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![Page 1: Intellectual Property Rights Protection in China and Hong Kong Jurjen Groot External Expert / China IPR SME Helpdesk Sandanski, 20 November 2015 1.](https://reader036.fdocuments.us/reader036/viewer/2022081515/5697c00f1a28abf838cca92d/html5/thumbnails/1.jpg)
Intellectual Property Rights Protection in China and Hong Kong
Jurjen GrootExternal Expert / China IPR SME Helpdesk
Sandanski, 20 November 2015
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Today’s speaker
Name: Jurjen GrootFirm: CMSLocation: Utrecht, The Netherlands
Jurjen Groot advises European clients on corporate, commercial and intellectual property matters related to their business in China. He worked 3 years for CMS in Shanghai and currently works for CMS in The Netherlands.
Jurjen’s recent IP related work includes advising a Dutch market leader in optical fiber on licensing and IP protection matters, assisting a world known Dutch innovative storm umbrella company on its IP protection and anti-counterfeiting strategy in China, and advising a winner of the Shell Livewire Young Business Award on protection of its IP in China.
220 November 2015
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Agenda
20 November 2015
• IPR Protection in China: Framework
• Types of IPR in China
– Registration / Application
• Enforcement of IPR in China
• IPR Protection in Hong Kong
• Case studies & Lessons Learned
• Take-away messages
• Overview China and South-East Asia IPR SME Helpdesks
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IPR Protection in China: Framework
20 November 2015
• Fast changing landscape, substantial improvements
• Extensive laws and regulations developed
• First to file/register system
• Separate national IP systems: protected in home market(s) does not
(automatically) mean protected in China!
• Infringement is almost inevitable, but enforcement is possible: choose your
product specific IPR strategy & pick your battles!
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Patents
520 November 2015
• Different patents in China:
– Invention Patents (20 years protection, application 3 – 5 years)
– Utility Models (10 years protection, application appr. 8 months)
– Industrial Design (10 years protection)
• Costs: 3500 – 11500 euros
• Chinese translation needed
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Types of IPR in China
620 November 2015
• Patents: PRC Patent Law and Implementation Rules
– Invention Patents
– Utility Models
– Industrial Design
• Trade marks: PRC Trademark Law and Implementation Rules
• Copyright: PRC Copyright Law
• Domain names: Measures Administration Internet Domain Names
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Patents
720 November 2015
• Different patents in China:
– Invention Patents (20 years protection, application 3 – 5 years)
– Utility Models (10 years protection, application appr. 8 months)
– Industrial Design (10 years protection)
• Costs: 3500 – 11500 euro
• Chinese translation needed
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Trademarks
820 November 2015
• “First come first serve”, be sure to be first! Others can register your trade
mark in China, can cause big trouble
• Advisable to also register Chinese translation of trade mark
• Registration period: 12 to 18 months
• Protection period: 10 years, can be renewed
• Costs: appr. 250 euros
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Trademarks – new PRC Trademark Law
920 November 2015
• Entered into effect on 1 May 2014
• Multiclass applications possible
• Higher compensation amounts (6 x higher) and administrative fines (5 x
higher)
• Stricter on bad faith registration: registration rejected if applicant has a
contractual or business relation with the (in China non-registered) right
holder and knows of the prior right’s existence. However: strict enough?
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Copyrights
1020 November 2015
• Originate automatically by creation of the work
• However: can be registered in China with Copyright Protection Center of
China
• After registration: Copyright Registration Certificate, can be very helpful
to prove that the copyright is yours
• But beware of software (source codes)!
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Enforcement of IPR in China
1120 November 2015
• Cease and desist letter
• Administrative proceedings
• Civil court proceedings
• Criminal proceedings
• Customs protection
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Cease and Desist Letter
1220 November 2015
• Quick and can be quite effective
• Strong signal that you are serious about protection your IPR
• If important infringers: be sure to first finish investigation/gather evidence
• Letters can also be sent to online shops (e.g. Taobao, Alibaba)
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Administrative Proceedings
1320 November 2015
• Trademark: AIC (powerful)
• Patent: SIPO (less powerful)
• Can be very quick and effective
• Raids and injunctions
• No financial compensation possible
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Civil Court Proceedings
1420 November 2015
• Specialized IP divisions in most Intermediate and High Courts
• Compensation of damages possible
• However: not always adequate compensation
– 90 pct of cases below $100,000
– not seldom small % of total damages claimed
• Complicated invention patent infringements
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Criminal Proceedings
1520 November 2015
• Local Public Security Bureau (PSB)
• Effectiveness varies
• Beware: no longer control of the case
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Customs Protection
1620 November 2015
• IPR can be registered with customs
• On the basis of random checks
• Most effective for trade marks
• Can be combined with Customs Protection in EU
• Free Customs service
• Be sure to “educate” Customs about products and infringers
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Enforcement (2)
Criminal Actions
• Customs raid and seizure
Copyright
Trade Marks
Shadow Companies
28 May 2014 17
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Case Study I: Trade Marks & Customs
1820 November 2015
Foreign company A has a good reputation in western fashion industry. Has own brand for shoes and clothes. Products manufactured in China, sold in Europe. A only registered TM for shoes in China. Competitor B has registered TM for clothes in China similar to A’s TM for shoes. B has also recorded that TM with China Customs. When company A shipped its clothes from China, Chinese customs detained the goods, and confiscated because of TM infringement.
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Case Study I: Lessons Learned
1920 November 2015
• Trade mark registration must fully cover all
goods of your company.
• Your trade mark is only protected in China if
registered in China.
• Customs registration can be effective way of
trade mark protection, also against you if you
didn’t register your trade mark(!!)
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Case Study II: Industrial Design & Exhibition
2020 November 2015
Foreign company T designed a tractor, which was manufactured in China under OEM by company M. Their self-designed OEM agreement stated that IPR on this tractor remains with company T. After exhibiting the tractor on a fair in Europe, public feedback: engine too small.
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Case Study II: Industrial Design & Exhibition
2120 November 2015
Company T and M jointly designed a bigger engine tractor. Company T then started to register industrial design in Europe and in China. But: T discovered that M had already registered in China(!).
T ended relationship with manufacturer and acquired another Chinese manufacturer to produce its tractors. M then sued T in China for infringement of their registered industrial design. Also, they requested the Customs to seize the T’s products, so that it could no longer export.
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Case Study II – Legal Actions
2220 November 2015
T then came to our law firm. 1st step: start industrial design invalidation proceedings with SIPO in Beijing, with argument: lack of novelty. We won SIPO proceedings. M appealed in court, and finally even Beijing High Court, with no success. Local court proceedings also decided in favor of our client T. Total time spent: 2 – 3 years
Result: Industrial design of competitor cancelled and no more legal proceedings against client: it could manufacture and export again. However: no way to prevent competitor from also doing so: no favorable market position(!). Also, T could not claim contractual damages for breach of OEM agreement, because wording only covered first (small engine) tractor model.
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Case Study II – Lessons Learned
2320 November 2015
• Registration in both Europe and China too late: big consequences!
• Ineffective OEM agreement: self-made agreement did not offer sufficient
IP protection, T with empty hands against M.
• Customs protection can be very effective – also against you!
• Displaying product on fair before registration IP very risky.
• Uphill battle because competitor had certificates and client did not.
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• Must be registered with the Trademarks Registry in Hong Kong
• 10 years, renewable
• 45 classes - multi-class applications available
20 November 2015
IPR Protection in Hong Kong – Trade marks
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ApplicationApplication
Deficiency CheckingDeficiency Checking
Search and ExaminationSearch and Examination
Publication for OppositionPublication for Opposition
HearingHearing
RegistrationRegistration
20 November 2015
IPR Protection in Hong Kong – Trade marks (2)
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Standard Patents• The State Intellectual Property Office• The United Kingdom Patent Office• The European Patent Office in respect of patent designating
the U.K.• 20 years
Two Stage Application Procedure:
• Request to record published patent application• Request for registration and grant
20 November 2015
IPR Protection in Hong Kong – Patents
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Short Term Patents• 8 years• Formality examination only
Single Stage Application Procedure:• Direct application in Hong Kong
Patent Reform• Dual system maintained• Original Patent Grant• Regulate patent attorneys and agents
20 November 2015
IPR Protection in Hong Kong – Patents (2)
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Civil Actions
1. Cease and desist letters
2. Litigation - mediation
3. Interim injunctions / Mareva injunctions
4. Anton-Piller Order / Norwich Pharmacal Order
5. Trial
6. Copyright Tribunal
20 November 2015
Enforcing your IP in Hong Kong
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Take-away messages
2920 November 2015
• Be sure to file first (before your Chinese partner/competitor!)
• Register your trademark (preferably also Chinese translation) in China
• Protecting your IP should be part of your business model
• Careful with samples and exhibitions
• Your website is also accessible in China…
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China and South-East Asia IPR SME Helpdesks
3020 November 2015 30
Enquiry Helplines
IP Guides & Newsletters
E-learning & Business Tools
Training Workshops& Live WebinarsWebsites & Blog
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Enquiry Helpline
• IPR one-to-one consultations: E-mail, telephone, face-to-face• First-line advice on China countries IPR matters• Confidential• Delivered by China IPR specialists• Available for EU SMEs and SME intermediaries
[email protected]+86 (10) 64620892
3120 November 2015
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Information & Materials
• Library of publications:– IP specific guides, incl. patents & trade marks– Industry specific guides, incl. textiles, machinery, creative industries– Business guides, incl. technology transfer– Hong Kong and Macao Factsheets
• Quarterly Helpdesk newsletters• Article placement• Topical blog posts
323220 November 2015
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Training workshops & webinars
Workshops across Europe and China• Addressing general IPR and industry specific IPR matters
• Trainings delivered in several languages
• Free one-to-one consultations• Webinars: Save time by joining these interactive training sessions from
your own office or watch recordings online
3320 November 2015
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Online portal
• Practical IPR guides• E-learning modules• Case study catalogue• FAQs• Helpdesk newsletters• Event information• Latest blog posts• Helpdesk videos
www.china-iprhelpdesk.eu
3420 November 2015
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The China IPR SME Helpdesk provides free, confidential, business-focused advice to European Small and Medium Enterprises (SMEs) relating to IPR in
China
Helpdesk Enquiry Service / Training & Events: [email protected] MaterialsOnline Services -www.china-iprhelpdesk.eu
For more information about our services and how the China IPR SME : Telephone/Hotline: +86 (10) 6462 0892
3520 November 2015
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Feedback Questions Discussion
3620 November 2015