歐盟企業(yè)在中國(guó)建議書(shū)（2024-2025）時(shí)裝與皮具工作組（英文）

Europeanchamber中國(guó)歐盟商會(huì)

FashionandLeatherWorkingGroup

1.ContinuetoRevisetheProductQualityLawandClarifytheApplicationof

LawsinRelationtotheIssueofMislabellingob

?ConductresearchontheapplicationoflawsintermsofmislabellingandclarifythroughrevisionstotheProductQualityLawthatsuchcasesareexemptfrompenaltiesrelatedtotheviolationofgeneralqualityobligations.

2.RevisetheMandatoryNationalStandardGB18401NationalGeneralSafety

TechnicalCodeforTextileProducts

?ReviseGB18401-2010toincorporatetestingforsubstancesrelatedtocolourfastnessthatposehealthhazards,likesensitisingdyes,andadjustcolourfastnesstestingaccordingly.

SectionThree:Goods

?Revisetheimplementingrulesforproductqualityinspectionsothatcolourfastnessisadjustedfrombeingakeyqualitytestitemtoanormalitem,andtomakehalf-leveldifferenceresultsacceptableinconformityassessments.

3.TakeActiontoCurbtheSaleofFakeGoodsOnlineandPromoteIndustrial

Self-governance

?Promotethedevelopmentofsustainableandeffectiveintellectualpropertyrights(IPR)protectionmodelsagreedbetweenrightsholders,platformsandenforcementdepartments,includingtheprovisionofassistanceinbigdataanalysisforinvestigationandevidencecollection.

?EncouragethedevelopmentandimprovementofstandardsrelatedtotheprotectionofIPRine-commerceandpromotetheiradoptioninrelevantlegislation.

?SuperviseandencouragecourtsatalllevelsthroughoutChinatoactivelystrengthenIPRprotectiononlinebysharingcasestudiesofground-breakingjudgments.

?Classifyplatforms(forexample,traditionale-commerceandsocialmediaplatforms)accordingtomodesofquery,channelsofinformationdisplay,methodsofuseraccess,paymentandsettlement,andothertechnicalfeatures,andestablishproperadministrativemeasures.

4.AllowEnterprisestoProcessandTransferOutofChinaPersonalSensitive

InformationRelatedtoHumanResources(HR)ManagementUponObtainingGeneralConsentfromStaff

?Allowcompaniestoprocessandtransferemployees’sensitivepersonalinformationinordertofulfilbasicHRmanagementobligationsuponobtaininggeneralconsentinsteadofspecificconsent,whentheprincipleoflegalandminimumnecessityisalsofollowed.

5.AdoptanyNecessaryAdministrativeorJudicialMeasurestoCurbBad-faith

TrademarkRegistration

?Considerthemalicioustrademarkusebythepre-emptiveregistrantandreducetheevidentiaryrequirementsforpriorrightsholdersintrademarkinvalidationtrials.

?Taketimelymeasurestostoptheinfringementorunfaircompetitioncausedbythemalicioususeofsquattedtrademarksthroughadministrativelawenforcementandjudicialhearings.

236FashionandLeatherWorkingGroup

EuropeanBusinessinChinaPositionPaper歐盟企業(yè)在中國(guó)建議書(shū)

2024/2025

?Providefeasibleguidanceforhandlingcasesofobviousinfringementwhenaregisteredtrademarkhasbeenusedbeyonditsapprovedscope.

?Useinjunctionswhenhandlinginfringementincivillitigationtopreventthemalicioususeofsquattedtrademarksfromresultinginincreasedlossestopriorrightsholders.

6.StrengthenandOptimisetheSystemforDisclosingConsumerComplaints

?Establishclearguidelinesforidentifyingandexcludingfakeandmaliciouscomplaintsfromthepublishingsystem.

?Includeafeatureononlinecomplaintplatformsformerchantstoprovidefeedbackonaddressingthecomplaints.

SectionThree:Goods

?Developadministrativeregulationsandstandardsforconsumerassociationsandmediaoutletsregardingtheirdisclosureofconsumercomplaints.

RecentDevelopments

In2023,China’sluxurymarketgrew12percent,comingoffarelativelylowbasein2022duetotheCOVID-19pandemic.ItisestimatedthatChinaaccountedforapproximately22to24percentofthetotalamountofluxurygoodsconsumedgloballyin2023.1

ThefollowingrecentChinesepolicyupdateshavehadasignificantimpactonEuropeanChambermembercompaniesoperatingintheindustry:

On22ndMarch2024,theCyberspaceAdministrationofChinareleasedtheProvisionsonPromotingandRegulatingCross-borderDataFlow(Provisions).2TheProvisionsoffergreaterflexibilityinensuringcompanies’compliancewithcross-borderdatatransferrules,achangewelcomedbyluxurybrandsthathavealimitedamountofdatatotransfertotheirEuropeanheadquarters.However,itdoesnotaddresscompanies’needtotransferemployees’personalsensitiveinformationtohandlehumanresourcestasks.Formoreinformation,pleaseseeKeyRecommendation(KR)4ofthispositionpaperandKR2oftheCybersecuritySub-workingGroupPositionPaper2024/2025.

1Lannes,B,andWeiwei,X,2023ChinaLuxuryGoodsMarket:AYearofRecoveryandTransition,Bain&Company,25thJanuary2024,viewed16thMay2024,<

/pdfs/202401240428299453.pdf

>

2TheProvisiononPromotingandRegulatingCross-borderDataFlow,CyberspaceAdministrationofChina,20thAugust2021,viewed30thApril2024,<

/xinwen/2021-08/20/content_5632486.htm

>

On15thMarch2024,theStateCouncilreleasedtheRegulationontheImplementationoftheLawofthePeople’sRepublicofChinaontheProtectionofConsumerRightsandInterests(Regulation),whichbecameeffectiveon1stJuly2024.3TheRegulationstipulatesthatconsumercomplaintsmustnot,inline

withlaws,regulationsandrelevantprovisions,beusedtopursueunduebenefits,violatethelegitimaterightsandinterestsofbusinesses,ordisruptthemarketorder.Inotherwords,itreiteratesthegovernment’scommitmenttoriddingthemarketofprofessionalclaimants.4

On18thOctober2023,theStateAdministrationforMarketRegulation(SAMR)releasedtheProductQualityLaw(DraftforPublicComments),5introducingnotablerevisionscomparedtotheexistinglaw.6Someoftheproposedimprovementsincludetheremovalofthevagueterm‘unqualifiedproduct’,andtheintroductionofaclearerspecificationofmanufacturers’

3TheRegulationontheImplementationoftheLawofthePeople'sRepublicofChinaontheProtectionofConsumerRightsandInterests,StateCouncil,15thMarch2024,viewed15thApril2024,<

/zhengce/

content/202403/content_6940158.htm

>

4Formorebackgroundonprofessionalclaimants,pleaserefertoKeyRecommendation2oftheFashionandLeatherWorkingGroupPositionPaper2018/2019,EuropeanChamber,18thSeptember2019,viewed15thApril2024,<

/en/publications-archive/627/Fashion_

and_Leather_Working_Group_Position_Paper_2018_2019

>

5ProductQualityLawofthePeople'sRepublicofChina(DraftforPublicComments),SAMR,18thOctober2023,viewed30thApril2024,<

https://www.

/hd/zjdc/art/2023/art_60a10db954cf45db88275cd3eebd62d3.html

>

6ProductQualityLawofthePeople'sRepublicofChina,theNationalPeople’sCongress,29thDecember2018,viewed30thApril2024,<

.

cn/zfjcj/tzgg/art/2023/art_579118cd202a45fba28b7edfd9f6fd72.html

>

FashionandLeatherWorkingGroup237

SectionThree:Goods

Europeanchamber中國(guó)歐盟商會(huì)

andsellers’productqualityliabilities,rangingfromthosethataresafety-relatedtomoregeneralrequirements,aswellaslabellingresponsibilities.ThisalignswitharecommendationthattheFashionandLeatherWorkingGrouphasincludedinitspositionpaperforthepastsixyears.Formoreinformation,pleaseseeKR1intheFashionandLeatherDeskPositionPaper2023/2024.7

On26thSeptember,theSAMRissuedtheInterimRulesforManagingthePublicityofComplaintInformationby/inMarketRegulation,whichbecameeffectiveuponpublication.8Havingbuiltonyears-longpilotsconductedinvariouslocalities,thecurrentonlinecomplaintplatformhasundergonesignificantimprovements,however,thereisstillsomeroomforimprovement,ashighlightedinKR6ofthispositionpaper.

On13thAugust2023,theOpinionsoftheStateCouncilonFurtherOptimisingtheForeignInvestmentEnvironmentandIncreasingEffortstoAttractForeignInvestment

wasreleased,9whichcomprises24measuresaimedatimprovingthebusinessenvironmentandattractingforeigninvestmentOpinions.Amongthesearetwopointsrelatedtothestrengtheningofintellectualproperty(IP)protection.However,IPprotectionissues,suchascounterfeitingandbad-faithtrademarkregistration,remainsignificantchallengesforforeign-investedenterprises.SeeKR3andKR5formoredetails.

On18thJanuary2023,theSupremePeople’sCourt(SPC)andtheSupremePeople’sProcuratoratereleasedtheInterpretationontheIssuesRegardingtheApplicationofLawsinHandlingCriminalCasesofIntellectualPropertyRightsInfringement(DraftforComments).10Thisdocumentoffersjudicialinterpretationsregardingtheevaluationoftheseverity

7FashionandLeatherDeskPositionPaper2023/2024,EuropeanUnionChamberofCommerceinChina,20thSeptember2023,viewed30thApril2024,<

/documents/download/start/en/

pdf/1151

>

8NoticebytheStateAdministrationforMarketRegulationofIssuingtheInterimRulesforthePublicityofComplaintInformationonMarketSupervisionandAdministration,SAMR,26thSeptember2023,viewed30thApril2024,<

https://

/zw/zfxxgk/fdzdgknr/zfjcs/art/2023/art_a56f2982d6df4d759b1

b548d07e3a839.html

>

9TheOpinionsoftheStateCouncilonFurtherOptimisingtheForeignInvestmentEnvironmentandIncreasingEffortstoAttractForeignInvestment,StateCouncil,13thAugust2023,viewed23rdMay2024,<

/zhengce/

content/202308/content_6898048.htm

>

10TheInterpretationontheIssuesRegardingtheApplicationofLawsinHandlingCriminalCasesofIntellectualPropertyRightsInfringement(DraftforComments),SupremePeople’sProcuratorate,18thJanuary2023,viewed30thApril2024,<

/spp/tzgg1/202301/t20230118_598824.

shtml

>

238FashionandLeatherWorkingGroup

of,anddeterminingpenaltiesfor,crimesrelatedtointellectualpropertyrights(IPR),andincludesdefinitionsfortermssuchas‘severesituation’,‘counterfeiting’and‘consciouslyknowing’.Thisshouldsignificantlyaidjudicialproceedings,andcouldhelpdeliverontheIP-relatedpointscontainedintheOpinionsiffullyimplemented.

KeyRecommendations

1.ContinuetoRevisetheProductQuality

LawandClarifytheApplicationofLawsinRelationtotheIssueofMislabelling

Concern

TheProductQualityLaw(DraftforPublicComment)hasnotclarifiedtheapplicationoflawsinrelationtomislabelling,whichmayleadtounnecessaryandcostlydisputesinsubsequentlawenforcement.

Assessment

Productqualityreferstotheextenttowhichtheinherentcharacteristicsofaproductmeetitsspecifiedorpotentialneeds.Thesetypicallyincludeperformance,safety,reliability,durabilityandcost-effectiveness.

Mislabelling,however,referstosituationsinwhichtheinformationonproductpackagingorrelateddocuments,suchaslabels,instructionsandsafetywarningsdoesnotmatchtheactualproductproperties,ingredients,performance,usagemethods,expirationdatesorproducerinformation.Thistypeoferrordoesnotnormallyhaveanyrelationtothemanufacturingprocess,rawmaterialsused,orthefunctionalityorsafetyoftheproductitself,butinsteadrepresentsmistakesintheinformationdisplayedontheproductanditspackaging.Thismayleadtoconsumersreceivingincorrectinformation,affectingtheirpurchasingdecisionsorproperuseoftheproduct,whichallfallundertherighttoinformationasprotectedunderconsumerrightslegislation.Sucherrorscanbe

rectifiedbycorrectingtheinformationandreplacingthelabels,whilealsopubliclyannouncingthecorrectionsthataremade.

Basedonthesefundamentaldistinctionsbetweenproductqualityandmislabelling,labellingerrorsshouldnotberegardedasanindicatorofsubstandardproductquality.Furthermore,imposingsevere

administrativepenaltiesandlegalconsequencesincasesofmislabellingdoesnotalignwiththeprincipleofproportionalitybetweenfaultandliability,andplacesanexcessiveburdenonbusinesses,especiallysmallandmedium-sizedenterprises.ItisrecommendedinsteadthatlawmakersclarifythrougharelevantrevisiontotheProductQualityLawthat,whilemanufacturershaveanobligationtoensurethatlabelsontheirproductsorpackagingaretrue,clearandfreeoferrors,casesofmislabellingareexemptfrompenaltiesrelatedtotheviolationofgeneralqualityobligations.

Recommendation

?ConductresearchontheapplicationoflawsintermsofmislabellingandclarifythroughrevisionstotheProductQualityLawthatsuchcasesareexemptfrompenaltiesrelatedtotheviolationofgeneralqualityobligations.

2.RevisetheMandatoryNationalStandard

GB18401NationalGeneralSafetyTechnicalCodeforTextileProducts

Concern

Colourfastness11testing,asperGB18401-2010,12isoftensubjecttodiscretionaryinterpretationbydifferenttestinginstitutions,therebyleadingtoinconsistentresultsandincreasedcostsforcompaniesintheireffortstoensurecompliance.

Assessment

ColourfastnesstestingispartofregularproductinspectionscarriedoutbyChina’smarketregulationauthorities.However,companiesoftenfindthatthetestresultspresentedbytheseauthoritiesarenotthesameasthosearrivedatbyeitherthecompaniesthemselvesorbythird-partytestinginstitutesbecauseofdifferinginterpretationsbythetestersofthecolourfastnesstestingstandardinGB18401-2010.

Afteracolourfastnesstest,thearrangementoffibresonthesurfaceofthetestedfabricmayhavechanged,alongwiththestructure,theglaze,andeventhecolourduetostainsfromthefabricfinishingagent.Insuchacase,differenttestersmayhaveadifferent

11Colourfastnessreferstotheresistanceofamaterial’scolourtofadingorrunning.

12GB18401-2010NationalGeneralSafetyTechnicalCodeforTextileProducts,StandardisationAdministrationofChina,14thJanuary2011,viewed30thApril2024,<

https://openstd.samr.gov.cn/bzgk/gb/

newGbInfo?hcno=52C1F4CBDE863F5095D7C9D17F8E3F71

>

EuropeanBusinessinChinaPositionPaper歐盟企業(yè)在中國(guó)建議書(shū)

2024/2025

understandingofthephenomena,resultingindifferentjudgements.Ontopofthis,colourfastnesstestingisbasedonthephysicalobservationoftesters,meaningthatitiscommonfortesterstoarriveataresultthattheyperceivetobeahalf-leveldifferentfromthosearrivedatbytestersfromotherlaboratoriesandforthisslightdifference,theproductwillfailthetestduetoalackofconformitywiththecolourfastnessstandard.Tomitigatethispotentialrisk,garmentmanufacturersoftenraisebyhalfalevelthecolourfastnessintheirinternalqualitycontrolindexesthanwhatisactuallyrequiredbythestandard,whichhasresultedinincreasedqualitycontrolcosts.13

TheInterpretationofGB18401-2010NationalGeneralSafetyTechnicalCodeforTextileProducts(Interpretation),14notesthat:“becausethestandardonlyhasrestrictionsonhazardoussubstancessuchascarcinogenicaromaticamines,withoutaddressingothersubstancessuchassensitisingdyes,theinclusionofcolourfastnessrequirementsishelpfulasitcontrolsthetransferofdyesfromtextilestothehumanbody,leadingtoadecreaseinriskstohumanhealthandtheenvironment.”Inthiscontext,itisclearthatwhilecolourfastnesscanhelpreducerisksbymanagingthetransferofcolourfromthefabric,itdoesnotconstituteahealthriskinandofitselfinthewaythatthepresenceofahazardoussubstanceusedinthedyewould.TheInterpretationalsoquotesEuropeanUnionRegulation2002/371/EC,15statingthat“sensitisingdyesshallonlybeusediftherequirementoffastnesstoperspirationisatleastfour”.Inotherwords,inmostcaseswherethecolourfastnessislowerthanlevelfour,16sensitisingdyesareprohibited.ItisthereforerecommendedthatChina’smarketregulationauthoritiesadopttherelevant

bestpracticesofEUregulatorswhoprioritisecontrollinghazardoussubstancesovercolourresistancewhenaddressingdyeingsafety.

Recommendations

?ReviseGB18401-2010toincorporatetestingfor

13ReadKeyRecommendation2intheFashionandLeatherWorkingGroupPositionPaper2023/2024formoreanalysis.

14InterpretationofGB18401-2010NationalGeneralSafetyTechnicalCodeforTextileProducts,MinistryofCommerce,2ndAugust2012,viewed30thApril2024,<

http://

/article/jsbl/zszc/201411/20141100792845.shtml

>

152002/371/EC:CommissionDecisionof15May2002establishingtheecologicalcriteriafortheawardoftheCommunityeco-labeltotextileproductsandamendingDecision1999/178/EC(TextwithEEArelevance)(notifiedunderdocumentnumberC(2002)1844),EuropeanCommission,15thMay2002,viewed30thApril2024,<

https://eur-lex.europa.eu/eli/dec/2002/371/oj

>

16Colourfastnesstypicallyrangesfromonetofive,withleveloneindicatinglowcolourstabilityandlevelfiverepresentinghighcolourstability.

FashionandLeatherWorkingGroup239

SectionThree:Goods

SectionThree:Goods

Europeanchamber中國(guó)歐盟商會(huì)

substancesrelatedtocolourfastnessthatposehealthhazards,likesensitisingdyes,andadjustcolourfastnesstestingaccordingly.

?Revisetheimplementingrulesforproductqualityinspectionsothatcolourfastnessisadjustedfrombeingakeyqualitytestitemtoanormalitem,andtomakehalf-leveldifferenceresultsacceptableinconformityassessments.

3.TakeActiontoCurbtheSaleofFake

GoodsOnlineandPromoteIndustrialSelf-governance

Concern

Thelackofeffectiveenforcementregulationsmeansthatfakegoodsarestillbeingsoldone-commerceplatformsinChina,asituationthathasworsenedduetonegligenceonthepartofplatformoperators,whichisharmingthelegitimaterightsofagrowingnumberofrightsholders.

Assessment

China’se-commerceindustryhasdevelopedsignificantlyintermsofthenumberofcompaniesdoingbusinessandtheformat/structureofplatformsused.Atthesametime,variousinnovativepromotionmethodshaveemerged,placingincreasinglyhighdemandsoncompaniestoconductdailysupervisionandadministrationoftheirbusiness.

Theriseofcross-bordere-commerceinChinahasresultedinaproliferationoffakegoodssellers.Thesemerchantsoftendisguisetheir‘high-qualityreplicas’asparallelimports,17evenattachingafullsetofinternationallogisticsdocumentationtodeceiveconsumers.Toavoiddetection,theyoftenoperatemultipleonlineshopswithinasingleplatform,makingitdifficultforthepolicetotrackalltheirillegalearnings.Theyalsooftenexploitthecharacteristicsoflivestreammarketing—amethodthatisinstant,oftenconductedatnightandwhichmakesitchallengingtoconnectthecounterfeitproductssoldwiththeshowcaseditems,furtherexacerbatingthedifficultiesenforcementofficialsencounterwhentryingtogatherevidence.

17Theterm‘parallelimport’referstonon-counterfeitgoodsthatareimportedforsalebyunlicensedvendorswithoutthepermissionoftheintellectualpropertyholder.ParallelimportsareinalegallygreyareainChina,asisthecaseinmostoftheworld.GrayMarket:TheRiseofLuxuryGoods,WiserMarket,viewed16thMay2024,<

/gray

-market-the-rise-of-luxury-goods/>;IsGrayMarketingLegal?ALookattheLaw,WiserMarket,viewed16thMay2024,<

/is

-gray-marketing-legal-a-look-at-the-law/>

240FashionandLeatherWorkingGroup

TheSPCandtheSAMRhaveclarifiedandstreamlinedtheobligationsofe-commerceplatformsintermsofIPRprotection.18&19However,notalle-commerceplatformshavestrictlyfulfilledtheirlegalandsocialresponsibilitiesstipulatedbytherelevantregulationsandjudicialopinions.Forexample,someplatformoperatorshaveneglectedtoenforcetherequirementforstorestodisplaytheirbusinessregistrationinformation,whichhasresultedinnumerousoperatorsthathaverepeatedlybeenfoundsellingcounterfeitgoodsremaininginoperation.Manystoreshavealsofalsifiedtransactionrecordswithoutfacingconsequences,resultinginacontinuedpresenceof,andevenanincreasein,counterfeitproductsoncertainplatforms.20

ThenationalrecommendedstandardGB/T39550-2020ManagementofIPProtectiononE-CommercePlatforms

putsforwarddetailed,constructiveopinionsontheprotectionandmanagementofIPRone-commerceplatforms.21TheseincludedailymanagementresponsibilitiesandeffectivemeasurestocombatIPinfringement,aswellassomefunctionalrequirements,liketheneedtosharedatawithrelevantsupervisorydepartmentsorhavingtoestablishadedicatedin-houseIPdepartment.Theworkinggrouprecommendsthatthesekindsofstandardsbecontinuallyimproved,toestablishgoodreferencesforfurtherrevisionstotheE-commerceLaw,andpotentiallyforjudicialdecisionsandlawenforcementpracticesaswell.

Recommendations

?PromotethedevelopmentofsustainableandeffectiveIPRprotectionmodelsagreedbetweenrightsholders,platformsandenforcementdepartments,includingtheprovisionofassistanceinbigdataanalysisforinvestigationandevidencecollection.

?EncouragethedevelopmentandimprovementofstandardsrelatedtotheprotectionofIPRine-commerceandpromotetheiradoptioninrelevantlegislation.

?Superviseandencouragecourtsatalllevels

18GuidingOpinionsontheTrialofIntellectualPropertyCivilCasesInvolvingE-commercePlatforms,SPC,13thSeptember2020,viewed30thApril2024,<

/article/detail/2020/09/id/5453936.shtml

>

19MeasuresfortheSupervisionandAdministrationofOnlineTransactions,SAMR,15thMarch2021,viewed30thApril2024,<

.

cn/cms_files/filemanager/samr/www/samrnew/samrgkml/nsjg/fgs/202103/

W020211127408192099852.pdf

>

20Formoreoncounterfeiting,pleaserefertoKeyRecommendation4intheIntellectualPropertyRightsWorkingGroupPositionPaper2024/2025.

21Intellectualpropertyprotectionandmanagementfore-commerceplatforms,SAMR,9thNovember2020,viewed30thApril2024,<

.

cn/bzgk/gb/newGbInfo?hcno=E315E3B122771E0D38B843BC19E6E5F4

>

throughoutChinatoactivelystrengthenIPRprotectiononlinebysharingcasestudiesofground-breakingjudgments.

?Classifyplatforms(forexample,traditionale-commerceandsocialmediaplatforms)accordingtomodesofquery,channelsofinformationdisplay,methodsofuseraccess,paymentandsettlement,andothertechnicalfeatures,andestablishproperadministrativemeasures.

4.AllowEnterprisestoProcessand

TransferOutofChinaPersonalSensitiveInformationRelatedtoHRManagementUponObtainingGeneralConsentfromStaff

Concern

CompaniesarefacingobstaclestotransferringcertainHR-relateddatathatcontainspersonalsensitiveinformationduetolackingenforceablelawsorpolicies.

Assessment

TheLabourContractLawandthePersonalInformationProtectionLaw(PIPL)aretwoimportantlawsthatareappliedindailyHRmanagement.22&23However,agapofnearly10yearsbetweenthetwopiecesoflegislationmeansthereareinevitablegapsbetweenthemmakingitchallengingforcompaniestocomplywithbothlawswhenaddressingtheprotectionofemployees’personalinformation.Forexample,accordingtothePIPL,certainHRinformationsuchasbankaccountdetails,remuneration,positionandcreditrecordsarecategorisedassensitivepersonalinformationthatcanonlybeprocessedandtransferreduponobtainingtheemployee’sspecificconsent.Inpractice,staffmaybereluctanttogiveconsentwhichwouldcompelcompaniestodeviatefromtheirstandardglobalpracticesformanagingHRinformation,whichrequiresthetransferofsuchdatatoEuropeanheadquarters.

Recommendations

?Allowcompaniestoprocessandtransferemployees’sensitivepersonalinformationinordertofulfilbasicHRmanagementobligationsuponobtaining

22LabourContractLawofthePeople'sRepublicofChina(2012Amendment),MinistryofHumanResourcesandSocialSecurity,28thDecember2012,viewed23rdMay2024,<

/xxgk2020/fdzdgknr/zcfg/fl/202011/

t20201102_394622.html

>

23PersonalInformationProtectionLawofthePeople'sRepublicofChina,StandingCommitteeoftheNationalPeople'sCongress,20thAugust2021,viewed30thApril2024,<

/xinwen/2021-08/20/content_5632486.htm

>

EuropeanBusinessinChinaPositionPaper歐盟企業(yè)在中國(guó)建議書(shū)

2024/2025

generalconsentinsteadofspecificconsent,whentheprincipleoflegalandminimumnecessityisalsofollowed.

5.AdoptanyNecessaryAdministrative

orJudicialMeasurestoCurbBad-faithTrademarkRegistration

Concern

Aproliferationofbad-faithtrademarkregistrationhasseverelyaffectedtheoperationsofmanybrands,whichharmsChina’sbusinessenvironmentanddetersforeigninvestment.

Assessment

Inrecentyears,malicioustrademarksquatting,trademarkhoarding,andthemalicioususeofsquattedtrademarkshavebecomeincreasinglycommonandsevereproblemsinChina.Toavoidbeingidentifiedasmalicioustrademarkregistrants,someindividualspre-emptivelyestablishshellcompaniesinHongKongor

overseas,transfertrademarkstotheseshellcompanies,andthenauthorisethemselvestousethesetrademarksimproperlyinChina.

Therearevariousformsofimproperuseofsquattedtrademarks,withthemainpurposeofblackmailingwell-knownbrandsandseekingunduebenefits.Theseinclude,forexample:1)usingtrademarksbeyondtheirapprovedscopeofregistration,especiallywhenusingtrademarksonproductsorservicessimilartoorrelatedtowell-knownbrands;2)distortinglogosofsquattedtrademarksbyhighlightingthepartsofwell-knownbrands,orimitatingawell-knownbrandtothegreatestextentpossibleintermsoffont,colouranddesign;3)sellingsquattedtrademarkstopriorrightsholders,andcoercingrightsholderstopurchasetrademarksfromthemathighpricesthroughtheinitiationofcomplaintsorlawsuits;and4)usingregisteredtrademarkstoattractinvestmentandmisleadothersintousingsquattedtrademarks,leadingpartnerstomistakenlybelievethattheyarecooperatingwithwell-knownbrands.Theseexamplesgobeyondthescopeoft