{"id":7449,"date":"2021-04-06T23:39:15","date_gmt":"2021-04-06T23:39:15","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=7449"},"modified":"2025-04-23T09:54:15","modified_gmt":"2025-04-23T09:54:15","slug":"how-is-chinas-intellectual-property-environment-changing","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/how-is-chinas-intellectual-property-environment-changing\/","title":{"rendered":"How is China\u2019s intellectual property environment changing?"},"content":{"rendered":"

Positive changes in the legal environment surrounding intellectual property and its enforcement in China are benefitting foreign firms, writes Andrew Peaple, including for Peppa Pig and basketball star Michael Jordan<\/h2>\n

Intellectual property protection has long featured among the key concerns for foreign businesses in China. The perennial complaints to an extent mask the significant progress China has made in this area, through better legislation and enforcement.<\/p>\n

The improvements in recent years stem largely from the government\u2019s understanding that poor IP protections are a hindrance to local Chinese businesses, particularly as the country looks to focus ever more on high-tech, advanced industries where patents, trademarks, and so on are key. The evidence suggests that one knock-on effect is that positive changes in the legal environment around IP are also benefiting foreign firms.<\/p>\n

In this feature on IP in China<\/a>, we first look at the developments in the policy environment, before focusing on a recent major success for British media company eOne in securing the status of one of its key brands \u2013 Peppa Pig \u2013 as a well-known trademark in China. Lastly, we provide details on how CBBC can help businesses in this area.<\/p>\n

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Policy and legislative environment<\/h4>\n

The introduction of a new Civil Code<\/a> last year in China brought with it important changes to the country\u2019s IP system, in particular by cementing the principle that punitive damages can be claimed against infringers.<\/p>\n

For many years, critics of China\u2019s IP environment have complained that damages for infringement have not been large enough either to compensate IP owners or to deter infringers in the first place. From the start of this year, however, the principle that infringers could be forced to pay much larger damages to IP owners has come into effect. Embodied in China\u2019s first Civil Code, this builds on changes in the earlier Trademark Law (revised in April 2019) to make clear that where a person intentionally infringes the IP rights of others and the case is serious, the IP owner can claim up to five times the cost of the damage inflicted.<\/p>\n

Similar changes have been adopted in both Patent Law (revised in October 2020) and Copyright Law (revised in November 2020). The amount of compensation for copyright and patent infringement has been increased to five times the actual damage incurred, up to a maximum of RMB 5 million (around \u00a3550,000).<\/p>\n