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China IP Court System: A Guide for Foreign Litigants

## A Guide for Foreign Litigants in China's Intellectual Property Courts As China's role in the global intellectual property protection system continues to rise, an increasing number of foreign parties are seeking legal remedies in China's intellectual property courts. China has established specialized IP courts or tribunals in cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, forming a relatively comprehensive trial system. This guide aims to provide foreign litigants with practical guidance on litigating in China's IP courts, covering key aspects including the legal framework, litigation procedures, evidence rules, and enforcement mechanisms. ### I. Overview of China's Intellectual Property Court System China's IP court system consists of three tiers: IP tribunals within primary people's courts, IP courts within intermediate people's courts (such as the Beijing, Shanghai, and Guangzhou IP Courts), and the Intellectual Property Tribunal of the Supreme People's Court. Among them, the Beijing Intellectual Property Court, the Shanghai Intellectual Property Court, and the Guangzhou Intellectual Property Court were the first batch of specialized courts established, primarily handling civil and administrative IP cases involving highly technical matters such as patents, trademarks, and copyrights. Since 2019, the Intellectual Property Tribunal of the Supreme People's Court has uniformly heard appeals nationwide in technically complex IP cases such as patents, providing foreign litigants with a higher level of judicial protection. Additionally, IP tribunals have been established in cities like Shenzhen, Hangzhou, and Ningbo, forming a trial network covering major economic regions. Foreign litigants should note that China's IP courts apply the principle of centralized jurisdiction over case acceptance. For example, first-instance patent infringement cases are typically heard by an intermediate people's court or IP court with jurisdiction, while cases involving the recognition of well-known trademarks must be heard by a court designated by the Supreme People's Court. The table below summarizes the jurisdictional scope of the main IP courts: | Court Name | Establishment Date | Main Jurisdictional Scope | Special Notes | |------------|-------------------|---------------------------|---------------| | Beijing Intellectual Property Court | 2014 | First-instance cases on patents, trademarks, copyrights, antitrust, etc. | Has exclusive jurisdiction over patent reexamination and invalidation cases | | Shanghai Intellectual Property Court | 2014 | First-instance cases on patents, trademarks, copyrights, technology contracts, etc. | Shares jurisdiction with primary courts like Pudong New Area Court | | Guangzhou Intellectual Property Court | 2014 | First-instance cases on patents, copyrights, trademarks, etc. | Covers certain cases within Guangdong Province | | Intellectual Property Tribunal of the Supreme People's Court | 2019 | Second-instance cases nationwide on patents and other technical matters | Unifies adjudication standards | ### II. Pre-Litigation Preparation and Strategy Before initiating litigation in China's IP courts, foreign litigants must engage in thorough strategic planning. First, the litigation objectives should be clearly defined—whether seeking damages, injunctive relief, or confirmation of rights ownership. Different objectives will influence the choice of litigation strategy. **Key preparation steps include:** 1. **Rights Stability Assessment**: Before filing an infringement lawsuit, assess the validity of the involved patent, trademark, or copyright. For patents, it is advisable to conduct a prior art search using CNIPA's patent检索 system; for trademarks, confirm that the trademark is registered in China and in force. 2. **Evidence Preservation and Collection**: Chinese law allows parties to apply for evidence preservation before or during litigation. Common measures include notarized purchase of infringing products, applying for court seizure of infringing items, or obtaining relevant financial records. Foreign litigants should pay special attention to the notarization and legalization procedures for cross-border evidence. 3. **Selection of Competent Court**: Choose the appropriate court based on the location of the infringing act, the defendant's domicile, or contractual agreement. For cases involving standard essential patents, the Beijing Intellectual Property Court has extensive trial experience due to handling a large number of such cases. 4. **Translation and Notarization**: All foreign-language evidence must be accompanied by Chinese translations and be notarized by a notary public in the country of origin and legalized by the Chinese embassy or consulate. This procedure is time-consuming, so early preparation is recommended. 5. **Confirmation of Statute of Limitations**: The statute of limitations for IP infringement lawsuits is generally three years, calculated from the date the right holder knew or should have known of the infringing act. Foreign litigants need to carefully verify the relevant time points. ### III. Litigation Procedures and Timeline Litigation procedures in China's IP courts follow the Civil Procedure Law and specialized laws such as the Patent Law. Foreign litigants should be familiar with the following main procedural stages: **Case Filing Stage**: Foreign litigants must submit the statement of claim, rights certification documents, infringement evidence, and other materials. The court decides whether to accept the case within seven days of receiving the materials. For foreign-related cases, the court examines the party's qualification documents (e.g., company registration certificate, certificate of legal representative), which also require notarization and legalization. **Evidence Submission and Cross-Examination**: Chinese courts apply the principle of "he who asserts must prove." In patent infringement cases, the court may require the parties to submit a technical feature comparison chart. Foreign right holders may apply for the court to order the defendant to submit relevant financial documents to calculate damages. Notably, Chinese courts have recently applied the "obstruction of proof" rule more strictly—if the defendant refuses without justifiable cause to provide key evidence, the court may directly accept the plaintiff's claims. **Technical Investigation Officer Participation**: In cases involving complex technical issues, the court may appoint a technical investigation officer to participate in the proceedings and assist the judge in understanding the technical facts. Foreign litigants should actively cooperate with the technical investigation officer and provide clear technical explanations. **Trial and Judgment**: First-instance ordinary procedures generally take 6 to 12 months, but foreign-related cases may extend to 18 months. Second-instance procedures typically take 3 to 6 months. After a judgment is rendered, parties may appeal within 15 days (for civil cases) or 30 days (for foreign-related cases). **Typical Case Timeline**: - Case Filing Review: 7 days - Evidence Exchange: 1-2 months - Court Hearing: 3-6 months after case filing - First-Instance Judgment: 1-3 months after hearing - Appeal Period: 15 days (domestic) or 30 days (foreign-related) after service of judgment - Second-Instance Trial Limit: 3 months (extendable) ### IV. Evidence Rules and Damages Calculation China's IP courts follow the "high probability" standard for evidence admission, meaning that as long as the evidence can prove the facts to be proven are highly probable, the court may recognize it. Foreign litigants need to pay special attention to the following evidence rules: **Types of Evidence**: Includes documentary evidence, physical evidence, electronic data, witness testimony, etc. Among these, notarized evidence carries high probative value in Chinese courts. For online infringement (e.g., sale of infringing products on e-commerce platforms), it is recommended to preserve web pages through a notary public. **Methods of Calculating Damages**: China's Patent Law and Trademark Law provide four methods for calculating damages: actual loss of the right holder, profits gained by the infringer, reasonable multiples of the license fee, and statutory damages. The laws amended in 2020 raised the statutory damages cap to RMB 5 million (for patents) and RMB 5 million (for trademarks), and introduced a punitive damages system—for willful infringement with serious circumstances, damages of 1 to 5 times the calculated amount may be awarded. Foreign litigants should note that Chinese courts typically require detailed financial evidence when calculating damages. If sufficient evidence cannot be provided, the court may apply statutory damages, but the amount is often lower. Therefore, it is advisable for foreign litigants to collect key evidence such as sales data of infringing products and the defendant's financial statements before litigation. ### V. Enforcement Mechanisms and Cross-Border Challenges Enforcement of IP court judgments in China is handled by the enforcement bureaus of people's courts at various levels. After obtaining a favorable judgment, foreign litigants need to apply for compulsory enforcement to the first-instance court or the court where the property is located. Enforcement measures include: sealing, seizing, and freezing property; restricting high consumption; and listing the judgment debtor on the list of dishonest persons subject to enforcement. **Special Issues in Cross-Border Enforcement**: - **Asset Tracing**: Foreign litigants can obtain leads on the defendant's assets through court investigation orders or lawyer investigation orders. China has established a national court network enforcement inquiry and control system, which can query bank deposits, real estate, vehicles, and other information. - **Recognition of Judgments**: China has concluded treaties on mutual recognition and enforcement of civil and commercial judgments with several countries. For countries without such treaties, foreign litigants need to apply for recognition through diplomatic channels or on the basis of reciprocity. - **Preliminary Injunctions**: In urgent situations, foreign litigants may apply for behavioral preservation (i.e., preliminary injunction), requesting the court to immediately stop the infringing act. In recent years, Chinese courts have frequently granted preliminary injunctions in standard essential patent cases, providing a powerful tool for foreign right holders. ### VI. Practical Suggestions and Risk Warnings Based on common issues in practice, foreign litigants should pay attention to the following when litigating in China's IP courts: **Selecting Professional Representatives**: Chinese law requires foreign litigants to retain Chinese lawyers in IP litigation. It is advisable to choose a legal team with patent agency qualifications and extensive litigation experience. Professional IP service organizations like WeRights can assist foreign litigants in selecting suitable legal teams. **Language and Cultural Barriers**: All legal documents must be in Chinese. Foreign litigants should ensure accurate translation to avoid adverse consequences due to terminology ambiguity. Additionally, Chinese courts emphasize mediation; foreign litigants may consider expressing willingness to mediate during litigation, which can help expedite case resolution. **Fees and Costs**: Litigation costs include case acceptance fees, evidence preservation fees, appraisal fees, attorney fees, etc. Foreign litigants should assess litigation costs in advance and consider whether to purchase litigation insurance. For cases involving high-value patents, litigation costs can reach hundreds of thousands of RMB. **Risk Warnings**: - **Patent Invalidation Risk**: Defendants often counter infringement lawsuits by filing patent invalidation requests with CNIPA. Foreign litigants should ensure patent stability or prepare strategies to handle invalidation proceedings. - **Jurisdictional Objections**: Defendants may raise jurisdictional objections to delay litigation. Foreign litigants need to choose a court with sufficient jurisdictional basis when filing the lawsuit. - **Enforcement Difficulties**: Even with a favorable judgment, enforcement may be hindered if the defendant has no assets or has transferred assets. It is advisable to apply for asset preservation before litigation. **Final Suggestion**: Foreign litigants should establish a long-term IP protection strategy, including patent portfolio development, trademark registration, and copyright registration in China. While litigation is an important remedy, a comprehensive strategy combining administrative complaints (e.g., requesting administrative adjudication of patent infringement from CNIPA) and customs protection (e.g., applying for IP recordation with customs) is often more effective. With thorough preparation and a reasonable strategy, foreign litigants can absolutely obtain fair and efficient judicial relief in China's IP courts. For further consultation, you may contact the professional team via Telegram @token_1_com for personalized advice.

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