Language and Culture Impact on Trademark Strategy in China Unitalen Attorneys AT Law

INDEX  Chinese market overview  Culture and language impacts on trademark protection in China  Right approach to trademark protection in China

How is the Chinese Market Like? Wine industry as example 1.4 billion population Long history of alcohol consuming Unique culture of alcohol consuming –

How is the Chinese Market Like? In stead of tasting wines this way

How is the Chinese Market Like? Many Chinese drink wine this way

How is the Chinese Market Like? Year million liters of imported wines USD 6 per liter Total value - USD 2.5 billion 30% of total market share in China The 5 th largest consuming country for wine

How is the Chinese Market Like? The other side of the story Limited knowledge about wine Less knowledge about imported wine Spaces for counterfeits and imitations

How is the Chinese Market Like? Counterfeit -

How is the Chinese Market Like? Imitations -

How is the Chinese Market Like? Imitations -

How is the Chinese Market Like? Imitations -

Culture and Language Impacts Why China is a highly risky market?

Culture and Language Impacts Cultural impacts  Copy – worship of masterpiece  Limitation of creativity  Fast food culture  Lack of IP consciousness

Culture and Language Impacts Linguistic impacts  Regional differences  Traditional Chinese vs Simplified Chinese  Translation vs Transliteration  PIN YIN - phonetic spelling of Chinese

Culture and Language Impacts  Regional differences

Culture and Language Impacts Linguistic impacts  Traditional Chinese vs Simplified Chinese 國畫 国画

Culture and Language Impacts Linguistic impacts  Translation vs Transliteration DELTA 三角洲 德尔塔 / 戴尔它 / 达乐他 ……

Culture and Language Impacts Linguistic impacts  PIN YIN – phonetic spelling of China 海 尔 hai er

Culture and Language Impacts 60 Million USD

Culture and Language Impacts 卡斯特 卡思黛乐 33,730,000 RMB damage

Culture and Language Impacts

THEFACEBOOKFACEBOOKSOUNDBOARD FACEBOOK DEVELOPER GARAGE

Culture and Language Impacts  飞书博 飞思簿  飞思博 菲丝博克  翡思簿 费司布克  脸谱 面书  脸书

Culture and Language Impacts How to protect your trademark in the risky market?

Trademark Protection in China  No registration, no protection  First to file, first to register  No use requirement for filing

Trademark Protection in China  What can be registered as trademarks - Word marks - Logo marks - Sound marks (coming soon!)  Need a Chinese character mark? Yes!!! - Easy access to Chinese market - Additional protection

Trademark Protection in China BMW 宝 马 (precious horse) BENZ 奔 驰 (running fast) GUCCI 古 奇 (ancient legend)

Trademark Enforcement Measures Administrative - Trademark oppositions and Invalidations - AIC raid action - Customs protection Judicial - Civil lawsuit - Criminal lawsuit

AIC Raid Action AIC = Administration for Industry and Commerce Having the power of  Maintaining market order  Protecting trademark rights and taking initiative action against trademark infringement  Taking initiative action against unfair-competition

AIC Raid Action AIC took action against 59,085 Trademark Infringement cases in 2012 Including cases involving foreign trademarks 576 cases transferred to public security bureau for criminal investigation

AIC Raid Action Receive complaint from TM owner Verify infringing facts Conduct raid action Issue detaining notice Issue penalty decision Dispose infringing goods Transfer serious cases to PSB

AIC Raid Action

AIC Notice of Detainment

AIC Raid Action AIC Penalty Decision

Customs Protection  Record registered trademarks with China General Administration of Customs 20 days – 2 months  Customs Seisure - ex officio - upon request by trademark owner

Customs Protection Notification of Customs Seisure

Advantage  Quick, simple & relatively cost- effective  Suitable for straightforward trademark counterfeits & infringements.  Evidence preservation for potential court action.

Litigation – Civil  87,419 IP related litigation cases accepted and concluded in 2012 An increase of 46%  including trademark cases An increase of 52.5%  1429 foreign related IP cases concluded in 2012

Litigation – Civil  Two instances 6-12 months for first instance 3-6 months for second instance  Statutory Damages up to 60,000 EURO (present) up to 360,000 EURO (as of May 1, 2014)

Litigation – Criminal IP related Criminal Cases accepted in 2012 An increase of 129.6% including 4664 trademark infringement cases An increase of 150.2% persons confirmed guilty

Conclusions  Register your mark in China ASAP  Register your mark also in Chinese characters  Educate Chinese consumers how to identify and where to purchase your authentic products  Never hesitate to take action against infringers  Consult your IP lawyer before there is a trouble!

Unitalen Attorneys at Law  Leading IP firm in China  700 employees  21 Branch offices in China  Proficient in both prosecution and litigation

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