Chapter 6 Complaint and Settlement Provisions of Being Suspected of Infringing IPRs

1. General Principles

1. The regulations herein are formulated in accordance with related laws and regulations to protect IPRs, maintain good trading order, and to protect the legal rights and interests of the exhibitors as well as the owners of such IPR rights during the period of China Import and Export Fair (hereinafter referred to as Canton Fair).

2. The regulations are only applicable to the protection of IPRs during the period of the Canton Fair.

3. The enterprises shall sign Letter of Undertaking with related department of the Canton Fair. (Form D2)

2. Management of Complaints

4. Reception Station of Complaints and Settlements for IPRs and Trade Disputes (hereinafter referred to as ¡°Complaint Reception Station¡±) established by Business Office of the Canton Fair is the only station receiving the complaints concerning IPRs infringement. The Canton Fair invites relevant government administrative department of IPRs to work with the Complaint Reception Station.

5. The Complaint Reception Station shall merely accept and hear Complaints concerning with being suspected of infringement on IPRs (hereinafter referred to as infringement) arising in the exhibition hall during period of the session of the exhibition.

6. All disputes concerning IPRs during Canton Fair shall be settled in accordance with Complaint procedures stipulated herein. Those who tend to avoid the Complaint Station and negotiate with the infringing party directly thus cause a disorder in the exhibition shall be settled as disobey the Exhibition Order Managing Regulations.

7. In case that the exhibitor's exhibits, packaging of exhibits, promotional materials and any part of his stand has independent IPRs, the exhibitor shall bring the certificate documents of ownership for inspection of the fair.

8. In case that the exhibitor violates relevant agreements signed with the Canton Fair, he shall be obliged to compensate for all expenses and losses in case of disputes arising from his exhibits, packaging of exhibits, promotional materials and any part of his stand infringing IPRs of others.

9. In case that the appellant lodges a Complaint to the Complaint Reception Station and requests the Station to deal with the defendant as per regulation herein defined, the appellant shall accordingly agree to pay to the Station all expenses incurred and compensate to the defendant for all losses arising therefrom.

3. Complaint Procedures

10. Exhibitor with a valid badge of this Fair can lodge a Complaint to the Complaint Station in case that any infringements have been detected in the exhibits, promotional materials in the stand or in any displaying parts of the stand. Please refer to Appendix 9,10,11 for the complaint procedure.

11. The appellant shall be required to show to the staff in the Complaint Station the ownership certificate. Appellant shall be further required to demonstrate relevant follow up legal documents in case such patent and copyright infringing shall be a repetition of previous session of Canton Fair and had been settled by this Complaint Station in previous session of Canton Fair. The case will not be accepted unless relevant documents from the appellant have been furnished. A repeated Complaint upon the same defendant for the same infringing on IPR will not be accepted by this Complaint Station.

12. The appellant shall be required to fill out the Letter of Complaint upon verification of the above documents by the staff of the Complaint Station. Please refer to Form D3 for details.

13. The Complaint Centre shall nominate staff to deal with the case upon reception of the Letter of Complaint. The defendant shall cooperate with the Complaint Station to deal with the case on behalf of the person in charge of the stand recorded.

14. Principle of Invert the Burden of Proof shall be employed to handle cases of infringement of patent and copyright. In the event that he shall be accused of being suspected of infringing in his exhibits, promotional materials or any parts of his exhibits, the defendant should immediately prove his non-infringement by demonstrating relevant certificate of rights or other evidences to prove he is in possession of legal rights and interests for the items alleged. The defendant shall accordingly be required to examine the alleged items with the staff of the Complaint Station.

15. In the case that the defendant shall be unable to effectively prove his non-infringement immediately, the accused items shall be temporarily detained by the Complaint Station. The defendant shall be meanwhile signed on the Letter of Undertaking to commit that he shall not operate or exhibit the accused items in case of his inability of furnishing effective evidences subsequent to such accuse. The Letter of Undertaking shall be made in duplicate and the defendant and the Complaint Station shall hold one copy respectively. Please refer to Form D4 for details.

16. In the case that he disagrees with the settlements of the Complaint Station, the defendant shall furnish supplement evidences of non-infringement to the Complaint Station within a workday (base on the schedule of Canton Fair). The temporarily detained items should be immediately returned to the exhibitor provided that the proof shall be effective; otherwise, those items shall be confiscated by the Compliant Station and forbidden in the exhibition.

17. The Appellant commits not to take any legal measures against the defendant in the exhibition hall prior to closing of this fair and subsequent to the Complaint Station has settled the case in accordance with the regulations herein defined and the outcomes have been accepted by the defendant.

18. All settled infringing exhibitors at the Fair shall be filed on the website of the Canton Fair by the Complaint Station subsequent to closing of this fair.

4. Punishment

19. Responsibility for all infringement happened in the stand shall be borne by the exhibitor who has entered into the Participation Agreement with Canton Fair and been registered by Canton Fair. The exhibitor shall accordingly accept the settlements finalized by Canton Fair.

20. Any Complaint involving infringement of trademark shall be resolved according the Trademark Law by the Complaint Station cooperating with relevant government trademark administrative departments. The exhibitor proved to be infringed shall be treated as infringement and be punished in accordance with the Trademark Law of P.R. China.

21. Any Complaint involving patent and copyright infringement will be settled by the Complaint Station as per procedures stipulated herein. Exhibitor who is unable to prove himself as ¡°non-infringement¡± shall be regarded as being ¡°suspected of infringement¡± and the infringing exhibits will be forbidden in the exhibition and be disposed as per regulations herein defined.

22. In case that the exhibitor's staff refuse to cooperate with the Complaint Centre regarding any kinds of investigation and inspection, the Complaint Station and the security office of the Canton Fair shall be authorized to confiscate the badge of such person and stop such person from entering the hall afterwards subsequent to an invalid persuasion of the staff of the Station.

23. Should the exhibitor be found out to exhibit the same infringing exhibit in the same stand subsequent to an initial settlement has been performed by the Complaint Station, the Complaint Station and the security office of the Canton Fair shall be authorized to confiscate the badges of all participants in such stand, stop them from entering the hall afterwards and circulate a notice of criticism of the exhibitor on Newsletter of Canton Fair.

24. Those exhibitors who are suspected of infringement for one session shall be given written warning by the Canton Fair; those exhibitors who are suspected of infringement of patent and copyright for consecutive two sessions or accumulative three sessions; those exhibitors who are suspected of infringement of trademark for consecutive two sessions; those exhibitors who purposely counterfeit and fake other's patent and registered trademark shall be refused to participate in six sessions of the Canton Fair and be criticized in the circulating notice.

25. Those exhibitors who get effective judgments of infringing IPR through administrative or judicatory approaches show the alleged exhibits in the stand, and those exhibitors who have been refused to participate in several sessions of the Canton Fair and are suspected of infringing IPR after they resume the participation of the Canton Fair, shall be disqualified the participation of the Canton Fair permanently and be criticized in the circulating notice.

26. In case that during the same session of the Canton Fair, over ten exhibitors infringing one ownership No.(extensive infringement) or one exhibitor is suspected of infringing over three ownership No. shall be disqualified the participation for next session of the Canton Fair and be criticized in the circulating notice.

5. Interpretation of Terms

27. Intellectual Property Rights, in accordance with TRIPRS (Agreement On Trade-related Aspects of Intellectual Property Rights) of WTO, shall include the following:

Copyright and Related Rights

Trademarks

Geographical Indications

Industrial Designs

Patents

Layout-Designs (Topographies) of Integrated Circuits

Protection of Undisclosed Information

28. Exhibitor-- the herein defined exhibitor who are responsible for infringing IPR shall be the one who has entered into the Participation Agreement with Canton Fair and has been recorded by Canton Fair (i.e. the company shown on the fascia)

29. Proofing documents-- writ of ownership of IPR including testify documents required by the Laws and Regulations of the People's Republic of China and documents required by the Complaint Station from the appellant or the defendant as per actual situation.

6. Supplementary Articles

30. Whether the defendant has been punished by the Complaint Station or not, any further legal measures undertaken by the appellant or the defendant subsequent to this Fair shall be conducted through the local administrative or judicial authorities pursuant to the closure of the Canton Fair.

31. Every session, the Complaint Station analyzes related complaint data and reports the name list of the exhibitors suspected of infringing IPRs to related departments.

32. Authority for the interpretation of the regulations belongs to China Foreign Trade Centre.

33. The regulations come into force as of the day of issuance. In case that related previous provisions conflict with the regulations herein, the regulations prevails.