MiHoYo Granted First Preliminary Injunction in Trade Secret Action Involving Unreleased Video Game Character Designs
Date: 26 March 2024
MiHoYo Network Technology Co., Ltd. (‘miHoYo’), is a Chinese video game development and publishing company. In the course of developing Honkai: Star Rail, a role-playing gacha video game, it detected that Chen, a participant in the internal testing, was illicitly capturing and storing unreleased game content. Recognizing the risk of potential leaks and substantial losses, miHoYo brought an action for breach of trade secrets and sought a preliminary injunction from the Primary People’s Court of Shanghai Pudong New Area.
The Court considered several factors: the factual and legal basis of miHoYo’s claim; the likelihood of irreparable damage; the balance of the parties’ interests; and the national and public interest. It determined that Honkai: Star Rail and its character designs were proprietary to miHoYo and constituted confidential business information of commercial value that had been adequately protected as a trade secret for the purposes of the Anti-Unfair Competition Law. It considered that the evidence of Chen’s unauthorized recording was sufficient, and that failure to address this behavior could disrupt fair competition in the gaming industry, affect the popularity and operational integrity of miHoYo’s game, and damage miHoYo's reputation. Consequently, the Court granted a preliminary injunction prohibiting Chen from disclosing, utilizing,and allowing others to use, the unlicensed recorded game content during beta testing.
This case marks the first instance of a preliminary injunction being granted in a trade secret infringement action concerning undisclosed character designs in China's gaming industry. It also establishes that undisclosed character designs within games are capable of protection as trade secrets.
Source: Primary People’s Court of Shanghai Pudong New Area
https://mp.weixin.qq.com/s/gCh5Pq3hMN0I4-Qxvfuw7w
米哈游成功获得全国首个涉游戏未公开角色设计的侵害商业秘密诉前行为保全禁令
《崩坏：星穹铁道》运营方上海米哈游网络科技股份公司（下称“米哈游公司”）通过监控发现，陈某在参与该游戏内部测试时，擅自拍摄、录制了游戏画面并存储了还未公开的游戏设计，随时有向他人泄露并造成公司巨大损失的风险，因此向上海浦东法院提出诉前行为保全申请。
浦东法院在收到申请后，围绕申请是否具有事实和法律基础、是否会造成难以弥补的损害、是否会导致利益显著失衡、是否损害国家和社会公共利益等四方面进行重点审查。法院认为，米哈游公司合法享有的《崩坏：星穹铁道》游戏及其角色设计，属于不为公众所知悉、具有商业价值并经权利人采取相应保密措施的经营信息，即属于反不正当竞争法规定的商业秘密。被申请人有较大可能性确实实施了擅自摄录的行为，如不加以规制，将会破坏游戏的平衡性和公平性、降低游戏的热度和关注度、打乱游戏公司的商业和经营安排、贬损游戏公司的商业信誉和社会评价。因此，浦东法院裁定责令被申请人陈某不得披露、使用、允许他人使用其在参与游戏内测过程中擅自摄录的游戏内容。
本案系全国首例涉游戏未公开角色设计的侵害商业秘密诉前行为保全案，结合游戏行业发展特点和司法保护需求，首次将游戏未公开角色设计纳入经营信息型商业秘密的保护范围，并对网络游戏内测泄密行为的危害性进行了全面分析，及时出具行为保全裁定。
资料来源：上海浦东法院 2024-03-26
新闻链接：https://mp.weixin.qq.com/s/gCh5Pq3hMN0I4-Qxvfuw7w
The First Intermediate People's Court of Beijing Municipality Introduces an Enforcement Deposit in Patent Infringement Cases
Date: 14 March 2024
In a recent design patent infringement case, the Court found that the Defendant, a technology corporation, had infringed the design patent rights of a Beijing-based technology development company. The Court ordered the Defendant to pay CNY 70,000 (approx. US$ 9,667) in compensation. Following implementation of the judgment, however, the Defendant challenged the validity of the two design patents involved, resulting in rulings declaring both patents invalid. Subsequently, the Plaintiff, which had already initiated civil enforcement proceedings, announced its intention to pursue administrative litigation in the Beijing Intellectual Property Court within the statutory timeframe, while the Defendant sought suspension of enforcement.
Typically, enforcement can be suspended pending the outcome of administrative or civil retrial proceedings. However, considering the Defendant's status as a publicly listed company and other unique qualifications, the public disclosure of the enforcement action had begun to adversely affect the Defendant's normal business operations and potentially damage its reputation. To address this concern, the First Intermediate People's Court of Beijing Municipality conducted a mediation between the two parties, which led to the following agreement: the Defendant would transfer CNY 70,000 (the sum it had been ordered to pay the Plaintiff in the patent infringement action) to the Court's account as an enforcement deposit. If the patent is invalidated, the money will be returned to the Defendant; otherwise, it will be paid to the Plaintiff. Pending resolution of the matter, the Court will refrain from imposing any compulsory or punitive measures against the Defendant, such as restricting high-value expenditures or listing the Defendant as untrustworthy. Additionally, in the event of a reversal of the infringement decision, the Court will issue a 'credit restoration certificate' to the Defendant, to minimize the impact on the company’s business reputation.
This case saw the Intellectual Property Enforcement Team of the First Intermediate People's Court of Beijing introduce a nationwide 'enforcement deposit' system, to effectively safeguard the legitimate interests of both enterprises in a fair and equitable manner.
Source: The First Intermediate People's Court of Beijing Municipality
https://bj1zy.bjcourt.gov.cn/article/detail/2024/03/id/7846603.shtml
北京一中院在专利侵权民事执行案件中首次推出履行保证金制度
在一起科技公司侵犯外观设计专利权的纠纷案中，法院判决认定被告科技股份公司侵犯了北京一家科技发展公司的外观设计专利权，并应赔偿7万元。然而，在这项判决生效后，被告科技股份公司提出了对两项涉及的外观设计专利的无效审查申请，并先后得到了这两项专利全部宣告无效的裁决。随后，申请执行人表示将在法定期限内向北京知识产权法院提起行政诉讼，被执行人则要求中止执行。
一般情况下，案件执行可进入终止状态，待行政诉讼或民事再审的终局结果再恢复执行。但考虑到被执行人科技股份公司是上市公司且具备其他特殊资质，其作为被执行人的信息已经影响到公司正常的商业活动，可能会对公司的企业信用造成影响。因此，为解决这一问题，北京一中院与两家公司进行沟通，最终达成协议：被执行人科技股份公司先行将全部案款转入法院作为履行保证金，待终局裁决作出后，再决定款项的去向。在此期间，法院不会对被执行人采取任何强制措施或者限制高消费、纳入失信名单等惩戒措施，并会向被执行人提供《信用修复证明》，以确保其商业信用不受影响。北京一中院知识产权专业执行团队没有机械适用中止执行，而是在全国首创了“履行保证金”制度，平等维护了双方企业的正当诉求。
资料来源：北京一中院 2024-03-14
新闻链接：https://bj1zy.bjcourt.gov.cn/article/detail/2024/03/id/7846603.shtml
The Supreme People’s Court’s 2023 Annual Report and ‘Major Data on Judicial Proceedings and Implentation’ Reveal Strict Protection of Intellectual Property Rights
Date: 8 March 2024
On 8 March, the Supreme People's Court (SPC) of China highlighted in its annual report that in 2023 it rigorously protected intellectual property rights, imposing punitive damages in 319 cases, a 1.2-fold increase from the previous year. The total compensation awarded amounted to CNY 1.16 billion (approx. US$ 160 million), marking a 3.5-fold increase. Notably, in one case, involving infringement of a ‘melamine’ invention patent, the SPC initially ordered the infringing party to pay compensation of CNY 218 million (approx. US$ 30.08 million). During the enforcement process, comprehensive reconciliation was achieved, leading to the infringing party obtaining a license to use the invention, while the right holder received total compensation of CNY 658 million (approx. US$ 91.90 million). This set a new compensation record in domestic intellectual property cases.
Furthermore, in its ‘Major 2023 Judicial Enforcement Data’ released on 9 March, the SPC provided additional insights into intellectual property case adjudication. Courts around the country handled 490,100 first-instance intellectual property cases, up by 5.52%. Of these, 489,600 were concluded, a 1.81% increase. Criminal cases surged by 37.46% to 7,335 accepted cases, with 6,967 concluded cases, an increase of 27.69%. Civil cases increased by 5.4% to 462,200 accepted cases, with 460,300 concluded cases, an increase of 0.55%. Administrative cases saw a slight decline of 0.28% to 20,600 accepted cases, but concluded cases rose by 26.7% to 22,300. The appeal rate decreased to 9.94%, down by 1.66%.
Source: The Supreme People’s Court
https://mp.weixin.qq.com/s/tgQ2mPj5wo_znoVCxAqC3A
最高人民法院发布2023年工作报告和审判执行工作主要数据，强调依法严格保护知识产权
3月8日，最高人民法院（下称“最高法”）在工作报告中提到，最高法在2023年依法严格保护知识产权，适用惩罚性赔偿319件，同比增长1.2倍，判赔金额11.6亿元，同比增长3.5倍。其中，最高法审理“蜜胺”发明专利侵权案，在判令侵权方赔偿2.18亿元基础上，执行中促成全面和解，侵权方获得使用许可，权利人最终获偿6.58亿元，刷新国内知识产权案件纪录。
此外，最高法在3月9日发布的2023年人民法院审判执行工作主要数据中，对知识产权案件审判情况进行了进一步的数据化说明：2023年，全国法院知识产权一审收案49.01万件，增长5.52%；结案48.96万件，增长1.81%。其中，刑事收案7335件，增长37.46%，结案6967件，增长27.69%；民事收案46.22万件，增长5.4%，结案46.03万件，增长0.55%；行政收案2.06万件，下降0.28%，结案2.23万件，增长26.7%。上诉率9.94%，下降1.66个百分点。
资料来源：最高人民法院 2024-03-08
新闻链接：https://mp.weixin.qq.com/s/tgQ2mPj5wo_znoVCxAqC3A
Cyberspace Administration of China Issues Provisions on Promoting and Regulating Cross-Border Data Flow
Date: 22 March 2024
On 22 March, 2024, China officially released Provisions on Promoting and Regulating Cross-Border Data Flows, along with the second edition of Guidelines for Applications for Security Assessment of Cross-border Data Transfers and Guidelines for Filing the Standard Contract for Cross-Border Transfer of Personal Information. These Provisions and Guidelines maintain the basic data export compliance system established in the previous laws, including the three major transfer mechanisms: security assessment, standard contracts, and personal information protection certification. They also, however, introduce additional exemption conditions based on the original regulations, raising the threshold for pre-review and thus alleviating the compliance burden on enterprises.
Specifically, the Provisions include the following key elements:
1.Adjustments to compliance requirements for the transfer of personal information
The cross-border transfer of important data continues not to qualify for any exemption and must undergo a security assessment, but the Provisions make significant adjustments to compliance requirements for the cross-border transfer of personal information. Enterprises should select the appropriate compliance method based on the cumulative volume of personal information provided to overseas entities as of 1 January of the current year. Generally, the cross-border transfer of non-sensitive personal information of up to 100,000 individuals is exempted from the need to comply with any procedures before transfer. For the transfer of non-sensitive personal information of 100,000 to 1 million individuals, it is necessary to sign standard contracts or obtain personal information protection certification. For transfers involving more than 1 million individuals, a security assessment by the CAC is required. Sensitive personal information transfers not falling into any exemption generally require the establishment of standard contracts or the obtaining of personal information protection certification. For transfers of sensitive personal information involving more than 10,000 individuals, a security assessment by the CAC is necessary.
In addition to the thresholds, the Provisions specify exemptions for non-crucial information infrastructure operators providing non-important data to overseas entities. When the data export activities fall into any of the following five categories, they will not be subject to any of the transfer mechanisms:
The CAC has launched a new online portal called the "Cross-border Data Declaration System", through which data processors can apply online for security assessments and file standard contracts. Meanwhile, the validity period of the security assessment results has been extended from the original two years to three years. Data processors can also apply for another three-year extension before the expiration of the validity period. Those who have applied for data outbound security assessments or filed standard contracts for the outbound transfer of personal information prior to the implementation of the Provisions, may choose to proceed with the original procedure, or withdraw their security assessment application or standard contract filing, with the provincial-level Cyberspace Administration where they are located.
Source: Cyberspace Administration of China
https://www.cac.gov.cn/2024-03/22/c_1712776611775634.htm
网信办发布《促进和规范数据跨境流动规定》
2024年3月22日，国家网信发布并正式实施《促进和规范数据跨境流动规定》（以下简称《规定》），以及《数据出境安全评估指南（第二版）》和《个人信息出境标准合同备案指南（第二版）》。《规定》维持了由网信办安全评估、标准合同，以及个人信息保护认证三大前置程序组成的数据出境合规体系，但在原有规定的基础上设置了更多豁免条件，提高了事前审查的门槛，减轻了企业的合规负担。
具体而言，《规定》包括如下主要内容：
除维持重要数据不适用任何豁免条件，出境须通过安全评估外，《规定》重点调整了个人信息出境的合规要求。企业应依据当年1月1日起累计向境外提供的个人信息规模选择适当的合规方式。一般而言，出境非敏感个人信息不足10万人的，豁免前置审查程序；在10-100万人以上的，需要签订个人信息出境标准合同或取得个人信息保护认证；在100万人以上的，需要通过网信办安全评估。无法适应豁免规则的敏感个人信息出境，原则上均需要订立标准合同或取得个人信息保护认证；超过1万人的，需要通过网信办的安全评估。
除阈值外，《规定》还针对向境外提供非重要数据的非关键信息基础设施运营者设置了如下豁免条件，满足以下五点之一的，不必执行任何前置程序：
网信办开通一个新门户网站——“数据出境申报系统”，数据处理者可通过该系统在线申报数据出境安全评估、备案个人信息出境标准合同。同时，安全评估结果的有效期自原先的两年延长至三年，数据处理者在有效期届满前还可申请再次延长三年。《规定》施行前已经申报数据出境安全评估、提交个人信息出境标准合同备案，根据《规定》无需开展上述程序的，数据处理者可以按照原程序进行，也可以向所在地省级网信部门撤回申报、备案。
资料来源：网信办 2024-03-22
新闻链接：https://www.cac.gov.cn/2024-03/22/c_1712783131692707.htm