In accordance with China's World Trade Organization (WTO) commitments, it adopted the concept of permitting "provisional injunctions" in its intellectual property related laws. The adoption of the legal principal also insures China is in compliance with the WTO's TRIPS Agreement.
A provisional injunction is a temporary and extraordinary legal measure allowing a right holder, before a full court hearing or final judgment, to make an application to the judicial authority for a mandatory order requiring the party against whom the application has been filed to stop some action, carry out some action, retain its property to protect a creditor's right or maintain evidence, to avoid a harmful situation whereby the applicant cannot be adequately compensated for damages.
The provisional injunction procedure can be used to prevent an infringement of intellectual property rights (IPRs) from occurring by preventing the entry of goods into the market place, including imported goods immediately after customs clearance, and by preserving relevant evidence in regard to an alleged infringement.
Applicants seeking an injunction to stop an infringement must meet certain criteria to obtain backing from the judicial authority.
The Supreme People's Court has issued several judicial interpretations setting forth detailed provisions in respect of application criteria when applying for injunctions related to IPR cases and laws.
For example, trademark registrants and interested parties who wish to file applications for orders related to pre-trial suspension of acts of infringement or to the exclusive right to use a trademark, shall submit a required written application together with the following evidence:
(1) The trademark registrant shall submit the Certificate of Trademark Registration and the interested party shall submit: the trademark licensing contract, documents submitted for filing with the Trademark Office and a copy of the Certificate of Trademark Registration;
(2) Evidence attesting that the respondent is executing or is going to execute an act of infringement of the exclusive right to use the registered trademark, including the examples of the infringing goods.
When filing the application for pre-trial suspension of an infringement of the exclusive right to use trademark, the applicant must also provide a guaranty to protect the rights of the party against whom the injunction is claimed in case the applicant is not successful in its case. Where the application, after being accepted by the People's Court, meets the requirements set forth in the Supreme People's Court's interpretation, the People's Court must make an adjudication in writing within 48 hours; the adjudication ordering the respondent to suspend the act of infringement of the exclusive right to use trademark shall be immediately put into enforcement.
Since the new concept of provisional injunctions was incorporated in revisions to both the trademark and patent laws a couple of years ago, both the holders of IPRs and the courts in China have been cautious in their use and applications respectively of this legal procedure.
In 2002, the first trademark infringement case adopting provisional injunction took place. The question in that case was whether Apple Footwear's "Apple design" was confusing and similar to Guangdong Apples' "Apple design". Although this case did not involve novel and unique trademark law issues, it was important, as it was the first case in which a provisional injunction was issued under China's Trademark Law.