Final version - The Evolution of Well-Known Trademark

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Final version - The Evolution of Well-Known Trademark

Transcript Of Final version - The Evolution of Well-Known Trademark

The Evolution of Well-Known Trademark Protection in China
A thesis submitted to The University of Manchester for the degree of Doctor of Philosophy
in the Faculty of Humanities 2016
Xiao Mu School of Law

Table of Contents
List of Abbreviations............................................................................................................6 List of Tables........................................................................................................................7 List of Figures ...................................................................................................................... 8 Abstract ................................................................................................................................ 9 Declaration ......................................................................................................................... 10 Copyright Statement .......................................................................................................... 11 Acknowledgments.............................................................................................................. 12 Dedication .......................................................................................................................... 13 Chapter 1 Introduction ....................................................................................................... 14
1.1. Research Background ............................................................................................. 14 1.2. Aims of Research .................................................................................................... 26 1.3. Methodology ........................................................................................................... 27 1.4. Thesis Structure ...................................................................................................... 28 1.5. Originality ............................................................................................................... 29 1.6. Rationality and Limitation of Secondary Sources of Chinese Language ............... 29 Chapter 2 The Definition of a Well-Known Trademark....................................................31 2.1. ‘Definition’ of a Well-Known Trademark in the ‘Joint Recommendation’ ........... 33 2.2. Definition of a Well-Known Trademark in Chinese Statutes ................................. 35
2.2.1. SAIC’s ‘Provisional Provisions on the Determination and Management of Wellknown Trademarks’ (1996)........................................................................................35 2.2.2. SAIC’s ‘Provisions on the Determination and Protection of Well-Known Marks’ (2003) ......................................................................................................................... 38 2.2.3. SPC’s ‘Interpretation of the Supreme People’s Court on Several Issues Concerning the Application of Law to the Trial of Cases of Civil Disputes over the Protection of Well-Known Trademarks’ (2009)........................................................40 2.2.4. Trademark Law 2013 ....................................................................................... 43 2.3. Conclusion .............................................................................................................. 45 Chapter 3 The Recognition and Protection of Well-Known Trademarks..........................46 3.1. Well-Known Trademark Protection under the Paris Convention ........................... 48 3.1.1. Background ...................................................................................................... 48 3.1.2. Art 6 bis............................................................................................................ 49 3.2. Well-Known Trademark Protection under the TRIPS Agreement ......................... 51 3.2.1. Background ...................................................................................................... 51
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3.2.2. Paris Convention v. TRIPS Agreement ........................................................... 53 3.2.3. Certain Rules for Recognition and Protection of Well-Known Trademarks ... 54 3.3. Well-Known Trademark Recognition under the ‘Joint Recommendation’ ............ 57 3.4. Well-Known Trademark Recognition and Protection in China..............................59 3.4.1. Background: Oblivion before the 1970s and Revival in the 1980s ................. 59 3.4.2. Transition from ‘Sole-Track’ to ‘Dual-Track’ Model ..................................... 64
3.4.2.1. ‘Sole-Track’ Model in the 1990s .............................................................. 65 3.4.2.2. ‘Dual-Track’ Model in the 2000s ............................................................. 67 3.4.3. Three Fundamental Principles ......................................................................... 74 3.4.3.1. Passive Recognition Principle...................................................................74 3.4.3.2. Case-by-case Recognition Principle ......................................................... 78 3.4.3.3. Honesty and Good Faith Principle ............................................................ 81 3.4.4. Certain Rules Related to Well-Known Trademark Recognition and Protection .................................................................................................................................... 88 3.4.4.1. Range of Protection...................................................................................88
1. Timeline (1990s) ................................................................................88 2. Case: Procter & Gamble (P & G) v Shanghai Chenxuan Tech Co., Ltd.(Chenxuan) ............................................................................................90 3. Three Judicial Interpretations (2001 – 2009) .....................................94 4. Trademark Law 2001 and 2009 Judicial Interpretation .....................96 5. Art 9 (2): ‘Anti-Dilution’ Provision or Not? ......................................99 3.4.4.2. Factors for Examining Well-Known Trademarks...................................104 3.4.4.3. Financial Remedies over Well-Know Trademark Infringements ........... 110 1. Rules in the TRIPS Agreement.............................................................. 111 2. ‘Exclusive Right to the Use of Registered Trademarks’ and Financial Remedies over Well-Known Trademark Infringements............................ 112 3. Analysis of Rules on the Financial Remedies in the TML 2001 ........... 115 4. Financial Remedies in the TML 2013 ................................................... 118 3.5. Conclusion ............................................................................................................ 127 Chapter 4 The Misunderstanding of Well-Known Trademarks in China........................130 4.1. Introduction...........................................................................................................130 4.2. Concept and Reasons of the ‘Misunderstanding’ ................................................. 133 4.2.1. Concept of the ‘Misunderstanding’ ............................................................... 133 4.2.2. Reasons of the ‘Misunderstanding’ ............................................................... 134
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4.3. Role of ‘Well-Known Trademark’ Title in Judgments.........................................136 4.3.1. Case: Starbucks Corp. v Shanghai Xingbake Coffee Corp. ........................... 137
4.4. Malicious Litigation..............................................................................................141 4.4.1. Reasons of Malicious Litigation .................................................................... 142 4.4.2. Countermeasures against Malicious Litigation..............................................146 4.4.2.1. Definition of Malicious Litigation .......................................................... 146 4.4.2.2. Standard for Findings of ‘False Actions’................................................147 4.4.2.3. Centralisation Policy on Judicial Recognition ........................................ 150 1. SPC’s ‘Interpretation by the Supreme People’s Court of the Issues Relating to Jurisdiction over and Scope of Application of Law to the Hearing of Trademark Cases’ (2002) .............................................................................................150 2. SPC’s ‘Notice of the Supreme People’s Court on the Jurisdiction over Cases of Civil Disputes involving the Determination of Well-Known Trademarks’ (2009) ......................................................................................................... 151 3. Deployment of Dedicated IP Courts (2013 - 2014) ...............................153 4.4.2.4. ‘Honesty and Good Faith’ Principle, Precautions and Liability, and Scope of Cases involving Well-Known Trademarks Determination ............................. 156 1. Detailed Rules on the Principle of ‘Honesty and Good Faith’ in Malicious Litigation .................................................................................................... 157 2. Precautions and Liability in Malicious Litigation .................................160 3. Restrictions on the Scope of Cases where Well-Known Trademarks can be Determined ................................................................................................. 161 4.4.3. Summary ........................................................................................................ 172
4.5. Product Quality of Products Bearing Well-Known Trademarks .......................... 172 4.5.1. Conceptual Meaning of the Misunderstanding of ‘Quality Assurance’ ........ 173 4.5.2. Reasons of the Misunderstanding of ‘Quality Assurance’ ............................ 174 4.5.3. A Trademark Viewpoint on Product Quality.................................................177 4.5.3.1. Academic Review ................................................................................... 177 4.5.3.2. Legal Rules Review ................................................................................ 179 1. Rules on Product Quality in the Trademark Law 2001 .........................180 2. Rules on Product Quality in the Trademark Law 2013 .........................181 3. Analysis..................................................................................................182 4.5.4. Summary ........................................................................................................ 184 4.5.5. Product Quality Law (2000) on Product Quality ........................................... 184 4.5.5.1. Rules over Product Quality ..................................................................... 185
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4.5.5.2. Feasibility of Introducing ‘Warranty Obligations of Quality’ to WellKnown Trademarks in the Product Quality Law ................................................. 187
1. Reasons for Adopting ‘Warranty Obligations of Quality’.....................188 2. Feasibility in Adopting ‘Warranty Obligations of Quality’...................189 4.5.6. ‘Law on Protection of Consumer Rights and Interests’ (2013) on Product Quality...................................................................................................................... 189 4.5.7. Summary ........................................................................................................ 196 4.6. Well-Known Trademark Advertisements ............................................................. 196 4.6.1. Reasons of Well-Known Trademark Ads and Shortcomings of National Statutes .................................................................................................................................. 197 4.6.2. Perfection of Legislation on Well-Known Trademark Ads ........................... 199 4.6.2.1. Rules on Well-Known Trademark Ads in the Trademark Law 2013 ..... 200 1. Liability of Holders of Well-Known Trademarks .................................201 2. Remedies for Well-Known Trademark Ads ..........................................203 4.6.2.2. Rules on Well-Known Trademark Ads in the Advertisement Law (2015) .............................................................................................................................. 204 4.7. Conclusion ............................................................................................................ 207 Chapter 5 Dedicated IP Courts – IPRs Protection in the Xi Jinping Era ......................... 210 5.1. Dedicated IP Divisions and ‘3-in-1’ Trial Model ................................................. 211 5.2. Dedicated IP Courts (2013 - 2014) ....................................................................... 214 5.2.1. CPC’s Proposal in 2013 ................................................................................. 215 5.2.2. Establishment of Dedicated IP Courts in 2014 .............................................. 218 5.3. Advantages, Disadvantages and Suggestions ....................................................... 220 5.4. Conclusion ............................................................................................................ 221 Chapter 6 Conclusion.......................................................................................................223 6.1. Main Findings ....................................................................................................... 224 6.2. Suggestions of Future Development ..................................................................... 230 6.3. Contributions ........................................................................................................ 232 6.4. Concluding Remarks.............................................................................................233 Bibliography .................................................................................................................... 235 Appendix .......................................................................................................................... 265 List of Tables................................................................................................................265 List of Figures .............................................................................................................. 269
Word count: 74234.
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List of Abbreviations

Art(s) – Article(s)

AIC – Administration of Industry and Commerce

(工商行政管理局)

CTMO – China Trademark Office

(中国国家工商行政管理总局商标局)

CPC – Communist Party of China

(中国共产党)

CCA – China Consumers Association

(中国消费者协会)

CI – Consumers International

IP – Intellectual Property

IPR(s) – Intellectual Property Right(s)

Joint Recommendation – Joint Recommendation Concerning Provisions on the Protection of Well-Known Marks

NPC – National People’s Congress

(全国人民代表大会)

Paris Convention – Paris Convention for the Protection of Industrial Property

R & O Policy – Reform and Opening-Up Policy

(改革开放政策)

SAIC – State Administration of Industry and Commerce (中国国家工商行政管理总局)

SIPO – State Intellectual Property Office of China

(中国国家知识产权局)

SPC – Supreme People’s Court

(最高人民法院)

TRAB – Trademark Review and Adjudication Board (中国国家工商行政管理总局商标评审委员会)
TRIPS Agreement – Agreement on Trademark Related Aspects of Intellectual Property Rights

WTO – World Trade Organisation

WIPO – World Intellectual Property Organisation

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List of Tables
Table 1: Some international treaties China has ratified (P 17) Table 2: The definition of a well-known trademark in China (1996 – 2013) (P 45) Table 3: Rules on the financial remedies in Trademark Law 2001 and 2013 (P 127)
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List of Figures
Figure 1: Organization structure of SAIC (departments managing well-known trademarks) (P 67) Figure 2: Organization structure of people’s court in China (P 70) Figure 3: Relationship between ‘exclusive right to the use of registered trademarks’ and well-known trademark rights regarding damages reward (P 115) Figure 4: A ‘Chinese Well-Known Trademark’ mark used in advertisements (P 199)
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Abstract
The University of Manchester Candidate: Xiao Mu Degree: Doctor of Philosophy (PhD) Title: The Evolution of Well-Known Trademark Protection in China Date: June 2016
China has put considerable emphasis on protecting intellectual property (IP) rights since it implemented ‘Reform and Opening-Up’ policy in the late 1970s. The nation has actively participated in communication and cooperation with its trading partners and international society in IP region. In particular, since its accession to the Paris Convention for the Protection of Industrial Property (Paris Convention) in 1985, China has reformed its socialist legal system to meet international obligations. This trend continued with China’s entry to the Agreement on Trade-Related Aspects of Intellectual Property (TRIPS) under the World Trade Organization (WTO) in late 2001.
A well-known trademark is a trademark well known by the relevant public. Compared to a common trademark, it will be given higher level of protection against infringements. A well-established well-known trademark legal framework can considerably protect interests of owners of domestic and foreign well-known trademarks. China begun to offer such protection since the 1980s. During the pre-WTO period, it granted well-known status determination on an ad-hoc basis under a ‘Sole-Track’ model which was solely led by administrative authorities. This model has been considered to be weak and offered no systematic protection to well-known trademark holders. China’s admission to the WTO in 2001 pushed the country to create a ‘Dual-Track’ model which incorporates judicial and administrative authorities and to amend its IP laws in compliance with the international norms. Since then, the situation of well-known trademark protection has been considerably improved, although some problems remained. There is, however, widespread criticism in the US government and from some scholars that the IP laws in China governing well-known trademarks are inadequate. However, this is not necessarily accurate, as it is based not on comprehensive legal analysis but on the data mainly collected from interested parties of the US side, whether they are companies or government officials, or a fragment of cases.
This thesis adopted doctrinal legal research method to demonstrate and evaluate some substantial legal principles, concepts, rules and policy concerning well-known trademark recognition and protection in China over the past three decades (1985 – 2015). It challenged that criticism by raising four questions and exploring their answers. The legal analysis in this thesis showed that since the 2000s, China has protected well-known trademarks more effectively than before. In conclusion, although some problems remain to be solved, the criticism above should be rejected. Meanwhile, this thesis also offered suggestions of further development, highlighted the need for the competent authorities to continue to reform the laws and policy, and strengthen their enforcement in order to tackle unsolved problems.
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Declaration
No portion of the work referred to in the thesis has been submitted in support of an application for another degree or qualification of this or any other university or other institute of learning.
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ProtectionTrademarkChinaTrademarksRemedies