South East Asia is one of the world’s fastest growing markets, with several strong emerging economies and rapid development across a wide number industrial sectors throughout the region.
Over the next few weeks, we’ll be writing a series of guides to the current state of play in the various jurisdictions’ IPR frameworks and the procedures through which SMEs can gain protection for their intellectual property, and, where necessary, enforce their rights.
We’ll be starting the series with Singapore, with perhaps the most developed IP legal system in place and one of the freest and most competitive economies in the world.
Today’s podcast was kindly produced for us by René Bernard, Senior manager at the China offices of VDMA German Mechanical Engineering and Commercial Services (Beijing) Co. Ltd.
René shares with us the results of the recent VDMA product piracy study, along with some useful tips for SMEs working in the mechanical engineering sector for avoiding potential product piracy, or reacting to existing infringements.
The VDMA is one of the largest industrial associations in Europe and represents over 3,100 member companies in the engineering industry. The VDMA covers the entire engineering sector: everything from component manufacturers, machine builders, plant erectors, system suppliers and system integrators through to service providers. René Bernard up the Service and Consulting Company of VDMA China in Beijing and has had extensive experience supporting businesses in their development within the PRC.
China’s economic success has been built on a foundation of manufacturing on a massive scale. In 2013 Chinese machine industries netted global revenues in excess of EUR 678 billion, with growth of around 20% on the previous year.
This success, resulting in a reputation as ‘the world’s factory’ has made China’s demand for machinery, tools and related technologies insatiable, making it a fantastic potential marketplace for Europe’s high quality products and innovative technologies.
Unfortunately, rampant transgressions upon foreign IP by Chinese infringers in the past has left a black mark on China’s history, leaving potential importers and manufacturers wary of doing business in the country. It has been estimated that German mechanical engineering companies alone suffer a combined loss of approximately EUR 7.9 billion due to product and brand counterfeiting.