David Brophy · FRKelly Patent & Trademark Attorneys

China’s IP mythsand how to keep control of your

trademarks

IP Myths

China doesn’t

recognise IP

“”

IP Myths

There’sno legal

frameworkin place

“”

... In fact, there’s no shortage of Chineselaws on IP

China’s IP laws are wide-reaching, modern

and compare well with

those of most

Western countries

The skeptic’s response?

“There’s no point in China granting all these IP rights if it won’t enforce them”

So let’s look at those myths too ...

More IP Myths

The courtswon‘t stopinfringers“

”

More IP Myths

Foreigncompaniesalwayslose

“”

More IP cases per year ...

... than any other country

This would not have evolved ...

... if IP owners always lost

IP owners win >55% of the time

Foreign companies in IP cases ...

... more likely to win than Chinese

But before we get carried

away ...

So there’s nothing to worry

about,

right?

Some foreign companies do lose control of their IP in China

Mostly because

they didn’t obtain

Chinese IP

protection

To avoid IP being taken,

you first have to own

Chinese IP

First to register TM owns it

as regards ChinaIt may have been your TM originally, but if someone else registers it in China,it’s theirs (and is

hard to win back from them)

TM “squatting” is common

Usually a polite letter:“Hey. I see you own the TM xxx. Well, someone has filed for a Chinese registration. I can help. Will I seeif they’re willing to sell?”

Customs can block infringing goods from

leaving ChinaYes, they can block that container full of machine parts you’re waiting on. That youpaid for. Branded with “your” TM. But which infringes a registration someone else owns.

• Get your application in first

• File for English version of TM

• And for Mandarin version(s)if selling in China

IP Truths

The systemis fair – ifyou know howto use it(foreign companies often don’t)

IP Truths

Foreign companiesdon’t registertheir TMs early enough

IP Truths

TM “owners”can stop goods exiting China

IP Truths

You can avoid major TMheadaches by

filing early in China

In the words of a Chinese

businessman, unapologetic

about copying products which

didn’t enjoy Chinese patent

& TM registrations ...

“Respect your own IP before

asking us to respect

your IP”

Thanks

David Brophy

d.brophy@frkelly.com