Chinese IP Enforcement Options–on Trademark Side...1. Plan A will stop the infringement after...
Transcript of Chinese IP Enforcement Options–on Trademark Side...1. Plan A will stop the infringement after...
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Chinese IP Enforcement Options–on Trademark
Side
Presented by NTD www.chinantd.com
Chinese IP Attorneys
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A Quiz
If someone is infringing upon your Trademark in China, wouldyou select Plan A or Plan B?
1. Plan A will stop the infringement after two years. Plan B willstop the infringement in a week.
2. Plan A will cost you US$50,000. Plan B will cost youUS$5,000.
3. Plan A will give you US$75,000 as compensation. Plan B hasno compensation return.
A. Plan A B. Plan B C. I need more information
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Five Things You Need to Know About IP Enforcement in China
1. Know your options!
2. Know the law!
3. Know beyond the law!
4. Know your goals!
5. Know your strategy!
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1
Know Your Options
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Criminal
Civil
Others:e.g., C & D
Letter
Admin
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2
Know the Law
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Where to go?
• CIVIL– Court
• ADMINISTRATIVE– Local AMR (former “AIC”)
• Trademark infringement• Unfair competition• Quality issues
• CRIMINAL– Local PSB (Police)– Prosecutor – Court
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When available?• CIVIL
– ALL trademark infringement cases
• ADMINISTRATIVE– Straightforward cases– Not only trademark infringement
• CRIMINAL– Same mark on same goods– Threshold: turnover > US$7.5k or revenue >
US$4.5k
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What to Expect?• ADMINISTRATIVE
– Seizure of counterfeits– Order to stop infringement– Fine
• CRIMINAL– Seizure of counterfeits– Imprisonment– Fine
• CIVIL– Injunction– Compensation
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Evaluation of counterfeits
PSB arrested suspects and transferredthe case to the Procuratorate
PSB
Criminal Judgment (1-2 yrs)
AMR raided the target and seized
counterfeits (1-2 weeks)
The Procuratorate brought a public prosecution before court
Trademark owner found a targetand filed complaint with AMR
How?
AMR made punishment decisionon itself (2-6 months)
AMR believed it was atrademark infringement
AMR believed it might be acriminal case
AMR didn’tbelieve it was acriminal case
Trademark Owner
Civil action (1-4 yrs)
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3
Know Beyond the Law: Things Not Written in the Law
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How Different Authorities Work with You
• Civil--you prepare materials; they cook.• Administrative--you make starters; they
make entrees.• Criminal--you do everything; they eat.
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Concerns about LOCALPROTECTIONISM
CIVIL ADMINISTRATIVE CRIMINAL
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4
Know Your Goals?
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• Quicker• Cheaper• Impact on business• Evidence discovery & preservation• Help to get a successful settlement• Not only for trademark infringement
Why Choose Administrative
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Number of Civil Cases
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Number of Criminals sentenced
17
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Number of Administrative Cases
18
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• Seller’s defense for legitimate source after 2013• Usually limited to straightforward cases• Higher uncertainty• No compensation (compared with increased
compensation you can get from Court)
Qiang Gu Case (Beijing IP Court)First Instance: RMB10 Million (US$1.5 Million) The highest damages awarded by Beijing IP Court in TM infringement case so far.
New Balance Case (Guangdong High Court)First Instance:RMB 98 Million (US$14.5 Million) Second Instance:RMB 5 Million (US$0.75 Million)
Administrative Cases are Decreasing!
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Why Choose Criminal?
Pros:1. Powerful2. Thorough3. Sensational
Cons:1. Limited to
straightforward cases2. No compensation3. High uncertainties4. High costs
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5
Know Your Strategy: Planning
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• Similarity between marks• Similarity between goods/
services• Investigation & evidence• Favorable/unfavorable
precedents• Stability of the right base• Defence of the infringer• Strength of the infringer
© All Rights Reserved22
BUDGET
STRENGTH OF YOUR CASE
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BUDGET
STRENGTH OF YOUR CASE
CIVIL CRIMINAL
C&DLETTER
ADMIN
CIVIL
Power Compensation
and/or
ADMIN
Based on TM Other illegalities
and/or INTERNETTAKEDOWNand/or
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Thank You!Any Questions?
April 2019 24
Nathan Yang Esq.NTD Patent & Trademark Agency Ltd.
NTD Law Office
10F, BLOCK C, GLOBAL TRADE CENTRE, 36 EAST NORTH 3RD RING, BEIJING 100013, CHINA
Telephone No. ++8610-63611680Facsimile No. ++8610-66211845Email: [email protected]