With Chinese Premier Li Keqiang's signature inked on a State Council order, the Implementing Regulations of the Foreign Investment Law of the People's Republic of China came into force on January 1, 2020. The Regulations delivers heavier sanctions against IP violations, toughened IP law enforcement, a rapid, coordinated IP protection mechanism, diversified ways to settle IP disputes and impartial treatment of IPRs owned by foreign investors and foreign-invested enterprises.
Where patents of foreign investors and foreign-invested enterprises are involved in standard setting activities, relevant rules on standards concerning patents shall prevail. Foreign investors' capital contribution, profits, capital gains, assets disposal income, intellectual property license fees, legally obtained damages or compensation, liquidation proceeds, etc., may be freely remitted from and to overseas in RMB or foreign exchange according to law. No organization and individual may illegally impose restrictions on currency type, amount and frequency of entry and exit. Where it is necessary for a foreign investor and a foreign-invested enterprise to submit materials or information concerning trade secret, the competent authority shall limit the use of the information to the extent of executing its official duty, strictly compartmentalize the information, restrict the access of the personnel not on the need-to-know basis. Authorities shall make their internal policies and invoke effective measures to protect the trade secrets of foreign investors and foreign-invested enterprises during official use.
When another authority has to be looped in on the information, the sensitive part shall be compartmentalized.
The 2nd session of the 13th National People's Congress passed the Foreign Investment Law on March 15, 2019 and set its effective date on January 1, 2020. The Law provides that the State protects the intellectual property rights of foreign investors and foreign-invested enterprises, protects the legitimate rights and interests of intellectual property rights holders and related rights holders, and holds intellectual property rights infringers legally accountable in strict accordance with the law.
Once the said Implementing Regulations is in force, the Implementing Regulations of the Law on Sino-Foreign Equity Joint Ventures, the Implementing Regulations of the Interim Provisions Concerning Contract Period of Sino-Foreign Equity Joint Ventures, the Implementing Regulations of the Law on Wholly Foreign-owned Enterprises, and the Implementing Regulations of the Law on Sino-Foreign Contractual Joint Ventures shall be repealed simultaneously.
Source: China IP News
