Intellectual Property Rights in China This page intentionally left blank Intellectual Property Rights in China Zhenqing Zhang UNIVERSITY OF PENNSYLVANIA PRESS PHILADELPHIA Copyright(cid:2)2019UniversityofPennsylvaniaPress Allrightsreserved.Exceptforbriefquotationsusedforpurposesofreviewor scholarlycitation,noneofthisbookmaybereproducedinanyformbyanymeans withoutwrittenpermissionfromthepublisher. Publishedby UniversityofPennsylvaniaPress Philadelphia,Pennsylvania19104-4112 www.upenn.edu/pennpress PrintedintheUnitedStatesofAmerica onacid-freepaper 10 9 8 7 6 5 4 3 2 1 LibraryofCongressCataloging-in-PublicationData ISBN978-0-8122-5106-7 Formyfamily This page intentionally left blank CONTENTS Introduction 1 Chapter1.ThePoliticalEconomyofChinesePatentLegislation 27 Chapter2.TheImplementationofChinesePatentPolicy 54 Chapter3.ThePoliticalEconomyofChineseCopyrightLegislation 85 Chapter4.TheImplementationofChineseCopyrightPolicy 112 Chapter5.ChineseTrademarkLegislation 156 Chapter6.TheImplementationofTrademarkPolicyinChina 182 Conclusion 225 Appendix.InterviewsCited 235 Notes 241 Bibliography 275 Index 289 Acknowledgments 297 This page intentionally left blank Introduction ATaleofTwoIntellectualPropertyRightsEnforcementCases Intellectualpropertyrights(IPR)arehighlycontroversialinChina’srapidly expanding foreign economic relations. As such, I encountered enormous difficulty when requesting interviews from IPR professionals in China. Nevertheless, I also encountered some pleasant surprises. In early March 2008,myinterviewrequestreceivedawarmresponsefromMr.Wu,alegal adviser with the IPR office of the branch office of The China No. 1 Pencil Company in Bilin City in East China’s N Province.1 When I entered Mr. Wu’s office, I was immediately attracted to a plaque bearing the title of “Model Unit of IPR Work” (Zhishichanquan Gongzuo Xianjin Danwei) hanging on the wall. Mr. Wu proudly told me, “We won this plaque with ourhardwork.”Hefurtheradded,“Maybesomegoodluck,too.”2 As one of the leading pencil producers in the country, Mr. Wu’s com- pany has survived and thrived on the enormous market need for double black pencils used for China’s standardized tests. Standardized tests are importantcomponentsofChina’stalentselectionsystem.Indeed,thetradi- tioncanbedatedbackcenturies.Ithasbeenestimatedthattheannualsale of pencils in China can reach as many as 100 million a year. The huge businessopportunityhasbeenverytemptingforlegalpencilproducersand counterfeiters.3 In May 2005, The China No. 1 Pencil Company identified a large amount of counterfeit double black pencils on the market in Bilin City. This discovery came only forty days before June 7, the day on which the ChineseNationalCollegeEntranceExamwouldtakeplace.Thiswasavery importantdayformillionsofChinesehighschoolstudentsandtheirfami- lies. If the knockoff counterfeit pencils were used in the exam, there was a very good chance that the scanner would not be able to read the answer