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IPR and ChinaIPR and China
– – Ways to deal with Ways to deal with
Infringement/counterfeitingInfringement/counterfeiting
Workshop Agenda
Ways to deal with Infringement/counterfeiting:Ways to deal with Infringement/counterfeiting:
Prevention - first & best
Detection – find out sooner rather than later
Enforcement – an attempt to cure problem
Prevention
There are laws in China:• Trademark, patent, copyright• Domain names• Trade secrets, tech transfer• Plant varieties, IC designs, etc
But China is a first to file jurisdiction and they know it….
PreventionT1. Statistics of Patent Applications in China by 2007
1,622,631
1,931,118
2,284,925
2,761,189
3,334,374
4,028,520
1,344,177
1,595,415
1,874,358
2,257,515
2,727,626
3,314,591
278,454 335,703410,567
503,674606,748
713,929
74,454 86,685 103,644 125,366 149,4810
250,000
500,000
750,000
1,000,000
1,250,000
1,500,000
1,750,000
2,000,000
2,250,000
2,500,000
2,750,000
3,000,000
3,250,000
3,500,000
3,750,000
4,000,000
4,250,000
until 2002 until 2003 until 2004 until 2005 unitl 2006 until 2007 Year
Number
Accumulated Total
Domestic
Foreign
EU
Prevention
T3. Statistics of Trademark Application of Registration in China 2002-2006
371,936
452,095
587,925
664,017
766,319
321,034
405,620
527,591
593,382
669,276
50,902 46,47560,334 70,635
97,043
16,712 15,955 20,720 24,72344,859
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2002 2003 2004 2005 2006 Year
Number
Total
Domestic
Foreign
EU
Prevention
• Registering a trademark may cost 1,000 RMB
• What about the cost of not registering?
Case Study:
Prevention - recap
• Register IPR- Use a layered defence
• Domain names – a growing issue in China: list of officially recommended registrars on the CNNIC website: http://www.cnnic.net.cn/en/
index/0L/index.htm
• Keep trade secrets ‘secret’
• Contracts
• NDA / Confidentiality agreements
• Notarize
• Check & ensure IP materials used correctly
• Control labels / packaging / marketing material etc
Detection
• Police your market e.g.- Check suppliers
- Audit manufacturers
- Internet sweeps
- Feedback from customers/sales staff
- Market surveys
- Customs (China & EU)
• Trade Fairs- Check exhibitor contract
- Research other exhibitors
- Prepare an IP pack
- Determine strategy
Detection / Enforcement
- Prepare documents
- Collect basic info on suspected infringers
- Prepare explanation / evidence
- Power of Attorney
- Any Complaint Centre
Trade Fairs - Good preparation is key:
Guangzhou Trade Fair
Enforcement
Three strands of enforcement action:
1. Administrative action
2. Criminal action
3. Civil action
Enforcement
Administrative action:– There are over 30 different
administrative authorities. No-one coordinates nor investigates. You need to obtain evidence and convince the authorities, who can:
– carry out unannounced raids
– seize, impound and destroy fake goods
– issue punishment decisions– impose fines (not large)– revoke business licenses
Criminal action – usually escalated via Admin Authorities
SAIC building - Beijing
Enforcement - RaidsExamples of raids – car parts, garments, shoes
Enforcement - Raids
Exterior of Military area – PLA production base
Shoe boxes printed with sale price in £ & Euros
Factory making infringing footballs
Enforcement
Civil action – plenty of resources:- 120,000+ lawyers, 10,000+ law offices, 350,000 court staff
To guide you through the maze:– Trade associations / Chambers of Commerce etc– China IPR SME Helpdesk– Complaint Centers
Enforcement
Other options:• Take action outside China• Negotiate• Licence infringer• Do nothing
Summary
• You don’t have to be an expert –there are plenty out there
• Register rights – if you don’t own it you can’t protect it
• You need to be the first to file IPR in China• Use good contracts• Prevention better than cure• Be proactive
Thank you for your attention!Thank you for your attention!
Contact the Helpdesk:
www.china-iprhelpdesk.eu
Email: enquiries@china-iprhelpdesk.eu
Tel: +86 (10) 6462 0892
Fax: +86 (10) 6462 3206
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