The State Council issued on June 27, 2014 the Outline of Chinese Social Credit System Construction Plan (2014-2020) (hereinafter referred to as “the Outline”) which was made jointly by 35 government departments, including the State Intellectual Property Office (SIPO). The Outline clearly put forward the plan and objective of the construction of intellectual property credit system, which become a highlight of concern. It is clearly expressed in the Outline that the construction of credit system in IP field includes: to establish and improve IP integrity management system, and to publish measures for credit rating in IP protection; to fight particularly against infringement upon IP rights and manufacturing and selling of counterfeit and inferior goods, and to bring infringement of IP rights into the discredit record.

According to the introduction of the relevant responsible person of the Patent Administration Department of SIPO, in June 2011, SIPO had proposed in the Decision to Strengthen IP Administrative Law Enforcement published by SIPO to establish the supervisory mechanism of social credit evaluation for IPR protection, establish social credit evaluation criteria for IPR protection, monitor and evaluate enterprises’ infringing and counterfeiting acts, build up IP credit archive, and construct multi-layered supervisory mechanism of social credit evaluation for IPR protection.

In accordance with relevant arrangements of SIPO, cities including Guangzhou, Shenzhen and Wenzhou have begun their exploration of constructing IP credit system. Guangzhou released Construction and Implementation Plan of Social Credit System among Guangzhou Intellectual Property Offices in which it linked enterprises’ IP credit with patent awards, patent pledge financing, bank credit, and appraisals of IP preponderant enterprises, etc., and in the meanwhile proposed to severely punish the discredited enterprises and individuals for their repeated infringing and counterfeiting acts; Regulations to Strengthen IP Protection of Shenzhen, passed by Shenzhen People’s Congress, linked explicitly IP credit files with enterprises’ and individuals’ credit system; Wenzhou also issued the Three-year Action Plan of the Construction of Wenzhou Credit System in IP Field (2013-2015) and proposed to construct IP credit system with close combination with the construction of “Credible Wenzhou”, in order to promote transformation and upgrading of industry and build up of innovative-oriented city.

In addition, departments of Industry and Commerce, Copyright, Agriculture and Forestry have made active moves in the construction of IP credit system. The Trademark Law, which was amended for the third time and took effective from May 1, 2014, stipulated clearly for the first time that the principle of honesty and credibility shall be observed and violator shall be recorded in the credit files. Documents released by the Supreme Court, including Opinions on Several Issues Concerning General Situation of IP Judgment under the Current Economic Situation, all proposed to strongly promote the construction of credible society.

Date: July 4, 2014             
Source: State Intellectual Property Office