China’s SIPO Now By Another Name

To paraphrase the Bard: “A rose by any other name smells just as sweet”. Can the same comparison be said for China’s State Intellectual Property Office (SIPO)?

Arguably the world’s most prolific patent office, serving one-sixth of humanity, and protecting innovation in the world’s second largest economy China’s SIPO processed millions of Patent applications each month. Trademarks of course had been handled separately by China’s Trademark Office, and Copyrights handled by yet another separate government body.

All of this is set to change as the government has now made the decision that an integrated intellectual property agency is necessary. Now SIPO, the TO and other intellectual property bodies are to be merged into a new organization which will be responsible for management of patents, designs, trademarks, geographical indications and the layout designs of integrated circuits.

These changes are thought to greatly improve the management efficiency of intellectual property for China and the world.

According to with the restructuring plan approved by the 13th National People’s Congress, the State Intellectual Property Office of China (SIPO) has been duly renamed China National Intellectual Property Administration (CNIPA) as of August 29, 2018. CNIPA will not subordinate to the State Council but will be under the supervision of the newly established State Administration of Market Supervision and Administration.

As a State-media Commentator and observer who has legal and IP training and experience, no doubt the past two years have witnessed great progress in China’s intellectual property area with the pilot reform in the comprehensive management of intellectual property and now the restructuring of the State Intellectual Property Office.

President Xi Jinping reinforce d the principle China will unswervingly strengthened the protection of intellectual property rights by establishing a sound environment for business and innovation to protect IP rights of all enterprises.

Published by Edward E. Lehman on September 20th, 2018 tagged China News | Comment now »

Anti-Monopoly Practice in China

Our China lawyers have had several inquiries in recent months that touch on China anti-monopoly laws. This is an interesting emerging area of China legal practice as the regulation and implementation is currently in flux. The China government initiated a broad reorganization program in spring of this year which set out to consolidate the regulatory functions of 5 separate government agencies into a single oversight body. This is the State Market Regulatory Administration.

As part of this reorganization, SMRA assumes and implement anti-monopoly and antitrust, price supervision and consumer protection regulatory roles which were previously under four separate governing bodies. The bureaus which will be merged into the SMRA include the former Anti-monopoly and Anti-unfair Competition Enforcement Bureau of the old SAIC, the Price Supervision and Anti-monopoly Bureau of the National Development and Reform Commission, the Anti-monopoly Bureau of the Ministry of Commerce (MOFCOM), and the Anti-monopoly Commission of the State Council.

The reorganization and consolidation appears intended to make the antitrust process more coherent and efficient, however the devil as always is in the details. Based on our experience with these regulators we are unsure that in practical terms the day to operations of the SMRA have effectively incorporated all of the official responsibilities as described by the reorganization previously handled by the 4 disparate bureaucracies. Often In China legal implementation lags the official pronouncement, and confusion and inaction among the regulators is expected.

In this environment, representing clients as to China antimonopoly issues will involve reaching out to the four “old” antitrust and consumer protection bodies to seek to determine what if anything has actually changed in the day to day process of review and adjudication of antitrust matters over the six months since the official reorganization announcement in March. From there the process involves a bit of “playing by ear”. This is not a well-defined area of law, implementation is often subjective, officials sometimes lack initiative to pursue matters independently; regulators often attempt to offload responsibilities to “competing” regulators with a similar mandate – even when things are not in the middle of a widespread inter-agency reorganization.

As with much of China corporate legal practice the process entails a series of face to face interactions and negotiations with the regulators. China regulators are for the most part benign if you can believe it. They are in most cases neutral technocrats and bureaucrats. They won’t necessarily go out looking for regulatory violations, but they will have to act if and when presented with clear evidence of potential violations of China antitrust, fair competition and consumer protection laws. The preferred course of action requires performing due diligence as to the current state of the China market for relevant products, as well as developing projections, supported empirically where possible, of the potential negative monopolistic effects within China on the Chinese consumer caused by a target transaction, or lack thereof.

Our China lawyers will supplement economic and product sales information provided by a client with information obtained via our team’s due diligence as to China market conditions in the industry. Our China lawyers work to prepare a case in support of the client’s goal with reference to specific facts, and projected violations of Chinese laws, and general effects on competition in the industry. This is all then presented to the appropriate regulator through face to face advocacy. The goal here is to be as thorough as possible, and to build as strong a case as possible so as to effectively force the hand of the regulator by presenting them with a clear-cut case they cannot ignore or deflect off to another department. This almost always requires a “hands on” process.

Published by Edward E. Lehman on September 19th, 2018 tagged China News | Comment now »

Related news about blockchain at universities

University of Sydney researchers are building a new super-fast, safe blockchain technology that has the potential to revolutionize the global economy. Best known as the technology that underpins Bitcoin and other virtual currencies, blockchain is a digital public ledger where transactions are recorded and confirmed pseudonymously. Named the ‘Red Belly Blockchain’, the new system being developed by the University of Sydney’s School of Information Technologies will allow secure and almost instantaneous digital transfer of virtual currencies across the world.“ In recent testing, our blockchain achieved the best performance we have seen so far – with more than 440,000 transactions per second on 100 machines,” said University of Sydney academic Dr Vincent Gramoli, who heads up the Concurrent Systems Research Group developing the technology.“ In comparison, VISA’s network has a peak capacity of around 56,000 transactions per second and the Bitcoin network is limited to around seven transactions per second.”

US universities have been quicker to join the bandwagon. Stanford University launched a bitcoin and cryptocurrencies course two years ago. A similar course is offered by the University of California, Berkeley, and another is in the works at Massachusetts Institute of Technology. There are also scores of internet tutorials, many of them available for free as massive open online courses. Coursera, an education-focused tech company, has joined with Princeton University to offer an 11-week cryptocurrency technologies course. A group of experienced cryptocurrency executives founded the Blockchain University three years ago in California, offering an eight-week course to students who paid a $100 deposit that is refundable on completing the course. At the other end of the spectrum is B9lab, a fee-charging institution based in London and Hamburg offering a 40-hour course in blockchain for technical executives and analysts that is spread over nine weeks and costs €2,350. Underlining how swiftly the technology is becoming mainstream, data requested by the FT from LinkedIn, the career-related social networking platform, showed there over 1,000 blockchain-related job adverts on the site in early June, more than treble the level of a year ago.

Research labs focusing on blockchain technology are being opened up at the University of Edinburgh and the Tokyo Institute of Technology, sponsored by one of the cofounders of cryptocurrency Ethereum. IOHK, a Hong Kong-based cryptocurrency research and development company, is investing up to $1 million in the two facilities, according to the business’ cofounder Charles Hoskinson. Hoskinson was one of the founders of Ethereum, a popular digital currency set up in 2013.

Published by Edward E. Lehman on September 17th, 2018 tagged China News | Comment now »

Beyond its links with Bitcoin and other crypto-currencies, what’re other applications of blockchain that will positively change businesses?

–First in Finance.
Core values of blockchain application in finance: facilitating anti-money laundering and customer identity review. In the exploration of the innovation and use of blockchain, finance is the most important area. Blockchain technology broadly applies in digital money, financial transactions, and Internet of things finance. Take Taobao shopping as an example, the payment process needs to complete the trusted guarantee transaction through Alipay, but Alipay and Taobao belong to the same company, so the basis of the credit is controlled by Alibaba. If you replace the Alipay security channel with a “trusted system”, it will make transactions intuitive and secure. There is no need for third-party guarantees. The advent of blockchain just happens to make this idea a reality. Bitcoin is now the most extensive and successful application of blockchain technology. It has been widely trusted by banking, securities, insurance and other financial professions due to its untamable time-stamp and full-net revealing characteristics.

–Second in Game.
The core value of the blockchain application in game field: returning game rights to gamers. The decentralization of blockchain technology, smart contracts, asset trading and other technical features can solve the problem of leakage of professional game data and user data privacy, promote the preservation of virtual digital money in the game, and realize the fair value shared by users and game development channels. In foreign countries, the blockchain technology has been widely used in the game of digital money giving. For example, the game Fragoria of 8 million players has launched the blockchain payment gateway, providing the first cryptocurrency payment plan for the game profession.

–Third in social contact.
The core value of the blockchain applications in social contact : allowing users to control their own data and prevent privacy leaks. Think about why we’ve just visited a shopping site and always get similar pop-ups on other social platforms. It is because big data platforms that have a monopoly on data privacy have been shamefully selling our private data. The purpose of blockchain technology in the social field is to change the control of the social network from centralized companies to individuals. So individuals can control their own privacy. Synereo, an Israeli social networking APP, fully ensures user privacy and security with the help of an anonymized blockchain network and its embedded token mechanism.

–Forth in copyright.
The core value of the blockchain application in copyright: reshaping the protection of intellectual property. The technology of blockchain records all transactions in the blockchain. And once the records are formed, it cannot be tampered. So all transactions can be tracked and inquired, which ensures the transaction transparency on the blockchain and prevents users in the network from illegally using the content protected by intellectual property rights. It’s a faster, safer and cheaper way of protecting copyright for originators. At present, blockchain technology is mostly applied to the copyright protection of digital music. Online music platform PledgeMusic has published a comprehensive blueprint of global distributed ledger and fair trade music database, which can fully solve the problem of ownership, payment and transparency.

–Fifth in cloud computing:
The core value of blockchain application in cloud computing: to push forward the process of building public trust infrastructure.

–Sixth in sharing economy
The core value of blockchain application in sharing economy: building user’s trust for the platform.

–Seventh in health care
The core value of the blockchain application in medical field: realizing data sharing, enabling more accurate diagnosis and more effective treatment. Medical institutions have had to endure the inability to share data securely across all channels. Better data collaboration among data providers means more accurate diagnosis, more useful treatments, and the ability to improve the system’s ability to provide affordable care.
Blockchain enables hospitals, patients and all parties on the medical interest chain to share data in the blockchain network without worrying about the security and integrity of the data.

–Eighth in philanthropy
The core value of blockchain application in philanthropy: making all data open and transparent. Blockchain allows people to track exactly where their donations go, and when it is paid, and paid to whom. As a result, blockchain can solve the long-standing problems of poor transparency and unclear accountability in the charitable donation process.

Published by Edward E. Lehman on September 14th, 2018 tagged China News | Comment now »

China plans to create a better environment to promote the healthy development of the blockchain industry. How important is blockchain industry to future technological development?

There is no question that 2017 has been a very important year in the history of Bitcoin and of digital currencies in general. In mid-November, Bitcoin reached an all-time high exchange rate of $7,800 before retreating by $1,000 as it forked into Bitcoin Gold, the second digital token issued this year due to a lack of consensus on how the blockchain should continue to be developed in the future.

Although it seems as if 2017 has been the “Year of Bitcoin,” it would be more appropriate to call it the “Year of the Blockchain.” The cryptocurrency market is garnering attention not only because of the meteoric rise in value of Bitcoin, Ethereum, Ripple, Litecoin, and other digital tokens. The underlying technology that makes cryptocurrency transaction has seen significant development and reached various milestones this year, which means that the future of the blockchain has certainly arrived.

Individuals who remain skeptical of Bitcoin will often note that the cryptocurrency has fallen short of its original goal: to become a widely used and accepted method of settling electronic payments. While it is true that merchants have not wholly embraced Bitcoin, it should be noted that the cryptocurrency has seen significant circulation in Venezuela and Zimbabwe, two nations where the sovereign fiat has failed.

The decentralized nature of Bitcoin is a characteristic that central banks are not excited about; however, this has not stopped government officials in Russia and Singapore from implementing high-level blockchain solutions. The central banks of these two nations now manage electronic versions of their respective national currencies, the Russian ruble and the Singaporean dollar.

Major financial services providers such as MasterCard and Fidelity Investments have shown interest in the blockchain, and retail banking giant JPMorgan Chase has worked with financial technology startups that develop blockchain applications.

The blockchain and distributed ledger technology holds a lot of promise in the financial technology field; however, prospective entrepreneurs should carefully consider their entry point. At this time, developing a new cryptocurrency wallet would not be a profitable idea due to market saturation. With regard to cryptocurrency exchanges, it would be very difficult to compete against the likes of Coinbase.

What prospective blockchain entrepreneurs should be looking at are fields such as real estate and healthcare. Blockchain solutions have already been proposed to serve as land registry systems for nations such as Haiti, where land ownership is a mess due to decades of neglect and civil strife. In the case of healthcare, blockchain systems could be developed to support health information exchanges where digital medical records can be securely stored, transferred and managed.

When the original Bitcoin blockchain was developed and the genesis block was mined, the founding team knew that distributed ledger systems would one day be used to develop applications other than digital currencies.

Viable ideas are needed to implement blockchain technology in the enterprise world. Entrepreneurs who have already dabbled in Big Data should take a look into blockchain startup opportunities because these two fields have quite a few aspects in common. The key is to understand why companies such as Spotify, the most popular music streaming service, are acquiring blockchain startups at amounts that they are not willing to publicly disclose.

In the end, entrepreneurs who can “time the market” in terms of sentiment should pay attention to the trends shaping blockchain development, and they should not view digital currencies with tunnel vision; this does not mean that they should completely ignore Bitcoin and Ethereum, but they should not forget that the blockchain, just like personal computing, has quite a few potential applications that could be quite lucrative.

With the Chinese State Council embracing blockchain in its 13th Five-Year Plan, and a 30-fold increase in the total cryptocurrency market capitalization in 2017, blockchain and cryptocurrencies have become a hot topic. Chinese policymakers are eager to set the framework and standards that accelerates industry adoption of blockchain technology, while protecting and educating investors amid the nascent and unregulated cryptocurrency ecosystem.

The results can be confusing. While officials at the Annual Meeting of the New Champions in Dalian in June 2017 welcomed a World Economic Forum whitepaper, “Realizing the Potential of Blockchain”, less than three months later the People’s Bank of China (PBoC) announced an immediate ban on ICOs – initial coin offerings, through which crypto start-ups raise funds for development – and the shutdown of all domestic cryptocurrency exchanges.

At the same time, Sun Guofeng, the Director of the Institute of Finance at PBoC, clarified that the ban “should not prevent relevant financial technology companies, industry bodies and other technology firms from continuing their research into blockchain technology”. Two weeks later, China’s Ministry of Industry and Information Technology launched the Trusted Blockchain Open Lab. The lab promotes the exploration of blockchain technology without becoming involved in issuing cryptocurrencies, or the exchanges that trade them.

These pro-blockchain, anti-cryptocurrency policies are a step in the right direction, given that the public still lacks the right understanding. Although, in the short term, they limit retail investor funding in highly speculative start-ups, they allow, in the longer term, higher calibre and better-resourced players to unlock real value from the technology. One such company is Alibaba, who in April 2017 decided to establish the very first blockchain industrial zone, nicknamed the Blockchain Valley, located at Alibaba’s Hangzhou HQ. Their pathway is now followed by other major tech companies establishing their own blockchain R&D centres, often in collaboration with one of over 150 Chinese blockchain-enabled companies.

The importance of blockchain technology is already obvious. Blockchain is not only a powerful application of bitcoin, it can be applied in a lot of scenarios and has a favorable impetus for all industries. This is also why the Chinese government has been vigorously developing blockchain on the one hand. The world is now in a battle for blockchain.

Published by Edward E. Lehman on September 13th, 2018 tagged China News | Comment now »

What is the blockchain technology?

Blockchain is a transparent and verifiable system that will change the way people think about exchanging value and assets, enforcing contracts, and sharing data. The technology is a shared, secure ledger of transactions distributed among a network of computers, rather than resting with a single provider. Businesses are using blockchain as a common data layer to enable a new class of applications. Now, business processes and data can be shared across multiple organizations, which eliminates waste, reduces the risk of fraud, and creates new revenue streams.

According to wiki, a blockchain, originally block chain, is a growing list of records, called blocks, which are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data (generally represented as a merkle tree root hash).

By design, a blockchain is resistant to modification of the data. It is “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way”. For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for inter-node communication and validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without alteration of all subsequent blocks, which requires consensus of the network majority. Although blockchain records are not unalterable, blockchains may be considered secure by design and exemplify a distributed computing system with high Byzantine fault tolerance. Decentralized consensus has therefore been claimed with a blockchain.

Blockchain was invented by Satoshi Nakamoto in 2008 to serve as the public transaction ledger of the cryptocurrency bitcoin. The invention of the blockchain for bitcoin made it the first digital currency to solve the double-spending problem without the need of a trusted authority or central server. The bitcoin design has inspired other applications, and blockchains which are readable by the public are widely used by cryptocurrencies. Private blockchains have been proposed for business use. Some marketing of blockchains has been called “snake oil”.

Currently, there are three types of blockchain networks – public blockchains, private blockchains and consortium blockchains.

A public blockchain has absolutely no access restrictions. Anyone with an internet connection can send transactions[disambiguation needed] to it as well as become a validator (i.e., participate in the execution of a consensus protocol). [self-published source?] Usually, such networks offer economic incentives for those who secure them and utilize some type of a Proof of Stake or Proof of Work algorithm.
Some of the largest, most known public blockchains are Bitcoin and Ethereum.

A private blockchain is permissioned. One cannot join it unless invited by the network administrators. Participant and validator access is restricted.

This type of blockchains can be considered a middle-ground for companies that are interested in the blockchain technology in general but are not comfortable with a level of control offered by public networks. Typically, they seek to incorporate blockchain into their accounting and record-keeping procedures without sacrificing autonomy and running the risk of exposing sensitive data to the public internet.

A consortium blockchain is often said to be semi-decentralized. It, too, is permissioned but instead of a single organization controlling it, a number of companies might each operate a node on such a network. The administrators of a consortium chain restrict users’ reading rights as they see fit and only allow a limited set of trusted nodes to execute a consensus protocol.

If we were to define “blockchain” as a technology separate from Bitcoin, it might look something like this:

Blockchain technology offers a way for untrusted parties to reach agreement (consensus) on a common digital history. A common digital history is important because digital assets and transactions are in theory easily faked and/or duplicated. Blockchain technology solves this problem without using a trusted intermediary.

blockchain is still in its nascent stages. However, blockchain technology promises to entirely reshape money, middlemen, and trust.

Ultimately, blockchain is as much a political and economic hypothesis as a technological one. Blockchain technology provides a new way to think about how we agree on things. For the first time, multiple untrusted parties can create and agree on a single source of truth, without the use of a middleman. The technology’s implications for traditional middlemen and corporate players are therefore potentially enormous.

As the landscape evolves, the future of blockchain will likely take on forms yet to be imagined.

Published by Edward E. Lehman on September 12th, 2018 tagged China News | Comment now »

China’s Struggle to Fund Small Business

In a speech Monday August 21, 2018, Chinese Vice Premier Liu He publicly called for increased financial support for small and medium sized enterprises (SMEs) in China, which he said was a vital push to support China’s domestic private sector. Mr. He called for efforts to increase financing opportunities and volumes for SMEs, and said China should improve and strengthen capital markets for smaller companies. The proposal was also made to implement favorable tax policies (read cuts) for SMEs, and new policy initiatives such as financing assurance. Mr. He’s remarks came at a conference of the State Council Leading Group on Promoting Development of Small and Medium Sized Enterprises. SMEs are targeted for the effort due to their fundamental economic role as part of a broader statement regarding addressing widespread difficulties for operations of SMEs.

A common refrain in media reporting about SMEs in China is the difficulty of these companies in obtaining loan financing. Typically, Chinese banks, whether large national banks or smaller provincial banks, prefer to provide loans to State Owned Enterprises (SOE), for obvious reasons. As an SOE is implicitly backed by government financing, the loan may be made on terms favorable to the bank, with a higher certainty that the loan will ultimately be paid back. In Contrast, SMEs often seek loan financing when they are in a tough spot, and even if the company is not in a hard place financially, the bank is less certain the loan will be paid back in good faith.

This has resulted generally, in a situation in which unprofitable SOEs suck up monies available for corporate loans while profitable, potentially industry disrupting SMEs cannot secure funding required for major expansions and growth. This phenomenon has been identified in news reports and academic studies since the early to mid-2000’s. The most obvious fix for the situation is to push these banks to loan more to SMEs, and this appears to be what Mr. He is indicating in his comments.

One option for SME fundraising is to raise capital via an IPO on one of China’s stock exchanges. This is problematic for many Chinese SMEs both for the costs involved in preparing for the IPO, and for the lack of guarantee of any real fundraising from the move. By the nature of the Chinese stock market, SMEs fail to attract much interest, while again, larger listed companies with well known names, attract much of the investment on the stock exchange platform.

This leaves banks and bank loans the primary source for funding for China’s SMEs. One approach China has taken recently has been to reduce the Banks’s Reserve Ratio Requirement for some banks on condition that the extra money available for loans goes to SMEs.

One of the major reasons banks don’t lend as much to SMEs in the first place is the perception of increased risk of default. China may consider either providing backstop funding or an insurance option for banks that lend to SMEs which will cover the costs of any default by SME and failure ot pay back the bank. If policy or new initiatives are able to reduce risk inherent in lending to SMEs, lending should increase.
The government may also consider stronger and more explicit policies in favor of lending to SMEs and discouraging lending to unprofitable SOEs. In China, sometimes just a speech means a lot, and officials may find that sustained called for greater lending to SMEs end up moving the needle favorably. Regulators and banks may also consider increased due diligence and testing prior to issuing corporate loans. For example, they may implement a stronger test as to profitability as a requirement to receive loan funds. This would have the effect of channeling greater loan financing to SMEs which manage to be profitable, and less to SOEs which tend to be less profitable.

As the perception regarding SOEs vs SMEs is that SOEs are more likely to be sustained and “bailed out” by the government in case of financial trouble, the government may look at equalizing moves. We already mentioned the possibility of providing greater guarantees to banks to prevent losses due to default of SMEs. However, the government may also consider changing policy by allowing some poorly managed SOEs to go bankrupt and go out of business without the benefit of state support. This will both spur other SOEs to better manage finances, but will also reduce differences between SOEs and SMEs, which will in time change the calculus of bank managers when deciding on whether a loan to a profitable SME is truly more of a risk than a loan to an unprofitable. SOE.

Published by Jacob Blacklock on September 11th, 2018 tagged China News | Comment now »

China’s Standing Committee Publishes Multiple Drafts of Potential Laws for Public Comment

Public opinion solicitation is an important way for the public to directly participate in the legislation, including the soliciting opinions of the legislative body, public participation and feedback, etc.

The Nineteenth National Congress of the Communist Party of China explicitly put forward advancement of scientific legislation, democratic legislation, and law-based legislation to promote development and safeguarding good governance with good laws.

The Thought on Socialism with Chinese Characteristics for a New Era and the Basic Policy that pointed out in the report mentioned that the importance of Committing to a people-centered approach. The people are the creators of history, they are the fundamental force that determines our Party and country’s future. The party must ensure the principal status of the people, and adhere to the Party’s commitment to serving the public good and exercising power in the interests of the people and must observe the Party’s fundamental purpose of wholeheartedly serving the people, and put into practice the Party’s mass line in all aspects of governance. The party must regard as their goal the people’s aspirations to live a better life, and rely on the people to move history forward.

The people are the masters of the country. Ensuring every dimension of governance is law-based. Law-based governance is an essential requirement and important guarantee for socialism with Chinese characteristics, must exercise Party leadership at every point in the process and over every dimension of law-based. Society, must continue to promote a combination of rule of law and rule of virtue, and combine law-based governance of the country and rule-based governance over the Party, further the reform of the judicial system, and strengthen rule of law awareness among all the people while also enhancing their moral integrity.

Improving the System of Institutions through Which the People Run the Country and Developing Socialist Democracy also delivered at the 19th National Congress of the Communist Party of China. Upholding the unity of Party leadership, the running of the country by the people, and law-based governance. Party leadership is the fundamental guarantee for ensuring that the people run the country and governance in China is law-based; that the people run the country is an essential feature of socialist democracy; and law-based governance is the basic way for the Party to lead the people in governing the country. These three elements are integral components of socialist democracy. In China’s political life, the Party exercises leadership. Strengthening the centralized, unified leadership of the Party on the one hand and, on the other, supporting the people’s congresses, governments, committees of the Chinese People’s Political Consultative Conference (CPPCC), courts in performing their functions in accordance with the law and their charters, form a unified pair. The Party should uphold the unity, sanctity, and authority of China’s legal system, and strengthen legal protection for human rights to ensure that the people enjoy extensive rights and freedoms as prescribed by law, should both consolidate government and improve the institutions of democracy at the primary level to ensure the people’s rights to be informed, to participate, to be heard, and to oversee. Will improve mechanisms for law-based decision-making, put in place mechanisms for the exercise of power that build decision science, resolute execution, and effective oversight. Officials at all levels must deepen their understanding of democracy, be democratic in their conduct, willingly accept public oversight, and perform as they should in their role as public servants.

Besides, defend the political right of the constitution to give citizens the freedom of expression and safeguarding the Law Established Meets the Core Connotation of Democracy. It also noticeably increased the people’s consciousness of the need to promote the rule of law by giving wide publicity and education on the rule of law and improving the mechanism for the popularization of the law.

Published by Edward E. Lehman on September 10th, 2018 tagged China News | Comment now »

China Patent Office Name Change, Done & Dusted

To paraphrase the Bard: “A rose by any other name smells just as sweet”. Can the same comparison be said for what was SIPO arguably the world’s most prolific patent office, serving one-sixth humanity, and representing/manifesting/protecting innovation in the world’s second largest economy? We shall see, time will tell. This is a sign, Made in China 2025 is not nothing. The USPTO China Attache Program’s mis-steps aside wherein not one admitted USPTO lawyer with a STEM education is embedded in US China Missions has affected even the slightest changes-China marches on with a plan. America, well not so much based upon past swamp-dwellers who gave-away US stakeholders rights in China. As Mr Trump stated over and over, it was not the Chinese fault, they were doing what was best for them as to IP. The US officials acquiesced to the wholesale IP theft through the mismanagement of for example the USPTO China Attache program costing the US inventors money and making filing patent applications higher to pay for 20+ persons to come to China and do little or nothing.

As a State-media Commentator and observer who has legal and IP training and experience, no doubt the past two years have witnessed great progress in China’s intellectual property area with the pilot reform in the comprehensive management of intellectual property and the restructuring of the State Intellectual Property Office.

The government reports/declares Chinese regulatory authorities realize an integrated management of patent, design, trademark, geographical indication of origin and the layout designs of integrated circuit, was important and now they are making this plan a reality. These changes are thought to greatly improve the management efficiency of intellectual property for China and the world (interested in the China market).

So according to with the restructuring plan approved by the 13th National People’s Congress, the State Intellectual Property Office of China (SIPO) has been duly renamed China National Intellectual Property Administration (CNIPA) as of August 29, 2018. CNIPA will not subordinate to the State Council, but under the supervision of the newly established State Administration of Market Supervision and Administration (which will include the SAIC and the China Trademark Office too).

All this has been announced with the recent message to the “One Belt, One Road” Conference of August 28, 2018, wherein President Xi Jinping reinforced the principle China will unswervingly strengthened the protection of intellectual property rights by establishing a sound environment for business and innovation to protect IP rights of all enterprises.

President Xi went on to confirm things are organized and China is ready to strengthen dialogue and expand cooperation with all participants to achieve a win-win result in advancing the protection and application of IP rights for the benefit of all people. And so it goes.

Published by Edward E. Lehman on September 7th, 2018 tagged China News | Comment now »

China’s NPC Increases Role in Drafting Legislation

Legislation is an important function and power and a major task of the NPC and its Standing Committee. The Standing Committee has given top priority to improving the quality of legislation, highlighted legislative priorities, accelerated the pace of legislative work, and improved the mechanisms for and effectiveness of legislation.

The Standing Committee of the National People’s Congress firmly establishes political awareness, overall awareness, core consciousness, and Aligning with consciousness, It consciously maintains a high degree of unity in ideological and political action with the Party Central Committee with Comrade Xi Jinping as the core. It upholds the centralized and unified leadership of the Party Central Committee and resolutely upholds the authority of the Party Central Committee ensure that the Party’s line, principles and policies as well as the decision-making and arrangements of the Party Central Committee are implemented in the work of the National People’s Congress.

According to Zhang Dejiang, chairman of the NPC Standing Committee, Deputies to the 12th NPC have loyally represented the interests and will of the people, devoted to their duties and worked diligently, making positive contributions to the development of socialist democracy and the building of a country of socialist rule of law.

He also asked for the long-term adherence to and continuous improvements in the system of people’s congresses, as it is a political system fundamental to adhering to the Party’s leadership, the people being the masters of the country and law-based governance.

Let’s start with several aspects:

“Through the formulation of the supervision law, the implementation of institutional innovation and organizational innovation, the practices and experiences proven to be effective and also have been raised to the legal system, to strengthen the party unified leadership of anti-corruption work, build efficient supervisory authority system, promoted the national governance system and the modernization of governance capacity ,has great and far-reaching significance,” said Zhang Yesui, a spokesperson for the 13th National People’s Congress’s First Meeting.

Formulating the national anthem law, introducing the national security law, comprehensively revising the environmental protection law, deciding to establish the anniversary of the martyrs, and explaining the 104th article of the Hong Kong Basic Law. In the past five years, the NPC Standing Committee has been making efforts to strengthen legislation in key areas and improve the constitution as the core socialist legal system with Chinese characteristics. Scientific legislation, democratic legislation, and law-based legislation made new progress.

“In recent years, our country’s legislative work has responded to the propositions of the times and led the country’s development. It is more in line with the needs of social development and the people’s wishes.” National People’s Congress deputy Guo Naishuo said.

In April 2014, the Standing Committee of the National People’s Congress passed a revised environmental protection law. This environmental protection law, known as “the strictest in history,” has opened up a new era of pollution control in China.

“The contribution of legislators behind the blue sky.” Zhou Guangquan, deputy to the National People’s Congress, believes that the 12th National People’s Congress and its standing committee have achieved outstanding results in protecting the livelihood legislation.

For the past five years, legislation advances steadily in all key areas.

Improve the legal system for ensuring the implementation of the constitution, accelerate the construction of national security and the rule of law, strengthen the socialist market economic legislation, use the law to promote the construction of the socialist core values, and firmly safeguard the constitutional order of the special administrative region established by the Constitution and the Basic Law, etc. legislation in adapting to the needs of economic and social development and the role of “guarantee” and “advance” effect of deepening the reform of various tasks is vividly presented on paper.

Legislation is the premise and foundation for comprehensively governing the country according to law. The Standing Committee adhered to legislation in advance, firmly seized upon major legislative projects related to reform and development, and stability seized the key to improving the quality of legislation, and promoted the standardization and institutionalization of legislative work.

Published by Edward E. Lehman on September 7th, 2018 tagged China News | Comment now »