New E-commerce Law in China will be implemented from January 1, 2019. The new law will extend legal protection for consumers and brand owners and will arm the fight against the country’s reputation as a source of fake goods. As the country’s e-commerce market grows at a staggering rate, so does the need for stricter oversight and market regulation. If you are engaging in e-commerce in China or your business activity will involve e-commerce, you are recommended to have an understanding of the new law to be effective in the next year.
Types of E-commerce Operators Allowed
A major provision under the new law is the clarification of the types of businesses that will fall under its jurisdiction. The e-commerce law mainly applies to the following three types of operators, namely,
1. Platform operators: Any legal persons or unincorporated organizations that provide a space for digital business, transaction matching, information release, and other services to facilitate parties in an e-commerce transaction. An example is the shopping site Taobao owned by Alibaba.
2. Operators on platforms: Third party merchants that sell goods or provides services on e-commerce platforms. An example is a vendor operating an online store on Taobao.
3. Online sellers: Other e-commerce players doing business through their own websites or through other online channels, such as social media applications.
Strengthened Intellectual Property Protection
E-commerce platforms must establish rules to protect IP rights. When notified of a violation, the relevant aspect must respond in a timely manner. E-commerce platforms will now be jointly responsible for the sale of fake goods on their site. Previously, only individual merchants were responsible when caught selling counterfeits.
To further strengthen IP protection, retailers on e-commerce sites must also register with the State Administration for Industry and Commerce to obtain a business license.
The above mentioned is just a summarized information of the changes to the E-commerce law, for more details, you are welcomed to contact Tannet’s IP consultants for advisory. Our Intellectual Property Service Center is equipped with experienced IP practitioners and IP lawyers. We are able to provide you with professional and reliable services to protect your brand and business in China.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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