On March 13, 2025, the 53rd executive meeting of the State Council passed the Regulations of the State Council on the Handling of Foreign-Related Intellectual Property Disputes (hereinafter referred to as the “IP Dispute Regulations”). It proposes that the departments in charge of intellectual property management, including trademarks, patents, and copyrights (hereinafter referred to as “intellectual property management departments”), as well as the Ministry of Commerce, will coordinate and provide guidance and services for handling foreign-related intellectual property disputes. The aims are to guide Chinese enterprises in preventing and resolving foreign-related intellectual property disputes, to take strong countermeasures against actions by foreign countries that use intellectual property disputes as a pretext to suppress and contain China and its enterprises, and to impose discriminatory restrictive measures on Chinese citizens and organizations. At the same time, the regulations reiterate and emphasize that domestic organizations and individuals participating in foreign intellectual property litigations or subject to foreign investigations must comply with relevant laws and regulations regarding service of process, investigation and evidence collection, and the transmission of evidence across borders within the territory.

Echoing the above, on March 23, 2025, the State Council promulgated the Regulations on the Implementation of the Anti-Foreign Sanctions Law of the People's Republic of China (hereinafter referred to as the “Implementation Regulations of the Anti-Foreign Sanctions Law”), which further clarifies that Chinese citizens and organizations have the right to file a litigation in the people’s courts against those who implement or assist in the implementation of discriminatory restrictive measures by foreign countries. In addition, the relevant departments of the State Council also have the authority to decide to include foreign entities that endanger China’s sovereignty, security, and development interests through litigation and other means in the countermeasures list.

1.Multiple Agencies Collaborate to Guide Enterprises in Handling Foreign-Related Intellectual Property Disputes

The IP Dispute Regulations clarify that the intellectual property management departments and Ministry of Commerce will act as the leading agencies, in conjunction with judicial departments and others, to facilitate the handling of foreign-related intellectual property disputes by enterprises. From the daily operation-related foreign intellectual property information, tracking changes in intellectual property legal systems, to the promotion and training focused on the focal points of foreign-related intellectual property disputes, as well as guidance on dispute response and assistance in rights protection, the relevant departments will provide guidance to help enterprises effectively prevent risks and resolve disputes in foreign-related intellectual property disputes.

2.Preventing Foreign Countries from Imposing Discriminatory Restrictive Measures on Chinese Citizens and Organizations under the Pretext of Intellectual Property Disputes

Articles 15 and 16 of the IP Dispute Regulations propose that Chinese citizens and organizations may, in accordance with the Anti-Foreign Sanctions Law and other relevant regulations, safeguard their rights against discriminatory restrictive measures imposed by foreign countries under the pretext of intellectual property disputes. On March 19, 2025, the work report of the Supreme People’s Court included a successful case of a request for a “foreign enterprise assisting in the implementation of discriminatory restrictive measures by a foreign country” to cease its infringement against a Chinese enterprise and compensate for losses. This was the first case since the implementation of the Anti-Foreign Sanctions Law where a lawsuit was initiated, and a settlement was reached.

The Implementation Regulations of the Anti-Foreign Sanctions Law propose that multiple departments, including the Ministry of Foreign Affairs, the Ministry of Commerce, the National Development and Reform Commission, and the Ministry of Justice, will participate in the coordination of countermeasures against foreign sanctions, and the relevant departments in various industry fields will implement countermeasures in accordance with their respective responsibilities. It remains to be observed in practice whether a specific department will lead the countermeasures against foreign sanctions in the future, or whether a special institution will be established to unify the implementation of countermeasures by various departments.

The introduction of the IP Dispute Regulations and the Implementation Regulations of the Anti-Foreign Sanctions Law, as well as the success of the first case under the Anti-Foreign Sanctions Law, all demonstrate China’s determination to resist foreign suppression of Chinese enterprises and individuals through intellectual property litigation and other means. It is evident that the Anti-Foreign Sanctions Law and the Implementation Regulations of the Anti-Foreign Sanctions Law provide a basis for rights protection for the Chinese government to take countermeasures such as prohibiting cooperation or transactions against foreign entities that take discriminatory restrictive measures against Chinese enterprises under the pretext of intellectual property disputes, or for Chinese enterprises to demand cessation of infringement and claim damages.

3.Compliance with Legal Procedures in Participating in Foreign-Related Intellectual Property Litigation

The IP Dispute Regulations further reiterate and emphasize that the procedures for cross-border data transmission, investigation and evidence collection, and service of process must be followed in accordance with the law. In foreign-related intellectual property judicial procedures, the above-mentioned procedures are crucial to judicial sovereignty, state secrets, data security, trade secrets, and other aspects, and therefore must be given special attention. In participating in foreign-related intellectual property disputes, enterprises must strictly follow the Civil Procedure Law, the Law on International Criminal Judicial Assistance, the Hague Service Convention, and other relevant laws and regulations. They must handle judicial assistance matters such as service of process and investigation and evidence collection through relevant departments such as the Ministry of Justice, the People's Courts, and the Ministry of Foreign Affairs. In the cross-border data transmission process, they must comply with relevant regulations such as the Data Security Law, the Personal Information Protection Law, and the Regulations on the Promotion and Standardization of Cross-Border Data Flows, and promptly fulfill the relevant approval and filing procedures through the national or provincial cyberspace administration departments.

4.Summary

With the rapid development of cross-border e-commerce and AI technology, more and more Chinese enterprises are quickly stepping onto the world stage. The risks of foreign-related intellectual property disputes and foreign sanctions have also significantly increased. Against this backdrop, the introduction of the IP Dispute Regulations provides enterprises with convenient conditions and guidance, and also offers a basis for rights protection against foreign suppression that enterprises may face in foreign-related intellectual property disputes. The IP Dispute Regulations emphasized the procedural requirements in participating in foreign-related intellectual property disputes, comprehensively promoted the efficient and compliant participation of enterprises in foreign-related intellectual property disputes to safeguard the legitimate rights and interests of enterprises and citizens, and the Implementation Regulations of the Anti-Foreign Sanctions Law also provide greater operability for the Anti-Foreign Sanctions Law, together, building a strong support system.