Patent Security Interest in China

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” »

Patent 101: Things you need to know before patenting in Singapore

shutterstock_166598477Thinking about filing a patent in Singapore? Then this blog post for you, as today we give you a comprehensive overview of Singapore’s patent regime. Today’s blog post has been kindly drafted for us by Ms. Chan Wai Yeng who is a patent specialist at Taylor Vinters Via LLC. She was assisted by AsiaLawNetwork.com content strategist Ling Yuan Rong. Ms. Chan Wai Yeng explains the process of filing a patent in Singapore and discusses the considerations that everyone should to take into account before filing a patent application.

This article has been first published by Asia Law Network and you can find the link to the original article below at the end of the article.  

Eureka!

You have just created a great new product, UX, or developed an improved manufacturing process with significant reduction in production time. You know your invention has tremendous commercial value, and you are keen to share your idea with a potential business partner. But hold on for a minute. Before you disclose your invention to anyone, you may want to take steps to secure the ownership and protection of your brainchild by patenting your invention.

What is a Patent?

A patent is a right granted to the owner of an invention to enable him to exclude others from using, copying or making the invention without his consent in the country in which he has obtained patent protection.

The rationale behind patents is to encourage innovation by preventing competitors from copying an innovator’s novel idea. Incentives like this are essential because research and development can be very expensive and if an innovator is unable to at least recoup the cost of developing his innovation (and profit from it to some degree), the innovator is unlikely to embark in the effort. Patents also promotes diffusion of ideas and information which may have positive effects in the long run. Continue reading “Patent 101: Things you need to know before patenting in Singapore” »

Using Customs to Fight Counterfeiting in Singapore: A Case Study

shutterstock_118547785The Customs can often work as the first line of defense, when companies are dealing with counterfeiters. However, not many SMEs are aware of the different cooperation opportunities with the customs. Thus, today’s blog post focuses on how the SMEs can use the customs in order to protect their IP in Singapore, one of the busiest ports in the  world. In order to give practical advice , the blog-post discusses a case-study on customs cooperation in Singapore. 

Singapore’s port is one of the world’s busiest ports and therefore a major transit point for imports and exports between Europe and Asia. EU exporters in a number of sectors have set up distribution centers in Singapore’s harbor from where they serve the wider region. As Singapore’s port is a major transport hub, it is also at high risk of shipments of counterfeits. To promote vigilance and bolster the safety and security of trade, the EU-Singapore Free Trade Agreement (ESFTA) contains provisions to strengthen cooperation in the field of Customs. In particular, the ESFTA will facilitate the granting of assistance based on reasonable suspicion of an operation being in breach of customs legislation and will promote greater exchange of information between authorities.

European SMEs can liaise with Customs to fight against counterfeiting of their products. The Singapore Customs is a governmental agency of the Ministry of Finance and their objective is the implementation of customs and trade enforcement measures including the checking and detainment of suspected infringing goods crossing the border. The Singapore Customs has the authority to detain imports, exports and re-exports of IPR- infringing goods. Continue reading “Using Customs to Fight Counterfeiting in Singapore: A Case Study” »

Explaining the New Regulations of Foreign Contractor Withholding Tax on Trade Marks in Vietnam

shutterstock_81193486-520x345In today’s blog post we asked our IP expert Mr. Son Doan to clarify the provisions of the Official Letter on taxing the transfer of the right to use trade marks, issued by the Ministry of  Finance of Vietnam. 

On 7 November 2016 the Ministry of Finance of Vietnam issued the Official Letter 15888/BCT-CST to provide detailed guidance on foreign contractor withholding tax (FCWT) applicable to income of foreign contractors from transfer of right to use a trade mark. According to the Official Letter:

  • Pursuant to the Law on Intellectual Property, when a Vietnamese party uses a trade mark and makes payments to a foreign party for the transfer of use right, this should be considered as transfer of the right to use a trade marks in accordance with the Law on Intellectual Property, distinguishable from the assignment intellectual property rights.
  • As a result the income of foreign contractors from transfer of the rights to use a trade mark should be subject to FCWT with applicable tax rates as follows:
    • CIT rate on taxable revenue is 10%
    • VAT rate is 10% (if foreign contractor declare VAT under the credit method) or 5% (if foreign contractors declare VAT under the deemed method).

This means that if a foreign owner fully transfers the ownership of a trade mark to a Vietnamese party, there will be no taxes applied. However, if the foreign company merely grants the right to use the brand to the local Vietnamese businesses, then Vietnam tax authorities will collect the CIT and also the VAT.  Continue reading “Explaining the New Regulations of Foreign Contractor Withholding Tax on Trade Marks in Vietnam” »

CALISSONS EN DANGER – DES LEÇONS À TIRER ET À RETENIR

Le blogue d’aujourd’hui a été rédigé pour nous par notre expert  en propriété intellectuelle Maître Philippe Girard-Foley de GIRARD-FOLEY & Associates en réponse à la couverture médiatique de l’affaire de Calissons d’Aix. Dans cet article de blogue  Maître Girard-Foley explique le cas en détail et donne quelques conseils sur quelles mesures pourraient être prises pour protéger la marque.

Introduction 

Les médias français résonnent de nouvelles alarmantes concernant l’appropriation des Calissons d’Aix par « la Chine » qui démontrent une grave méconnaissance du sujet. Il paraît urgent de réintroduire dans ce débat un peu de rationalité, ne serait-ce que pour le bénéfice des fabricants concernés et de producteurs français placés dans des conditions semblables de supposée vulnérabilité.

Une marque sans valeur ?

Une marque « Calissons d’Aix » ne vaut rigoureusement rien en Chine sur le plan commercial. Ceci pour la simple et pourtant évidente raison que les mots la constituant sont  incompréhensibles et impossibles à mémoriser pour un consommateur chinois.

La seule valeur de cette marque pourrait être de nuisance, faisant obstacle à l’entrée sur le marché chinois du produit authentique, ce qui serait donc une valeur de rachat.

En termes commerciaux, ce qui compte est (i) la translittération en langue chinoise, basée sur un concept ou sur une analogie phonique, car celle-ci est reconnaissable par le consommateur chinois et (ii) la marque figurative de l’apparence distinctive du calisson. Continue reading “CALISSONS EN DANGER – DES LEÇONS À TIRER ET À RETENIR” »