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Ⅰ. INTRODUCTION2109

Ⅱ. FACTUAL ASPECTS2110

A. Measures at Issue2110

1. Thresholds for criminal procedures and penalties2110

2. Disposal of goods confiscated by customs authorities that infringe intellectual property rights2111

3. Denial of copyright and related rights protection and enforcement to works that have not been authorized for publication or distribution within China2111

B. Procedural History2112

1. Translations2112

2. Request for factual information from the International Bureau of WIPO2113

Ⅲ. PARTIES’ REQUESTS FOR FINDINGS AND RECOMMENDATIONS2114

A. United States2114

B. China2114

Ⅳ.ARGUMENTS OF THE PARTIES2114

Ⅴ. ARGUMENTS OF THE THIRD PARTIES2115

Ⅵ.INTERIM REVIEW2115

1. Copyright Law2115

2. Customs measures2117

3. Criminal thresholds2119

Ⅶ. FINDINGS2120

A. Copyright Law2120

1. Description of the measure at issue2120

2. Claim under Article 2（6） of the Berne Convention （1971）， as incorporated by Article 9.1 of the TRIPS Agreement2120

3. Claim under Article 5（1） of the Berne Convention （1971）， as incorporated by Article 9.1 of the TRIPS Agreement2123

（a） Main arguments of the parties2123

（b） Main arguments of third parties2126

（c） Consideration by the Panel2127

（i） Construction of the measure at issue2127

（ii） Criteria for prohibited works2136

（iii） Procedure for determination that a work is prohibited for the purposes of Article 4（1）2139

（iv） Article 5（1） of the Berne Convention （1971）， as incorporated by Article 9.1 of the TRIPS Agreement2144

（v） Article 17 of the Berne Convention （1971） as incorporated by Article 9.1 of the TRIPS Agreement2148

（vi） Procedural issue2152

4. Claim under Article 5（2） of the Berne Convention （1971）， as incorporated by Article 9.1 of the TRIPS Agreement2153

（a） Main arguments of the parties2153

（b） Main arguments of third parties2154

（c） Consideration by the Panel2155

5. Submission regarding Article 14 of the TRIPS Agreement2155

（a） Description of relevant provisions of the Copyright Law2155

（b） Main arguments of the parties2155

（c） Main arguments of third parties2156

（d） Consideration by the Panel2156

6. Claim under Article 41.1 of the TRIPS Agreement2157

（a） Main arguments of the parties2157

（b） Main arguments of third parties2157

（c） Consideration by the Panel2158

7. Claims under Article 61 of the TRIPS Agreement2161

（a） Main arguments of the parties2161

（b） Main arguments of third parties2161

（c） Consideration by the Panel2161

8. National treatment claims2162

（a） List of relevant measures at issue2162

（b） Arguments of the parties2162

（c） Consideration by the Panel2163

9. Conclusions with respect to the Copyright Law2163

B. Customs Measures2163

1. Description of the measures at issue2163

2. Claim under Article 59 of the TRIPS Agreement2165

（a） Main arguments of the parties2165

（b） Main arguments of third parties2167

（c） Consideration by the Panel2170

（i） Introduction2170

（ii） Border measures2170

（iii） “infringing goods”2171

（iv） “shall have the authority ”2174

（v） “the principles set out in Article 46”2181

（vi） “outside the channels of commerce in such a manner as to avoid any harm caused to the right holder”2187

（vii） Donation to social welfare bodies2189

（bb） - Defective goods2189

（cc） - Harm to reputation2191

（dd） - Later sales of donated goods2192

（viii） Sale to the right holder2199

（ix） Auction and authority to order the destruction of infringing goods2200

（x） Auction and ”simple removal of the trademark unlawfully affixed”2207

（aa） - Procedural issue2207

（bb） - Simple removal of the trademark unlawfully affixed2209

3. Conclusions with respect to the Customs measures2216

C. Criminal Thresholds2216

1. Description of the measures at issue2216

（a） Introduction2216

（b） Trademark provisions2217

（i） Use of a counterfeit trademark2217

（ii） Selling counterfeit trademark commodities2218

（iii） Forgery of trademarks and sale of forged trademarks2219

（c） Copyright provisions2220

（i） Criminal copyright infringement2220

（ii） Selling copyright-infringing reproductions2222

（d） Crimes of infringing intellectual propertyrights committed by a unit2223

2. Construction of the measures at issue2223

（a） Introduction2223

（b） Normative effect of the Judicial Interpretations2223

（c） Thresholds under the Criminal Law in general2225

（d） Thresholds for conviction or aggravation2226

（e） General provisions on inchoate crimes2227

（f） General provisions on joint crimes2228

（g） Specific features of the thresholds for crimes of infringing intellectual property rights2230

（i） Profit-making purpose2230

（ii） Alternative thresholds2231

（iii） Cumulative calculation over time2232

（iv） Calculation of illegal business operation volume - goods2233

（v） Calculation of illegal business operation volume - price2234

（vi） Number of goods and prices2234

（vii） Residual thresholds2235

（viii） Administrative enforcement2236

（h） Conclusion regarding construction of the measures at issue2236

3. Claim under the first sentence of Article 61 of the TRIPS Agreement2237

（a） Main arguments of the parties2237

（b） Main arguments of third parties2238

（c） Consideration by the Panel2241

（i） Nature of the claim2241

（ii） Procedural issues2242

（iii） Nature of the obligation2243

（iv） Scope of the obligation2246

（v） “on a commercial scale”2250

（vi） Subsequent practice2262

（vii） Supplementary means of interpretation2262

（viii） Article 41.5 of the TRIPS Agreement2264

（ix） Conformity of the measures at issue with respect to the level of the thresholds2266

（x） Other indicia - physical evidence2274

（xi） Other indicia - impact on the commercial marketplace2279

（xii） Miscellaneous factors2281

（xiii） Conclusion with respect to the claim under the first sentence of Article 612282

4. Claim under the second sentence of Article 61 of the TRIPS Agreement2283

（a） Main arguments of the parties2283

（b） Main arguments of third parties2283

（c） Consideration by the Panel2284

5. Claim under Article 41.1 of the TRIPS Agreement2284

（a） Main arguments of the parties2284

（b） Main arguments of third parties2284

（c） Consideration by the Panel2285

6. Conclusions with respect to the criminal thresholds2285

Ⅷ. CONCLUSIONS AND RECOMMENDATION2285