1. IPR and China
– Ways to deal with
Infringement/counterfeiting

2. Workshop Agenda Prevention - first & best
Ways to deal with Infringement/counterfeiting:
Prevention - first & best
Detection – find out sooner rather than later
Enforcement – an attempt to cure problem

3. 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….

4. Prevention

5. Prevention

6. Prevention Registering a trademark may cost 1,000 RMB
Case Study:
Registering a trademark may cost 1,000 RMB
What about the cost of not registering?

7. Prevention - recap Register IPR
- Use a layered defence
Domain names – a growing issue in China: list of officially recommended registrars on the CNNIC website:
Keep trade secrets ‘secret’
Contracts
NDA / Confidentiality agreements
Notarize
Check & ensure IP materials used correctly
Control labels / packaging / marketing material etc

8. Detection Police your market e.g. Trade Fairs 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

9. Detection / Enforcement
Trade Fairs - Good preparation is key:
Prepare documents
Collect basic info on suspected infringers
Prepare explanation / evidence
Power of Attorney
Any Complaint Centre
Guangzhou Trade Fair

10. Enforcement Three strands of enforcement action: Administrative action
Criminal action
Civil action

11. 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

12. Examples of raids – car parts, garments, shoes
Enforcement - Raids
Examples of raids – car parts, garments, shoes

13. Enforcement - Raids
Exterior of Military area – PLA production base Shoe boxes printed with sale price in £ & Euros Factory making infringing footballs

14. 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

15. Enforcement Other options: Take action outside China Negotiate
Licence infringer
Do nothing

16. 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

17. Thank you for your attention!
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