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Anti-Unfair Competition Law

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					Anti-Unfair Competition Law
The People's Republic of China Against Unfair Competition
September 2, 1993 the Eighth National People's Congress Standing
Committee adopted the third meeting
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Chapter I General Provisions
First to protect the healthy development of socialist market economy, encouraging and
protecting fair competition, to stop unfair competition, protection of operators and
consumers, legitimate rights and interests with law.
The second operator in the market transactions, should follow the voluntary, equality,
fairness, good faith and observe generally recognized business ethics. Alleged unfair
competition law, is operating in violation of provisions of this Law, damage the
legitimate rights and interests of other business objects, disrupt social and economic
order. The operators mentioned in this Law, is engaged in commodity
Business or profit-making services (Goods mentioned below include services) legal
persons, other economic organizations and individuals.
Article governments at all levels shall take measures to stop acts of unfair competition,
as competition to create a good environment and conditions. Industry and commerce
administration departments above the county level on the monitor and investigate acts
of unfair competition; laws and administrative regulations of other departments of
supervision and inspection in accordance with its provisions.
The state shall encourage, support and protection of all organizations and individuals
to carry out social supervision over unfair competition. State organs shall not support
or cover up acts of unfair competition.

Chapter Unfair Competition Article operator shall not adopt the following unfair
means to carry on market transactions, damage to competitors:

   (A) of the counterfeiting of registered trademark;
(B) the unauthorized use of well-known product-specific name, packaging, decoration,
or use well-known products with similar names, packaging, decoration, resulting in a
well-known goods of others confused, causing buyers to mistake them for the
well-known commodity;
(C) the unauthorized use of another person's business name or names,
introduction of mistaken goods of others;
(D) counterfeit goods, or falsely use authentication marks, famous product marks,
falsifying the origin of the quality of goods that make false and misleading.
Article VI public utility enterprises or other operators having monopolistic status
according to law shall not force others to buy goods of the operators designated to
exclude other operators from competing fairly.
Article VII of the government and its subordinate departments shall not abuse their
administrative power to force others to buy goods of the operators designated to
restrict other legitimate business activities of the operators. Government and its
subordinate departments shall not abuse their administrative power to restrict foreign
goods to enter local markets, or local commodity flow to the outside market.
Article VIII operator shall not use bribery or other means of property to sell or buy
goods. In the off-balance by giving secret rebates units or individuals to be punished
bribery; other entity or individual, secretly accepts a kickback off-balance, and
punished as taking bribes. The selling or buying of goods, can be expressly discount
to the other party, you can commission to the middlemen. Discount operators to each
other, to the commission to the middlemen, it should be so recorded. To accept a
discount or commission operators must accurately recorded.
Article operator shall not use advertisement or other means, the quality of goods,
production composition, performance, use, manufacturer, expiration date, origin, etc
of the goods. An advertisement operator shall not knowingly or should have known of
the situation, agency, design, production, publication of false advertising.
Article operator shall not use the following means to infringe business secrets:
(A) theft, inducement, coercion or other improper means to obtain the right to the
commercial secrets;
(B) disclosing, using or allowing others to use a key means of access to rights holders
of trade secrets;
(C) breach of contract or violation of human rights requirements of the conservative
trade secrets, disclosing, using or allowing others to use trade secrets in their
possession. The third person knows or should know aforementioned violations, access,
use or disclosure of trade secrets of others, as trade secrets. The secret of this Article,
is that not known to the public, the right can bring economic benefits, is practical and
with rights holders to take security measures of technical information and
management information.
Article operator shall not for the purpose of excluding competitors, to sell goods
below cost. One of the following circumstances, not misconduct:
(A) Selling fresh goods:
(B) of the purchasers to the backlog of goods or other commodities;
(C) of the seasonal lowering of prices;
(D) the debt, changing the line out of business selling cheaper goods.
Article XII of the selling of goods, the purchaser shall not be contrary to the wishes of
tying goods or attach other unreasonable conditions.
Article XIII, the operator shall not engage in sales of the following prizes:
(A) by falsely prizes or intentionally chosen people to win sales with prizes attached
by the fraudulent method;
(B) the use of promoting the sale of Zhicijiagao prizes of goods;
(C) sales of lottery-style prize, the maximum award amount is not more than 5000
yuan.
Article XIV operator shall not utter or disseminate falsehoods to damage a competitor
or the reputation, product reputation.
Article XV shall not bid rigging, price up or down price. Tender and tender shall not
collude to exclude competitors from fair competition.
Chapter III Supervision and Inspection
16th control and inspection authorities above the county level acts of unfair
competition can be carried out supervision and inspection.
Article XVII supervision and inspection departments supervise and inspect the acts of
unfair competition, the right to exercise the following powers:
(A) in accordance with prescribed procedures questioning the operators, interested
parties and witnesses, and asked to provide evidence related to acts of unfair
competition or other information;
(B) query, copy and unfair competition related agreements, invoices, documents,
records, business correspondence and other information;
(C) Check the provisions of Article V of this Act property related to acts of unfair
competition, if necessary, may be ordered to check the operators explain the source
and quantity of the goods, temporarily stop selling them pending inspection, shall not
transfer, conceal or destroy property.
Article XVIII of staff supervision and inspection departments supervise and inspect
the acts of unfair competition, shall produce warrants of inspection.
Article XIX supervision and inspection departments supervise and inspect the acts of
unfair competition, the operators under investigation, interested parties and witnesses
shall truthfully provide relevant data or information.
Chapter IV Legal Liability
Diershitiao operator violation of this law to be against the operators of damage shall
be liable for damages, is the loss of the injured operator are difficult to calculate, the
amount of damages due to infringement by the infringement during the period the
profits; and It should be borne by the injured operator in investigating the operators of
their legal rights against unfair competition in the payment of reasonable costs.
Infringed the lawful rights and interests of operators acts of unfair competition
damages, may bring a lawsuit.
Twenty-one operator counterfeiting of registered trademarks, unauthorized use of
another person's business name or names, forging or counterfeiting
authentication marks, famous product marks, falsifying the origin of goods to the
quality of the goods that, in accordance with "The People's
Republic of China Trademark Law," "The People's
Republic of China on Product Quality" is to be punished. Unauthorized use
of operator-specific name of the well-known products, packaging, decoration, or use
well-known products with similar names, packaging, decoration, resulting in a
well-known goods of others confused, causing buyers to mistake them for the
well-known goods, supervision inspection authority shall order them to stop illegal
acts, confiscate the illegal income, illegal income according to circumstances, impose
a fine of three times; the circumstances are serious, you can revoke the business
license; selling shoddy goods, which constitutes a crime shall be held criminally
responsible.
Twenty-two operators with property or other means to pay bribes to sell or purchase
goods, which constitutes a crime shall be investigated for criminal responsibility; does
not constitute a crime, the supervision and inspection according to circumstances,
impose a fine of less than 200,000 yuan yuan penalty, the illegal gains shall be
confiscated.
Twenty-three public utility enterprises or other operators having monopolistic status
of corruption who force others to buy goods of the operators designated to exclude
other operators from competing fairly, provincial or municipal districts of supervision
and inspection department shall order stop illegal activities, according to
circumstances, impose a 50,000 yuan more than 200,000 yuan shall be imposed.
Designated operators take Zhicijiagao or overcharging for goods, supervision and
inspection department shall confiscate the illegal income and may, according to
circumstances, impose more than three times the illegal income shall be imposed.
Twenty-four operator uses advertisement or other means for the introduction of the
goods of the goods, the supervision and inspection department shall order to stop
illegal activities, and may, according to circumstances, impose a 10,000 yuan fine of
not less than 200,000 yuan. Advertising operator knows or should know in the case,
agency, design, production, false advertising, supervision and inspection department
shall order the special law, confiscate the illegal income and impose a fine according
to law.
Article 5 violation of the provisions of this Law, shall violating commercial secrets,
the supervision and inspection department shall order to stop illegal activities,
according to circumstances, impose a 10,000 yuan fine of not less than 200,000 yuan.
Operators who violate the provisions of Article 6 Article XIII of sales with prizes
attached, supervision and inspection department shall order to stop illegal activities,
according to circumstances, impose a million or above 100,000 yuan shall be
imposed.
第二 17 bidders bid-rigging, raise the price up or down; bids and tenders who collude
to exclude competitors from fair competition, in which the standard is invalid.
Supervision and inspection department may impose under the circumstances more
than 200,000 yuan 10,000 yuan shall be imposed.
28th person in violation of a commercial was ordered to suspend sales, not to remove,
conceal or destroy, unfair competition, property lines or sewage-related behavior,
supervision and inspection department may impose under the circumstances to be sold,
transferred, concealed or destroyed property price twice to three times the fine.
29th The parties to the supervision and inspection departments to make the
punishment decision, he may receive the punishment decision within fifteen days
from the date up an authority for reconsideration; satisfied with the decision on
reconsideration, it receives a written decision to the people's court within
fifteen days from the date of proceedings; also directly bring a lawsuit.
The third 10 government and its subordinate departments violate the provisions of
Article VII of this Law, force others to buy goods of the operators designated to
restrict other legitimate business activities of operators, or restrict the normal flow of
goods between regions, and by the higher authorities shall correction; the
circumstances are serious, by the same level or higher authorities directly responsible
shall be given administrative sanctions. Designated operators take Zhicijiagao or
overcharging for goods, supervision and inspection authorities shall confiscate the
illegal income, according to circumstances, impose more than three times the illegal
income shall be imposed.
In any of acts of unfair competition, abuse of state organs, which constitutes a crime
shall be investigated for criminal responsibility; does not constitute a crime, be given
administrative sanctions.
第三 12 supervision and inspection of unfair competition state personnel practice
favoritism, on the knowledge that a violation of this law constitutes a crime,
deliberately did not cover him by the prosecution, he shall be held criminally
responsible.

Chapter V Supplementary Provisions
This Law shall from December 1, 1993 shall come into force.
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