Regulations of the State Council on Handling Foreign-Related Intellectual Property Disputes

On March 19, 2025, Chinese Premier Li Qiang signed a State Council decree to promulgate the Regulations of the State Council on Handling Foreign-Related Intellectual Property Disputes (hereinafter referred to as the Regulations), which will take effect on May 1, 2025. The Regulations consist of 18 articles, covering the following key aspects:

1. Enhancing Services

• State Council departments will improve access to overseas intellectual property (IP) information, provide risk alerts, and establish guidelines for handling foreign-related IP disputes.
• Support mediation organizations and arbitration institutions in resolving disputes efficiently.
• Government departments will conduct targeted training and promote best practices for resolving disputes.
• Support enterprises in establishing mutual aid funds for IP protection and encourage insurance providers to offer IP-related coverage.

2. Regulating Overseas Evidence Collection

• Evidence collection and document delivery in China must comply with domestic laws and international treaties.
• Sharing evidence or materials abroad must adhere to state secrecy, data security, and administrative approval requirements.

3. Counteracting Unfair Treatment

• The Ministry of Commerce may investigate and take measures against countries that deny Chinese citizens/organizations national treatment or fail to provide adequate IP protection.
• Retaliatory measures may be imposed on foreign entities using IP disputes to suppress Chinese interests or impose discriminatory restrictions.

Regulations of the State Council on Handling Foreign-Related Intellectual Property Disputes

Article 1
These Regulations are formulated to strengthen intellectual property (IP) protection, facilitate the lawful resolution of foreign-related IP disputes by citizens and organizations, safeguard their legitimate rights and interests, promote high-level openness to the world, and advance high-quality economic development.

Article 2
The State Council departments responsible for the administration of trademarks, patents, copyrights, and other intellectual property matters (hereinafter "IP authorities") and the competent commerce authorities shall enhance guidance, support, and services for citizens and organizations in resolving foreign-related IP disputes. Other relevant departments of the State Council shall perform their respective duties in accordance with their mandates.
Relevant State Council departments shall strengthen coordination and information-sharing to ensure effective handling of foreign-related IP disputes.

Article 3
Local people's governments at or above the county level and their relevant departments shall carry out work related to foreign-related IP disputes in accordance with local conditions.

Article 4
The State Council IP authorities, together with the commerce, judicial, and administrative departments, shall promptly collect and publish information on foreign IP legal systems, improve the public service system for IP information, and provide public access to foreign IP information inquiry services.

Article 5
The State Council IP authorities and commerce departments shall monitor significant developments in foreign IP legal systems, conduct case studies, issue timely risk alerts, and provide foreign-related IP risk warnings to the public.

Article 6
The State Council IP authorities and commerce departments shall establish robust guidance mechanisms and standardized procedures for handling foreign-related IP disputes, offering citizens and organizations strategic advice and rights protection assistance.

Article 7
Commercial mediation organizations and arbitration institutions are encouraged to participate in resolving foreign-related IP disputes. Citizens and organizations shall be guided to resolve such disputes efficiently through negotiation, mediation, or arbitration.
The judicial administrative department of the State Council shall strengthen oversight and guidance for mediation and arbitration of foreign-related IP disputes.

Article 8
Law firms and IP service providers are encouraged to enhance their capacity to deliver foreign-related IP services, including by establishing overseas branches or engaging in joint operations, to provide high-quality and efficient services to citizens and organizations.
The State Council judicial and IP authorities shall adopt measures to create favorable conditions for law firms and IP service providers to expand their foreign-related IP services.

Article 9
Enterprises are supported in establishing mutual assistance funds for foreign-related IP protection. Insurance institutions are encouraged to develop market-driven IP-related insurance products to reduce enterprises' costs for protecting their rights.

Article 10
Industry associations, chambers of commerce, cross-border e-commerce platforms, and similar organizations are encouraged to establish foreign-related IP rights protection platforms, open service hotlines, and provide public-interest services such as consultations and training.

Article 11
Enterprises shall strengthen legal compliance awareness, establish sound internal governance systems, enhance IP talent development, and improve IP protection and utilization. When operating in foreign markets, enterprises shall proactively familiarize themselves with local legal frameworks and IP protection regimes, conduct business activities lawfully, and actively defend their legitimate rights.
The State Council IP authorities and commerce departments shall organize awareness campaigns, training programs, and case studies for enterprises, focusing on key areas and critical aspects of foreign-related IP disputes, to enhance enterprises' capacity to address such disputes.
The judicial administrative department shall advance public legal education on IP rights under the principle of "those who enforce the law shall popularize it," thereby raising public awareness of IP protection and lawful rights defense.

Article 12
Service of legal documents and collection of evidence within the territory of the People's Republic of China shall comply with international treaties concluded or acceded to by China, as well as domestic laws including the Civil Procedure Law of the People's Republic of China and the International Criminal Judicial Assistance Law of the People's Republic of China. No organization or individual may conduct such activities in violation of Chinese law.

Article 13
Where organizations or individuals in China participate in foreign IP-related litigation or are subject to investigations by foreign judicial or law enforcement authorities, the provision of evidence or materials to overseas entities shall comply with Chinese laws and regulations on state secrets, data security, personal information protection, technology export controls, and judicial assistance. Prior approval from competent authorities shall be obtained where legally required.

Article 14
The competent commerce department of the State Council may, per the Foreign Trade Law of the People's Republic of China, investigate and take necessary measures against the following:

1, Importation of goods that infringe IP rights and harm foreign trade orders;

2, IP rights holders engaging in practices such as prohibiting licensees from challenging the validity of licensed IP, imposing coercive package licensing, or incorporating exclusive grant-back clauses in licensing agreements, thereby undermining fair competition in foreign trade;

3, Countries or regions that fail to grant national treatment to Chinese citizens and organizations or to provide adequate and effective IP protection for goods, technologies, or services originating from China.

Article 15
Where a foreign state, in violation of international law and fundamental norms of international relations, uses IP disputes as a pretext to suppress or contain China, imposes discriminatory restrictions on Chinese citizens or organizations, or interferes in China's internal affairs, relevant State Council departments may, pursuant to the Foreign Relations Law of the People's Republic of China and the Anti-Foreign Sanctions Law of the People's Republic of China, designate organizations or individuals directly or indirectly involved in formulating, deciding, or implementing such discriminatory measures to a countermeasures list and adopt corresponding countermeasures or restrictions.

Article 16
No organization or individual shall comply with or assist in implementing discriminatory restrictions imposed by foreign states against Chinese citizens or organizations under the pretext of IP disputes.
Chinese citizens or organizations whose rights are infringed due to violations of the preceding paragraph may file lawsuits in Chinese courts to demand cessation of infringement and compensation for damages.

Article 17
Relevant State Council departments shall strengthen coordination to address acts exploiting IP disputes to endanger China's sovereignty, security, or development interests, taking measures in accordance with the National Security Law of the People's Republic of China, the Foreign Relations Law of the People's Republic of China, and the Anti-Foreign Sanctions Law of the People's Republic of China. Acts involving abuse of IP rights to eliminate or restrict competition, or engage in unfair competition, shall be handled under the Anti-Monopoly Law of the People's Republic of China and the Anti-Unfair Competition Law of the People's Republic of China.

Article 18
These Regulations shall enter into force on May 1, 2025.

 Feng Shangjie (Gasoll Feng)