China prepares for IP lawfare
On Wednesday, the State Council released regulations governing foreign-related IP disputes.
FYI: “Foreign-related” is a squishy term – but in this case it refers to IP legal issues encountered by Chinese companies in foreign jurisdictions.
Some context: China accuses the US of using IP law to unfairly restrict or undermine the operations of Chinese sci-tech companies.
- The civil and criminal cases brought by Micron and the US Justice Department against Fujian Jinhua are recent examples.
China is underprepared for these fights. The State Council regs address this in several ways.
- First, they encourage the development of IP legal capacity at Chinese law firms, companies, and industry bodies.
- Second, they reinforce existing legal restrictions that prevent Chinese companies cooperating with foreign legal authorities in cases of IP disputes.
- Third, the regulations threaten sanctions against countries that use IP disputes as an “excuse to contain and suppress” China.
Get smart: China has gradually strengthened its international lawfare capabilities to combat foreign sanctions and other coercive measures.
- Expanding the toolbox to cover IP disputes is a logical next step.
Get smarter: These State Council regs are aimed at counteracting perceived unfair interference from foreign governments, rather than seeking to undermine legitimate IP disputes.
- That means foreign companies entangled in IP disputes with Chinese companies shouldn't panic – unless, say, you’ve lobbied for US government action against a Chinese counterpart.