FAQ

FAQ

IPR violators should be made public

The central government said on Wednesday that local authorities should publish cases of infringements on intellectual property rights and producing fake products as part of efforts to ensure market order.

Such cases should be an important part of government information disclosure and local authorities must publish them in a timely and active manner, said the statement released after an executive meeting of the State Council presided over by Premier Li Keqiang.

The move is intended to further improve product quality and encourage innovation, to ensure fair play within the market economy.

Cases that involve commercial secrets and personal privacy could be excluded from the information disclosure, the statement said.

The disclosure should include the major facts, the category of punishment, the basis of the punishment and the verdict.

In addition, information on the administrative penalty imposed by authorities should be included in the social credit system in order to ensure violators would be penalized for poor credit records.

Local authorities who fail to publish such information in time or who collect fines illegally will be held accountable, the statement said.

In China, the government organs in charge of cracking down on cases of infringement of intellectual property rights and producing fake products are the State Administration for Industry and Commerce and industry and commerce authorities at different local levels.

Wang Qian, a professor at East China University of Political Science and Law, said the move by the central government could be more intimidating to listed companies.

"It will put more pressure on the violators, especially on listed companies as such disclosure would directly affect their stock prices," he said.

It remained to be seen whether the measure would threaten small businesses and individuals who violate the rule as the cost for them to break the law is lower, he said.

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