中美知识产权贸易争端解决诉状（英文）

中美知识产权贸易争端解决诉状（英文）china–measuresaffectingtheprotectionand

enforcementofintellectualpropertyrights

RequestforConsultationsbytheUnitedStates

Thefollowingcommunication,dated10April2007,fromthedelegationoftheUnitedStatestothedelegationofChinaandtotheChairmanoftheDisputeSettlementBody,iscirculatedinaccordancewithArticle4.4oftheDSU.

MyauthoritieshaveinstructedmetorequestconsultationswiththeGovernmentofthePeople'sRepublicofChina("China")pursuanttoArticles1and4oftheUnderstandingonRulesandProceduresGoverningtheSettlementofDisputes("DSU")andArticle64oftheAgreementonTrade-RelatedAspectsofIntellectualPropertyRights("TRIPSAgreement")(totheextentthatArticle64correspondstoArticleXXIIoftheGeneralAgreementonTariffsandTrade1994)withrespecttocertainmeasurespertainingtotheprotectionandenforcementofintellectualpropertyrightsinChina.

I.

Thresholdsforcriminalproceduresandpenalties

ThefirstmatteronwhichtheUnitedStatesrequestsconsultationsconcernsthethresholdsthatmustbemetinorderforcertainactsoftrademarkcounterfeitingandcopyrightpiracytobesubjecttocriminalproceduresandpenalties.

Inthisregard,themeasuresatissueinclude:

(1)

theCriminalLawofthePeople'sRepublicofChina(adoptedattheSecondSessionoftheFifthNationalPeople'sCongresson1July1979andrevisedattheFifthSessionoftheEighthNationalPeople'sCongresson14March1997)("CriminalLaw"),inparticularArticles213,214,215,217,218,and220;and

(2)

measuresbythecourtsandprocuratoratethatapplythroughoutChina,includingtheInterpretationbytheSupremePeople'sCourtandtheSupremePeople'sProcuratorateonSeveralIssuesofConcreteApplicationofLawinHandlingCriminalCasesofInfringingIntellectualProperty(adoptedatthe1331stSessionoftheJudicialCommitteeoftheSupremePeople'sCourton2November2004andthe28thSessionoftheTenthProcuratorialCommitteeoftheSupremePeople'sProcuratorateon11November2004andtobeeffectiveasof22December2004)("theDecember2004JudicialInterpretation"),andtheInterpretationbytheSupremePeople'sCourtandtheSupremePeople'sProcuratorateonSeveralIssuesofConcreteApplicationofLawinHandlingCriminalCasesofInfringingIntellectualProperty(II)(adoptedon4April2007,atthe1422ndSessionoftheJudicialCommitteeoftheSupremePeople'sCourtandthe75thSessionoftheTenthProcuratorialCommitteeoftheSupremePeople'sProcuratorate,andtobeeffectiveon5April2007)("theApril2007JudicialInterpretation");

aswellasanyamendments,relatedmeasures,[1]orimplementingmeasures.

Articles213,214,and215oftheCriminalLawdescribecertainactsoftrademarkcounterfeitingthatmaybesubjecttocriminalproceduresandpenalties.

However,underArticle213,criminalproceduresandpenaltiesareavailableonly"ifthecircumstancesareserious"or"ifthecircumstancesareespeciallyserious".

UnderArticle214,criminalproceduresandpenaltiesareavailableonly"iftheamountofsales[ofcommoditiesbearingcounterfeitregisteredtrademarks]isrelativelylarge"or"iftheamountofsalesishuge".

UnderArticle215,criminalproceduresandpenaltiesareavailableonly"ifthecircumstancesareserious"or"ifthecircumstancesareespeciallyserious".

Articles217and218oftheCriminalLawdescribecertainactsofcopyrightpiracythatmaybesubjecttocriminalproceduresandpenalties.

However,underArticle217,criminalproceduresandpenaltiesareavailableonly"iftheamountofillegalgainsisrelativelylarge,orifthereareotherseriouscircumstances"or"iftheamountofillegalgainsishugeorifthereareotherespeciallyseriouscircumstances".

UnderArticle218,criminalproceduresandpenaltiesareavailableonly"iftheamountofillegalgainsishuge".

Article220oftheCriminalLawprovidesfortheavailabilityofproceduresandpenaltieswhenthecrimesdescribedinArticles213through219arecommittedbya"unit",asopposedtobynaturalpersons.

TheCriminalLawitselfdoesnotdefinetheterms"serious","especiallyserious","relativelylarge",and"huge"asusedintheabove-referencedarticles.

Instead,thesetermsaredefinedintheDecember2004JudicialInterpretationandtheApril2007JudicialInterpretationbyreferenceto"illegalbusinessvolume"(statedintermsofthevalueofproductsproduced,stored,transportedandsold),"illegalgains"(statedintermsofprofit),ornumberof"illegalcopies".

Additionally,wherethethresholdsaredefinedintermsof"illegalbusinessvolume",Article12oftheDecember2004JudicialInterpretationprovidesthatvalueordinarilyiscalculatedaccordingto"thepricesatwhichsuchproductsareactuallysold"or"thelabeledpricesortheactualpricesfoundtobesoldatafterinvestigation".

Inotherwords,itisthepriceoftheinfringinggoodsasopposedtothepriceofthecorrespondinglegitimategoodsthatdetermines"illegalbusinessvolume".

Thelowertheactualorlabeledpricesofinfringinggoods,themoreofthemaninfringercansellorofferforsalewithoutreachingthethresholdsintheCriminalLawthataredefinedbyreferenceto"illegalbusinessvolume".

TheUnitedStatesunderstandsthatactsoftrademarkcounterfeitingandcopyrightpiracyoccurringonacommercialscaleinChinathatfailtomeetthethresholdsarenotsubjecttocriminalproceduresandpenaltiesinChina.

ThelackofcriminalproceduresandpenaltiesforcommercialscalecounterfeitingandpiracyinChinaasaresultofthethresholdsappearstobeinconsistentwithChina'sobligationsunderArticles41.1and61oftheTRIPSAgreement.

II.

DisposalofgoodsconfiscatedbyCustomsauthoritiesthatinfringeintellectualpropertyrights

ThesecondmatteronwhichtheUnitedStatesrequestsconsultationsconcernsgoodsthatinfringeintellectualpropertyrightsthatareconfiscatedbyChinesecustomsauthorities,inparticularthedisposalofsuchgoodsfollowingremovaloftheirinfringingfeatures.

Inthisregard,themeasuresatissueinclude:

(1)

theRegulationsofthePeople'sRepublicofChinaforCustomsProtectionofIntellectualPropertyRights(adoptedatthe30thOrdinaryMeetingoftheStateCouncilon26November2003,publishedbytheStateCouncilon2December2003,andeffectivefrom1March2004)("CustomsIPRRegulations"),inparticularChapter4thereof;and

(2)

theImplementingMeasuresofCustomsofthePeople'sRepublicofChinafortheRegulationsofthePeople'sRepublicofChinaonCustomsProtectionofIntellectualPropertyRights(adoptedatanAdministrationAffairsMeetingoftheGeneralAdministrationofCustomson22April2004,issuedbytheGeneralAdministrationofCustomswithOrderNo.114on25May2004,andeffectivefrom1July2004)("CustomsIPRImplementingMeasures"),inparticularChapter5thereof;

aswellasanyamendments,relatedmeasures,[2]orimplementingmeasures.

Specifically,theUnitedStatesunderstandsthatArticle27oftheCustomsIPRRegulationsandArticle30oftheCustomsIPRImplementingMeasuressetforthahierarchyofrequirementsforthedisposalofgoodsthatinfringeintellectualpropertyrightsandthatareconfiscatedbyChinesecustomsauthorities.

Underthathierarchy,thecustomsauthoritiesoftenappeartoberequiredtogiveprioritytodisposaloptionsthatwouldallowsuchgoodstoenterthechannelsofcommerce(forinstance,throughauctioningthegoodsafterremovingtheirinfringingfeatures).

Onlyiftheinfringingfeaturescannotberemovedmustthegoodsbedestroyed.

TherequirementthatinfringinggoodsbereleasedintothechannelsofcommerceunderthecircumstancessetforthinthemeasuresatissueappearstobeinconsistentwithChina'sobligationsunderArticles46and59oftheTRIPSAgreement.

III.

DenialofcopyrightandrelatedrightsprotectionandenforcementtoworksthathavenotbeenauthorizedforpublicationordistributionwithinChina

ThethirdmatteronwhichtheUnitedStatesrequestsconsultationsconcernsthedenialofcopyrightandrelatedrightsprotectionandenforcementtocreativeworksofauthorship,soundrecordings,andperformancesthathavenotbeenauthorizedforpublicationordistributionwithinChina.

Forexample,itappearsthatworksthatarerequiredtoundergocensorshipreview(orotherformsofpre-publicationorpre-distributionreview)beforeenteringtheChinesemarketarenotprotectedbycopyrightbeforethereviewiscompleteandpublicationanddistributionwithinChinahasbeenauthorized.

Inthisregard,themeasuresatissueinclude:

(1)

theCopyrightLaw,[3]inparticularArticle4;

(2)

theCriminalLaw,theRegulationsontheAdministrationofPublishingIndustry,theRegulationsontheAdministrationofBroadcasting,theRegulationsontheAdministrationofAudiovisualProducts,theRegulationsontheAdministrationoffilms,andtheRegulationsontheAdministrationofTelecommunication;[4]

(3)

theAdministrativeRegulationsonAudiovisualProducts[5];

(4)

theAdministrativeRegulationonPublishing[6];

(5)

theAdministrativeRegulationsonElectronicPublications[7];

(6)

theMeasuresfortheAdministrationofImportofAudioandVideoProducts[8];

(7)

theProceduresforExaminationandApprovalforPublishingFinishedElectronicPublicationItemsLicensedbyaForeignCopyrightOwner[9];

(8)

theProceduresforExaminationandApprovalofImportationofFinishedElectronicPublicationItemsbyElectronicPublicationImportationEntities[10];

(9)

theProceduresforRecordingofImportedPublications[11];

(10)

theInterimRegulationsonInternetCultureAdministration[12];and

(11)

theSeveralOpinionsontheDevelopmentandRegulationofNetworkMusic[13];

aswellasanyamendments,relatedmeasures,orimplementingmeasures.

Article5(1)oftheBerneConventionfortheProtectionofLiteraryandArtisticWorks(1971)(the"BerneConvention")requiresthatforeignauthorsofprotectedworksshallenjoyalltherightsgrantedtodomesticauthors,aswellasalltherightsspeciallygrantedbytheBerneConvention.[14]

Theserightsmaynotbemadesubjecttoanyformality(BerneConventionArticle5(2)).

TRIPSAgreementArticle9.1requiresallWTOMembers,interalia,tocomplywithArticles1through21oftheBerneConvention.[15]

China'sCopyrightLawprovidesthelegalbasisforcopyrightprotectionwithinChinaoftheworksofChineseandforeignauthors,anditprovidesanarrayofrightstosuchauthors(e.g.,rightsofreproduction,translation,andadaptation).

Inaddition,theCopyrightLawprovidesspecificstatutoryprotectionstoperformers,producersofsoundrecordings,andbroadcastingorganizations.

However,thefirstsentenceofArticle4oftheCopyrightLawprovidesasfollows:

"WorksthepublicationordistributionofwhichisprohibitedbylawshallnotbeprotectedbythisLaw".

Therefore,authorsofworkswhosepublicationordistributionhasnotbeenauthorized(andwhosepublicationordistributionisthereforeprohibited)appearnottoenjoytheminimumstandardsofprotectionspeciallygrantedbytheBerneConventioninrespectofthoseworks(andmayneverenjoysuchprotectioniftheworkisnotauthorized,orisnotauthorizedfordistributionorpublicationintheformassubmittedforreview).

Inaddition,therightsofauthorsofworkswhosepublicationordistributionisrequiredtoundergopre-publicationorpre-distributionreviewappeartobesubjecttotheformalityofsuccessfulconclusionofsuchreview.

TheforegoingappearstobeinconsistentwithChina'sobligationsunderTRIPSAgreementArticle9.1.

Inaddition,Article14oftheTRIPSAgreementrequiresChinatogiveperformers,interalia,thepossibilityofpreventingcertainacts,andtogiveproducersofphonograms(soundrecordings)therighttoauthorizeorprohibitthedirectorindirectreproductionoftheirsoundrecordings(collectively,the"relatedrights").

TotheextentthattheCopyrightLawalsodeniesprotectionoftheserightstoperformersandproducersofsoundrecordingsduringtheperiodofanypre-publicationorpredistributionprohibition,theCopyrightLawappearstobeinconsistentwithChina'sobligationsunderArticle14oftheTRIPSAgreement.

Furthermore,itappearsthatthemeasuresatissueprovidedifferentpre-distributionandpreauthorizationreviewprocessesforChinesenationals'works,performances(ortheirfixations)andsoundrecordingsthanforforeignnationals'works,performances(ortheirfixations)andsoundrecordings.

Totheextentthatthesedifferentprocesses,takentogetherwithArticle4oftheCopyrightLaw,resultinearlierorotherwisemorefavourableprotectionorenforcementofcopyrightorrelatedrightsforChineseauthors'works,Chineseperformers'performances(ortheirfixations)andChineseproducers'soundrecordingsthanforforeignauthors'works,foreignperformers'performances(ortheirfixations)andforeignproducers'soundrecordings,themeasuresatissueappeartobeinconsistentwithChina'sobligationsunderTRIPSAgreementArticle3.1.

Additionally,totheextentthatArticle4oftheCopyrightLaw,independentlyorinconjunctionwiththedifferentpre-authorizationorpre-distributionprocessesintheothermeasuresatissue,causesforeignauthorsofworkswhosepublicationordistributionhasnotbeenauthorizednottoenjoytherightsgrantedtoChineseauthors,themeasuresatissueappeartobeinconsistentwithChina'sobligationsunderTRIPSAgreementArticle9.1(withrespectatleasttoChina'sobligationstocomplywithArticles5(1)and5(2)oftheBerneConvention).

Inaddition,totheextentthatArticle4ofChina'sCopyrightLaw,independentlyorinconjunctionwiththeothermeasuresatissue,makesitimpossibleforrightsholderstoenforcetheircopyrightsorrelatedrightswithrespecttoworks,performancesorsoundrecordingsthathavenotbeenauthorizedforpublicationordistribution,Chinafailstomakeenforcementproceduresavailablesoastopermiteffectiveactionagainstinfringementsofthosecopyrightsandrelatedrights.

ThisappearstobeinconsistentwithChina'sobligationsunderTRIPSAgreementArticle41.1.

IV.

Unavailabilityofcriminalproceduresandpenaltiesforapersonwhoengagesineitherunauthorizedreproductionorunauthorizeddistributionofcopyrightedworks

ThefourthmatteronwhichtheUnitedStatesrequestsconsultationsconcernsthescopeofcoverageofcriminalproceduresandpenaltiesforunauthorizedreproductionorunauthorizeddistributionofcopyrightedworks.

Inparticular,itappearsthatunauthorizedreproductionofcopyrightedworksbyitself–thatis,unauthorizedreproductionthatisnotaccompaniedbyunauthorizeddistribution–maynotbesubjecttocriminalproceduresandpenalties.

Likewise,itappearsthatunauthorizeddistributionofcopyrightedworksbyitself–thatis,unauthorizeddistributionthatisnotaccompaniedbyunauthorizedreproduction–maynotbenotsubjecttocriminalproceduresandpenalties.

Inthisregard,themeasuresatissueincludetheCriminalLaw,inparticularArticle217,aswellasanyamendments,relatedmeasures,orimplementingmeasures.

Article217establishestheavailabilityofcriminalproceduresandpenaltiesforcertainactsofcopyrightpiracy,including"reproducinganddistributing[fuzhifaxing]awrittenwork,musicalwork,motionpicture,televisionprogrammeorothervisualworks,computersoftwareorotherworkswithoutpermissionofthecopyrightowner"and"reproducinganddistributinganaudioorvideorecordingproducedbyanotherpersonwithoutpermissionoftheproducer".[16]

Totheextentthatwilfulcopyrightpiracyonacommercialscalethatconsistsofunauthorizedreproduction–butnotunauthorizeddistribution–ofcopyrightedworks,andviceversa,maynotbesubjecttocriminalproceduresandpenaltiesunderthelawofChina,thiswouldappeartobeinconsistentwithChina'sobligationsunderArticles41.1and61oftheTRIPSAgreement.

TheUnitedStatesnotesthatArticle2oftheApril2007JudicialInterpretationaddressesthephrase"reproducinganddistributing"[fuzhifaxing],andwelookforwardtodiscussingthismatterwithChinaduringourconsultations.

*****

We

lookforwardtoreceivingyourreplytothepresentrequestandtofixingamutuallyconvenientdateforconsultations.

[1]SuchotherrelatedmeasuresincludebutarenotlimitedtotheExplanationonCertainQuestionsRelatedtotheConcreteApplicationofLawinHearingCasesofCrimesofIllegalPublicationFaSe(1998)No.30(adoptedbytheAdjudicationCommitteeoftheSupremePeople'sCourtatits1032ndmeetingon11December1998,effectiveasof23December1998)andtheProsecutionGuidelinesforCriminalCasesJointlyIssuedbytheSupremePeople'sProcuratorateandtheMinistryofPublicSafety(18April2001).

[2]SuchotherrelatedmeasuresincludebutarenotlimitedtotheLawofthePeople'sRepublicofChinaonAdministrativePenalty(adoptedattheFourthSessionoftheEighthNationalPeople'sCongresson17March1996,promulgatedbyOrderNo.63ofthePresidentofthePeople'sRepublicofChinaon17March1996,andeffectiveasof1October1996)andinparticularArticle53thereof.

[3]Adoptedatthe15thSessionoftheStandingCommitteeoftheSeventhNationalPeople'sCongresson7September1990,andamendedaccordingtotheDecisionontheRevisionoftheCopyrightLawofthePeople'sRepublicofChina,adoptedatthe24thSessionoftheStandingCommitteeoftheNinthNationalPeople'sCongresson27October2001.

SeeMainDedicatedIntellectualPropertyLawsandRegulationsNotifiedunderArticle63.2oftheAgreement:China,IP/N/1/CHN/C/1,circulated8July2002.

[4]AsnotedbyChinainreplytoaquestioninReviewofLegislation:China,IP/Q/CHN/1,circulated10December2002,sectionV.A.3.

[5]StateCouncilOrderNo.341,adoptedatthe50thexecutivemeetingoftheStateCouncilon12December2001,promulgatedon25December2001.

[6]StateCouncilOrderNo.343,adoptedatthe50thexecutivemeetingoftheStateCouncilon12December2001,promulgatedon25December2001.

[7]OrderNo.11oftheGeneralAdministrationofPressandPublication(30December1997).

[8]DecreeNo.23oftheMinistryofCultureandtheGeneralAdministrationofCustoms(17April2002).