1. Name of Speaker, Position James Ng Principal, JN Legal Consulting Consultant, Wragge & Co LLP, Guangzhou Representative Office 18 June 2013James Ng

2. Name of Speaker, Position 18 June 2013James Ng “ Go compare ” Population 1.35 billion (1 st ) GDP (2012) US$8.2 trillion (2 nd ) Population 63million (22 nd ) GDP (2012) US$2.4 trillion (6 th )

3. Name of Speaker, Position  Publicly available information e.g. Companies Registrar or in China, AIC (Administration for Industry and Commerce)  Visit potential suppliers  Use a consulting company especially in China and India  Covert investigation 18 June 2013 James Ng

4. Name of Speaker, Position  About the company – properly set up and solvent? What is its business scope?  Reliability – references and other international customers  Track record – managing IPRs  Will subcontractor(s) be used? How many?  Location of factory – counterfeit ‘hotspot’?  Factory’s processes, procedures and quality control? 18 June 2013 James Ng

5. Name of Speaker, Position  Are they worth the paper? Yes, common law countries (Hong Kong, Singapore, Malaysia, India). China?  What type of Agreement? Will standard T&Cs attached to POs do? – Ongoing or a one-off sourcing order? – Simple “off-the-shelf” goods with brand attached or highly technical products? – Simply manufacturing? Additional services such as design or packaging?  Recommended approach – start with international standard agreement and adapt it taking local advice 18 June 2013James Ng

6. Name of Speaker, Position  Ownership of IPR, use of IPR and protection of IPR and confidential information  Subcontracting/assignment  Ownership of tooling  Destruction of waste or substandard products  Insurance  Audit rights  Non-compete clauses  Indemnity  Product recalls James Ng18 June 2013

7. Name of Speaker, Position  MOFCOM : Ministry of Commerce  BOFTEC : Bureau of Foreign Trade and Economic Commission  PSB : Public Security Bureau  SAIC : State Administration of Industry and Commerce  FESCO : Foreign Enterprise Human Resource Service Company  TSB : Technical Supervision Bureau  SAFE : State Administration of Foreign Exchange

8. Name of Speaker, Position Representative office  “…to conduct such activities as market research and surveys, promotional activities, and liaising with local manufacturers, suppliers, distributors, the foreign office…”  Relatively easier to set up, little direct investment  Application process start to finish – ONE month  No restriction on location (Note: foreign business tenancies)  Can be easily closed down

9. Name of Speaker, Position WOFE  WOFE is a limited liability company with NO local Chinese investment.  Freedom to operate without a local Chinese partner  Only permitted to conduct the business that the Chinese government has agreed it can conduct – BUSINESS SCOPE  Extremely important to get the BUSINESS SCOPE right. Can submit for approval a business scope that the approval authorities will ultimately scale down or redefine  3 broad categories (1) service WOFEs (2) manufacturing WOFEs (3) trading and manufacturing WOFEs

10. Name of Speaker, Position  Must have a Chinese name. Four requirements (1) Trade name (2) City (3) Industry (4) Co. Ltd. e.g. James Ng Engineering Plastics (Guangzhou) Co. Ltd  To use the word “China” – a minimum registered capital of USD6.5 million  Choosing not to have an industry indication – a minimum registered capital of USD13 million

11. Name of Speaker, Position Planning Paper  Location  Capital contributions  Technology and IP Contributions  Approval Procedures and Time Frames  Staffing  Negotiation and confidentiality

12. Name of Speaker, Position  Local partner? Need connections? Local market experience?  What is your industry?  Are you bringing technology?  Conducting business in Asia or testing the water?  How much control do you want?  What due diligence have you conducted on your other options/partners?

13. Name of Speaker, Position  Trade Mark Law (2001, amendment proposed in the next two years)  Patent Law (2009, third amendment)  Copyright Law (2001)  Anti-Unfair Competition Law (2007)  Other IP-related Laws: Product Quality Law, Internet Copyright, Computer Software Regulations, Plant Varieties, Integrated Circuits, Technology Transfer, Food & Drug Administration, Anti- Trust Law…)  Very Young: Only about 20-25 years old  Up to International Standard: Compliant with TRIPS and WTO in most areas 18 June 2013 James Ng

14. Name of Speaker, Position There are three main enforcement options:  administrative route  civil litigation route  criminal route Also, customs protection 18 June 2013 James Ng

15. Name of Speaker, Position Factors to consider:  Nature of your business  Remedies  Source of infringement or market clean-up  Scale of infringement  Evidence - extent and strength  Budget  Time pressure 18 June 2013 James Ng

16. Name of Speaker, Position  Prevention better than cure.  Do your homework: – Effective IP registration programme – due diligence on business partners/supply chain – ensuring contracts are in place and getting good translations – scheduled and unscheduled visits to your operations in China – build up contacts with local government authorities (importance of “guanxi” e.g. in China) and educate them about your products/IPRs 18 June 2013 James Ng