Supreme People's Court seeks views on pre-action preservation orders

The Supreme People's Court has issued a new draft interpretation outlining the applicable laws and practice when applying for pre-action preservation orders in proceedings involving IP and competition disputes. The interpretation is intended to refine and consolidate the court's existing rules and practice – some of which are inconsistent – which govern pre-action injunctions and evidence preservation in trademark and patent infringement proceedings.

The draft interpretation deals with various issues, including:

• who is entitled to apply for a pre-action preservation order;
• which court has jurisdiction to grant the order;
• the requirements in applying for such order;
• the time limit for considering the application;
• the factors considered by the people's court when granting the preservation order;
• what constitutes irreparable damage;
• the duration of the preservation measures;
• the consequences of non-compliance; and
• the remedies if the application is defective.

The consultation period for the draft interpretation ends on March 30 2015 and the finalised interpretation is expected to be available in 12 to 24 months.