Brand Protection in China April 30, 2013 China 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 Patents ( )

What does the Chinese design protect? ShapePatternShape + Pattern Shape + Color Pattern + ColorShape + Pattern + Color Product

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

YearAccepted Cases% IncreaseConcluded Cases% Increase First Instance Civil Proceedings (2006~2012)

First Instance Civil Proceedings (2006~2012)

2012 Civil Proceedings CourtDispute TypeAccepted Cases Increased (vs. 2011) Concluded Case Increased (vs. 2011) 1st Instance Court* Patent % Trademark % Copyright % Technology Contracts % Unfair Competition % Others % total % % 2nd Instance Court total % % Rehearingtotal % % Supreme Court237 (rh: 181)246 (rh: 186) *Foreign-related cases: 1429 (8.18%)

2012 Administrative Proceedings CourtDispute TypeCase Newly Filed Increased (vs. 2011) Case ClosedIncreased (vs. 2011) 1st Instance Court Patent % Trademark % Copyright350.00% Others % total % % 2nd Instance Court total Supreme Court (by applicant)98 Supreme Court (by court)2422

Thank you! Qinghong Xu, Ph.D., J.D. Lung Tin International Intellectual Property Agent Ltd. Tel: Fax: