months of this year, PCs across China processed 1,280 cases involving IP infringement, production and distribution of fake and shoddy products and illegal operation, up 23.19% comparatively. 1,061 of them were closed with verdicts, up 28.29% Over the same period, PCs across China also processed first-instance civil IP cases totaling 5,135, up 48.9% comparatively. 3,076 of them were closed with verdicts, up 36.7% comparatively. The number of processed first-instance administrative IP-related cases was 266, up 24.8%. 83 of them were closed with verdicts, up 2.4% comparatively.
While keeping up our crackdown efforts, we’ve been looking for solutions to address the root of the IP problems and have intensified public education and advocacy efforts. In April, a large-scale “IPR Week” was staged with the theme of “protecting IPR, promoting innovation and development”. A White Paper on New Progress in IP Protection in China was published for the first time in 7 languages, which resulted in greater public awareness of IP protection.
In general, substantial progress and periodical results have been scored in China’s IP protection endeavor, but still there’s a few problems. Notwithstanding that, it’s worthwhile pointing out that IP infringement is a global issue and its correction needs concerted efforts from countries around the world. Bearing deep in mind the necessity and complexity of IP protection, countries have strengthened their communication and mutual understanding, consultations and dialogue, exchanges and cooperation. They have been actively engaged in discussions for formulating effective countermeasures against IP infringement. More and more people around the world are now sharing such a common understanding and course of actions.
We always believe IP protection to be of objective necessity to China’s own economic and social developments. Only an ever-improving IP protection system, an IP-friendly environment, and greater and more efficient IP enforcement can lead to technological advancement and innovation as well as sustained and harmonious social-economic developments. Hereby, I’d like to make this solemn statement again: China has a consistent and firm position on IP protection and fighting IP infringement and piracy. This will be a never-ending battle. The State Council has decided to prolong the Special Campaign on Targeted IPR Rectification, which was supposed to end this August, till the end of this year. In response, all relevant departments have issued notices on the deployment of their work in the duration of this campaign. Such efforts will continue into the future. The Ministry of Public Security has issued the Notice on Concretely Pushing Operation Mountain Eagle and is ready to engage in similar activities for combating piracy. The crackdown efforts against IP infringement and piracy in China will continue to increase. The environment for IPR protection will become friendlier with more notable results.
With that, I and my colleagues from the Supreme People’s Court, Supreme People’s Procuratorate and the Ministry of Public Security are now ready to take your questions.
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