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1. Content Interpretation The *Provisions on the Handling of Foreign-Related Intellectual Property Disputes* were promulgated against the dual background of intensifying global intellectual property competition and the accelerated "going global" drive of China's film and television industry. As Chinese film and television works including *The Wandering Earth* and *The Battle at Lake Changjin* have gained growing influence in the international market, the film and television industry has become an important carrier for cultural exports. However, the industry faces multiple challenges in its overseas expansion: First, technical cooperation and copyright disputes occur frequently, involving issues such as special effects technology patent disputes and script idea plagiarism; Second, European and American countries take intellectual property rights as a tool to erect trade barriers. For example, the United States has frequently launched Section 337 Investigations against Chinese film and television works, alleging technological infringement or imposing distribution restrictions; Third, piracy of film and television derivatives is rampant on cross-border e-commerce platforms, and some overseas streaming platforms unreasonably take down Chinese works or reduce the proportion of copyright revenue sharing. The promulgation of the aforesaid Provisions is of far-reaching significance to the film and television industry, which is mainly reflected in the following three aspects:

First, it provides legal support and countermeasure tools for addressing international copyright disputes. As the core carrier of cultural exports, film and television works are often confronted with problems such as overseas piracy and disputes over copyright ownership. The new regulation explicitly authorizes the adoption of measures including countermeasure lists and transaction restrictions against discriminatory intellectual property measures, which will effectively curb the acts of certain countries that abuse intellectual property barriers to restrict the overseas distribution of Chinese film and television works. For example, if an overseas platform unreasonably removes Chinese film and television content or coerces the acceptance of unfairly low copyright royalty payments, domestic enterprises may, pursuant to the new regulation, apply for government intervention and the adoption of reciprocal countermeasures to safeguard their legitimate proceeds.

Secondly, we will strengthen technology and data security protection mechanisms. The film and television industry involves core data resources such as special effects technology and script creative ideas. The new regulations stipulate that overseas evidence collection shall comply with data security review procedures, which can prevent sensitive information such as filming technology and undisclosed scripts from being improperly obtained in cross-border litigation. This draws a security boundary for Sino-foreign co-produced films and technological cooperation projects, which not only guarantees freedom of creation, but also avoids the risk of key technology outflow.

Finally, a diversified rights protection support system shall be established. The new regulations encourage the establishment of foreign-related IPR protection mutual aid funds and insurance services, which is particularly critical for film and television enterprises burdened with high litigation costs. For example, when small and medium-sized film and television companies encounter overseas copyright litigation, they can share legal fees through the mutual aid funds, while insurance companies can underwrite losses from release delays caused by infringement disputes. In the meantime, training on international rules and guidance on typical cases provided by the government help enterprises avoid compliance risks in overseas markets in advance, and improve the professionalism of global distribution strategies for heavy-industry films such as *The Wandering Earth*.

Overall, the Provisions, by virtue of institutional guarantees, not only build a solid firewall for the "going global" of the film and television industry, but also compel enterprises to strengthen compliance management, which is of strategic value to enhancing the international discourse power of China's film and television industry.

2. Original Text of Laws and Regulations

Decree of the State Council of the People's Republic of China

No. 801

The Regulations of the State Council on the Handling of Foreign-Related Intellectual Property Disputes, adopted at the 53rd Executive Meeting of the State Council on February 21, 2025, are hereby promulgated and shall come into force as of May 1, 2025.

Premier Li Qiang

March 13, 2025

Regulations of the State Council on the Handling of Foreign-related Intellectual Property Rights Disputes

Article 1 This Regulation is formulated for the purposes of strengthening the protection of intellectual property rights, facilitating citizens and organizations to handle foreign-related intellectual property disputes in accordance with the law, safeguarding the lawful rights and interests of citizens and organizations, advancing high-level opening-up, and promoting high-quality economic development.

Article 2 The departments of the State Council responsible for the administration of intellectual property rights such as trademarks, patents and copyrights (hereinafter referred to as the intellectual property administration departments) and the competent commerce departments shall strengthen guidance and services for citizens and organizations in handling foreign-related intellectual property disputes. Other relevant departments of the State Council shall properly carry out relevant work in accordance with their respective functions and duties.

Relevant departments of the State Council shall strengthen work coordination and information communication, and jointly properly carry out work related to the handling of foreign-related intellectual property disputes.

Article 3 Local people's governments at or above the county level and their relevant departments shall, in light of the actual conditions of their respective localities, effectively carry out work related to the handling of foreign-related intellectual property disputes.

Article 4 The intellectual property administrative department of the State Council, and other relevant departments including the competent commerce departments and judicial administrative departments, shall, in accordance with their respective division of functions and duties, collect and publish information on foreign intellectual property legal systems in a timely manner, improve the public service system for intellectual property information, and provide the public with inquiry services concerning foreign intellectual property information.

Article 5 The intellectual property administrative department and the competent commerce department of the State Council shall, in accordance with their respective division of functions and duties, strengthen the tracking and understanding of key information such as changes in foreign intellectual property right legal systems, conduct analysis and research on typical cases, issue risk alerts in a timely manner, and provide the public with early warnings on foreign-related intellectual property rights.

Article 6 The intellectual property administration department under the State Council and the competent commerce departments shall, in accordance with the division of their respective functions and duties, improve the working bodies and working procedures for guiding the handling of foreign-related intellectual property disputes, and provide response guidance and rights protection assistance for citizens and organizations in handling such foreign-related intellectual property disputes.

Article 7 Commercial mediation organizations and arbitration institutions shall be supported to participate in the resolution of foreign-related intellectual property disputes, so as to provide citizens and organizations with efficient and convenient channels for foreign-related intellectual property dispute resolution. Citizens and organizations shall be encouraged and guided to promptly resolve foreign-related intellectual property disputes through such methods as settlement, mediation and arbitration.

The judicial administrative department of the State Council shall strengthen guidance over the work of mediation and arbitration of foreign-related intellectual property disputes.

Article 8 Law firms, intellectual property right (IPR) service institutions and other relevant entities shall be encouraged to improve their capacity for foreign-related IPR services, and establish practice institutions abroad by such means as setting up branch offices and conducting joint operations, so as to provide high-quality and efficient foreign-related services concerning IPR for citizens and organizations.

The judicial administrative department and the intellectual property administration department of the State Council shall, in conjunction with relevant departments, adopt measures to create conditions for law firms, intellectual property service institutions and other relevant entities to strengthen foreign-related intellectual property services.

Article 9 Enterprises shall be supported to establish mutual aid funds for the protection and enforcement of foreign-related intellectual property rights. Insurance institutions shall be encouraged to develop insurance services related to foreign-related intellectual property rights in accordance with market-based principles, so as to reduce the rights enforcement costs for enterprises.

Article 10: Chambers of commerce, industry associations, cross-border e-commerce platforms and other organizations shall be encouraged to establish foreign-related intellectual property rights protection assistance platforms, open service hotlines, and provide public welfare services such as consultation and training.

Article 11 Enterprises shall enhance their awareness of the rule of law, establish and improve internal rules and regulations, strengthen the reserve of intellectual property talents, and intensify the protection and utilization of intellectual property rights. When entering foreign markets, they shall proactively understand the legal systems and the status of intellectual property right protection of the host countries or regions, carry out production and business activities in accordance with the law, and actively safeguard their legitimate rights and interests.

The intellectual property administrative department of the State Council and the competent commerce administrative departments, in conjunction with relevant departments, focus on the demands for intellectual property protection in the foreign-related production and operation activities of enterprises, center on the key areas and critical links of foreign-related intellectual property disputes, carry out publicity and training for enterprises, and introduce the experience and practices of handling foreign-related intellectual property disputes in accordance with the law with reference to typical cases, so as to enhance enterprises' awareness of foreign-related intellectual property protection and their capacity for dispute settlement.

The judicial administrative department under the State Council shall, in compliance with the requirements of the legal publicity and education responsibility system based on the principle that "the enforcer of a law is responsible for publicizing the law it enforces", strengthen publicity and education on the rule of law concerning intellectual property rights, and comprehensively enhance the awareness of intellectual property right protection and the capacity of citizens and organizations to safeguard their legitimate rights in accordance with the law.

Article 12 The service of documents and investigation and evidence collection within the territory of China shall be handled in accordance with international treaties that China has concluded or acceded to, as well as the provisions of laws including the *Civil Procedure Law of the People's Republic of China* and the *International Criminal Judicial Assistance Law of the People's Republic of China*. No organization or individual may conduct service of documents or investigation and evidence collection within the territory of China in violation of the provisions of the laws of China.

Article 13 Where organizations and individuals within the territory of China participate in overseas intellectual property-related litigation or are subject to relevant investigations by overseas judicial or law enforcement authorities, and need to provide evidence or relevant materials to overseas parties, they shall comply with the provisions of laws and administrative regulations on guarding state secrets, data security, personal information protection, technology export administration, judicial assistance and other matters. Where approval from the competent authority is required in accordance with the law, relevant legal procedures shall be performed.

Article 14 The competent commerce department of the State Council may, in accordance with the *Foreign Trade Law of the People's Republic of China*, conduct investigations into the following matters and take necessary measures:

(1) Where imported goods infringe upon intellectual property rights and jeopardize the foreign trade order;

(2) Where an intellectual property right holder commits any of such acts as preventing the licensee from challenging the validity of the intellectual property rights under the licensing contract, conducting compulsory package licensing, or stipulating exclusive grant-back conditions in the licensing contract, and thus impairs the fair competition order of foreign trade;

(III) Where any other country or region fails to grant national treatment to citizens and organizations of China in the protection of intellectual property rights, or fails to provide sufficient and effective intellectual property rights protection for goods, technologies or services originating in China.

Article 15 Where a foreign state violates international law and the basic norms governing international relations, contains and suppresses China on the pretext of intellectual property disputes, adopts discriminatory restrictive measures against Chinese citizens and organizations, and interferes in China's internal affairs, the relevant departments of the State Council may, in accordance with the *Law of the People's Republic of China on Foreign Relations*, *Anti-Foreign Sanctions Law of the People's Republic of China* and other relevant laws, include the organizations and individuals directly or indirectly participating in the formulation, decision-making and implementation of the aforesaid discriminatory restrictive measures in the countermeasure list, and take corresponding countermeasures and restrictive measures.

Article 16 No organization or individual shall implement or assist in implementing the discriminatory restrictive measures imposed by foreign states on Chinese citizens and organizations of China under the pretext of intellectual property disputes.

Where any organization or individual violates the provisions of the preceding paragraph and infringes upon the lawful rights and interests of citizens and organizations of China, the aforesaid citizens and organizations of China may file a lawsuit with the people's court in accordance with the law, requiring the said party to cease the infringement and compensate for losses.

Article 17 Relevant departments of the State Council shall strengthen coordination and cooperation. Where intellectual property disputes are used to undermine the sovereignty, security and development interests of China, the aforesaid departments shall take corresponding measures in accordance with such laws as the *National Security Law of the People's Republic of China*, *Foreign Relations Law of the People's Republic of China* and *Anti-Foreign Sanctions Law of the People's Republic of China*; with regard to acts including abuse of intellectual property rights to exclude or restrict competition, or commitment of unfair competition acts, the aforesaid departments shall handle such acts in accordance with such laws as the *Anti-Monopoly Law of the People's Republic of China* and *Anti-Unfair Competition Law of the People's Republic of China*.

Article 18 These Provisions shall come into force as of May 1, 2025.