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CNIPA Replies on Eligibility of Branch as Independent Respondent in Patent Administrative Adjudication

As regard to the branches of legal persons, Article 74 of the Civil Code stipulates that: "A legal person may form branches offices in accordance with the law. If any law or administrative regulations requires the branch offices to be registered, such a law or administrative regulation shall apply. Where a branch office conducts civil activities in its own name, and civil liability arising therefrom shall be assumed by the legal person; but such civil liability may be assumed with the property managed by the branch office and then by the legal person for any deficit". At the same time, the Civil Code also stipulates the scope and civil liability of unincorporated organizations. Article 102 of the Civil Code stipulates that: "An unincorporated organization is an organization without the status of a legal person but able to conduct civil activities in its own name in accordance with the law. Unincorporated organizations include but are not limited to sole proprietorships, partnerships, and professional service organizations without the status of a legal person". Article 104 of the Civil Cole stipulates that: "where the property of an unincorporated organization is insufficient for paying its debts, its investors or promoters shall assume unlimited liability for such debts". 

According to the above provisions, the branch company, as a branch of a legal person, does not belong to an unincorporated organization, and it shall assume civil liability in two ways, but the essence that the property of the branch belongs to the head office remains unchanged. 

In addition, according to Article 14 of the Corporation Law, the branch company does not have the status of a legal person, and its civil liability shall be assumed by the head office. 

Therefore, the branch company cannot act as an independent respondent in the administrative adjudication of patent infringement disputes.