Proposed Revisions to the "E-Commerce Law of the PRC" (Draft for Solicitation of Comments)

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Consultation Period:8/31 – 10/14

Explanation

These revisions to articles 43 and 84 of the E-commerce Law of the PRC are proposed In order to strengthen the protection of intellectual property rights, regulate the order of the platform economy, and promote the sustainable and healthy development of e-commerce:

First is an extension of the waiting period following notification. “Where e-commerce platform operators have not received notice that the rights-holder has made a complaint or initiated litigation within 15 days of transferring a declaration to them, they shall promptly stop all measures they have employed. ” is to be changed to "Where e-commerce platform operators have not received notice that the rights-holder has made a complaint or initiated litigation within 20 working days of transferring a declaration to them, they shall promptly stop all measures they have employed. "

Second, in order to alleviate the issue of transaction losses potentially caused by the excessively long counter-notification waiting period, a provision is added: Where on-platform businesses provide corresponding guarantees to ensure compensation for losses caused by potential intellectual property infringement, and e-commerce platform operators can temporarily suspend the measures taken.

Third is adding a clause: Where on-platform businesses submit false declarations that there is no infringing conduct, causing the rights-holders’ losses to increase, their liability for compensation is to be doubled. Fourth is an addition to Article 84 on the legal liability of e-commerce platform operators for failing to take necessary measures against infringements of intellectual property rights by on-platform businesses in accordance with the law: "Where the circumstances are especially serious, the relevant departments may restrict their carrying out of corresponding online business activities, or even cancel relevant online business licenses. ."

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