In 2005, led by the sense of scientific development, following up the guideline of “keeping promise, adapting to the national situation, improving the system and protecting actively”, every city and department in Zhejiang province have carried out seriously State Council’s unified arrangement regarding to strengthening intellectual property rights (hereinafter referred to as IPR) protection, deepened the works on IPR protection, set up energetically a good environment of respecting, protecting and creating IPR.

I.  Basic situation of IPR protection

In 2005, the work of IPR protection has made new progress under whole society’s hard work.

-- The construction of the legal system of IPR is strengthened. In 2005, on the base of carrying out seriously the laws and rules of the Patent Law, the Trademark Law and the Law of Author's Rights, our province has set down and emended some local rules and regulation files to protect IPR. Provincial People’s Congress Standing Committee has emended the Byelaw on Patent Protection in Zhejiang Province, which has been enforced since 1 November 2005, and has approved the Byelaw of Patent Administration in Hangzhou, which has been enforced since 1 January 2006. The emended Byelaw on Patent Protection in Zhejiang Province increased the clauses from 28 to 37, which has defined that the county (city, district) patent administrative departments that have got lots of patent administrative works and have practical abilities, can treat the dissension of patent infringement and implement administrative punishment in own administrative locality, as assigned by the patent administrative departments of provincial and municipal people’s government controlling several districts. The time limit to treat patent infringement and investigate patent illegal behavior has been shortened from maximum one year to six months. It has defined that in the course of treating patent infringement, the patent administrative departments have the right to check and keep temporarily the evidence materials that might be destroyed or transferred. The force of administrative law enforcement has been strengthened. In February 2005, twelve departments including provincial Intellectual Property Rights Bureau, Industrial & Commercial Bureau and Copyright Bureau set up and came on the Opinion on Strengthening the IPR Protection of Conferences & Exhibitions. It has defined the establishment of IPR administrative systems of conferences and exhibitions, the responsibilities of each IPR administrative department in the period of conference/exhibition and the disposal processes and measures for IPR infringement dissension in conference/exhibition. In March 2005, Provincial Superior Court and Provincial Industrial & Commercial Bureau have issued together the Summary on the Session of Treating the Cases of Trademark Right and Firm Right Conflict and Dissension, to guide the unified law enforcement and legal standard for different cities in the province. Provincial Industrial & Commercial Bureau has issued the files such as the Notification on Strengthening the Inspection to Trademark Printing Units, the file of Forwarding National Industrial & Commercial Administrative Bureau and Agricultural Department’s Notification on Strengthening the Protection and the Trademark Registration of Geographical Logos of Agricultural Products, etc. to direct the industrial & commercial bureaus of different cities to do patent right protection work with pertinence.

-- The special IPR protection activities have been deepened. According to State Council’s unified arrangement, from September 2004 to the end of 2005, Provincial Government has carried out special IPR protection activities. Provincial Special IPR Protection Activities Working Group has been set up, with Stadholder Jin Deshui as the group leader and Provincial Economy & Trade Committee, Legal System Office, Public Security Office, Industrial & Commercial Bureau, Copyright Bureau, Intellectual Property Rights Bureau and Hangzhou Customs as the member units, to organize and coordinate IPR protection in whole province. In September 2005, Provincial Government approved to set separately a Redding & Standardizing Working Office at Provincial Economy & Trade Committee, as a standing organization with added personnel to take on detailed tasks of Provincial Redding & Standardizing Working Office and Provincial Special IPR Protection Activities Working Group Office. The Provincial Special IPR Protection Activities Working Group held two plenary meetings in March and September 2005, with a theme of studying the work.  In October 2005, Provincial Government held Provincial IPR Protection TV & Telephone Meeting to require each city to carry out special IPR protection activities in further. After the meeting, the Zhejiang People’s Government Office’s Notification on Deepening IPR Protection Work in the Province was issued. According to declared arrangement, at key fields of copyright, author’s rights and patent protection, at key places of commodities import & export, various exhibitions and meetings and wholesale markets, at key regions with more infringement behaviors relatively, taking investigating and treating key infringement cases as breakthrough point, each city and each concerned department in the province have taken active actions, executed the law strictly, fought against IPR infringement and achieved positive performance.

-- The long-term effective administrative system to protect IPR has been set up step by step. Taking the chance of special IPR protection activities, the governments of different levels and concerned departments in the province have researched actively a long-term effective IPR protection system for both temporary solutions and permanent cure while focusing on permanent cure. In 2005, the cities and the counties in the province have finished basically the reform of culture market administrative system and integrated law execution. Three bureaus of culture, broadcasting & television and news & printing have been integrated as Culture, Broadcasting, TV, News & Printing Bureau. The original law execution departments under three bureaus have been consolidated to a culture market integrated law organization. The force of law execution has been strengthened and the skill and the efficiency of law execution have been improved. Sixteen departments including Provincial Procuratorate, Public Security Office, Economy & Trade Committee have issued the Regulation on Several Questions Regarding to Administrative Law Execution Organizations’ Deportation of Suspected Crime Cases and have set up a connecting system between administrative law execution and criminal judicature. Provincial Special IRP Protection Activities Working Group Office has organized inspection groups for five times to check in open and in secret in the cities of Ningbo, Wenzhou, Taizhou, Yiwu, Cixi and Yuhuan, to promote the effective work of special activities. Provincial Industrial & Commercial Bureau has strengthened cooperation with well-known enterprises, set up Well-Known Brand Protection Database to compare and check the well-known brand products in the market and perfected step by step the well-known brand protection system.

-- The environment to protect IPR has been formed in further. Each city and each concerned department in the province have carried actively various propaganda and education activities, to publicize the results of fights against infringement and show the government’s attitude and firm confidence in protecting IPR. Around “4.26 World IPR Day” in 2005, the province has organized the activities of “Propaganda Week of IPR Protection”. The departments including Provincial Redding & Standardizing Working Office and Intellectual Property Rights Bureau have held the press conference of special IPR protection activities, issued the white book of the Status of Intellectual Property Rights Protection in Zhejiang Province, held the activities of ten thousand people’s signature with a theme of “protecting IPR, promoting innovation & development”, selected top 10 IPR cases in 2004. Together with National Intellectual Property Rights Bureau and 25 central mediums, the Travel in Zhejiang Activity of “Protecting IPR – we are taking action” has been held. The statistic figure shows that in the period of “Propaganda Week of IPR Protection” in 2005, only the provincial industrial & commercial systems have organized 112 times of large propaganda activities, consulted on spot 23,700 person times, held 66 terms of sessions and training classes, broadcasted 1,150 times of propaganda content in TV and broadcasting station, published 600 articles regarding to trademark law and regulations and trademark rights protection in different newspapers. From July to December, Provincial Copyright Bureau and Provincial Committee Propaganda Department, Education Hall, Provincial League Committee have held the activity of “refusing illegal version, do it from me - copyright protection theme education to middle school students”. By means of “presenting copyright protection theme education books”, the circuit pictures exhibition of “protecting official version, fighting against illegal version”, “the activities of middle school students’ copyright protection theme education knowledge competition and articles soliciting”, the copyright protection theme education has been organized widely in the middle school students in the province.

-- The work of IPR protection training has been strengthened in further. Each city and each concerned department in the province have strengthened the training of IPR to improve the IPR level of administrative staff, judicial staff and enterprises’ staff. In the period of “Propaganda Week of IPR Protection” in 2005, Provincial Intellectual Property Rights Bureau has organized the training class of “protecting IPR, improving economic development” and has invited IPR experts from Taiwan Area and the province to give classes. In the second half of 2005, Provincial Intellectual Property Rights Bureau has organized again 7 times of different training courses including the patent law execution professional training, party leaders’ IPR training, extroversion enterprises’ IPR training. More than 850 person times have been trained. Provincial Superior Court and Justicers’ Advanced Education Institute have held together the professional judgment training class of the law of author’s right law. More than 60 staff engaging in IPR judgment at middle-level courts in the province have participated the training. In the first half of 2005, after being assigned as a domination court of the first judgment of patent dissension by Supreme Court, Jinhua Middle-Level Court received in time the patent judgment training by Provincial Supreme Court. 

-- The external cooperation and communications have been expanded widely. In May 2005, Provincial Copyright Bureau has undertaken “the Session of Copyright Policy & Strategy and Promoting the Development of the Industries Concerned with Copyrights in Asia Pacific Area” which was hosted by World Intellectual Property Rights Organization and State Copyright Bureau. More than 80 copyright administrative officers, experts and scholars from more than 20 countries and areas and concerned provinces/cities in the country have participated the meeting. In November 2005, Provincial Quality & Technology Inspection Bureau has undertaken “the Session of 2005 China - European Union Geographical Logo” which was hosted together by National Quality Inspection Bureau and European Union Committee. It has provided opportunities to our province to learn international experience and strengthen international communications. In December 2005, Provincial Intellectual Property Rights Bureau has held “USA IPR Law and Clause 337 Lawsuit Practice Forum”. More than 300 people from IPR bureaus of 20 provinces (cities, municipalities) in the country have participated it. Concerned responsible people of Provincial Public Security Office have hosted the IPR agents from some world famous brand companies such as French Louis Vuitton and USA 3M. The cases have been reported and communicated.

II.  Patent Protection

In 2005, in whole province, the patent application quantity was 43,221 and the authorization quantity was 19,056, which increased 70.9% and 25% respectively comparing to the previous year. The patent application quantity and the authorization quantity were ranked as number two in the country. Among which, the application quantity of the patents of invention was 6,776, which was 89.4% more than that of the previous year. The authorization quantity of the patent of invention was 1,110, which was 41.4% more than that of the previous year. The national IPR city trial work kept on doing in four cities of Hangzhou, Ningbo, Wenzhou and Jinhua. Yongkang was approved to be a national IPR promoting trade trial base. Provincial Intellectual Property Rights Bureau and Provincial Economy & Trade Committee have cognized newly 56 provincial patent demo enterprises. The accumulated number of provincial demo enterprises in the province was 191.  On 12 January 2005, National Intellectual Property Rights Bureau Hangzhou Patent Agent started to engage officially in patent activities. The number of patent application accepted that year was more than 28,000 which reached 2 thirds of the patent application quantity in the province. Up to the end of 2005, in the province, there were 30 patent agencies and 16 offices. Among which, there were 4 foreign affair agencies and 168 full-time patent agents.  

In 2005, the IPR (patent) administrative departments of different levels in the province kept on carrying out special IPR protection activities. One thousand and forty-three person times of tipstaff have been called out. Two hundred and nine batches of commodities have been checked. Nineteen cases of faked patent have been checked. One hundred and ten cases of patent infringement have been checked. The value of the cases was RMB 780,000. In the whole year, 133 patent dissension cases have been handled and 114 cases have been closed. The rate of closing is 865. The patent administrative law execution agreement between two provinces and one city has been signed with Jiangsu province and Shanghai city. The deportation system of patent case amongst 25 cities of Yangtze Delta has been set up.

III.  Trademark Protection

In 2005, in the province, 97,000 trademarks were applied newly for registration. The accumulated trademarks were 240,000. The rates of increase were 30% and 34.1% respectively comparing to the previous year. The number of accumulated trademarks was ranked as number two in the country. In 2005, twenty-five China well-known brands have been cognized newly. The accumulated well-known brands were 70. The newly cognized Zhejiang famous brands were 291. The accumulated provincial famous trademarks were more than 1,300. The registered geographical logo proof trademarks were 23. The quantity of the well-known trademarks and the geographical logo proof trademarks has been ranked as number one in the country.

In 2005, the industrial & commercial departments of different levels in the province kept on carrying out the activities of protecting registered trademark rights. 147,619 person times of tipstaff have been called out. 491,436 business units have been checked. 10,199 commodity trade markets have been checked. 972 sites that make and sell faked goods have been destroyed. 4,702 illegal trademark cases have been checked. The penalty was RMB 61.51 million. Among which, 1,513 cases were foreign trademark cases. 482 cases infringed well-known trademarks. The cases with a value above RMB 1 million were 9. About 7.47 million pieces (sets) of marks of trademark infringement were confiscated. 5.69 million pieces (sets) of commodities of trademark infringement were confiscated and destroyed. 1,726 pieces (sets) of tools used specially to making infringement logs and commodities were confiscated. In 2005, 94 cases and 88 people of faked trademark infringement have been deported to legal organization for applying for criminal responsibilities. For five years, the quantity of deportation was ranked as number one in the country. Hangzhou Industrial & Commercial Administrative Department has improved the protection to foreign high-reputation trademarks, done the work of forbidding selling foreign high-reputation trademark commodities in the markets. The markets have been supervised and urged to set up self-discipline system. The business units that were against the regulation of “forbidden sale” have been treated as “first warning, second rejecting”. In the city, 11,700 private business units of 20 markets have signed the responsibility contracts of “forbidden sale”.

IV.  Copyright Protection

In 2005, the province has registered newly 1,479 software works, 1,550 other works, 84 authorized foreign publishing contracts and 3 other copyright contracts and has arranged 430 cases of copying foreign audio-visual products and authentications of electronic publication author’s rights. The departments of provincial copyright, info industry and finance kept on promoting the work of official version of software used for government systems. To the end of 2005, the work of official version of software used for the governments of each city, county (city, district) has been done basically.

In 2005, the copyright administrative departments in the province have carried out the special spring disposal to fight against pirated CDs and the special activity to fight against network infringement and piracy. 5,100 person times of inspectors have been called out. 6,400 business units of audio-visual products and electronic publications and professional markets have been checked. More than 1,700 business units that are against the rules have been punished according to the laws. 627 stalls without license have been banned. 131 underground illegal nests have been destroyed. More than 307,000 illegal pirated CDs have been confiscated.

V.  Protection of Audio-Visual Products’ IPR

In 2005, the culture departments in the province have treated 6,512 reports. 145,096 person times of inspectors have been called out. 306,217 unit times of culture business units have been checked. More than 4,730,000 illegal products have been confiscated. Among which, there were 3,723,461 illegal audio-visual products, 814,564 illegal books and journals, 68,613 other products such as illegal performance appliances and electronic game machines. 3,881 illegal business units have received administrative punishment. Among which, the business licenses of 88 units have been canceled.  The penalty was more than RMB 13.77 million. From 2004 to 2005, in the province, there were 28 people condemned because of illegal business of audio-visual products.

In August 2005, Jiaxing Culture Market Administrative Team and the public security organization have acted together and have destroyed an underground wholesale spot of illegal audio-visual products in the downtown. 50,000 illegal audio-visual products have been confiscated. It is the case uncovered with the largest quantity of audio-visual products in that city. In August 2005, Hangzhou Culture Market Administrative Team and the public security organization have acted together and have destroyed 4 underground illegal audio-visual products warehouses in the downtown. 427,718 pirated audio-visual products have been confiscated. Four criminal suspects of other province have been captured by the public security organization on the spot. The underground business channel of pirated audio-visual products from other provinces to Hangzhou has been cut off.

VI.  Implement Geographical Logo Products Protection

Up to 2005, there were 16 products in the province have been registered as geographical logo proof market and have been approved to be national geographical logo protection products, namely as Shaoxing wine, Dragon Well tea, Jinhua ham, Hangzhou white chrysanthemum, Longquan celadon, Qingyuan mushroom, Changshan grapefruit, Xinchang peanut, Anji white tea, Tangxi loquat, Yuyao waxberry, Huangyan orange, Xiaoshan dried radish, Wuniu early tea, Cixi waxberry and Tiantai radix linderae. The application of geographical logo products of two products of Changxing Mongolian snakegourd seeds and Fengqiao Chinese torreya has been accepted and heard a case by National Quality Inspection Bureau.

VII.  Customs Protection of IPR

In 2005, Hangzhou Customs has checked 30 IPR infringement cases that were all cases of infringement of trademarks. Main concerned trademarks were international and domestic well-known brands such as “Adidas”, “Nike”, “Philips”, “Rolex”, “Citizen”, “Chanel”, “OMEGA”, “SONY” and “555”.  Concerned commodities were the daily products such as watches, batteries and calculators. Total value of the cases was about RMB 1.25 million. In April 2005, Hangzhou Customs and Provincial Red Cross have signed the Cooperation Memorandum on Using Confiscated Infringement Goods for Social Commonweal, to use confiscated infringement goods for social commonweal to improve the social complex benefits of the law execution. In 2005, Hangzhou Customs has transferred more than 200,000 confiscated infringement commodities to Red Cross with a value of RMB 500,000.

VIII.  IPR Protection in Foreign Trade and Other Areas

In 2005, the provincial economy & trade departments have promoted actively the export of the products with independent IPR. There were 21 export products’ R&D projects in the province have been approved by the country with a supporting fund of RMB 11.50 million. Provincial Foreign Trade Export Development Fund has arranged RMB 4 million of special funds to support enterprises’ high-tech export R&D projects.

In 2005, the provincial information industry departments have speeded the development of software industry. The province has cognized newly 173 software enterprises and 778 software products. The sales income of software industry was RMB 25 billion. The cognized software enterprises were accumulated as 489 and the software products were 2,381. It was in a leading position in the country. The provincial economy & trade departments speeded up the construction of enterprises’ innovation systems. The province has cognized newly 3 enterprise technical centers of national level, 50 enterprise technical centers of provincial level. The enterprise technical centers of national level were accumulated as 16 and the enterprise technical centers of provincial level were 302.

IX.  Public Security Organizations Fights against IPR Infringement Crime

In 2005, the public security economy crime inspection departments in the province have treated 251 cases of 5 types of fake trademarks and trade secret infringement. 198 cases have been registered. 152 cases have been detected. The rates of increase were 21.8%, 32% and 19.7% respectively comparing to the same period of the previous year. The value of the cases was RMB 64,513,800.  234 criminal suspects were checked and punished. The public security police departments in the province have checked and punished 93 criminal cases concerned with fake and bad products. 109 people have got criminal detention. 41 people have been arrested. 81 people were transferred to court. In the special activities of protecting IPR, the public security organizations have investigated 13 surveyed cases, uncovered 12 cases and transferred to court 7 cases in the “Eagle” Action of Public Security Bureau. The performance of the number of case registration, the number of uncovered cases, the number of punished criminal people and the information report has been ranked as number four in the country. The public security organizations in the province have cooperated with each administrative organization to carry out investigation and renovation activities for 455 times. 56 cases of fake and right infringement have been registered and inspected actively. 

Taizhou Public Security Organization has destroyed the criminal network of printing trademark package, producing and selling at abroad the razors of fake “Gillette” trademark, captured 8 criminal suspects, obtained 3 sets of moulds, 20,000 finished razor products and 110 boxes of semi-finished products. The value of the case was more than RMB 30 million. Huzhou Public Security Organization has destroyed the factory where the foreign suspects produced the cases and bags of fake “Louis Vuitton” brand in our province. More than 5,000 faked cases and bags have been obtained on the spot. Shaoxing Public Security Organization has uncovered the largest case of producing and selling fake medicines in Zhejiang province so far. 1.69 million pills of fake healthcare products of “VIAGRA” and “CIALIS” of American company have been checked and obtained. The value of the case was RMB 241 million. The criminal suspects of above cases have all been indicted.

X.  Inspection Organizations Fight Against IPR Infringement Crime

In 2005, the inspection organizations in the province kept on carrying out the activities of special case registration and inspection to fight against IPR infringement crime of making and selling fake products. It has approved to arrest 66 criminal suspects of IPR infringement cases.  The rate of increase was 60.9% comparing with the same period of the previous year. 170 people have been submitted to public prosecution, with an increase of 46.5% comparing with the same period of the previous year. The public security organizations have been overseen to register 34 cases and 34 people of IPR infringement crime. The number of the cases and the number of the suspects have increased 142.8% and 78.9% respectively comparing to the same period of the previous year. In addition, the contact with the administrative law execution organizations has been strengthened to form a combined force of fight. The administrative law execution organizations of industrial & commercial, quality inspection and tobacco have been suggested to transfer 41 suspected IPR infringement criminal cases to the public security organizations. Eleven IPR infringement criminal cases including Cixi fake spark plugs case have been directed for treatment with a sign. The results were good. Provincial Procuratorate Inspection Office has been appraised by Supreme People’s Procuratorate as an advanced collective in the special activities of case registration and inspection of fighting making and selling fake products and IPR infringement amongst the procuratorate organizations in the country.

XI.  Court Judge of IPR Cases

In 2005, the courts in the province have accepted and heard 1,117 cases of IPR civil first judge. It was 39.97% higher than that of year 2004. Among which, there were 421 cases of patent right dissension, 133 cases of trademark right dissension, 395 cases of author’s right dissension and 8 other cases. 903 IPR cases have been closed in the first judgment. The value of the closed cases was RMB 278 million. Provincial Superior Court has accepted and heard 127 IPR cases of the second judgment. It was 40% higher than that of the previous year. 115 cases have been closed. Up to the end of 2005, the courts of different levels in the province have accepted and heard 6 injunction cases before litigation. Five cases have been implemented. Two cases of conservation of evidence before litigation have been treated and implemented. Four cases of conservation of properties before litigation have been treated and implemented. The courts of different levels in the province have cognized six well-known brands including “Red Dragonfly, Aokang, Shuaikang, Xianheng, Youkang, Come” in the individual cases of IPR civil judgment.

In 2005, the courts in the province have accepted and heard 96 IPR criminal cases of the first judgment. It was 33.3% higher than that of year 2004. Among which, there were 90 trademark right dissension cases, 2 author’s right dissension cases and 4 commercial secret cases.