IP Tips for Entering the Chinese Market

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Harriet McDonald
7 years ago
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1 IP Tips for Entering the Chinese Market Yvonne Chua, Anita Leung & Kenny Wong Intellectual Property Committee, Law Society of Hong Kong 7 December

2 Year Key Chronology of Development of IP Regime in China Law/Regulations 1982 Trademark Law 1984 Patent Law 1991 Copyright Law 1992 Accession to Berne and Universal Copyright Conventions 1992 First Amendment to Patent Law 1993 First Amendment to Trademark Law 1993 Anti-unfair Competition Law 1995 Regulations on Customs Protection of IPRs Year Law/Regulations 2001 Amendments to IP laws to comply with TRIPS 2003 New Regulations on Customs Protection of IPRs 2007 Accession to WIPO Copyright Treaty and the WIPO Performances and Phonograms Treaty 2008 Anti-monopoly law 2010 Amendment to Regulations on Customs Protection of IPRs 2010 Revised Copyright Law 2001 Accession to WTO 2

3 Year New Applications & Registrations in Recent Years Trademarks (including Madrid registrations) and Patents Trademark Applications/ Registrations Patent Applications/ Registrations ,948 / 263, ,153 / 351, ,119 / 403, ,328 / 411, ,477 / 837, ,686 / 581, ,072,187 / 1,349,237 1,222,286 / 814, ,416,785 / 1,022,698 1,633,347 / 960,513 3

4 New Registrations in Recent Years Voluntary Copyright Registrations Year Copyright (excluding software) Copyright (only software) ,789 24, ,040,454 47, ,086 67, ,871 81, (data not available) 109,342 4

5 Register Early First-to-file vs First-to-use Trademark squatters, e.g. since 2005, a Ye RongJie filed 522 applications, 233 were opposed; since 2004, a Tang Yong filed 145 applications, 65 were opposed (information in January 2011) 5

6 Abusive Registrations (extortion for money) Register Early Jeremy Lin 林书豪 (Lin Shuhao) trademark in Class 25 Forbes Magazine USA estimated value of name as RMB 100 million 6

7 Register Early Right Class ; Right Goods Sub-class system in China 2501 shirts & trousers; 2502 babywear 2503 gymwear; 2504 raincoat 2505 costumes; 2507 footwear 2508 caps; 2509 stockings; 2510 gloves 2511 ties & scarves; 2512 clothing belts 2513 wedding dress 7

8 Register Early G2000 (Apparel) Limited Applied: Goods: clothing and hats (sub-classes 2501 and 2508) Zhao Hua Applied: Goods: socks, gloves, scarves, ties, belts, sashes and veils (sub-classes 2509, 2510, 2511 and 2512) 8

9 Register Early Selecting & Protecting a Chinese Language Mark for a Foreign Brand Viagra 万艾可 vs 伟哥 Pfizer started selling Viagra in China in 2000 official Chinese name is 万艾可 (Wàn ài kě) 伟哥 (Wei Ge): great man / mighty brother Accepted by Chinese media and consumers since 1998 Used by Guangzhou Welman and licensed to other PRC companies 9

10 Register Early Selecting & Protecting a Chinese Language Mark for a Foreign Brand 赫梅氏 10

11 Patent Invention ( 发明 ) Utility model ( 实用新型 ) Design ( 外观设计 ) 11

12 Patent Application for registration Invention patent subject to substantive examination Utility model and Design formality examination only Worldwide novelty required Prioritized examination 12

13 Patent Louis Vuitton vs Wang Jun Design patent registered by Wang in 2003 Invalidation by LV refused by Patent Re-examination Board LV filed lawsuit at No.1 Intermediate People s Court of Beijing 13

14 Copyright China - signatory to the Berne Convention and Universal Copyright Convention Copyright registration voluntary olumnid=731# Prior right to support a trademark opposition / cancellation 14

15 Customs Recordal Not necessary but recommended for obtaining Customs border protection Customs may intercept suspected infringing goods on its own initiative or upon request from IPR owner and detain the goods upon application by IPR owner for border measures 15

16 Registrations: Domain Name.cn.ac.cn,.com.cn,.edu.cn,.gov.cn,.mil.cn,.net.cn,.org.cn. 中国,. 公司,. 网络 Beware of cyber-squatting Available actions: Legal action Arbitration Complain to registrar 16

17 Trade Secrets Anti-Unfair Competition Law Note cultural differences Non-disclosure agreements Employee s duty of confidence Restrictive covenants on employees 17

Due Diligence Links to online searches Trademark http://sbcx.saic.gov.cn/trade/ index.

18 Due Diligence Links to online searches Trademark index.jsp Copyright c/zregisteraction.do?method=list& no=fck Patent 18

19 Proview s (previous) IPAD trade mark registration 19

20 Proview s (previous) IPAD trade mark registration 20

21 Proview s (previous) IPAD trade mark registration 21

22 List of all marks applied for/registered by Proview Shenzhen 22

23 List of all marks applied for/registered by Proview Shenzhen 23

Background Searches Due Diligence SAIC e.g. Shenzhen Administration for Industry and Commerce http://app01.

24 Background Searches Due Diligence SAIC e.g. Shenzhen Administration for Industry and Commerce qmis.webui/generalsearch.as px 24

25 Due Diligence Background Searches 25

26 Due Diligence Background Searches 26

27 Manage Your IP Portfolio Centralize Management ensure co-ordination amongst various agencies avoid duplication or inconsistency of records reliable record system Proper Records monitor dates of applications, registrations, renewals and maintenance deadlines for response to office actions and oppositions 27

28 Manage Your IP Portfolio Use Evidence Non-use cancellation - 3 years Muji case 28

29 Contract with Business Partners Define clearly respective rights 29

30 Contract with Business Partners Prohibit abusive registrations Non-compete covenants Guidelines for Anti-monopoly Enforcement in the Area of IP 30

31 Watching Service Trademark de/index.jsp Domain Names 31

32 Multiple Enforcement Routes Criminal Action Serious infringement of IPR or false trade descriptions Civil Remedies Interim: preliminary injunction, preservation of evidence Final: cessation of infringement, confiscation of counterfeit goods and moulds, compensation for damage (profits lost by IPR owner, unjust enrichment by defendant, or statutory damages), reasonable expenses on investigation, collection of evidence, lawyer s fees 32

33 Multiple Enforcement Routes Administrative AIC trademark infringement AIC / National Fair Trade Bureau unfair competition TSB false trade description under Product Quality Law IPO patent infringement CAA Copyright infringement Customs Arbitration 33

34 Develop a Strategy 1. Know Your IP 2. Register Early What to register and what to oppose 3. Have a Centralised System 34

35 Develop a Strategy 4. Periodic Audit 5. Monitor the Market In-house team; external advisors; investigators 6. Enforcement 35

China IPR SME Helpdesk Protecting your IPR in China & How the Helpdesk can Assist you. Beijing, 28 April 2014 Valentina Salmoiraghi, IP Expert

China IPR SME Helpdesk Protecting your IPR in China & How the Helpdesk can Assist you Beijing, 28 April 2014 Valentina Salmoiraghi, IP Expert 1) The China IPR SME Helpdesk s Services 2) Protecting your