1 SEPARATE CERTIFICATION SYSTEM The PRC has established a separate certification system which gives "pipeline" protection for relevant pharmaceutical and agrochemical products of certain foreign proprietors (currently those from the US, Japan, Switzerland and countries in the European Community). 2 ELIGIBILITY AND SCOPE OF PROTECTION 2.1 To qualify for administrative protection, the relevant products must: 2.1.1 have been ineligible for protection under the PRC Patent Law prior to 1 January 1993; and 2.1.2 have been patented in the applicant's country of origin between January 1986 and January 1993; and 2.1.3 not have been publicly available in the PRC market before January 1993. 2.2 The term of protection is seven and a half (7.5) years from the date of issue of the certificate, subject to payment of an annual fee. 2.3 The certificate owner has the exclusive right to authorize others to manufacture or sell the products in the PRC. 2.4 The certificate owner must apply separately to the relevant administrative authority to obtain permission to manufacture or sell the products in the PRC; otherwise administrative protection may be terminated early. 1 May 1996 LINKLATERS & PAINES, HONG KONG OFFICE - Contact Partner Tom Hope Internet address - thope@landp.com Tel - 852 28424888 Fax - 852 28108133
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