Category Archives: China IP Protection Tools

IP Protection Strategies for App Developers in China

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8585049088_9d1dbcdf1f_kDue to the size of the market, increasing disposable income and smartphone addiction China is an attractive market for European app developers who are wishing to expand to new markets. European app developers should, however, pay attention to protecting their IP rights in the country, because IP infringements are still commonplace in China.In today’s blog post we’re taking a closer look at how European app developers could best protect their business against IP violations in China. 

China has increased the per person spending on games and other apps 10 times since 2014. This rapid growth, stimulated by the release of the iPhone 6 and 7 and heavy investment in Apple’s retail presence in the country, has pushed China to the top spot for App downloads worldwide[1].

Asia is leading a mobile revolution, replacing older, less transportable technologies with a ‘mobile-first’ tech culture. Smartphone penetration in China is far deeper than anywhere in the West, many new users skipping desktop computing entirely in their adoption of smartphones and tablets[2]. In China alone it is estimated that there are more than 700 million active smartphones and there is still potential for further growth as lower cost alternatives increasingly cater for the lower end of the market.

These statistics, coupled with recent developments in Chinese mobile user payment structures makes China a very attractive market for existing and potential app developers, with content creators flocking to take advantage of the newly minted market. Continue reading “IP Protection Strategies for App Developers in China” »

Managing your Intellectual Property as a Business Asset in China

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shutterstock_237576058Intellectual property rights are important, as they protect the company against counterfeiting and other types of infringements. At the same time, intellectual property rights can also be financial assets that provide security for financing. Thus IP rights could also be managed as financial assets. In today’s blog post we are taking a look at how to manage your IP rights as financial assets in China.

Introduction  

For most businesses, intangible assets represent more than 50% of the value of the enterprise. The most significant group of intangible assets are those protected by intellectual property such as inventions, designs and brands. Since they form such a large part of the overall value, their management as financial assets is important to the success of the business.

Businesses that actively manage their IP as a financial asset outperform their peers by up to 30%. They do so by maximising the effectiveness of investment in the business, driving performance in areas that produce the best return and managing operational risk. They may also use their IP assets as security to obtain various forms of funding. Moreover, there are opportunities to gain strategic advantage in relation to the sale or purchase of a business.

Understanding the financial value to the business of specific IP assets is of particular importance when moving into a new market – product or geographic – because there will be new risks as well as opportunities. China presents some special challenges, and practical steps to protect the value of IP assets are often as important as legal ones. This article discusses how IP assets matter from a financial perspective and assesses how to manage them to the greatest business advantage. Continue reading “Managing your Intellectual Property as a Business Asset in China” »

IPR Protection in China for the GNSS Technologies

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technology-2082642_1280Driven by consumers’ obsession with smartphones, China’s market for GNSS technologies offers promising business opportunities for European SMEs whose top-notch technology is highly sought after in China. European SMEs wishing to do business in China should however be aware of the fact that IP infringements are still relatively common in China and thus a comprehensive IP strategy is needed in order to succeed in China’s market. Today’s blog post, thus, offers an overview of IP protection tools in China, focusing especially on the GNSS technologies.  

GNSS and China

In an increasingly technologically advanced and interconnected world, technology utilising GNSS has risen year on year, with both entirely new applications being developed along with improvements and adaptations to existing technologies.

At present there are two globally operating GNSS systems; the United States’ Global Positioning System (GPS), and the Russian Global’naya Navigatsionnaya Sputnikovaya Sistema or (GLONASS) system. There are also two GNSS systems currently under development; Galileo, a European Union-led initiative and the expansion of the Chinese BeiDou system to the global Compass Navigation System. Both of these systems currently provide incomplete or regional coverage and are scheduled to be fully operational globally by 2020.

GNSS technology has a wide range of applications including LBS, maritime transport, public regulated services, road transport, agriculture, surveying, aviation, civil protection and timing and synchronisation.

These technologies depend on a number of factors, including ‘availability’ i.e. the percentage of time the minimum number of satellites are in view, ‘indoor penetration’ i.e. the ability of signal to penetrate inside buildings, location accuracy, continuity of service and signal reliability. Success in the GNSS market depends on the successful exploitation of technology to maximise the success of devices abilities to transmit and receive in line with these dependant factors. This makes protection of IPR crucial to maintaining market advantage and adequate returns on research investment. Continue reading “IPR Protection in China for the GNSS Technologies” »

IPR Protection in China for the Fashion Industry

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fashion2The fashion industry is booming in China and offering also many promising business opportunities  to European SMEs as Chinese consumers appreciate European fashion design. European SMEs should, however, keep in mind that even though Chinese IP laws and regulations have improved a lot, counterfeiting and other IP infringements are still commonplace in China. This blog post gives an overview of IP protection in the fashion industry and explains through one well-known case study the importance of registering also the Chinese version of your brand.  

The fashion industry encompasses the design, manufacturing, distribution, retailing, marketing and promotion of clothing, footwear and accessories and is worth billions of Euros every year.

While the fashion industry initially developed in Europe and the United States (the Italian footwear industry is one of the largest in the world and the textile industry is one of the United States’ most important employers in the manufacturing sector), today, fashion is an international and highly globalized sector.

China’s fashion industry, for instance, is set to become the world’s second largest fashion market by 2020, with sales expected to reach over RMB 1.3 trillion (EUR 182 billion) – roughly three times their current level.[1] According to the Boston Consulting Group, China will account for 30% of the global fashion market’s growth over the next five years.[2]  Continue reading “IPR Protection in China for the Fashion Industry” »

Patent Security Interest in China

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patent-without backgroundToday’s blog post has been kindly drafted to you by our IPR expert Dr. Toby Mak from Tee & Howe Intellectual Property Attorneys and Ms. Constance Rhebergen from  Bracewell LLP .  In their article, which was first published in UK Chartered Institute of Patent Attorneys (CIPA) Journal,  Dr. Mak  and Ms. Rhebergen give a detailed overview of China’s patent security interest market and explain how to register for patent security. Lending money to patentees with patent on mortgage is gaining popularity in China and this is something that European SMEs could also benefit from. 

In China, intellectual property assets, including patents, have certain similarities to other property rights such as real estate and tangible property, and the owner is able to dispose of such asset in any legally allowable manner. Typical transactions involving real estate include buying and selling, renting, and mortgaging. Although patents are extensively the subject of buying and selling (assignment), and renting (licensing), mortgaging (security interest or pledge) of patent rights is less common and often overlooked. Some top reasons contributing to this include the difficulty and expense in evaluation of security interest status of patents, instability of rights due to invalidation challenges, and the challenge of foreclosing upon a security interest to ensure realization (whether recovery of monies or transfer of secured asset), particularly compared to a required selling of real estate.

While intellectual property shares certain similarities with real estate and tangible property, the treatment of intellectual property differs in important aspects and is not intuitive.  Therefore, expertise regarding intellectual property security should be included in early stage development of strategy to ensure optimization of rights and value, both for financial institutions offering financing and companies involved in transactions.  Notably, while there is large group of patent attorneys knowledgeable about prosecution, managing security interests in patents is not necessarily part of their training.  Similarly, while corporate attorneys focus on security interests and financing, these specialist may be unversed in the unique aspects of intellectual property.  Identifying the right expert early in the process allows for structures and for drafting that will streamline efforts at a later date. Continue reading “Patent Security Interest in China” »