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Amendment to PRC Criminal Law regarding IP industry
by Summer Xia
In September 2020, the Chinese Patent Law and Copyright Law have been amended. As a consequence, also the PRC Criminal Law was amended to reflect the amendments in The Patent and Copyright Law.
The Amendment to PRC Criminal Law (XI) (The Amendment) was adopted at the 24th meeting of the Standing Committeeof the 13th National People's Congress on December 26, 2020 and came into force on March 1, 2021.
Comprehensibly, the Amendment effectively implemented the content of the relevant provisions of Chapter I of Economic and Trade Agreement between the government of the PRC and the government of the US, expanded the scope of incrimination of the criminal law regarding intellectual property (Articles 213-215, 217-219 in Section 7), increased the intensity of punishment, and added a new crime. We have summarised major changes here.
First, the Amendment has expanded the scope of incrimination.
For example, Article 213 expands the scope of determining the crime of counterfeiting registered trademark from “goods” to “goods or services”. Covering “services” in Article 213 filled a gap in trademark protection timely because currently the focus of economic development is shifting from physical industry to the Internet industry.
Also, Article 214 expands the scope of incrimination from “the amount of sales is relatively large” to “if the amount of illegal income is relatively large or there are other serious circumstances”.
Such changes significantly increased disciplinary power.
Second, the Amendment deleted the majority of the lighter primary sentences for most crimes and increased the maximum fixed-term imprisonment for certain crimes.
For example, Article 213, 214, 215 etc. changed the maximum fixed-term from “less than three years no more than seven years” to “less than three years no more than ten years”, and deleted a lighter primary sentence “criminal detention”.
After the Amendment, the cost of committing crime significantly increased, and hopefully will effectively deter the occurrence of relevant criminal acts and further protect the legitimate interests of rights holders.
Third, the Amendment evidently strengthened the protection of trade secrets.
Article 219 changes the words “brings significant losses to persons having the rights to the commercial secrets” to “if the circumstances are serious”.
This means that the infringement of trade secrets can be changed from a “Result constituted offense” to “Non-result constituted offense”.
The Amendment also added a new kind of crime, which is the “crime of commercial espionage” stipulated in Article 219.1. These changes show the PRC’s determined attitude to protecting trade secrets.
Comparison of original and amended articles
| Original Articles | Amended Articles |
| 第二百一十三条【假冒注册商标罪】未经注册商标所有人许可，在同一种商品上使用与其注册商标相同的商标，情节严重的，处三年以下有期徒刑或者拘役，并处或者单处罚金；情节特别严重的，处三年以上七年以下有期徒刑，并处罚金。 Article 213Whoever uses a trademark identical with a registered trademark on the same kind of goods without the permission of the owner of the registered trademark shall, if the case is of a serious nature, be sentenced to imprisonment or criminal detention of not more than three years and a fine, or be sentenced to a fine only; or if the circumstances are especially serious, be sentenced to imprisonment of not less than three years no more than seven years, and a fine. | 第二百一十三条【假冒注册商标罪】未经注册商标所有人许可，在同一种商品、服务上使用与其注册商标相同的商标，情节严重的，处三年以下有期徒刑，并处或者单处罚金；情节特别严重的，处三年以上十年以下有期徒刑，并处罚金 Article 213Whoever uses a trademark identical with a registered trademark on the same kind of goods or services without the permission of the owner of the registered trademark shall, if the case is of a serious nature, be sentenced to imprisonment of not more than three years and a fine, or be sentenced to a fine only; or if the circumstances are especially serious, be sentenced to imprisonment of not less than three years no more than ten years, and a fine. |
| 第二百一十四条【销售假冒注册商标的商品罪】销售明知是假冒注册商标的商品，销售金额数额较大的，处三年以下有期徒刑或者拘役，并处或者单处罚金；销售金额数额巨大的，处三年以上七年以下有期徒刑，并处罚金。 Article 214Whoever knowingly sells goods bearing a falsely used registered trademark shall, if the amount of sales is relatively large, be sentenced to imprisonment of not more than three years or criminal detentionand a fine, or be sentenced to a fine only; or if the amount of salesis huge or there are other especially serious circumstances, be sentenced to imprisonment of not less than three years no more than seven years, and a fine. | 第二百一十四条【销售假冒注册商标的商品罪】销售明知是假冒注册商标的商品，违法所得数额较大或者有其他严重情节的，处三年以下有期徒刑，并处或者单处罚金；违法所得数额巨大或者有其他特别严重情节的，处三年以上十年以下有期徒刑，并处罚金。 Article 214Whoever knowingly sells goods bearing a falsely used registered trademark shall, if the amount of illegal income is relatively large or there are other serious circumstances, be sentenced to imprisonment of not more than three years and a fine, or be sentenced to a fine only; or if the amount of illegal income is huge or there are other especially serious circumstances, be sentenced to imprisonment of not less than three years no more than ten years, and a fine. |
| 第二百一十五条【非法制造、销售非法制造的注册商标标识罪】伪造、擅自制造他人注册商标标识或者销售伪造、擅自制造的注册商标标识，情节严重的，处三年以下有期徒刑、拘役或者管制，并处或者单处罚金；情节特别严重的，处三年以上七年以下有期徒刑，并处罚金。 Article 215Whoever forges or produces without permit labels of another person's registered trademark or sells labels of a registered trademark that is forged or produced without permit shall, if the circumstances are serious, be sentenced to imprisonment of not more than three years or criminal detention or public surveillance and a fine, or be sentenced to a fine only; or if the circumstances are especially serious, be sentenced to imprisonment of not less than three years no more than seven years, and a fine. | 第二百一十五条【非法制造、销售非法制造的注册商标标识罪】伪造、擅自制造他人注册商标标识或者销售伪造、擅自制造的注册商标标识，情节严重的，处三年以下有期徒刑，并处或者单处罚金；情节特别严重的，处三年以上十年以下有期徒刑，并处罚金。 Article 215Whoever forges or produces without permit labels of another person's registered trademark or sells labels of a registered trademark that is forged or produced without permit shall, if the circumstances are serious, be sentenced to imprisonment of not more than three years and a fine, or be sentenced to a fine only; or if the circumstances are especially serious, be sentenced to imprisonment of not less than three years no more than ten years, and a fine. |
| 第二百一十七条【侵犯著作权罪】以营利为目的，有下列侵犯著作权情形之一，违法所得数额较大或者有其他严重情节的，处三年以下有期徒刑或者拘役，并处或者单处罚金；违法所得数额巨大或者有其他特别严重情节的，处三年以上七年以下有期徒刑，并处罚金： （一）未经著作权人许可，复制发行其文字作品、音乐、电影、电视、录像作品、计算机软件及其他作品的； （二）出版他人享有专有出版权的图书的； （三）未经录音录像制作者许可，复制发行其制作的录音录像的；（四）制作、出售假冒他人署名的美术作品的。 Article 217Whoever, for profits, infringes upon copyright under any of the following circumstances shall, if the amount of illegal income is relatively large or there are other serious circumstances, be sentenced to imprisonment of not more than three years or criminal detention and a fine, or be sentenced to a fine only; or if the amount of illegal income is huge or there are other especially serious circumstances, be sentenced to imprisonment of not less than three years no more than seven years, and a fine:(1) Duplicating and/or distributing any literary work, music work, cinematographic work, televised work, video work, computer software or any other work without the permission of its copyright owner.(2) Publishing any book of which another person has the exclusive right of publication.(3) Duplicating and/or distributing any audio or video product without the permission of its producer. (4) Producing or selling any artistic work bearing a fake signature of another person. |
第二百一十七条【侵犯著作权罪】以营利为目的，有下列侵犯著作权或者与著作权有关的权利的情形之一，违法所得数额较大或者有其他严重情节的，处三年以下有期徒刑，并处或者单处罚金；违法所得数额巨大或者有其他特别严重情节的，处三年以上十年以下有期徒刑，并处罚金：（一）未经著作权人许可，复制发行、通过信息网络向公众传播其文字作品、音乐、美术、视听作品、计算机软件及法律、行政法规规定的其他作品的；（二）出版他人享有专有出版权的图书的；（三）未经录音录像制作者许可，复制发行、通过信息网络向公众传播其制作的录音录像的；（四）未经表演者许可，复制发行录有其表演的录音录像制品，或者通过信息网络向公众传播其表演的；（五）制作、出售假冒他人署名的美术作品的；（六）未经著作权人或者与著作权有关的权利人许可，故意避开或者破坏权利人为其作品、录音录像制品等采取的保护著作权或者与著作权有关的权利的技术措施的。 Article 217Whoever, for profits, infringes upon copyright or the rights relating to copyright under any of the following circumstances shall, if the amount of illegal income is relatively large or there are other serious circumstances, be sentenced to imprisonment of not more than three years and a fine, or be sentenced to a fine only; or if the amount of illegal income is huge or there are other especially serious circumstances, be sentenced to imprisonment of not less than three years no more than ten years, and a fine: (1) Duplicating and/or distributing or through the information network, disseminating to the public any literary work, music work, artistic work, audio visual work, computer software or any other work provided for by laws and administrative regulations without the permission of its copyright owner.(2) Publishing any book of which another person has the exclusive right of publication.(3) Duplicating and/or distributing or through the information network, disseminating to the public any audio or video product without the permission of its producer.(4) Duplicating and/or distributing any audio or video product recording the performance, or through the information network, disseminating to the public the performance, without the permission of its performer.(5) Producing or selling any artistic work bearing a fake signature of another person.(6) Intentionally evading or disrupting the technical measures taken by a copyright owner or the owner of rights relating to the copyright to protect his or her copyright or the rights relating to the copyright to a work or audio or video product, without the permission thereof. |
| 第二百一十八条【销售侵权复制品罪】以营利为目的，销售明知是本法第二百一十七条规定的侵权复制品，违法所得数额巨大的，处三年以下有期徒刑或者拘役，并处或者单处罚金。 Article 218Whoever, for profits, knowingly sells the infringing duplicates set forth in Article217 of this Law shall, if the amount of illegal income is huge, be sentenced to imprisonment of not more than three years or criminal detention and a fine, or be sentenced to a fine only. | 第二百一十八条【销售侵权复制品罪】以营利为目的，销售明知是本法第二百一十七条规定的侵权复制品，违法所得数额巨大或者有其他严重情节的，处五年以下有期徒刑，并处或者单处罚金。 Article 218Whoever, for profits, knowingly sells the infringing duplicates set forth in Article 217 of this Law shall, if the amount of illegal income is huge or there are other especially serious circumstances, be sentenced to imprisonment of not more than five years and a fine, or be sentenced to a fine only. |
| 第二百一十九条【侵犯商业秘密罪】有下列侵犯商业秘密行为之一，给商业秘密的权利人造成重大损失的，处三年以下有期徒刑或者拘役，并处或者单处罚金；造成特别严重后果的，处三年以上七年以下有期徒刑，并处罚金： （一）以盗窃、利诱、胁迫或者其他不正当手段获取权利人的商业秘密的； （二）披露、使用或者允许他人使用以前项手段获取的权利人的商业秘密的； （三）违反约定或者违反权利人有关保守商业秘密的要求，披露、使用或者允许他人使用其所掌握的商业秘密的。 明知或者应知前款所列行为，获取、使用或者披露他人的商业秘密的，以侵犯商业秘密论。 本条所称商业秘密，是指不为公众所知悉，能为权利人带来经济利益，具有实用性并经权利人采取保密措施的技术信息和经营信息。本条所称权利人，是指商业秘密的所有人和经商业秘密所有人许可的商业秘密使用人。 Article 219Whoever commits any of the following conduct to infringe upon a trade secret and brings significant losses to persons having the rights to the commercial secrets shall be sentenced to imprisonment of not more than three years or criminal detention and a fine, or be sentenced to a fine only; or if the consequences are especially serious, be sentenced to imprisonment of not less than three years no more seven years and a fine: (1) Obtaining a right holder's trade secret by theft, inducement, coercion or any other illicit means. (2) Disclosing, using or allowing any other person to use the trade secret obtained from the right holder by the means mentioned in the preceding paragraph. (3) Disclosing, using or allowing any other person to use the trade secret known by him or her in violation of the agreement with the right holder or the requirements of the right holder for keeping the trade secret confidential. Whoever acquires, uses, or discloses other people's trade secret, although he or she knows or should know the conduct set forth in the preceding paragraph shall be punished as infringing upon the trade secret. For the purposes of this Article, ‘trade secret’ means the technical information and operation information that are unknown to the public, can bring economic profits to their right holders, are functional, and are kept as secrets by their right holders. For the purposes of this Article, ‘right holder' means the owner of the trade secret and the person who is permitted by the owner to use the trade secret. | 第二百一十九条【侵犯商业秘密罪】有下列侵犯商业秘密行为之一，情节严重的，处三年以下有期徒刑，并处或者单处罚金；情节特别严重的，处三年以上十年以下有期徒刑，并处罚金：（一）以盗窃、贿赂、欺诈、胁迫、电子侵入或者其他不正当手段获取权利人的商业秘密的；（二）披露、使用或者允许他人使用以前项手段获取的权利人的商业秘密的；（三）违反保密义务或者违反权利人有关保守商业秘密的要求，披露、使用或者允许他人使用其所掌握的商业秘密的。明知前款所列行为，获取、披露、使用或者允许他人使用该商业秘密的，以侵犯商业秘密论。本条所称权利人，是指商业秘密的所有人和经商业秘密所有人许可的商业秘密使用人。 Article 219Whoever commits any of the following conduct to infringe upon a trade secret shall, if the circumstances are serious, be sentenced to imprisonment of not more than three years and a fine, or be sentenced to a fine only; or if the circumstances are especially serious, be sentenced to imprisonment of not less than three years no more ten years and a fine: (1) Obtaining a right holder's trade secret by theft, bribery, fraud, coercion, electronic intrusion or any other illicit means. (2) Disclosing, using or allowing any other person to use the trade secret obtained from the right holder by the means mentioned in the preceding paragraph. (3) Disclosing, using or allowing any other person to use the trade secret known by him or her in violation of the confidentiality obligation or the requirements of the right holder for keeping the trade secret confidential. Whoever acquires, discloses, or uses or allows any other person to use the trade secret although he or she knows the conduct set forth in the preceding paragraph shall be punished as infringing upon the trade secret. For the purposes of this Article, ‘right holder' means the owner of the trade secret and the person who is permitted by the owner to use the trade secret. |
| 第二百一十九条之一为境外的机构、组织、人员窃取、刺探、收买、非法提供商业秘密的，处五年以下有期徒刑，并处或者单处罚金；情节严重的，处五年以上有期徒刑，并处罚金。 Article 219AWhoever steals, spies on, buys or illegally provides any trade secret for an overseas institution, organization or individual shall be sentenced to imprisonment of not more than five years and a fine, or be sentenced to a fine only; and if the circumstances are serious, be sentenced to imprisonment of not less than five years and a fine. | |
| 第二百二十条【单位犯侵犯知识产权罪的处罚规定】单位犯本节第二百一十三条至第二百一十九条规定之罪的，对单位判处罚金，并对其直接负责的主管人员和其他直接责任人员，依照本节各该条的规定处罚。 Article 220Where an entity commits a crime as provided for in Article 213 through Article 219 of this Section, the entity shall be sentenced to a fine, and its directly liable executive in charge and other directly liable persons shall be punished in accordance with the provisions of the aforesaid articles of this Section respectively. | 第二百二十条【单位犯侵犯知识产权罪的处罚规定】单位犯本节第二百一十三条至第二百一十九条之一规定之罪的，对单位判处罚金，并对其直接负责的主管人员和其他直接责任人员，依照本节各该条的规定处罚。 Article 220Where an entity commits a crime as provided for in Article 213 through Article 219A of this Section, the entity shall be sentenced to a fine, and its directly liable executive in charge and other directly liable persons shall be punished in accordance with the provisions of the aforesaid articles of this Section respectively. |
