Regulation of standards under prc revised standardization law(updated)
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Provides a Legistive History of the November 2017 Law
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Regulation of standards under prc revised standardization law(updated)
- 2. Agenda • Legislative History • Objective of Revised PRC Standardization Law • Issues with Old Standards system • Objectives outlined in SAC’s 2012 proposed Reform of the Standardization Law • SAC’s 3‐Phase ‘Deepening Standardization Reform Plan’ • Revised Standardization Law as it relates to the Belt and Road Initiative • Changes to the regulation of Standardization in PRC • Classification of Standards under the revised Standardization Law • Fast Tracking Social Organization Standards into International Standards • Guiding Opinions on Participation of Foreign‐Invested Enterprises in Standardization Work in China AIPLA IP Practices Committee 2
- 3. Legislative History Source: Dr. Betty Xu, “China Standardization Reform as of May 2017, Seconded European Standardization Expert in China (SESEC), May 10, 2017 1988 – Standing Committee of National People’s Congress enacted the Standardization Law of the People’s Republic of China 1990 ‐ Regulations followed to implement the Standardization Law by promulgating rules for managing National Standards, managing Industrial Standards, Local Standards and Enterprise Standards 2012 ‐ AQSIQ and SAC initiate study of revision of PRC Standardization Law 2015 ‐ Review of SAC’s proposed amendments to Standardization Law submitted to Legislative Affairs Office of State Council for endorsement (“Plan for Deeping Standardization Reforms” (Document No. 13)). 2016 – Request for Public Comments of proposed First Draft amendments (“Notice of the State Council in Distribution of the Reform for Deeping Standardization”) February 2017 – Draft amendment approved by State Council April 2017 – First review of Draft by Standing Committee of National People’s Congress May 2017 ‐ Request for Public Comments of proposed Second Draft amendments AIPLA IP Practices Committee 3
- 4. Objective of PRC Revised Standardization Law • “Establish a new type of standards system for coordinated development of government‐oriented standards with market‐driven standards” • “Use standards or establish a standards system that can ‘improve the quality of products’ and ‘support industry upgrading.’” Priorities: • PRC wants to take the lead in “Safety and Heath” • PRC to take the lead in ICT (Information and communications Technologies) (e.g., AL, Big Data, Communication, maybe IOT) AIPLA IP Practices Committee 4
- 5. Issues with Old Standards system • Issues identified in SAC’s Study Doc No. 13: (1) Many Chinese standards needed to be studied to determine if they were void, outdated or lagging behind, or could be deemed as difficult to meet the needs for boosting the quality, efficiency and did not promote the upgrade of the Chinese economy. (2) Many standards needed to be investigated to determine if they overlap and/or conflict to ultimately determine if they were in the way of building a unified Chinese market system. (3) The Chinese standards system had to be studied to make sure it meets the needs for the development of the socialist market economy. (4) The Chinese government sought to update the old standard system to expedite the improvement of standardization management efficacy. AIPLA IP Practices Committee 5 The Source: Dr. Betty Xu, “Review and Analysis on China Standardization Reform, Seconded European Standardization Expert in China (SESEC), April 22, 2015
- 6. Objectives of SAC’s proposed Reform SAC’s Study Doc No. 13 suggested some targets of Reform: (1) Build a new‐type standards system based on coordination between the Chinese government who would develop standards concurrently with market‐ developed standards, providing support for one another (authoritative controlled by State Council), (2) Make China’s standardization management system more harmonious, more coordinated and efficient, (3) Employ more governmental oversight and market supervision which would form a model such that standardization efforts is lead by government, driven by market, attended by the public and promoted by all the parties collaboratively (but cultivate and develop group (or organizational standards) , (4) Form a model that effectively support the development of a Chinese unified market system, (5) Let Chinese standards be a “hard restraint” for quality, and (6) Push the Chinese economy to move towards higher level. Source: Dr. Betty Xu, “Review and Analysis on China Standardization Reform, Seconded European Standardization Expert in China (SESEC), April 22, 2015 AIPLA IP Practices Committee 6
- 7. SAC’s 3‐Phase Deepening Standardization Reform Plan (1) Phase One: (2015‐2016) “Pilot Reform Efforts” a) Prepare proposal for revised Standardization Law by end of June 2016, b) Clean‐up current national, industry, and local standards, c) Optimize procedures for approval of standards proposals, d) Shorten standard development time, e) Clean‐up existing mandatory standards, f) Promulgate group standardization rules, g) Initiate pilot projects for Enterprise standards, and h) Take an increase lead in ISO by sending more delegates (experts) and attempt to obtain leadership in international SDOs AIPLA IP Practices Committee 7 Source: Dr. Betty Xu, “Review and Analysis on China Standardization Reform, Seconded European Standardization Expert in China (SESEC), April 22, 2015
- 8. SAC’s 3‐Phase Deepening Standardization Reform Plan (2) Phase Two (2017‐2018): Advance the Transition to a New Type of stable Chinese Standards System: a) Integrate or upgrade (gradually) selectively current mandatory industry and local standards into National Standards (goal of 2017) b) Clarify the scope of which standards should be recommended for development with the aim towards a public‐interests type standards (under the jurisdiction of the State Council) (goal 2018) (e.g., more transparency) c) Cultivate a number of group standards development organizations with wide reputation and influence and develop a number of group standards meeting the needs of the market and innovation. This would include a mechanism for assessment and supervision of group standards (goal 2017) (Pilot program launched 80 something software related social organizations) d) Create a system for self declaration and supervision of enterprise product and service standards (See. Enterprise Standard Information Public Service Platform) e) Visibly increase the consistency between international and domestic standards to obtain a consistency degree of 95% in the consumer product sector (goal 2018) AIPLA IP Practices Committee 8 Source: Dr. Betty Xu, “Review and Analysis on China Standardization Reform, Seconded European Standardization Expert in China (SESEC), April 22, 2015
- 9. SAC’s 3‐Phase Deepening Standardization Reform Plan (3) Third Phase (2019‐2020) ‘well‐structured, mutually‐supporting, full‐range new type of standards system meeting the needs of the economic and social development’ will be established; a) Collaborative and authoritative mandatory national standards management system built (by 2020) (e.g., easier to find the standard to get market access) b) All recommendations for standards development under governmental leadership confined to public‐interest standards (by 2020) (e.g., more transparent free access to standards) c) Group and Enterprise standards developed by market players on their own to better meet the needs of market competition and innovation development (by 2020) (e.g., a more US style of setting standards indirectly fostering Chinese competitiveness while letting in foreign delegates – this just happened) d) China a leader in standards: participation in international standardization management activities will increase by way of increasing substantially the number of leadership positions and secretariats positions held by Chinese experts. (by 2020) (e.g., China to be a leader in IEC/ISO) AIPLA IP Practices Committee 9 Source: Dr. Betty Xu, “Review and Analysis on China Standardization Reform, Seconded European Standardization Expert in China (SESEC), April 22, 2015
- 16. Guiding Opinions on Participation of Foreign‐Invested Enterprises in Standardization Work in China • On November 6, 2017, two days after approving the revised Standardization Law, the State Council implemented several of the requires stipulated in their “Notice on Measures for Opening Wider to the Outside World and Active Utilization of Foreign Capital” (Notice No. 46, 2017 of the State Council). • Among other things, NDRC, MOFCOM, and SAC jointly promulgated a Guide which clarified that: • Foreign‐invested enterprises are entitled to participate in standardization work in China, and will be treated as domestic enterprises. The foreign‐invested enterprises as referred to herein mean Chinese foreign equity joint ventures, Chinese foreign cooperative joint ventures and foreign‐funded enterprises, excluding foreign enterprises and other branches of foreign economic organizations in China’s territory (local Chinese owned sponsor). • Foreign‐invested enterprises can participate in the drafting work of national standards and the translation work of foreign language edition of national standards, and can also give advices and suggestions in the course of standard project approval, opinion solicitation, standard implementation, etc. • Representatives from foreign‐invested enterprises can join national standardization technical committees (including subcommittees, working groups, etc.) as members or observers. Source: http://www.sesec.eu/app/uploads/2018/01/Annex‐III‐Guiding‐Opinions‐on‐Participation‐of‐Foreign‐Invested‐Enterprises‐in‐Standardisation‐Work‐of‐ China.pdf AIPLA IP Practices Committee 16
- 19. Acknowledgements Xin Ma (Dolby Labs) Shengtao Hu (Ericsson) Amy Marasco (Microsoft) Xin Ma (Dolby Labs) Joel Blank and Christopher Wong (USPTO Beijing) Mark Cohen (USPTO ‐ Berkeley) Liu Fei (ASTM International) Nydia Ngiow (ANSI) Dr. Betty Xu (SESEC)* Daniel Jiang (Chofn) *Did not get the pleasure of interviewing for this talk AIPLA IP Practices Committee 19