Science, Technologies, Innovations №3(31) 2024, 58-70 р

http://doi.org/10.35668/2520-6524-2024-3-07

Androshchuk H. O. — PhD in Economics, Associate Professor, Chief Researcher, Scientific Research Institute of Intellectual Property of the National Academy of Legal Sciences of Ukraine, 11, Kazуmirа Malevуchа Str., building 4, Kyiv, Ukraine, 03680; +38 (044) 200-08-76; genandro1@gmail.com; ORCID: 0000-0003-0781-9740

REVIEW OF CHINA’S UNFAIR COMPETITION LAW: IMPACT ON INTELLECTUAL PROPERTY

Abstract. The article examines the economic and legal problems of Chinese legislation on combating unfair competition, in particular, recent changes in the context of the impact on intellectual property (IP), abuse of IP rights in the digital economy. Law enforcement practice, protection against unfair competition in court proceedings, issues of investigation of cases and responsibility for violations are analyzed. Since the entry into force of the Anti-Unfair Competition Law 30 years ago, 757,000 cases of unfair competition have been investigated, fines paid or money confiscated amounting to 12,88 billion yuan (about 1,8 billion USD). This indicates a significant economic impact of competition legislation. The Supreme People’s Court of China has issued an Interpretation on the Application of the PRC Anti-Unfair Competition Law. The document clarifies issues related to general provisions, business ethics, confusion through imitation, false advertising, and unfair competition over the Internet and outside China. It explains that the general provisions of the Act apply only if the provisions of IP laws and specific provisions of the Act do not apply. The document defines two types of unfair competition through the Internet, namely: 1) insertion of a link or forced redirection of a URL to an Internet product or service that is legally provided to another business entity, without the consent of other persons and users, and 2) maliciously interfering with or disrupting a network, disrupting a product or service that is lawfully provided by others by misleading, deceiving, or forcing users to modify, close, or unload them without express notice and consent of users. In cases where the unfair competition takes place outside of China, but the result of the violation occurs in its territory, the court of the place where the result of the violation occurs in China shall have jurisdiction. This provides Chinese rights holders with favorable opportunities to protect their rights. Draft amendments to the Law on Combating Unfair Competition were considered. It is concluded that the study and application of the experience of China’s regulation of protection against unfair competition will be useful for legislators, administrative and judicial bodies of Ukraine.

Keywords: intellectual property, unfair competition, legislation, legal regulation, economic impact.

REFERENCES

  1. Kashyap, P. (2023). A Brief Study Of The China’s Weak Intellectual Property Regime. GPF. Retrieved from: https://www.globalpatentfiling.com/blog/A-Brief-Study-Of-The-China-s-Weak-Intellectual-Property-Regime.
  2. Androshchuk, H. O. (2020). Nedobrosovisnist zaiavnykiv torhovykh marok: analiz zarubizhnoi ta vitchyznianoi zakonodavchoi i pravozastosovnoi praktyky [Bad faith of trademark applicants: analysis of foreign and domestic legislative and law enforcement practice]. Ekspert: paradyhmy yurydychnykh nauk i derzhavnoho upravlinnia [Expert: paradigms of legal sciences and public administration]. 5, 24–42. Retrieved from: https://library.maup.com.ua/Naukovi_vydannya/Expert/Expert_5(11)_2020.pdf [in Ukr.].
  3. Androshchuk, H. O. (2021). Protydiia nedobrosovisnym reiestratsiiam i vykorystanniu zasobiv indyvidualizatsii v umovakh tsyfrovoi transformatsii [Combating fraudulent registrations and the use of personalization tools in the context of digital transformation]. Teoriia i praktyka intelektualnoi vlasnosti [Theory and practice of intellectual property]. 1, 48–67. [in Ukr.].
  4. Androshchuk, H. O. (2022). Komertsiyna tayemnytsya yak faktor zabezpechennya natsionalnoyi ekonomichnoyi bezpeky: praktyka Kytayu (Chastyna 1) [Commercial secrecy as a factor in ensuring national economic security: the practice of China (Part 1)]. Nauka, tekhnolohiyi, innovatsiyi [Science, technology, innovation]. 2 (22), 10–21. DOI: http://doi.org/10.35668/2520-6524-2022-2-02 [in Ukr.].
  5. Androshchuk, H. O. (2022). Intelektualna vlasnist yak faktor zabezpechennia natsionalnoi ekonomichnoi bezpeky Kytaiu [Intellectual property as a factor in ensuring China’s national economic security]. Kytaiska tsyvilizatsiia: tradytsii ta suchasnist [Chinese civilization: traditions and modernity: XVI International of science Conf.]. Lviv; Toruń. P. 170–176. DOI: https://doi.org/10.36059/978-966-397-284-8-42. [in Ukr.].
  6. China: copying clothing style may constitute unfair competition. Retrieved from: https://www.marks-clerk.com/insights/articles/china-copying-clothing-style-may-constitute-unfair-competition/.
  7. Androshchuk, H. O., & Shklyar, S. V. (2012). Konkurentne pravo: zakhyst vid nedobrosovisnoyi konkurentsiyi [Competition law: protection against unfair competition]. Kyiv, 472 p.[in Ukr.].
  8. 8.Zhang, B., & Fu, L. (2021). How the Anti-Unfair Competition Law will protect IP rights in China. Managing IP. Retrieved from: https://www.managingip.com/article/2a5cypwq2c8uoxdfz8veo/how-the-anti-unfair-competition-law-will-protect-ip-rights-in-china.
  9. (2023). The Regulations on Prohibiting the Abuse of Intellectual Property Rights to Exclude and Restrict Competition shall come into effect from August 1. Retrieved from: https://www.lexology.com/library/detail.aspx?g=07f26366-30c1-4bcf-b81a-f06e5ad877a8.
  10. Highlights of the PRC revised Anti-Unfair Competition Law and key points for foreign enterprises. Retrieved from: https://s3.amazonaws.com/documents.lexology.com/dddeda8b-0b21-4ced-8d7e-78642e589612.pdf.
  11. Shu, M. (2015). The Flexible Judicial Practice of China Anti-Unfair Competition Law — From IP Compliance Perspective. Linked In. Retrieved from: https://www.linkedin.com/pulse/flexible-judicial-practice-china-anti-unfair-competition-michael-shu.
  12. Wininger, A. (2023). China’s Supreme People’s Court Releases 2023 People’s Courts Typical Anti-Monopoly and Anti-Unfair Competition Cases. China IP Law Update. Retrieved from: https://www.chinaiplawupdate.com/2023/09/chinas-supreme-peoples-court-releases-2023-peoples-courts-typical-anti-monopoly-and-anti-unfair-competition-cases/.
  13. (2024). China’s Supreme People’s Court delivers record-breaking verdict in trade secrets case. WIPR. Retrieved from: https://www.worldipreview.com/chinas-supreme-peoples-court-delivers-record-breaking-verdict-in-trade-secrets-case.
  14. 14. Aaron, R. (2024). Wininger China’s Supreme People’s Court Upholds 201.54 Million RMB. Trade Secret Verdict. China IP Law Update. Retrieved from: https://www.chinaiplawupdate.com/2024/01/chinas-supreme-peoples-court-upholds-201-54-million-rmb-trade-secret-verdict/.
  15. (2024). China tightens grip on unfair competition. WIPR. Retrieved from:https://www.worldipreview.com/patent/china-beefs-up-unfair-competition-rules.
  16. Guo, B., & Li, B. (2023). China Releases Draft Amendments to The Anti-Unfair Competition Law. WHITE & CASE. Retrieved from: https://www.whitecase.com/insight-alert/china-releases-draft-amendments-anti-unfair-competition-law.
  17. (2024). Zvit Antymonopolnoho komitetu za 2023 rik [Report of the Antimonopoly Committee for 2023]. Kyiv, 110 p. Retrieved from: https://amcu.gov.ua/storage/app/uploads/public/65f/986/107/65f98610791ef043066379.pdf [in Ukr.].
  18. Borysenko, Z. M. (2013). Konkurentna polityka derzhavy [State competitive policy]. Kyiv, 272 p. [in Ukr.].
  19. Borysenko, Z. M. (2004). Osnovy konkurentnoyi polityky [Basics of competition policy]. Kyiv, 704 p. [in Ukr.].