The Shanghai Intellectual Property Court (“IP Court”) opened its gate on Jan. 5, 2014. On its opening date, HP Computer filed a patent infringement case
This newly established court is a result of a pilot program authorized by the PRC National Congress and administered by the PRC Supreme People’s Court with aims to streamline case handling and improve quality and consistency.
Subject matter jurisdiction
The Shanghai Intellectual Property Court has jurisdiction over the following types of cases:
- First instance of civil and administrative cases relating to patents, new plant varieties, layout design of integrated circuit, technological secrets and computer software;
- First instance of judicial appeals against administrative decisions relating to copyright, trademark or unfair competition, such as those from the local offices of State Administration of Industry and Commerce;
- First instance of civil cases regarding certification of well-known trademarks; and
- Second instance of civil and administrative cases regarding copyright, trademark and unfair competition heard at first instance by district courts.
IP criminal cases are not subject to the Shanghai Intellectual Property Court’s jurisdiction which allows forum shopping to some extent. For example, first instance of IP criminal cases may be heard at different district courts if the criminal action takes place in different districts in Shanghai.
Personal jurisdiction
For civil infringement case, either the infringement activities take place in Shanghai or the defendant is domiciled in Shanghai in order for the IP Court to establish personal jurisdiction.
Further, if the disputed amount (normally in the form of requested damages) surpass RMB 5 million and one of the parties is a foreign entity, the case will have to be brought at the IP Court, though normally trademark and copyright infringement cases are generally handled by the district court.
Appeal IP Court’s decision
Since the IP Court has the same level as the Intermediate people’s courts, its decisions on first instance cases are appealed to the Shanghai High People’s Court.
Overall, the establishment of the Shanghai IP Court is a big step for China’s endeavor to enhance IP protection. The Supreme People’s Court will monitor and assess the development of the IP Court and issue a report on its performance in three years.
