Shanghai's Lin-gang Special Area has recently issued rules for the neutral evaluation of intellectual property disputes, establishing neutral evaluation as an independent dispute resolution mechanism for the first time in China.

Drawing on international rules and practices, the framework incorporates widely recognized approaches to confidentiality obligations, recusal mechanisms, procedural flexibility, and the formation of evaluation opinions.

Lin-gang takes the lead in China to make neutral evaluation an independent IP dispute resolution mechanism. [Photo/WeChat ID: shlgguanweihui]

It allows disputing parties to voluntarily apply for an evaluation by an independent panel of third-party professionals. Before formal litigation, administrative law enforcement, or arbitration, the panel reviews the dispute from multiple perspectives, including technical analysis, fact determination, damage assessment, and legal application, and issues a neutral evaluation opinion within 30 working days. 

Though not legally binding, it gives companies an early, objective assessment of their disputes, enabling them to make informed decisions and protect their intellectual property in a more efficient, professional, and cost-effective manner.

Next, Lin-gang will build a pool of neutral evaluation experts to provide comprehensive guidance on interpreting rules and putting them into practice. It will also strengthen collaboration with courts, arbitration institutions, and administrative authorities, integrating this pioneering mechanism into a full-chain IP protection framework.