Intellectual property (IP) protection versus IP abuses: The recent development of Chinese IP abuse rules and recommendations for foreign technology-driven companies

Abstract

This paper will focus on the recent development of the Chinese IP abuse legislation and its potential impact on IP protection and the operation of technology-driven foreign enterprises in China. Firstly, it will provide a brief overview of the TRIPS's requirements on IPR abuse and technology transfer, and the recent development of IP abuse laws at the domestic level, particularly in the US and the EC. Secondly, by drawing a comparison with similar laws in the US and the EC, this paper will critically examine the recent development of the Chinese laws regarding technology transfer and IP abuse prevention, including both the recently enacted Anti-Monopoly Law 2008 (AML) and other prior-AML regulations. Thirdly, the paper will examine both opportunities and potential risks these laws may bring to foreign IP holders/technology-driven companies when operating in China, particularly focusing on the impact of the IP-related provision in the AML. Recent development in antitrust litigation in which Microsoft is a party, including the recent anti-monopoly investigation against Microsoft in China, will also be examined. Lastly, it will provide some practical suggestions for foreign IP holders and technology-driven companies to operate in China, such as useful defences against potential IP abuse claims, and other strategies for flexibly applying the IP abuse rules and better participating in future IP abuse legislative process in China.