ARTICLE
2 November 2021

SAMR Released Proposed Amendments To National E-commerce Law (Draft For Comment)

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The amendments are aimed at strengthening e-commerce laws.
China Technology
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On 31 August, the State Administration for Market Regulation, SAMR, issued draft amendments to the E-Commerce Law of the People's Republic of China for public comment. The amendments are aimed at strengthening e-commerce laws. The deadline for comment was 14 October 2021.

The proposed amendments relate to only two Articles, 43 and 84, and deal with the following four issues:

The time within which an IP owner must take action after a seller has filed a successful counter-notification has been extended from 15 days to 20 days.   

The second issue relates to the possible losses that may be suffered by the platform operator and adds a mitigation provision: if the business operator using the platform provides a guarantee to compensate it for any loss caused by potential intellectual property infringement, the e-commerce platform operator may temporarily suspend the measures it has taken.

The following provision has been added: if a business operator using the platform falsely declares that it has not infringed, causing the rights-holder's losses to increase, the liability for compensation is to be doubled.

In Article 84, the legal liability for an e-commerce platform operator's failure to take necessary measures in relation to IP infringement has been increased:  "if the circumstances are particularly serious, it may be prevented from carrying out relevant e-commerce business activities until its operating license is revoked."

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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