Chapter Ⅶ  Protection of the Exclusive Right to Us 2021-04-13 00:46:55

 


Article 56  The exclusive right to use a registered trademark shall be limited to trademarks that have been approved for registration and to goods on which the use of the trademark has been approved.
 

Article 57  Any of the following conducts shall constitute an infringement of the exclusive right to use a registered trademark:
1.Using a trademark that is identical with a registered trademark on the same goods without the licensing of the trademark registrant;
2.Using a trademark that is similar to a registered trademark on the same goods, or using a trademark that is identical with or similar to a registered trademark on similar goods, which may be easily confusing, without the licensing of the trademark registrant;
3.Selling goods that violate the exclusive right to use a registered trademark;
4.Counterfeiting or arbitrarily forging others' registered trademark, or selling the counterfeited or arbitrarily forged trademarks;
5.Altering the trademark registrant's registered trademark without authorization of the
same and selling goods bearing such altered trademark;
6.Providing convenience for or even help others to infringe the exclusive right to use
a registered trademark on purpose;
6.Other conducts causing prejudice to others' exclusive right to use its registered trademark.

 

Article 58  Using characters of the registered or unregistered well-known trademarks of others in the name of an enterprise to mislead the public that constitutes unfair competition shall be subject to the Anti-Unfair Competition Law of the People's Republic of China.
 

Article 59  The exclusive right owner of a registered trademark may not prohibit others from rightful use of the generic names, models or designs of the goods, or direct reference to the quality, main raw materials, function, use, weight, quantity or other features of the goods, or geographical names as included in the registered trademark.
The exclusive right owner of a registered trademark of 3D symbols may not prohibit others from rightful use of the shapes generated from the nature of the goods in respect of which the trademark is used, or shapes of the goods to realize certain technical effects, or shapes to provide the goods with substantive values.
Where an identical or similar trademark with certain influence has been used, prior to the use by the trademark registrant, with respect to the same goods or similar goods by others before the trademark registrant's application for trademark registration, the exclusive right owner may not prohibit the user of the aforesaid trademark from continuous use of such trademark within the original scope but may request its user for addition of proper logos for distinction purpose.

 

Article 60  In the event of infringement of the registered trademark as specified in Article 57 hereof that leads to disputes, the parties concerned shall settle such disputes through negotiations; where no negotiation is prospective or fails, the trademark registrant or any interested party may file a lawsuit before the People's Court or request the administrative department for industry and commerce for handling.
Where the foresaid infringement is confirmed, the administrative department for industry and commerce shall order the infringer to cease such infringement, confiscate and destroy the infringing goods and tools used in producing such goods or forging logos of the registered trademark. In the event of illegal business revenue of over CNY50,000, a fine up to five times of the revenue may be imposed; in the event of no illegal business revenue or illegal business revenue of less than CNY50,000, a fine up to CNY250,000 may be imposed; in the event of trademark infringement of more than two times within five years or other serious circumstances, a heavier punishment shall be given. Where a seller with no knowledge of its infringing goods can prove the legality of acquiring such goods and point out the provider, the administrative department for industry and commerce shall order the seller to cease selling its goods.
Where there is dispute concerning the amount of compensation for infringing the exclusive right to use the trademark, the party concerned may request the administrative department for industry and commerce for mediation or file a lawsuit before the People's Court pursuant to the Civil Procedure Law of the People's Republic of China; In case of absence of agreements or nonperformance of mediation agreement upon effectiveness after the mediation by the administrative department for industry and commerce, any party concerned may file a lawsuit before the People's Court pursuant to the Civil Procedure Law of the People's Republic of China.

 

Article 61  The administrative department for industry and commerce has the power to investigate any conduct that infringes the exclusive right to use a registered trademark. In the event that a crime is suspected to have been committed, the administrative department for industry and commerce shall promptly transfer the case to the judicial department to be dealt with in accordance with the law.
 

Article 62  The administrative department for industry and commerce at or above the county level may, based on the available evidence of illegal conduct or information supplied by a member of the public, may exercise the following power in investigating activities suspected of infringing upon others' exclusive right to use a registered trademark:
Question the parties concerned and investigate the circumstances in connection
with the infringement of others' exclusive right to use a registered trademark;
Look up and copy the contracts, invoices, books, and other materials pertaining to the trademark-infringing activities of the parties concerned;
Conduct an on-site inspection of the premises where the party concerned is suspected of carrying out activities that have infringed upon others' exclusive right to use a registered trademark;
Inspect the articles involved in trademark-infringing activities. Articles that are proven to have infringed upon others' exclusive right to use a registered trademark may be sealed and taken into custody.
The parties concerned shall assist in and cooperate with the administrative department for industry and commerce when the latter exercises the powers provided for in the preceding paragraph in accordance with the law and shall not refuse or obstruct.
During the process of investigating and handling a trademark infringement case, in case that any dispute arises with respect to the trademark ownership or the right owner files a lawsuit regarding such infringement before the People's Court, the administrative department for industry and commerce may suspend the aforesaid process. As the cause for suspension is eliminated, the process shall be restored or closed.

 

Article 63  The amount of compensation for infringing the exclusive right to use the trademark shall be determined based on the right owner's actual losses due to infringement or the infringer's actual interests obtained due to the same if the actual losses are hard to be determined, or may be determined based on times of the royalties of the registered trademark when both the losses or the infringer's actual interests obtained are hard to be determined. For seriously malicious infringement, the amount of compensation may be between one time to five times the aforesaid amount determined in light of the foregoing regulations. The amount of compensation shall include reasonable expenses of the right owner to prevent the infringement.
For the purpose of determining the amount of compensation, where the account books and information regarding the infringement are held by the infringer while the right owner has put to the proof as practical as possible, the People's Court may order the infringer submit such account books and information; in case the infringer refuses to submit the account books and information or submit a false version thereof, the People's Court may determine the amount of compensation with reference to the right owner's claim and proof.
Where it is hard to determine the right owner's actual losses due to infringement, the infringer's actual interests obtained due to the same or the royalties of the registered trademark, the People's Court shall, based on the actual circumstance of infringement, bring in a verdict of amount up to CNY5 million.
In hearing a case of trademark dispute, the People's Court may, at the request of the right owner, order to destroy the goods bearing counterfeit registered trademark, unless under special circumstances; order to destroy the materials and tools mainly used to manufacture the goods bearing counterfeit registered trademarks, without compensation; or, under special circumstances, order to prohibit the aforesaid materials and tools from entering any commercial channel without compensation.
Goods bearing counterfeit registered trademarks shall not be put into any commercial channel by merely having their counterfeit registered trademarks removed.

 

Article 64  Where the owner of the exclusive right to use a registered trademark claims for compensation and the infringer challenge raises a plea that such owner has never used the registered trademark in question, the People's Court may request such owner to provide the proof of using the trademark over the past three years. In case such owner fails to neither provide the aforesaid proof nor the proof of losses due to infringement, the infringer challenged shall bear no liability for compensation.
Where a seller selling goods who is ignorant of infringing others' registered trademark can prove the legality of acquiring such goods and point out the provider, such seller shall be exempted from liabilities for compensations.

 

Article 65  Where a trademark registrant or any interested party could prove that the infringement in process or to be conducted on the exclusive right to use the registered trademark will cause irretrievable losses to their legal interests if lack of prevention in a timely manner, they may apply to the People's Court for taking such measures as ordering the infringer to cease relevant behaviors and property preservation before filing any lawsuit.
 

Article 66  In order to stop trademark infringing activities, a trademark registrant or an interested party may, prior to filing a lawsuit, apply to the People's Court for evidence preservation when such evidence may be destroyed or lost or become unobtainable in the future.
 

Article 67  Any person who, without the permission of trademark registrants, uses a trademark identical with the registrant's trademark for the same goods, where the case constitutes a crime, shall be prosecuted according to the law for its criminal liabilities, in addition to compensation of the losses suffered by the infringed.
Any person who forges or counterfeits others' registered trademark or sells registered trademarks that are forged or counterfeited shall, if the act constitutes a crime, be investigated for criminal responsibility according to the law in addition to compensation of the losses suffered by the infringed.
Any person who knowingly sells goods bearing counterfeit registered trademarks shall, if the act constitutes a crime, be investigated for criminal responsibility according to the law in addition to compensation of the losses suffered by the infringed.

 

Article 68  If a trademark agency has any one of the following conducts, the administrative department for industry and commerce shall order the agency organization to rectify the same within a specified time, give corresponding warning and impose a fine of more than CNY10,000 up to CNY100,000; and give warnings to management in direct charges and the other persons in direct charge and impose a fine of more than CNY5,000 up to CNY50,000; those who have committed crimes shall be held for criminal responsibilities:
Forging/altering legal documents, seals or signatures or using forged/altered legal documents, seals or signatures during the process of handling trademark-related matters;
Soliciting agency business by slandering other trademark agencies or disturbing the trademark agency market order by other unjust means; and Violating the provisions of Article 4, Paragraphs 3 and 4 of Article 19 of the Law.
In the event of any malicious application for trademark registration, such administrative penalties as giving a warning and imposing a fine shall be given, depending on the specific circumstance; in the event of maliciously lodging a lawsuit regarding trademark, the People's Court shall impose penalties in accordance with the law.
Where a trademark agency has had conducts stipulated in the previous paragraph, it will be recorded by the administrative department for industry and commerce in the files of credits; in case of serious circumstances, the Trademark Office and the Trademark Review and Adjudication Board may cease accepting its agency business and make relevant announcement.
Where a trademark agency violates the principle of good faith and thus infringes the client's legal interests, such organization shall bear relevant civil liability according to law and be punished by the industry organization of trademark agency in accordance with the articles of association.

 

Article 69  State personnel engaging in trademark registration, administration, and review shall be impartial in implementing the law, incorruptible and self-disciplined, and devoted to their duty, and shall provide civilized services.
State personnel in the Trademark Office and the Trademark Review and Adjudication Board and other personnel engaging in trademark registration, administration, and review shall not be involved in trademark agency services, production, or the trading of goods.

 

Article 70  The administrative department for industry and commerce shall establish a comprehensive internal supervisory system to supervise and inspect the state personnel responsible for trademark registration, administration, and review in the law and administrative rules and regulations implementation and discipline observance.
 

Article 71  The state personnel engaging in trademark registration, administration, and review who neglect their duty, abuse their official power, commit fraud for personal considerations, handle trademark registration matters in violation of laws, accept money or properties from a party concerned or seek improper gains, shall be prosecuted according to the law for their criminal liabilities if the case constitutes a crime. For the case that does not constitute a crime, the personnel involved shall be subject to sanctions.

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