OFFICIAL REPLY OF THE STATE COUNCIL CONCERNING PAPERS FURNISHED AS ATTACHMENTS TO APPLICATIONS FOR TRADEMARK REGISTRATION (ATTACHED WITH THE THIRD REVISION OF THE RULES FOR THE IMPLEMENTATION OF THE TRADEMARK LAW )

    The State Administration for Industry and Commerce:

    We are in receipt of your Report for Instruction Concerning Papers
Furnished as Attachments to Applications for Trademark Registration. The
State Council approves the proposal that the original Certificate of
Trademark Registration be no longer required when an application for
modification, assignment or renewal concerning a registered trademark
is submitted. For that problem involves the revision of the Rules for
the Implementation of the Trademark Law of the People’s Republic of China
(hereinafter referred to as the Rules for the Implementation of the
Trademark Law), the official reply is hereby given as follows:

    1. The first paragraph, Article 20 of the Rules for the Implementation
of the Trademark Law shall be revised as: “When applying for modification of
name, applicants shall submit an Application for Modification of the Name of
Trademark Registrant and verification of the modification to the Trademark
Office. Following examination and approval, the Trademark Office shall
issue a relevant certificate to the applicant, and publish said
modifications.” The second paragraph shall be revised as: “When applying for
modifications of address or other relevant matters related to a trademark
registration, applicants shall submit an Application for Modification of the
Address of the Trademark Registrant or an Application for Modification of
Other Matters Related to a Registered Trademark, as well as verification
of modifications to the Trademark Office. Following examination and approval,
the Trademark Office shall issue a relevant certificate to the applicant, and
publish said modifications.”

    2. The first paragraph, Article 21 of the Rules for the Implementation
of the Trademark Law shall be revised as: “When applying for the assignment
of registered trademarks, assignors and assignees shall jointly submit an
Application for the Assignment of Registered Trademark to the Trademark
Office. The assignee shall complete application formalities required for
applying for assignment of a registered trademark. The assignee shall fulfill
all qualifications outlined in Article 2 of these Rules. Upon approving the
assignment of trademark, the Trademark Office shall issue a relevant
certificate to the assignee, and publish notification of the assignment.

    3. The first paragraph, Article 22 of the Rules for the Implementation of
the Trademark Law shall be revised as: “When applying for renewal of a
trademark registration, the registrant shall submit an Application for Renewal
of Trademark Registration to the Trademark Office, accompanied by five
prototypes of the trademark. Following examination and approval of the
renewal, the Trademark Office shall issue a relevant certificate to the
registrant, and publish notification of the renewal. the Trademark Office
shall reject any renewal applications which contravene relevant provisions
of the Trademark Law.

    4. Article 20 and 21, as revised, of the Rules for the Implementation
of the Trademark Law shall become effective on the date of May 15, 1995.

    5. Article 22, as revised, of the Rules for the Implementation of the
Trademark Law shall become effective on November 1, 1998. However, with
respect to a registered trademark whose period of validity expires before
November 1, 1998 and whose extension period expires before April 30, 1998,
applications for renewal filed within the extension period shall be handled
in accordance with the original provisions of this Article as not revised.

    Article 1  These Rules are formulated in accordance with the
provisions of Article 42 of the Trademark Law of the People’s Republic of
China (hereinafter referred to as the Trademark Law).

    Article 2  Applicants for trademark registration must be enterprises,
institutions, social organizations, self-employed industrialists or
businessmen, individual partnerships established in accordance with the law,
foreigners or foreign enterprises referred to in Article 9 of the Trademark
Law.

    Provisions in the Rules concerning trademarks for goods shall also apply
to service trademarks.

    Article 3  When applying for initial registration, assignments, renewals,
name or address changes, replacement of the certificate of trademark
registration or other related matters, the applicant may either entrust the
process to a trademark agency approved by the State Administration for
Industry and Commerce, or otherwise personally handle the matter.

    When foreigners or foreign enterprises apply for trademark registration
in China, or when dealing with related trademark matters, all applications or
other related items shall be completed by an agency designated by the State
Administration for Industry and Commerce.

    Applications filed for international registration shall be submitted in
accordance with the “Madrid Agreement Concerning the International
Registration of Marks”.

    Article 4  Fees shall be paid in accordance with relevant stipulations for
applications, assignment, renewal, alterations, replacement of certificates
and examination of trademark registration, and related matters.

    Article 5  The Trademark Office of the State Administration for Industry
and Commerce (hereinafter referred to as the Trademark Office) shall establish
and maintain a Trademark Register which records registered trademarks and
relevant registration matters.

    The Trademark Office shall edit and issue the Trademark Gazette, which
announces trademark registrations and related matters.

    Article 6  In accordance with Article 3 of the Trademark Law, all
collective and certification marks approved and registered with the Trademark
Office shall be protected by law.

    Procedures for the registration and administration of collective and
certification marks shall be separately outlined by the State Administration
for Industry and Commerce, in conjunction with related departments of the
State Council.

    Article 7  All pharmaceuticals for human consumption and tobacco products
listed by the State and published by the State Administration for Industry and
Commerce shall obtain a registered trademark.

    Other goods required to obtain a registered trademark in accordance with
the stipulations of the State shall be published by the State Administration
for Industry and Commerce.

    Article 9  When applying for registration of a trademark, applicants shall
file the application with respect to each class of goods as outlined in the
published Classification of Goods. Each trademark registration application
submitted to the Trademark Office must be accompanied by an Application
for Trademark Registration, 10 prototypes of the requested trademark
(prototypes of colored trademarks must be submitted in the exact color), and
one black and white copy of the design blueprint.

    Prototypes of the trademark must be clearly discernible adhesive images
printed on durable paper with a smooth finish, or otherwise be a photograph.
The length or width shall be between 5 to 10 centimeters.

    Article 10  Application forms for trademark registration and related
papers shall be completed in pen and ink, writing brush and ink, or typed.
All information must be clearly written or typed.

    The name, stamp or seal of the applicant applying for trademark
registration shall be the same as that approved or registered. The subject
item shall not go beyond the approved or registered scope of business. The
designation of items shall be filed in accordance with the table for the
classification of goods. A description must be attached for items not listed
in the aforementioned table.

    Article 11  Applications for trademark registration of pharmaceuticals for
human consumption must bear an attached certificate issued by the
administrative department for public health.

    Applications for trademark registration of cigarettes, cigars or packed
cut tobacco must bear attached papers indicating certified production approval
by competent State authorities responsible for tobacco products.

    Applications for trademark registration of other goods which require a
registered trademark in accordance with the stipulations shall bear attached
papers certifying the approval of relevant competent departments.

    Article 12  The date of application for registration of a trademark shall
be the date the Trademark Office receives the application form and related
papers. Where the applicant has completed all required application
procedures and has completed the application form and related papers in
accordance with relevant stipulations, the Trademark Office shall assign the
application a file number and issue a Notification of Acceptance. However,
should the applicant fail to properly complete necessary procedures or in some
way fail to complete the application form and related papers in accordance
with relevant stipulations, the application form shall be returned to the
applicant, and no date of application shall be reserved.

    Where application procedures are basically complete or the
application form and the related papers are basically in conformity with the
relevant stipulations, but there is a need for the applicant to provide
necessary supplementary information or make corrections thereto, the Trademark
Office shall notify the applicant to submit said information or make said
changes and will require the latter to resubmit the supplementary or corrected
application to the Trademark Office within fifteen days of receipt of the
notification. The filing date shall be reserved if requested supplementary
information of or corrected application is resubmitted to the Trademark
Office within the specified time limit. However, in case of failure to submit
requested supplementary information or corrected application by the expiration
of the specified period or thereafter, the application form shall be returned
to the applicant, and no date of application shall be reserved.

    Article 13  Where two or more applicants apply for registration of an
identical or a similar trademark for the same or similar items on the same
day, they shall within 30 days after receiving notification from the Trademark
Office furnish requested proof of the dates on which they began using their
respective trademarks. Where the use of the trademark began on the same
date, or in other cases when a trademark is not yet in use, applicants shall
be required to settle the matter through consultations, and further to submit
their written agreement to the Trademark Office within 30 days. If no
agreement can be reached within said 30 day period, the applicants in
question shall draw lots to determine trademark rights. The Trademark Office
shall either preside over the process, or shall otherwise adjudicate the
matter.

    Article 14  Applicants for trademarks shall submit a Power of Attorney
authorizing a trademark agency to file required applications for the
registration of trademarks, or for all other matters arising concerning said
trademarks. The Power of Attorney shall indicate content and competent
authorization. In addition, in cases when the applicant is a foreigner or
foreign enterprise, the Power of Attorney shall clearly indicate the
nationality of the party granting authorization.

    Foreigners or foreign enterprises shall use the Chinese language when
applying for trademark registration or when handling related trademark
matters. Notarization and authentication procedures for Powers of Attorney
and relevant certificates shall be completed in accordance with the principle
of reciprocity. Chinese translations shall be attached to the completed
application form and all related papers submitted in a foreign language.

    Article 16  The Trademark Office shall, in accordance with the Trademark
Law, examine all applications accepted. Following the prescribed examination,
distinctive trademarks which are in conformity with relevant provisions of
the Trademark Law, shall receive preliminary approval from the Trademark
Office and published in the Trademark Gazette. The Trademark Office shall
send a Notification of Rejection to all applicants submitting rejected
applications.

    In cases where requests for modifications to applications for trademark
are deemed incomplete, the Trademark Office shall send an Examination Advice
form to the applicant and require the latter make necessary modifications
within fifteen days of receipt of said notification. If applicants fail to
submit requested modifications by the expiration date of the specified period,
or modifications are submitted at a date beyond the time limit, or modified
applications still fail to conform with the relevant provisions of the
Trademark Law, the Trademark Office shall reject the application and send a
Notification of Rejection to the applicant.

    Article 17  When applying for review of rejected trademarks, applicants
shall, within fifteen days of receipt of the notification of rejection, submit
an Application for Review of a Rejected Trademark to the Trademark Review and
Adjudication Board. The review application must be accompanied by the original
Application for Trademark Registration, ten prototypes of the original
trademark, one black and white copy of the design and the Notification of
Rejection.

    The Trademark Review and Adjudication Board shall render a final decision
and notify the applicant with a written reply. Thereafter, trademarks
receiving preliminary approval shall be transferred to the Trademark Office
for processing.

    Article 18  Parties contesting a trademark (hereinafter referred to as
Party B) which, after examination, has received preliminary approval and has
been published in the Trademark Gazette, shall submit two copies of the
Application for Trademark Opposition to the Trademark Office. The Application
for Trademark Opposition shall indicate both the page number and the issue
number of the Trademark Gazette in which the contested trademark was
published, as well as the number of the preliminary approval. The Trademark
Office shall send one copy of the Application for Trademark Opposition to
the contested party (hereinafter referred to as Party A), requesting a
rebuttal within thirty days of receipt of the notification. An adjudication
will then be made on the basis of facts and relevant information submitted by
the opposing parties. In the absence of a response from Party A by the
expiration date of the specified period, the Trademark Office shall render an
adjudication thereon and notify interested parties of the decision.

    Announcements of registered trademarks published in the Trademark Gazette
prior to final adjudication and entry of force of contested trademarks shall
be null and void.

    Article 19  Interested parties dissatisfied with the adjudication of the
Trademark Office concerning contested trademarks may, within fifteen days of
receipt of the notification of adjudication, apply for review by submitting
two copies of Application for Review of a Contested Trademark to the Trademark
Review and Adjudication Board.

    The Trademark Review and Adjudication Board shall make a final
adjudication, provide interested parties with written notification and
transfer the case to the Trademark Office for relevant processing.

    Article 20  When applying for modification of name, applicants shall
submit an Application for Modification of the Name of Trademark Registrant
and verification of the modification to the Trademark Office. Following
examination and approval, the Trademark Office shall issue a relevant
certificate to the applicant, and publish said modifications.

    When applying for modifications of address or other relevant matters
related to trademark registration, applicants shall submit an Application for
Modification of the Address of the Trademark Registrant or an Application for
Modification of Other Matters Related to a Registered Trademark, as well as
verification of modifications to the Trademark Office. Following examination
and approval, the Trademark Office shall issue a relevant certificate to the
applicant, and publish said modifications.

    When applying for modifications of names or addresses, registrants shall
follow the same modification procedures in respect to all registered
trademarks.

    Article 21  When applying for the assignment of registered trademarks,
assignors and assignees shall jointly submit an Application for the Assignment
of Registered Trademark to the Trademark Office. The assignee shall complete
application formalities required for applying for assignment of a registered
trademark. The assignee shall fulfill all qualifications outlined in Article 2
of these Rules. Upon approving the assignment of trademark, the Trademark
Office shall issue a relevant certificate to the assignee, and publish
notification of the assignment.

    When applying for the assignment of a registered trademark, the
registrant shall simultaneously complete the same assignment procedure in
respect to all identical trademarks, which are either identical with or
similar to said registered trademark with respect to both the same or
similar goods. When a registered trademark is assigned in respect to such
goods as outlined in Article 7 of these Rules, the assignee shall, in
accordance with the provisions of Article 11 of these Rules, furnish the
Trademark Office with a certificate issued by the competent department
concerned.

    Where an application for the assignment of a registered trademark
might in any way mislead the public, create confusion or engender any other
type of inappropriate influence, the Trademark Office shall reject approval
thereof.

    Article 22  When applying for renewal of a trademark registration, the
registrant shall submit an Application for Renewal of Trademark Registration
to the Trademark Office, accompanied by five prototypes of the trademark.
Following examination and approval of the renewal, the Trademark Office shall
issue a relevant certificate to the applicant, and publish notification of
the renewal. The Trademark Office shall reject any renewal applications which
contravene relevant provisions of the Trademark Law.

    The period of validity of a renewed trademark registration shall be
calculated from the day following the expiration of the previous period of
validity of said trademark.

    Article 23  Applicant dissatisfied with the decision of the Trademark
Office to reject an application for assignment or renewal may, within fifteen
days of receipt of the notification of rejection, apply for review by
submitting an Application for Review of a Rejected Assignment or an
Application for Review of a Rejected Renewal, to the Trademark Review and
Adjudication Board. Applications should be accompanied by the original
Application for Assignment of Registered Trademark or Application for Renewal
of Trademark Registration, and the relevant Notification of Rejection.

    The Trademark Review and Adjudication Board shall render a final decision
and notify the applicant of the same in writing. Board approvals of the
assignment or renewal shall be transferred to the Trademark office for
corresponding processing.

    Article 24  Trademark registrants wishing to dispute the registered
trademark of a second party shall, within one year from the date of
announcement of the registered trademark of the latter in the Trademark
Gazette, submit two copies of the an Application for Adjudication of a
Disputed Trademark to the Trademark Review and Adjudication Board.

    Upon making a final adjudication of whether to maintain or cancel the
disputed registered trademark, the Trademark Review and Adjudication Board
shall notify interested parties of the decision in writing, and shall transfer
the case to the Trademark Office for corresponding processing. If the grounds
for cancellation involve only certain registered components, trademark
registration for components involved therein shall be cancelled. If
adjudication results in cancellation, the proprietor of the disputed trademark
shall, within fifteen days of receipt of the notification of adjudication,
return the original Certificate of Trademark Registration to the Trademark
Office.

    Article 25  Paragraph 1, Article 27 of the Trademark Law outlines the
following fraudulent or unfair acts committed in the acquisition of a
trademark registration:

    (1) Fabricating, withholding the truth or forging an application and
related registration documents;

    (2) Violating the principles of honesty and full faith and credit to
reproduce, counterfeit or translate the well-known trademark of another party
in the registration;

    (3) Acquiring a trademark registration in the name of the trademark agent,
but without the authorization of the trademark proprietor who has entrusted
the registering party;

    (4) Infringing on any prior legal right of another party in the
registration; and

    (5) Using any other unfair means to acquire a registration.

    In accordance with Paragraph 1, Article 27 of the Trademark Law, trademark
registrants dissatisfied with the decision of the Trademark Office to cancel a
trademark registration may, within fifteen days of receipt of the notification
of the decision, apply for review by submitting an Application for Review of
the Cancellation of an Improperly Registered Trademark to the Trademark
Review and Adjudication Board. The Trademark Review and Adjudication Board
shall render a final decision thereon, notify the applicant in writing and
transfer the case to the Trademark Office for the corresponding processing.

    Any organization or individual claiming that a trademark has been
improperly registered may apply for adjudication by submitting two copies of
an original Application for the Cancellation of Improperly Registered
Trademark to the Trademark Review and Adjudication Board. The Trademark
Review and Adjudication Board shall render a final adjudication thereon,
notify interested parties of the decision in writing, and transfer the case
to the Trademark Office for the corresponding processing.

    The Trademark Office shall publish notification of the cancellation of
improperly registered trademarks. The trademark registrant in question shall,
within fifteen days of receipt of the notification of the decision or
adjudication, return the original Certificate of Trademark Registration to
the Trademark Office.

    Article 26  Registered trademarks in use shall carry the indication of
” ” (registered trademark – the editor) or the registration sign of
( ) (registered – the editor) or (R). Where it is inconvenient for a
commodity to bear such indications or signs, accompanying packaging or
description and other attachments shall be so marked.

    Article 27  Where a Certificate of Trademark Registration is lost
or damaged, the trademark registrant must apply for reissuance thereof. The
trademark registrant shall submit an Application for Reissuance of a
Certificate of Trademark Registration to the Trademark Office, accompanied by
five prototypes of the registered trademark. When a Certificate of Trademark
Registration is lost, the trademark registrant shall publish the loss thereof
in the Trademark Gazette. A damaged Certificate of Trademark Registration
shall be returned to the Trademark Office.

    Where any person commits any act of forging or altering a
Certificate of Trademark Registration, the local administrative authority for
industry and commerce shall, in accordance with the seriousness of the case,
impose a fine not exceeding 20,000 RMB Yuan, and shall seize all copies of
the forged or altered Certificate of Trademark Registration.

    Article 28  Where a person is found to have committed any act
referred to in Items (1), (2) and (3) of Article 30 of the Trademark Law, the
administrative authority for industry and commerce shall order the trademark
registrant to rectify the situation within a specified period. If the
registrant refuses to undertake rectification, the administrative authority
for industry and commerce in the relevant location shall submit the case to
the Trademark Office for cancellation of the registered trademark.

    Article 29  Where any person has committed acts referred to in
Item (4) of Article 30 of the Trademark Law, any other interested party may
apply to the Trademark Office for cancellation of the registered trademark in