USCBC Comments on Draft Regulations on the Prohibition of Conduct that Eliminates or Restricts Competition through Abuse of Intellectual Property Rights

July 10, 2014

The US-China Business Council (USCBC) appreciates the opportunity to participate in the public comment solicitation process for the draft Regulations on the Prohibition of Conduct that Eliminates or Restricts Competition through Abuse of Intellectual Property Rights (“draft Regulations”). This process reflects a continued positive effort by China’s State Administration of Industry and Commerce (SAIC) to provide greater transparency in the formulation of policy and legislation.

USCBC has approximately 220 member companies, including global leaders in innovation that hold thousands of patents in manufacturing, information technology, pharmaceuticals, services, and other areas. Our companies support China’s right to regulate a fair and competitive market, as well as its goals of promoting innovation and competition, enhancing efficiency, and safeguarding consumer and public interests. Developing laws and regulations to promote these goals is the foundation of a modern economy. The comments contained in this submission represent the views of many leading US companies engaged in business across all industries and sectors in China.

This is the eighth draft since SAIC first began work on these regulations after the 2008 implementation of the Antimonopoly Law (AML). These regulations deal with issues that fall under the scope of SAIC’s implementation of the AML and the intersection between the legitimate exercise of intellectual property rights (IPR) and anti-competitive behavior. These regulations cover the exercise of intellectual property broadly, including patents, trademarks, copyrights, and trade secrets.

USCBC supports Chinese government efforts to foster a more innovative society and to ensure a fair and competitive market environment. At the same time, USCBC member companies have concerns about a number of articles in the draft regulations that need further clarification to effectively achieve the objectives stated in Article 1 of the draft regulations: to protect competition, promote innovation, and prevent business operators from abusing IPR to eliminate or restrict competition.

Recognizing that there are many provisions that may be addressed in other organizations’ comments, USCBC respectfully submits the following comments on the draft Regulations for further clarification and appropriate changes prior to issuing the final version.

(For full comments, see PDF)