Category Archives: Industry Focus

IP Protection in China for the Food & Beverages Sector: Focus on GIs

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gi-pictureLast week China IPR SME Helpdesk organized an exciting webinar on IP protection in the food and beverages sector, focusing on the protection of Geographic Indications. As the topic was very popular, we decided to follow it up with a blog post, focusing on the protection of GIs. The blog post gives an overview of the GIs’ protection in China and offers some advice on how to register GIs. 

Food and Beverages Sector in China

The food and beverage (F&B) industry encompasses the formulation, processing, production, distribution in wholesale or retail, and delivery of food products.  Recent research shows that an increasing number of European F&B SMEs are making significant investments in emerging East Asian markets, particularly China, with new local product development and national business strategies. While this continues, changes are occurring in the industry that is redefining how companies grow, operate, and manage risk. Intellectual property rights (IPR) are a key component of these developments, thus increasing the need to protect those rights in several countries.

When it comes to Chinese Laws and Regulations, the F&B industry is a highly regulated sector. Foreign companies need to apply for a food production license to ensure that they meet the requirements for manufacturing capabilities and environmental regulations. Foreign products need to conform to specific standards and protocols depending on the type of products. Chinese labels need to be applied to the products to complete the Customs clearance and enter the country. In addition, a separate food and beverage distribution license is required to sell in China. Continue reading “IP Protection in China for the Food & Beverages Sector: Focus on GIs” »

IP Protection in China for the Cosmetics Industry

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cosmeticsToday’s blog post focuses on the  cosmetics industry – one of the fast-growing industries in China – discussing the IP issues relating to patent protection, trade mark protection and design protection. As counterfeiting in cosmetics is still a big issue in China and failing to protect your IP can sometimes mean the end of the business endeavor to China, it is  wise to have a robust IP protection strategy in place. Today’s blog post introduces European SMEs the tools they can use to build a good IP protection strategy in the cosmetics industry in China. 

In recent years, due to the expansion of China’s middle class, increased interest in personal care has led to the rapid development of the cosmetics industry. In addition, the adjustment of the tariff system in China and the rise of e-commerce platforms like Taobao or Jindong also contributed to the sales of cosmetics products. The industry shows an annual growth of 12% and broke the RMB 200 billion mark of sales volume in 2015[1]. The most successful products are skincare products, including moisturisers and masks, products safe for children, anti-aging products, spot-removal products, and sunscreen and whitening products.

In this market, image and trustworthiness are paramount. Chinese cosmetics consumers are more resilient to advertising and increasing influenced by peer recommendations, meaning that consistent, favorable mentions through social media such as WeChat groups are the pillars of sales growth. At the same time, the production and sale of fake and inferior products continues to be prevalent on the Chinese market – despite recent campaigns and targeted efforts of the Chinese government. Particularly, due to their popularity and high quality, overseas cosmetics brands are the usual victims of counterfeiting[2]. The infringement acts are mainly trade mark and outer packaging imitation, and customers consequently confuse the authentic and counterfeit products, leading to loss of sales, reputation and oftentimes product liability issues. Thus, for cosmetics enterprises, wishing to enter to China, it is still very important to have a robust IP strategy in place. Continue reading “IP Protection in China for the Cosmetics Industry” »

IP Considerations for App Developers in South-East Asia

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8585049088_9d1dbcdf1f_kAs the market for smartphones is rapidly growing in South-East Asia and many European companies wish to enter the lucrative market of apps, it is time to take a look at how the European SMEs can best protect their valuable intellectual property when entering the South-East Asian markets. 

In a world of increasingly affordable smartphone technology and rapidly expanding connectivity, the digital marketplace makes room for new players on the scene: the app developers. Third party’s apps have become a core part of the smartphone package, providing users with almost limitless potential for productivity, utility, education and leisure, and apps serving as a huge part of smartphone marketing strategy and user attraction.

With the number of smartphones overtaking non-smartphones back in 2013 and total worldwide app related revenues set to top $45 billion this year, app development is an increasingly attractive industry for software producers. Continue reading “IP Considerations for App Developers in South-East Asia” »

Protection of IPR in the Automotive Industry in China

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LandWindYour IP in the Chinese Automotive Industry

The automotive industry in China has seen rapid expansion over the last decade; the automotive parts market alone was worth RMB 1.5 trillion (€179 billion) in 2010 and the increasing volume of vehicle sales in the country predicts that the trend is set to continue. There are clear opportunities for European businesses to profit from this booming market but precautionary steps must be taken to meet the challenges that China poses.

When  it  comes  to  Intellectual  Property  (IP)  protection,  international  small  to  medium-sized businesses that invest in the local automotive industry should be aware of the IP risks that they run when operating in China, and the main tools at their disposal to protect against those risks.

Currently, the most important factors that allow international automotive businesses to operate in Chinese Tier 1 and Tier 2 markets, are their established contacts with global car manufacturers (the Original Equipment Manufacturers, or OEMs who produce parts or components for sale to other manufacturers to market under their own brand name – for more information you can watch the China  IPR  SME  Helpdesk   webinar  on  OEM  in  China),  their  technological  capabilities,  and  their reputation for quality. This gives them an edge over many Chinese competitors that are relatively new and lack the regimented processes that are required to guarantee a high level of quality. Therefore  IP  –  in  particular  with  regards  to  new  technologies  and  the  ability  to  protect  this technology from Chinese competitors – will be a key factor in the battle for market share. Continue reading “Protection of IPR in the Automotive Industry in China” »

Industry Spotlight: IPR Strategies in China for Cleantech Industry

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MC900437625China is the fastest growing market for wind and nuclear power generation, and is investing heavily in exploring alternative, renewable means of addressing its immense energy needs. With a large potential cleantech market, and strong government support for the development and adoption of new clean technologies, China presents great opportunities for European cleantech SMEs.

China’s large market potential means that cleantech businesses cannot risk losing a strategic foothold in China by waiting to act. However, cleantech businesses that enter China need to understand that while good execution, effective management, and access to financing is critical to maintaining a competitive advantage, protecting good technology is also equally critical. Although technology transfer can be structured in a way that minimises IP risk, additional preparation and measures directed at the IP environment in China need to be considered as well.

How IP fits into an overall business strategy will depend on whether the firm is a start-up or a growth business, and also whether the technology itself is new and untested in the market, or mature and ‘off-patent’ (technology that is no longer protected by patent). Different businesses will use IP to achieve different objectives, such as to maximise revenue-generation by monetising their IP portfolio through licensing, increase opportunities for partnerships and cross-licensing, or bar new market entrants. Continue reading “Industry Spotlight: IPR Strategies in China for Cleantech Industry” »