On May 28, 2020, the Civil Code of the People’s Republic of China was approved by the third session of the 13th National People’s Congress (NPC). The Civil Code, scheduled to come into force on January 1, 2021, is the first-ever code in China’s current legal framework. It contains 1,260 articles, of which 52 articles on intellectual property (IP) are divided into the General Provisions section and six specific legal sections on property, contract, personal rights, marriage, succession and tort.
The Civil Code specifies the permissible subject matter of intellectual property in China, particularly with the recognition of trade secrets as subject matter of intellectual property in China, and clearly provides for punitive damages as a compensation mechanism for serious, willful violations of intellectual property rights, including rights in works , inventions, utility models, industrial designs, trademarks, geographical indications, trade secrets, layout designs of integrated circuits and new plant species.
Other provisions in the Civil Code that relate to civil rights over intellectual property mainly concern the pledging of intellectual property as property rights, the ownership of intellectual property in assets to be sold under a purchase agreement, and the relationship between the parties to technology contracts in relation to their rights and obligations in relation to aspects such as technological development, transfer, licensing, advice and provision of services.
