Brand Protectionin China

April 30, 2013China Road Show

China IP’s Challenge

• Since joining the World Trade Organization (2001), China has strengthened its legal framework and amended its IPR laws and regulations to comply with the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).

• More than 70% of the counterfeits seized by the US and EU customs in 2012 came from China.

Prevention — Best Protection

• Registerable/Non-registerable IPs– Patent: the State Intellectual Property Office (SIPO, the Patent

Office)– Trademark: the Trademark Office of the State Administration for

Industry and Commerce – Copyright: China’s National Copyright Administration (NCA) – Unfair Competition: the Fair Trade Bureau under the State

Administration for Industry and Commerce (SAIC) – Trade Secrets (know-how): protected under Anti-unfair

Competition Law

Brand Protection

• Registration of trademarks earlier• Registration of trademarks in English and Chinese• Constant and regular surveillance of trademark

infringement• Multiple layers of protection—trademark, design, copyright• Fast reaction to all levels infringement utilizing available

enforcement procedures

Statistics of Trademark Applications and Registrations (from 2001 to 2012)

Statistics of Trademark Applications in 2012

Chinese Design PatentsChinese Design Patents(2007-2012)(2007-2012)

What does the Chinese design protect?What does the Chinese design protect?

ShapeShape

PatternPattern

Shape + PatternShape + Pattern

Shape + Color Shape + Color

Pattern + Color Pattern + Color

Shape + Pattern + ColorShape + Pattern + ColorProductProductProductProduct

Design Patents—Enforcement

• Infringing Activities – The infringement of a design patent includes making, offering for

sale, selling or importing a product incorporating the patented design for production or business purpose

• Claim Construction– Patent Law, Article 59.2: the protection is defined by photos or

drawings of the product, where the brief explanation is used to explain the photos or drawings

Year Accepted Cases % Increase Concluded Cases % Increase

2006 14219 5.92 14056 4.95

2007 17877 25.73 17395 23.75

2008 24406 36.52 23518 35.2

2009 30626 25.49 30509 29.73

2010 42931 40.18 41718 36.74

2011 59882 39.48 58201 39.51

2012 87419 45.99 83850 44.07

First Instance Civil Proceedings(2006~2012)

First Instance Civil Proceedings(2006~2012)

2012 Civil Proceedings

Court Dispute Type Accepted Cases

Increased (vs. 2011)

Concluded Case

Increased (vs. 2011)

1st Instance Court*

Patent 9680 23.80%

Trademark 19815 52.53%

Copyright 53848 53.04%

Technology Contracts

746 33.93%

Unfair Competition

1123 -1.23%

Others 2207 0.64%

total 87419 45.99% 83850 44.07%

2nd Instance Court

total 9581 25.37% 9292 21.32%

Rehearing total 172 -41.5% 223 -0.45%

Supreme Court 237 (rh: 181) 246 (rh: 186)

*Foreign-related cases: 1429 (8.18%)

2012 Administrative Proceedings

Court Dispute Type Case Newly Filed

Increased (vs. 2011)

Case Closed Increased (vs. 2011)

1st Instance Court

Patent 760 16.21%

Trademark 2150 21.68%

Copyright 3 50.00%

Others 15 50.00%

total 2928 20.35% 2899 17.37%

2nd Instance Court

total 1424 1388

Supreme Court (by applicant) 98 98

Supreme Court (by court) 24 22

Thank you!

Qinghong Xu, Ph.D., J.D.

Lung Tin International Intellectual Property Agent Ltd.

Tel: 86 10 84891188

Fax: 86 10 84891189

Email: LTBJ@lungtin.com