Rules and Policies（Intellectual Property，Anti-Monopoly and Anti-Unfair Competition Law）

Intellectual Property

The State Intellectual Property Office revised and published the Guidelines for the Handling of Intellectual Property Government Affairs Services (Second Edition)

On June 14, 2024, the State Intellectual Property Office (SIPO) issued the second edition of the Guidelines on the Handling of Intellectual Property Government Affairs Services. Amendments were made to the first edition

of the Guidelines in accordance with the newly revised Implementation Rules of the Patent Law and the Patent Examination Guidelines, and the process of intellectual property government affairs services was further optimized, with a focus on improving service efficiency, ensuring transparency, and facilitating intellectual property protection. Specifically, the new version of the Guide adds “patent term compensation” and “drug patent term compensation” to the patent section. For a new drug-related invention patent obtained in China, the patentee can, within three months of the new drug obtaining marketing authorization, request the patent administration department of the State Council to give patent term compensation for the time taken for the new drug to obtain marketing approval.

Anti-Monopoly and Anti-Unfair Competition Law

1. The Supreme People's Court issued the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Monopoly Civil Dispute Cases

On June 24, 2024, the Supreme People’s Court issued this Judicial Interpretation, which consists of six parts and 51 articles. The first part covers procedural matters, including the definition of monopoly civil dispute cases, prosecution methods, case jurisdiction, combined trials, evidence identification, public interest litigation, and suspension of litigation. The second part sets out the definition of the relevant market, and includes the definition of the relevant market principle requirements, burden of proof, analysis methods, considerations and other matters. The third part covers horizontal monopoly agreements (collaborative behavior, actors, drug patent reverse payment agreements, algorithm agreements, and cross-platform most favorable treatment), as well as vertical monopoly agreements (burden of proof, anti-competitive effect identification and exceptions, organizational assistance behavior, monopoly agreement exemptions and other matters). The fourth part clarifies the definition of market dominance and covers the analysis and identification of various types of abuse of market dominance. The fifth part contains provisions on the form of civil liability, loss recognition, effect of action, limitation of action, and so on.

The Judicial Interpretation was officially implemented on July 1, 2024.

2. The Anti-Monopoly and Unfair Competition Commission of the State Council issued the Guidelines for Business Operators' Anti-Monopoly Compliance

On April 25, 2024, the Anti-Monopoly and Unfair Competition Commission of the State Council issued the Operators’ Anti-Monopoly Compliance Guide, with a total of six chapters and 41 articles. Compared with the Operators’ Anti-Monopoly Compliance Guide issued in 2020, the revised version is larger, especially with the addition of the fifth chapter on compliance incentives and the addition of 22 scenario reference examples. In the basic content, the new guide focuses on guidance for operators and their incentives for anti-monopoly compliance, which is very significant for further optimizing the market-oriented, legal and international business environment. Comparing the 2024 Compliance Guide with the 2020 Compliance Guide, the following five highlights can be found in the new version: (1) it clarifies the compliance incentive rules of the whole process in a special chapter to improve the effectiveness of compliance implementation; (2) it has additional reference examples to provide clear action guidelines for operators; (3) it clarifies the principles and establishes a layered compliance management system that suits the reality; (4) it refines the key points of compliance risk identification in specific types of monopoly behavior; and (5) it enriches the content of compliance management guarantees and standardizes the procedural compliance system.

3. The State Administration for Market Regulation issued the Interim Provisions on Anti-Unfair Competition on the Internet

On May 11, 2024, in order to prevent and stop unfair competition on the Internet, maintain the market order of fair competition, encourage innovation, protect the legitimate rights and interests of operators and consumers, and promote the healthy and sustainable development of the digital economy, the State Administration for Market Regulation officially issued the Interim Provisions on Anti-Unfair Competition on the Internet. The main aims are to encourage innovation, regulate competition, strengthen consumer rights and protect consumer interests, strengthen platform responsibilities, optimize law enforcement and case handling, and clarify legal responsibilities.