CEPA FURTHER LIBERALIZATION MEASURES IN 2010
June 12, 2010
The market access conditions in 14 service sectors will be further relaxed under Supplement VII to CEPA. The 14 service sectors include construction; medical services; technical testing, analysis and product testing; specialty design; audiovisual services; distribution; banking; securities; social services; tourism; cultural services; air transport; qualification examinations for professionals and technicians; and individually owned stores. Among them, “technical testing, analysis and product testing” and “specialty design” are new service sectors. In other words, the service sectors covered by liberalization of trade in services under CEPA will expand from 42 to 44.
Major market liberalization measures under Supplement VII to CEPA are highlighted below:
A. Medical services – Hong Kong service suppliers (HKSS) are allowed to set up wholly-owned hospitals in the municipalities of Shanghai, Chongqing, and the provinces of Guangdong, Fujian and Hainan; and to set up convalescent hospitals in the form of wholly-owned, equity joint venture or contractual joint venture in Guangdong Province. No requirement is imposed on the total investment in setting up hospitals by HKSS on an equity joint venture or contractual joint venture basis in Guangdong Province; and no restriction is imposed on the ratio of capital investment between Hong Kong and Mainland partners in setting up hospitals in the form of equity joint venture or contractual joint venture in the municipalities of Shanghai, Chongqing, and the provinces of Guangdong, Fujian and Hainan. Twelve categories of statutory healthcare professionals who are registered to practise in Hong Kong (medical practitioners, Chinese medicine practitioners, dentists, pharmacists, nurses, midwives, medical laboratory technologists, occupational therapists, optometrists, radiographers, physiotherapists and chiropractors) are allowed to provide short-term services in the Mainland.
B. Tourism – Hong Kong travel agents established on a wholly-owned or joint venture basis in Beijing and Shanghai Municipalities are allowed to apply for the operation, on a pilot basis, of group tours to Hong Kong and Macao for registered permanent residents of the Beijing and Shanghai Municipalities.
C. Banking – A Hong Kong bank that has maintained a representative office in the Mainland for more than one year (previously required more than two years) can apply to set up a wholly foreign-funded bank or a foreign bank branch. A Hong Kong bank’s operating institution in the Mainland which has been operating for more than two years and profitable for one year prior to the application (previously required profitable operation for two consecutive years prior to the application) can apply to conduct Renminbi business. Foreign banking institutions established in the Mainland by Hong Kong banks can establish specialized institutions to provide financial services to small enterprises.
D. Securities – Mainland and Hong Kong will deepen the cooperation in financial services and product development, and launch, in the Mainland at an appropriate time, ETF (open-end index-tracking exchange-traded fund) constituted by Hong Kong listed stocks.
E. Construction – Hong Kong professionals who have obtained Mainland’s class 1 registered architect qualification or class 1 registered structural engineer qualification, can act as partners to set up construction and engineering design offices in the Mainland in accordance with the relevant qualification requirements, without restrictions on the ratio of the number of Hong Kong partners to the number of the Mainland partners, the ratio of the total capital contributed by the Hong Kong partners to that by the Mainland partners, or the Hong Kong partners’ period of residence in the Mainland. Hong Kong professionals who have obtained Mainland’s class 1 registered architect qualification or class 1 registered structural engineer qualification by mutual recognition, can register and practise in Guangdong;
F. Air Transport – Airport transport sales agencies set up by HKSS in the Mainland in the form of wholly-owned enterprises, equity joint venture or contractual joint venture, can operate air transport sales agency services in the domestic routes in the Mainland. HKSS can also operate aircraft repair and maintenance services in the Mainland in the form of wholly-owned enterprises or with majority shareholding in the enterprises.
G. Distribution – Distribution enterprises set up by HKSS in the Mainland can sell books published in Hong Kong.
H. Technical testing, analysis and product testing services – Testing organizations in Hong Kong to cooperate with designated Mainland organizations to undertake testing of products under the China Compulsory Certification (CCC) System on a pilot basis, in respect of selected products listed in the CCC Catalogue and processed in Hong Kong (i.e. the processing facilities are located in Hong Kong). These testing organizations have to be accredited by the accreditation body of the HKSARG (i.e. the Hong Kong Accreditation Service) to be capable of performing testing for the relevant products under the CCC System.
I. Audiovisual services – HKSS can set up enterprises on a wholly-owned, equity joint venture or contractual joint venture basis in the Mainland to produce video and sound recording products.
J. Specialty design – HKSS can set up wholly-owned enterprises in the Mainland to provide specialty design services.
Apart from benefiting the larger enterprises, measures in Supplement VII to CEPA would also benefit individuals and small businesses, such measures include allowing registered healthcare professionals to provide short-term services in the Mainland, allowing Hong Kong permanent residents to take the qualification examination for real estate valuer in the Mainland, and allowing Hong Kong permanent residents with Chinese citizenship to set up individually owned stores in the Mainland to provide services in the areas of marriage, renting and leasing of comics books, and pet clinics.
All the service liberalization measures under Supplement VII to CEPA will take effect from 1 January 2011.
In accordance with Article 5 of Annex 4 of CEPA, Hong Kong will not impose any new discriminatory measures on the Mainland’s services and service suppliers in the service sectors covered by CEPA. This commitment will also apply to sectors covered by the liberalisation of trade in services measures under Supplement VII to CEPA.
Enhancing cooperation in area of trade and investment facilitation
To enhance trade and investment facilitation, in addition to strengthening the cooperation in testing and certification, the Mainland and Hong Kong have also included under Supplement VII to CEPA cooperation in the cultural, environmental, innovation and technology industries, as well as cooperation on education.
For cooperation in cultural and environmental industries, Supplement VII to CEPA fosters the joint development of the industries of both sides, mainly through strengthening exchanges and communication between relevant organizations and the trade of both sides, as well as cooperating in organization of visits and trade exhibitions and seminars. For cooperation in innovation and technology industry, both sides agree to progressively involve Hong Kong research institutes and enterprises in the national innovation system and encourage Hong Kong research personnel and organizations to participate in national science and technology projects, and also to strengthen exchanges and cooperation between the two places in high technology research, development and application, fundamental scientific research, etc.
As regards cooperation on education, both sides agree to strengthen exchanges, communication, and exchange of information in respect of education, to strengthen cooperation in training and organizing visits, etc. to support the Mainland’s education institutions and Hong Kong’s higher education institutions to jointly provide education programmes, to establish joint research facilities and to nurture talents at undergraduate or above level in the Mainland
Moreover, for testing and certification, both sides agree to strengthen co-operation between relevant authorities of both sides, and the Mainland will also assist Hong Kong’s testing laboratories to be recognized under the international multilateral systems on mutual recognition of testing and certification that are open to national member bodies.
By establishing the above cooperation mechanisms, we hope to promote long-term cooperation in the aforementioned industries or service sectors between the two sides, and to jointly open up business opportunities and scope for development.
Conclusion
Inclusive of the measures in Supplement VII to CEPA, the two sides have so far announced nearly 280 liberalization measures in trade in services.
The measures under Supplement VII to CEPA will expedite and facilitate Hong Kong service industries to enter and expand in the Mainland market, and foster service industries integration and professional exchanges between the two sides. Moreover, most of the new measures cover the four pillar industries and six economic industries that Hong Kong has competitive edge, and as such will help consolidate Hong Kong’s status as an international financial, trade, logistics and high value-added service centre, and will lay the foundation for the two sides to jointly develop education, medical services, as well as testing and certification, environmental, innovative technology and cultural industries.
Since 2008, the Mainland and Hong Kong announced 41 measures (including related measures in Supplement VII to CEPA) for “early and pilot implementation” in Guangdong Province. These pilot measures serve to demonstrate the effect of liberalization in the respective service sectors and contribute positively to the exploration of cooperation and integration of the service industries of Hong Kong and Guangdong, and substantively respond to the policy direction of enhancing cooperation between the service industries of Guangdong and Hong Kong as stipulated in the “Framework for Development and Reform Planning for Pearl River Delta Region”; as well as to the positioning with respect to fostering the development of modern service industries under the “Framework Agreement on Hong Kong/Guangdong Co-operation”.
ECONOMIC IMPACT OF CEPA
HKSARG has been closely monitoring the implementation of CEPA from 1 January 2004. We collect statistics relating to the Certificates of Hong Kong Service Supplier (HKSS) and “Individual Visit Scheme” (IVS) etc. to conduct statistical analysis, as well as to assess the impact on Hong Kong’s economy. HKSARG has just updated the assessment of the impact of CEPA liberalisation of trade in services and IVS on Hong Kong’s economy. As reflected by the assessment report, during 2007-2009, liberalisation of trade in services and IVS have continued to bring benefits to Hong Kong enterprises and the economy as a whole.
During 2004-2009, cumulative business receipts obtained by companies in Hong Kong due to CEPA from Mainland-related business reached HK$61.6 billion. During 2007-2009, CEPA-induced business receipts obtained by operations established by Hong Kong service suppliers on the Mainland amounted to HK$198.5 billion. During the same period, companies in Hong Kong obtained additional business receipts totalling about HK$55.1 billion due to CEPA.
IVS is a tourism cooperation measure first introduced under CEPA in 2003. By now, the scheme has been extended to 49 Mainland cities. By March 2010, over 49 million Mainland visitors have come to Hong Kong under the scheme. The number of IVS visitors has drastically increased from 4.26 million in 2004 to 10.59 million in 2009, representing a robust average annual growth rate of 20%. In 2009, benefiting from the implementation of the “multiple-entry” individual visit endorsement to Hong Kong for Shenzhen permanent residents with effect from 1 April, an additional HK$26.4 billion in spending was generated by IVS visitors in 2009, which was almost 40% higher than that in 2008. In cumulative terms, during 2004-2009, IVS visitors brought about additional spending totalling over HK$84.8 billion.
As at end 2009, due to liberalization of trade in services and IVS under CEPA, a total of 54,700 jobs were created in Hong Kong, while 40,600 jobs were created on the Mainland.
CEPA also has a positive impact on attracting Mainland and foreign investments to Hong Kong. According to the information provided by InvestHK, among the 265 foreign companies assisted by InvestHK to invest or expand in Hong Kong in 2009, 70 (or 26%) cited CEPA as one of the key considerations for investing in Hong Kong. Moreover, since the Mainland streamlined the application procedures for Mainland enterprises to invest in Hong Kong in August 2004, the trade and investment between the Mainland and Hong Kong has further increased. According to the information provided by the Ministry of Commerce, between September 2004 and December 2009, 2,602 Mainland enterprises were granted approval to invest in Hong Kong, involving over US$24.4 billion of investment.
We would wish to point out that, as implementation of CEPA deepens, the economic impact of CEPA has become more closely interwined with the overall macro economic environment, and as such it has become more and more difficult to single out the CEPA-induced benefits for quantitative analysis. Also, the longer CEPA has been implemented, the respondents’ impression of the CEPA-induced effects might become less clear with the passage of time, and the value of conducting quantitative analysis of CEPA-induced impact through opinion survey would reduce over time.
Source: HK Trade and Industry Department
http://www.tid.gov.hk
Tags: China, Trade, mainland marketRelated Posts:
New Customs Enforcement Process Regarding IPR
January 31, 2010
The General Administration of China Customs passed several new regulations that aim to strike a balance between IPR holders and those who import and export goods. Under old regulations, China Customs officials were allowed to “dispose” of confiscated counterfeit goods by removing unlawfully affixed trademarks, and auctioning off the goods. These goods commonly reappeared in the market and thus caused monetary harm to the rights owner. The new regulations now require customs officials to seek the opinion of the relevant IPR owners before it may dispose of any confiscated counterfeit goods.
This regulation is a direct attempt to bring China up to the WTO agreement standard, which specifically states that sized goods should be disposed of “outside the channels of commerce in such manner as to avoid any harm caused to the right holder, or destroyed” and “the simple removal of the trade mark unlawfully affixed shall not be sufficient.” While this move is undoubtedly a step in the right direction, it is important to note that the regulation requires Chinese Customs officials to seek the “opinion” rather than the “consent” of the relevant IPR owners. It thus does not give IPR owners the right to demand the destruction of counterfeit goods rather than the auctioning off of such products.
Another salient feature of these new regulations is that IPR owners will now be able to seek settlements with the infringing party without undergoing a formal customs investigation. It is hoped that this will allow IPR owners to gain valuable information regarding the supply and distribution chains of such counterfeit items while also substantially reducing the resources required of the China Customs Department to investigate each and every claim.
The new regulations also contained several smaller modifications such as changes to the notification protocol, the processing of renewal applications, and the cancellation of recordal. All of these modifications are designed to streamline and expedite the customs enforcement process.
Tags: Law, Import, infrigmentRelated Posts:
Establishment of Franchising Enterprises and Procedures for Opening Stores
August 26, 2009
The establishment procedures are the same as those for foreign-invested wholesale enterprises. Under existing policies, FIEs engaging in commercial franchising are treated in the same way as domestic enterprises with regard to establishment requirements, rights and obligations, information disclosure, advertising and publicity etc, but are different in terms of establishment procedures. Approval procedures carried out by the examination and approval authorities are merely a matter of formality.
FIEs that are qualified to engage in franchising should apply to their original examination and approval authorities for permission to add “engaging in commercial activities in the form of franchising” to their business scope and submit the necessary documents, including information disclosure document, sample of franchising contract and operation manual of franchising. The examination and approval authorities will make a decision in writing on whether or not to approve the application within 30 days after receiving the complete set of application materials. Upon obtaining approval and completing the necessary formalities in respect of change of registration details with the industry and commerce administration, the FIEs may start their franchising business.
The following documents must be submitted when applying for permission to add “engaging in commercial activities in the form of franchising” to a company’s business scope:
- Application letter and resolution of the board of directors.
- Corporate business licence and Certificate of Approval of Foreign-Invested Enterprises (photocopy).
- Agreements on the modification of contracts and articles of association (for foreign enterprises, only the modified articles of association are required).
- Relevant documents showing compliance with Article 7 of the Measures.
- Basic information reflecting the provisions of Article 17 of the Measures.
- Sample of franchising contract.
- Operation manual of franchising.
FIEs are not allowed to engage in any business under the prohibited category as specified in the Catalogue for the Guidance of Foreign Investment Industries in the form of franchising.
Where patent licensing is involved in franchising, patent licensing contracts should be signed in accordance with the related provisions of the Patent Law of the PRC and its implementation rules, and record filing formalities should be completed in accordance with the provisions of the Measures for the Administration of Record Filing of Licensing Contracts for the Implementation of Patents. Before conducting franchising activities, the franchiser should handle matters relating to the trademark licensing contract in line with the provisions of the Trademark Law of the PRC and its implementation rules.
Tags: Franchising Enterprises, foreign investment, EstablishmentRelated Posts:
Establishment of Wholesale Enterprises (Distribution in China)
August 26, 2009
Application Procedures
1. Examination and Approval of Project Proposals, Contracts and Articles of Association
The Chinese party (in the case of a wholly foreign-owned enterprise, the foreign investor or its appointed Chinese agency which is qualified to provide foreign investment consultation services) must submit to the local foreign economic and trade authorities the feasibility study report, contract, articles of association and other documents required. Trademark and trade name licensing contracts, technology transfer contracts, management contracts, service contracts and other legal documents signed by foreign-invested commercial enterprises should be submitted at the same time as annexes to the contract (in the case of wholly foreign-owned commercial enterprises, as annexes to the articles of association).
2. Registration at the industry and commerce administration
Foreign-invested wholesale enterprise granted approval to set up should complete its registration formalities at the industry and commerce administration within one month after obtaining the approval certificate issued by the provincial-level foreign economic and trade authorities.
3. Tax registration
After its incorporation, the enterprise should have an official seal made at the local public security bureau, apply for enterprise code from the technical supervision bureau, and complete tax registration formalities at the tax registration department.
Documents Required
Documents Required for Examination and Approval of Feasibility Study Reports, Contracts and Articles of Association
-
Feasibility study reports, contracts, articles of association (for foreign commercial enterprises, only articles of association required) signed by the investing parties, together with annexes to these documents.
-
Bank credit proofs of the investing parties, registration certificates (photocopy) and legal representatives’ certificates (photocopy). Personal identification papers are required if the foreign investors are individuals.
-
The latest annual audit reports of all investing parties.
-
Evaluation report on the state-owned assets to be invested by the Chinese party in a Sino-foreign equity or contractual joint venture commercial enterprise.
-
Import/export commodity catalogues of the proposed foreign-invested commercial enterprise.
-
Application and approval papers of the feasibility study.
-
Names of members of the board of directors of the proposed foreign-invested commercial enterprise and their letters of appointment.
-
Notification on pre-approval of enterprise name issued by the industry and commerce administration.
-
Land-use right certificates (photocopy) and/or tenancy agreements (photocopy), except for stores with a business area of less than 3,000 sqm.
-
Document proving compliance with the requirements of urban development and urban commercial development issued by the commerce department where the proposed stores are to be located.
-
Letter of attorney signed by the legal representatives for documents not signed by the legal representatives.
-
Other relevant documents.
Application for Changes
Existing foreign-invested commercial enterprises should submit applications to the original examination and approval authorities for permission to engage in wholesaling or retailing business, open branches or change partners in accordance with regulations governing foreign-invested enterprises. The following documents must be submitted when making application:
-
Application form.
-
The modified contract and articles of association if modifications are involved.
-
Feasibility study report on the opening of stores.
-
Resolution of the board of directors on the opening of stores.
-
The latest annual audit report of the enterprise.
-
Capital verification report (photocopy).
-
Registration certificates of the investing parties (photocopy) and certificates of the legal representatives (photocopy).
-
Land-use rights certificates (photocopy) and/or tenancy agreements (photocopy) for the proposed stores, except for stores with a business area of less than 3,000 sqm.
-
Document proving compliance with the requirements of urban development and urban commercial development issued by the government where the proposed stores are to be located.
-
Letter of attorney signed by the legal representatives for documents not signed by the legal representatives.
Related Posts:
Stipulations For Recognition And Protection Of Well-Known Trademarks
August 25, 2009
Rule 1 These stipulations are hereby formulated in accordance with the Trademark Law of the People’s Republic of China (hereinafter referred to as the Trademark Law) and the Implementing Regulations of the Trademark Law of the People’s Republic of China (hereinafter referred to as the Implementing Regulations).
Rule 2 The “well-known trademark” prescribed in the stipulations refers to a trademark which the relevant general public is very well aware of and which enjoys the high prestige.
The “relevant general public” shall include consumers who use some products or services bearing the trademark, merchants who produce the above-mentioned products or furnish the service and relevant sellers and employees concerned in their business channels
Rule 3 The following documentation could be used as the evidence to prove well-known nature of a trademarks:
(1) Documentation to prove the extent to which the relevant general public is aware of the trademark,
(2) Documentation to prove the duration of the use of trademark, including the history and sphere of the use and registration of trademark.
(3) Documentation to prove the duration, geographical areas and extent to which the knowledge of the trademark covers, including but not limited to the mode and geographical areas of advertising and sales promotion, the types of promoting media as well as the budget fixed for the advertising.
(4) Documentation showing the record of the trademark protected as a well-known trademark, including the trademark being protected as a well-known trademark in China or other countries and regions.
(5) Other documentation to prove the well-known nature of the trademark, including the output, sales volume, sales income, profit and taxes paid as well as sales areas and so forth of the principal products bearing the trademark.
Rule 4 If the party concerned holds that others’ preliminarily approved and published trademark contravenes the regulation of Article 13 of the Trademark Law, he could, under the Trademark Law and the Implementing Regulations thereof, file an opposition with the Chinese Trademark Office and submit the evidential documents to prove the well-known nature of the trademark involved.
If the party concerned holds that other’s registered trademark contravenes the regulation of Article 13 of the Trademark Law, he could, under the Trademark Law and the Implementing Regulations thereof, request the Trademark Review and Adjudication Board of the State Administration for Industry and Commerce (hereinafter referred to as the Trademark Review and Adjudication Board) adjudicate on the cancellation of the registered trademark and submit the evidential documents to prove the well-known nature of the trademark involved.
Rule 5 During the process of administrating the trademark, if the party concerned holds the trademark used by others falls into the circumstances prescribed by Article 13 of the Trademark Law and pleads for protecting the well-known trademark, he could submit a written application for prohibiting the use of the trademark together with the evidential documents proving the well-known nature of the trademark involved to the municipal (provincial) administrative authority for industry and commerce at the location where the case is carried out, and at the same time reports to the provincial administrative authority for industry and commerce.
Rule 6 Upon receiving the application for the protection of a well-known trademark, the administrative authority for industry and commerce should examine whether the case falls into the circumstances as provided in Article 13 of the Trademark Law:
(1) Whether others arbitrarily use the trademark similar to or identical with an unregistered well-known trademark in China with respect to the identical or similar goods of the party concerned, and the likelihood for the creation of confusion;
(2) Whether others arbitrarily use the trademark similar to or identical with a registered well-known trademark in China with respect to goods not identical or similar to which the well-known trademark covers, and is likely to mislead the public and damage the interests of the owner of the registered well-known trademark;
The municipal (provincial) administrative authority for industry and commerce should, as soon as it decides that the case falls into the above-prescribed circumstances, transfer all materials in the case file to the provincial (autonomous region, municipality directly under the Central Government) administrative authority for industry and commerce at the location with fifteen (15) working days from the date of accepting the filed application of the party concerned, and issue a Notification of Case Accept (notice of filing of the application) to the party concerned; the provincial (autonomous region, municipality directly under the Central Government) administrative authority for industry shall transfer all materials in the case file to the Chinese Trademark Office within fifteen (15) working days from the date of accepting the application filed by the party concerned. The provincial administrative authority for industry and commerce at the location of the party concerned could also, if it decides that a case falls into the above-prescribed circumstances, transfer all the materials in the case file to the Chinese Trademark Office.
If a case is decided to not fall into the above-prescribed circumstances, it should be, under the Trademark Law and the Implementing Regulations thereof, settled without delay.
Rule 7 The provincial (autonomous region, municipality directly under the Central Government) administrative authority for industry shall examine the materials in the case file transferred by the municipal (provincial) administrative authority for industry and commerce within the area under its jurisdiction.
The provincial (autonomous region, municipality directly under the Central Government) administrative authority for industry shall, if it decides a case falls into the circumstances prescribed by Rule 6, Item 1 of the Stipulations, transfer all the materials in the case file to the Chinese Trademark Office within fifteen (15) days from the date receiving the same transferred by the municipal (provincial) administrative authority for industry and commerce with the area under its jurisdiction.
The provincial (autonomous region, municipality directly under the Central Government) administrative authority for industry shall, if decides a case does not fall into the circumstances prescribed by Rule 6, Item 1 of the Stipulations, return the relevant materials to the original case accepting authority, which should, under the Trademark Law and the Implementing Regulations thereof, settle the case without delay.
Rule 8 The Chinese Trademark Office shall make the recognition within six (6) months from the date the relevant materials were received, inform the recognition result to the provincial (autonomous region, municipality directly under the Central Government) administrative authority for industry at the location the case is carried out, and copy to the provincial (autonomous region, municipality directly under the Central Government) administrative authority for industry at the location the party concerned locates.
The Chinese Trademark Office shall, except the evidential materials to prove the well-known nature of the trademark, return all other materials in the case file to the provincial (autonomous region, municipality directly under the Central Government) administrative authority for industry at the location the case is carried out.
Rule 9 As to the trademark which is not recognized as a well-known trademark, the party concerned shall not, within one (1) year from the date the recognition was made, plead for recognizing the same well-known nature of the trademark on the basis of the same facts and grounds.
Rule 10 The Chinese Trademark Office and the Trademark Review and Adjudication Board shall, when recognizing the well-known nature of a trademark, take into comprehensive consideration the factors prescribed in Article 14 of the Trademark Law, but is not required that a trademark should fit all the factors prescribed in Article 14.
Rule 11 The Chinese Trademark Office, the Trademark Review and Adjudication Board and the local administrative authority for industry shall, when protecting a well-known trademark, take into consideration the extent to which the trademark is well-known and the distinctiveness thereof.
Rule 12 Where the party concerned pleads for the protection for its trademark in accordance with Article 13 of the Trademark Law, he should furnish the documentation of record showing the trademark was protected by the Chinese competent authority as a well-known trademark.
Where the accepted case shares a similar scope of protection as the case in which the trademark was protected as a well-known trademark, and the opposite party has no objection to the well-known nature of the trademark involved, or even raised an objection but could not furnish the evidential documentation against the well-known nature of the trademark involved, the administrative authority for industry accepting the case could, according to the conclusion drawn from the protection record, pass judgment.
Where the scope of protection of the accepted case is different from that of the case in which the trademark was protected as a well-known trademark, or the opposite party raised an objection and furnished evidential documentation against the well-known nature of the trademark involved, the Trademark Office or the Trademark Review and Adjudication Board should re-examine the documentation proving the well-known nature of the trademark involved and make the recognition.
Rule 13 Where the party concerned holds that others record its well-known trademark as the name of others’ enterprise, and the public are liable to be deceived or misled, he could apply to the enterprise name recording authority to cancel such enterprise name. The enterprise name recording authority should settle the case according to Enterprise Name Recordal Management Regulations.
Rule 14 The administrative authority for industry at all levels shall reinforce the protection for the well-known trademarks, and duly transfer to the relevant authority the case being suspected of the crime of counterfeit trademark.
Rule 15 The provincial (autonomous region, municipality directly under the Central Government) administrative authority for industry at the location of an authority settling a case should report the decision on protection of the well-known trademarks to the Chinese Trademark Office.
Rule 16 The administrative authority for industry at all levels shall establish a corresponding supervisory system and formulate the supervisory and restraint measure so as to reinforce the supervisory management during the procedure of recognition of the well-know nature of the trademark.
Where a member of the state personnel responsible for recognizing the well-known nature of trademarks abuses power or practices fraud for personal considerations, or reaps the unlawful profits or handles the case in violation of the stipulations of well-known trademark recognition, he shall be subject to administrative disciplinary measures according to rules and regulations; if the case is so serious as to constitute a crime, he shall be prosecuted according to law for his criminal liabilities.
Rule 17 These Stipulations shall enter into force on June 1, 2003. The Interim Stipulations for Well-Known Trademark Recognition and Management promulgated by the State Administration of Industry and Commerce on August 14th, 1996 shall be abrogated on the same date.
Tags: Trade, practice, TrademarkRelated Posts:
