This was posted by the CNIPA at the link below on 19 Nov 2021, with a deadline to comment of 25 Nov 2021 (What can I say):

Below are some of my observations, with my thoughts in brackets and italic:

  • A list different from the so-called list "dishonest entity subject to enforcement" (失信被执行人, would be maintained at the CNIPA, including good and bad players.
  • Articles 6 & 7 - Bad players would be included in this CNIPA list due to the following behaviors:
    1. Ascertained to have abnormal patent application behavior
    2. Malicious trademark registration applications not for the purpose of use
    3. Acts of submitting false materials or concealing important facts to apply for administrative confirmation (my understanding is that these include those for recording assignment, licensing, and patent mortgage, and applying for fee reliefs at the CNIPA)
    4. Applicable credit promises that are ascertained to be false, or fail to fulfill the promises (would this include failure to obey a court decision? However, according to Art. 7, such seems to limit to administrative actions)
    5. Refuse or evading administrative enforcement
    6. Any other IP discredit acts (whatever this means, which is typical in China to capture future activities)
  • Article 8 - The punishment include stricter examination on funding projects, being monitored more closely, disqualify of awards and qualifications. (These do not seem to be big deal to me. On the other hand, if the punishment is to put into the list of "dishonest entity subject to enforcement", which is like going bankrupt in the Western world, this would be different story.)
  • Articles 10 & 11 - A bad player would be on the CNIPA list for one year. If being naughty again within that year, extension is available, for a maximum of three years. The listing should be removed after the notice ascertaining the dishonest behavior is dismissed. (After three years, if being naughty again, I believe that the listing is to be restarted. Or may go straight into the "serious illegal dishonest subjects" below?)
  • Chapter 3 - Severely bad players would be put into the list of "serious illegal dishonest subjects" for three years. (Simply put, no one wants to be in this list.)
  • Chapter 4 - For entities with good behavior for 3 years consecutively, incentives may be provided, including priority in project examination and approval including funding projects, priority in IP examination, reduced frequency in inspection, and so on. Financial institutions may reference this. (Easier to borrow money?)

Any further thoughts are welcomed.

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