IPR and China – Ways to deal with – Ways to deal withInfringement/counterfeiting

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

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….

Prevention

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

Prevention - recap Register IPR - Use a layered defence Domain names – a growing issue in China: list of officially recommended registrars on the CNNIC website: ex/0L/index.htm Keep trade secrets ‘secret’ Contracts NDA / Confidentiality agreements Notarize Check & ensure IP materials used correctly Control labels / packaging / marketing material etc

Detection Police your market e.g. -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

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

Enforcement Three strands of enforcement action: 1.Administrative action 2.Criminal action 3.Civil action

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

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

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

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

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

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

Thank you for your attention! Contact the Helpdesk: Tel: +86 (10) Fax: +86 (10)