Understand the Important Aspects of China’s Cybersecurity Law

In November 2016, the National People’s Congress initially passed the Cybersecurity Law. Penalties for violating the Law are clearly stated and include the suspension of business activities. Serious illegal action may lead to the closing of businesses or the revocation of licenses.

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The Cyberspace Administration of China released Measures for the Security Assessment of Personal Information and Critical Data Leaving the Country, intended to assist in the implementation of China’s new Cybersecurity Law. On November 2016, the National People’s Congress initially passed the Cybersecurity Law. The law is the latest step in China’s long-term campaign for jurisdictional control over the content on the internet.

Some of the key aspects of China’s cybersecurity law

  • The law brought enormous reforms in data management
  • Monitors internet usage regulations in China
  • Imposes new requirements for network and system security

 

 

According to the China Briefing, cybersecurity Law defines network operators as network owners, managers, and network service providers. In fact, nowadays, the vast majority of enterprises employing networks are in line with the definition of network operators, and therefore is subject to corresponding responsibilities and obligations. It is safe to assume that any company (regardless of size and domestic or multinational extent) operating its network – including websites and internal and external networks – to conduct business, provide a service or collect data in China could very likely be in scope.

 

The rules could affect purchases of server equipment, mass storage devices, cloud computing services, and large-scale databases, among others. There is no clear definition of which companies could be classified as critical information infrastructure operators, though they broadly include firms involved in the finance, energy, transportation, and telecommunications industries or those that handle large amounts of personal data.

Penalties of breaking China’s cybersecurity law-

  1. Penalties for violating the Law are clearly stated and include the suspension of business activities.
  2. Serious illegal action may lead to the closing of businesses or the revocation of licenses.

 

  1. The maximum fine may reach RMB1,000,000

 

Zhang Dejiang, chairman of the standing committee of the NPC declared that China had “a solid legal foundation for accelerating the establishment of a national security system and taking a distinctly Chinese approach to national security.” This was seen by many in the West as a strong rebuttal of the criticism of China’s counter-terrorism law and the draft laws on cybersecurity and management of NGOs.

Local governments are made responsible for data security in their respective regions. According to the Article 5 of the law, the State takes measures for monitoring, preventing, and handling cybersecurity risks and threats arising both within and without the mainland territory of the People’s Republic of China. The State protects critical information infrastructure against attacks, intrusions, interference, and destruction; the State punishes unlawful and criminal cyber activities in accordance with the law, preserving the security and order of cyberspace.

 

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Combat Squatting by Registering your Trademark in China

Always be in touch with the Chinese legal experts as it will pay high dividends. China is a country that has a unique legal system that can be hard for any foreign business owner to navigate. It is strongly recommended to seek the advice of the China Trademark and Patent Law Office (CTPLO).

Suing a Chinese Company

To save your product idea and brand image, money spent on filing trademark registration is a wise decision. Although the process of trademark registration in China is a bit time-taking, the protection and security it offers to your company are simply unparalleled. Even before your trademark is approved, pending processes could also deter counterfeiters to imitate your valued brand.

 

Registering your trademark protects it from anyone that attempts to profit from your marketing and product development. Obtaining a registered trademark for your brand’s IP will allow you to use the registered trademark symbol “®” in the name, logo, designs, slogans, and any words associated with your brand.

 

China’s Trademark Law is not Weak

Many people think that weak Chinese trademark law is responsible for the growing number of infringement incidents, but the reality is China’s trademark law already has a number of provisions to combat squatting. The truth is, when a foreign company comes to conduct business in China, either they don’t take trademark registration seriously or they take wrong steps on battling the trademark infringement legal disputes.

 

However, the good news is over the last couple of years, several foreign firms especially from the USA have won many trademark infringement cases giving hope to other overseas companies that a tougher line from Beijing is adapted to act swiftly and appropriately to the long-existing trademark squatting practice.

 

Appoint a CTPLO for Protecting your Intellectual Property

It is strongly recommended to seek the advice of the China Trademark and Patent Law Office (CTPLO). The CTPLO aims in offering a fast and highly responsive service along with value-driven bilingual legal services to foreign businesses. The success rate of the self-filed trademark registration is very low as the registering process is quite complex in China. The attorneys of the trademark and patent law office in China can assist you correctly with the trademark filing method.

 

The experience and credibility of CTPLO firms are just too vast and diverse that transcend over a broad range of industries. The level of accountability and credentials exhibited by the China trademark and patent law office is simply unquestionable. CTPLO firms are amazing in handling trademark, patent, industrial design, copyright, records of intellectual property with the Customs, records of intellectual property license, and assignment with the China Trademark Office.

 

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