Why build “Standardized IP Protection Markets”?
In any large commodity trading market, counterfeit and infringing goods, once rampant, hurt consumers, honest merchants and the credibility of the whole business environment. Since 2014, the China National Intellectual Property Administration (CNIPA) has cultivated and recognized “Standardized IP Protection Markets” — markets expected to have leadership, an organization, rules, staff, funding, and the ability to apply and manage IP protection. By 2022, China had 115 national-level such markets, with a satisfaction score rising to 88.8.
On 21 December 2022, CNIPA issued the Measures for the Management of the Creation and Demonstration of Standardized IP Protection Markets (the “Measures”), systematically revising the previous recognition rules. This article highlights the key points.
From “recognition” to “creation and demonstration”
The revision implements the General Office of the CPC Central Committee and the State Council’s Interim Measures for the Management of Creation-and-Demonstration Activities, upgrading “recognition” to “creation and demonstration”, clarifying goals, principles and procedures, and optimizing workflow.
What changed in the Measures?
1. Connotation, division of functions and scope
The Measures have four chapters and 35 articles. Article 2 defines a “Standardized IP Protection Market” as a commodity trading market cultivated and recognized by CNIPA. Article 5 separates central and local powers: CNIPA handles cultivation guidance, recognition and review; provincial IP offices lead recommendation, daily management and initial evaluation. Article 7 provides that eligible markets may apply for cultivation, may apply for recognition after the cultivation period, and must apply for review upon expiry of the title.
2. Clearer implementation procedure
Offline markets are governed by the provincial IP office in their location; online markets by the provincial IP office of their registration; mixed markets are governed by the offline location’s provincial office. The cultivation period is set at one year, down from two. The expert-review score weight drops from 80% to 70%, while the satisfaction score rises from 20% to 30%, avoiding distortion from an overly low satisfaction weight. Titles not reviewed upon expiry are revoked.
3. Daily management and non-compliance handling
Provincial IP offices must assign responsible divisions and staff, conduct annual assessments and file them with CNIPA’s IP Protection Department; local offices strengthen inspections and report major cases by hierarchy. The Measures specify handling for violations in review, recognition and daily management.
Practical tips for market operators and merchants
Frequently asked questions
What is a “Standardized IP Protection Market”?
It refers to a commodity trading market cultivated and recognized by CNIPA, required to have leadership, an organization, rules, staff, funding, and the ability to apply and manage IP protection.
How long is the cultivation period?
The revised Measures set the cultivation period at one year, significantly shorter than the previous two years.
How is the “Standardized IP Protection Market” title managed?
The title is valid for a term; markets that fail to apply for review upon expiry will have the title revoked.
Who governs online versus offline markets?
Offline markets are governed by the provincial IP office in their location, while online markets are governed by the provincial IP office where they are registered.
Source and further reading
This article is based on the policy interpretation of the Measures by the China National Intellectual Property Administration (CNIPA) (original link, 2022-12-26). It is for policy interpretation only and does not constitute an official interpretation or legal advice.
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This article introduces the intellectual property system of the People’s Republic of China (China). For the latest official rules, please refer to the competent authorities.