SBZL IP LAW FIRM We bring IP Patent & Trademark Protection in CHINA

Table of Contents We bring IP ● Patent & Trademark Authorities in China ● Some Statistics of Patent & Trademark Situation in 2013 ● Different routes of enforcement ● Q & A ?

Patent (invention, UM, Design) 1. SIPO a) PTO b) PRB 2. Local IPA: 3. Courts 4. Customs: Trademark 1. SAIC a) CTMO b) TRAB 2. Local AIC 3. Courts 4. Customs 5. PSB Trademark & Design Authorities We bring IP

Some Statistics in 2013 We bring IP Trademark Prosecution Newly Filed: 1,881,500 Newly Registered: 1,004,897 Valid trademarks in total: 7,237,900 Enforcement AIC actions: raid: 83,141 Court (civil) actions: 23, 272 cases PSB actions: 3,473 criminal cases Customs actions: over 23,600 times Detention 74,000,000 goods for TM infrin. and passing-off (98%); 1,5000,000 goods for patent & copyright infringement (2%) Patent (invention, UM, Design) Prosecution Newly Filed: 2,377,061 Newly Granted: 1,313,000 Valid patents in total: 4,195,139 Enforcement IPA actions: 5,056 cases Court (civil) actions: 9,195 patent litigations

Different routes of enforcement We bring IP Right Holder Submitting Complaint & Evidence Filing Receipt Serve to defendant Getting response No response Invalidation started Serve to Right holder No suspension Suspension InvestigationResume Decision No Appeal end 15 days 7 days Enforce Compulsory enforcement Refuse to enforce 7 days 90 days Hearing (if necessary) about 90 days Appeal Intermediation (most circumstances) 7 days Case arise Place the case on file under an order from the director Case Investigation & evidence collection Conclusion and report for approval Transfer to prosecution Transfer to Other AIC No sanction Crime?Jurisdiction? Sanction to be imposed? Serve to defendant for response or argument Making decision and serve Hearing (if any) Report to director or panel if the case is “big” Review or Appeal enforcing the decision end Enforcing the review or appeal decision about 90 days Review or Appeal A typical AIC proceeding (Trademark) A typical IPA proceeding (Patent & Design)

Customs Protection Different routes of enforcement We bring IP Informing defendant IP right recordal Infringing goods found Ex officio or informed by owner Owner Paying guarantee bond Detaining of suspicious goods Serving to Owner Owner submitting Opinion & evidence Serve to defendant Paying of counter guarantee bond (for patent only) Releasing the detained goods Defendant submitting argument & evidence Official investigation （ 30 working days ） （ 1 ） Uncertain （ 2 ） infringement found （ 3 ） not infringement Within 50 days from detaining of goods Decision on sanction Releasing the goods （1）（1） （2）（2） （3）（3） Following-up Court bill No Court bill Informing owner Informing defendant Informing owner Transferring to court Releasing the goods

Different routes of enforcement We bring IP Customs Training Tips: Frequently training the Customs’ officials is very helpful !

Different routes of enforcement We bring IP Civil Litigation Lodge a suit AcceptNot accept HearingWithdrawRejected Preparation Normal Simplified Property preservation Mediation Adv. ExeDefault SettlementNot settled End TerminationPostpone Suspension Judgment Withdrawn Appeal End Mediation Judgmen t Settlement Maintenance ReversionReturn Avoidance First Inst. (6 months) Second Inst. (3 months)

Patent litigation – Court thoughts We bring IP Formality check: Qualification of plaintiff (ownership, right in force) Manufacturing, sell, offer to sell, import? Jurisdictions Determination of scope of the patent concerned (claims, description, file wrapper, common sense) Literal infringement (functional definition?) or Equivalent infringement (estoppel) Defense acceptable (prior art, not covered..)? Civil liability Stop infringement Damage Compensation

TM litigation – Court thoughts We bring IP Formality check: Qualification of plaintiff (ownership & right in force) Jurisdictions Nature of use: Use of a mark in terms of trademark (e.g. OEM)? Infringement judgment Identical or Similar marks? Identical or Similar goods/services? Civil liability Stop infringement Damage Compensation

Q & A? We bring IP Johnson GE Partner/Patent & Trademark Attorney

Thanks! SBZL IP LAW FIRM