IPR Protection in China’s Textile Industry

sweatshirts-428607_1920Two weeks ago we were discussing IP protection in South-East Asia’s textile industry, in today’s blog post we are taking a closer look at the IP protection in China’s textile industry, which is still offering many promising business opportunities to European Businesses. The blog post will offer advice to textile producers, to the producers of yarns and fabrics as well as to the producers of textile machinery. In this blog post you can get further information on trade mark, patent, copyright and trade secret protection. 

China’s textile industry is both an opportunity and threat to European businesses. It is a major market for those supplying production technologies and a key supply base for textiles and finished goods. However, foreign technologies and brands that are not adequately protected often fall victim to infringement by Chinese competitors. This article addresses IP issues across subsectors of the textile industry, including textile machinery, yarns and specialty fabrics, finished fabrics and brand apparel & accessories. The areas of IP most relevant to the above sectors will be discussed, as well as smaller IP issues specifically affecting makers of brand apparel & accessories.

Trade Marks Protect Your Brand

Trade marks provide protection against use of identical or similar marks on similar goods. China uses the ‘first-to-file’ system, meaning that companies may lose legal protection in China and take the risk of infringing others’ trademark if the same or similar mark has already been registered in China by someone else. It currently takes two-three years from application to registration of a trademark in China, providing no opposition is filed against the application upon publication.

Because China uses the ‘first-to-file’ system, it is common for unscrupulous parties to register other’s trade marks first. It can be a difficult and expensive process to cancel, oppose or buy back a trademark that has already been registered. It is not uncommon that import agents or distributors register trade marks on behalf of the principal. It is recommended that the trademark is either registered in the name of the principal or transferred back to the principal to avoid later disputes. In addition to registering the trademark in the original language, it is advisable to register a distinctive Chinese language trademark, even if this is not the primary mark used. Without a well-promoted Chinese mark, the market may create a Chinese nickname for a product, and this nickname may be registered by unscrupulous parties to exploit the reputation of your brand. Continue reading “IPR Protection in China’s Textile Industry” »

Indonesia Joins the Madrid Protocol

shutterstock_56485213More good news for the European SMEs wishing to register their trade mark in South-East Asian countries, as in addition to Thailand, Indonesia has also joined the Madrid Protocol. Today’s blog post explaining Indonesia’a accession to Madrid Protocol has been kindly drafted for us by our South-East Asia IPR SME Helpdesk external expert Ms. Wongrat Ratanaprayul from Tilleke & Gibbins. 

On October 2, 2017, Indonesia’s Ministry of Law and Human Rights submitted its instrument of accession to the Madrid Protocol, making Indonesia the 100th member state under the treaty. As a result, brand owners will be able to seek protection under the Madrid Protocol from January 2, 2018, onwards.

Once the Madrid System comes into force in Indonesia, the owner of an existing International Trademark Registration (IR) will be able to expand the scope of their protection by filing a subsequent designation to its existing IR, in order to seek additional protection in Indonesia. In addition, trademark owners will be able to file an IR in any other member country designating Indonesia, and trademark owners in Indonesia will similarly be able to file an International Trademark Application to seek protection of their trademark in any other member countries.

Indonesia has opted for an 18-month deadline, within which the registrar is obliged to issue a notification of refusal of international registrations. However, in the case where an opposition is raised by a third party, the Directorate General of Intellectual Property may notify the World Intellectual Property Organization of a notification of refusal after the expiry of the 18-month time limit.   Continue reading “Indonesia Joins the Madrid Protocol” »

IP Considerations for the Automotive Industry in South-East Asia

shift-1838138_1920 In today’s blog post we are taking a closer look at IP protection in South-East Asia for the Automotive Industry, which continues to offer many business opportunities for the European SMEs. You will learn about patent protection and when it would be wiser to relay on trade secrets instead. We will also discuss how you can protect the design of your products and how to take care of your brand. 

The automotive industry in South-East Asia has exhibited robust growth over the last few years. According to the latest statistics from the ASEAN Automotive Federation, combined motor vehicle sales in 7 major ASEAN countries (Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam and Brunei) reached 3.16 million in 2016[1], almost double the sales figure in 2006. Underpinned by increasing disposable income throughout the region and increasing demand for motor vehicles South-East Asia’s automotive market is expected to continue to grow rapidly. This also means that there will be promising business opportunities for European SMEs whose expertise and technology are especially sought after.

Taking into account the constant innovation that is at the forefront of the automotive industry, the importance of intellectual property as well as its protection and enforcement, are undeniable. Thus, when exploring the possibility of investing or expanding into the South-East Asian markets, European SMEs should be aware of the IP risks that they will face when operating in this region, in particular with respect to the new technologies and the ability to protect these technologies from local competitors. A comprehensive IP strategy is needed for succeeding in South-east Asia’s markets. Continue reading “IP Considerations for the Automotive Industry in South-East Asia” »

China IPR SME Helpdesk External Expert Charles Feng Interviewed by South China Morning Post regarding Intellectual Property Protection for Foreign-invested Companies in China

trademarkToday we would like to share with you an interview with China IPR SME Helpdesk external expert Mr. Charles Feng  from East & Concord Partners that was published in South China Morning Post. You will find the link below following the interview summary kindly drafted by East & Concord Partners. 

In August 2017, US President Donald Trump executed an administrative order to initiate an investigation against China in accordance with Section 301 of the Trade Act of 1974, on the basis that “China has stolen plenty of intellectual properties from American companies as well as forced American companies which plan to enter Chinese market to build unfair joint venture relationship with Chinese companies”. Thereafter, on September 8, 2017, twelve Chinese government authorities related to intellectual property protection, including State Intellectual Property Office (“SIPO”), Ministry of Public Security (“MPS”), State Administration for Industry and Commerce (“SAIC”), Supreme People’s Court (“SPC”) and Supreme People’s Procuratorate (“SPP”), jointly issued the Action Plan on Intellectual Property Protection for Foreign-invested Companies, initiating a four-month nationwide campaign from September 2017 to December 2017 to combat infringements and criminal violations against intellectual property rights of foreign-invested companies. Whether a coincidence or not, the above two news may seem a little opposite, which draws much attention on the intellectual property protection for foreign-invested companies in China.

In preparation for its recent article Lessons from Donald Trump and Michael Jordan on Trademarking in China focusing on current status and strategies of trademark protection in China for foreign-invested companies, South China Morning Post (“SCMP”) interviewed several well-known experts in this field, including Charles Feng, partner of East & Concord Partners, and Liao Fei, partner at international law firm King & Wood Mallesons. Continue reading “China IPR SME Helpdesk External Expert Charles Feng Interviewed by South China Morning Post regarding Intellectual Property Protection for Foreign-invested Companies in China” »

IP Protection in the Food & Beverages Industry in Thailand

shutterstock_173260598In today’s blog post we are taking a closer look to IP protection in Thai food and beverage industry, which is growing fast and attracting more and more European SMEs. You’ll learn more about brand protection in Thailand and how to protect your unique product packaging. The article will also discuss trade secrets and geographical indications. 

Thailand’s rapidly growing food & beverage industry is one of the biggest contributors to nation’s economy, contributing about 23% of the country’s GDP. Known as the ‘food basket of Asia’, Thailand is one of the Asia’s largest producers and exporters of food, with food exports amounting to 23.5 billion EUR in 2015.[1] Given Thai government’s commitment to positioning the country as a global food innovation hub, Thailand’s F&B industry has recently become very attractive for European SMEs.

Propelled by increasing dispensable income, Thailand’s domestic food and beverages market looks promising for the European SMEs. The country’s rapidly growing urban middle class constitutes a consumer base that is increasingly health-conscious, pays attention to the nutrition value of the food, but at the same time is increasingly eager to purchase processed and packaged foods and, especially the urban youth, is willing to try out new flavors and exotic F&B products. The busy lifestyle of urban youth is favoring ready-to-eat meals, snack foods and convenience products.

As the spending power of the upper-middle class is increasing, there is also greater demand for imported premium products, which offers many business opportunities for the European SMEs.

At the same time, together with rapid economic growth, counterfeiting in food products has also increased dramatically in recent years. Thus, the EU SMEs should take steps to ensure that their IP rights are protected, when selling their food products to Thailand, especially as neglecting to register IP rights in Thailand could easily end SMEs’ business endeavor in the country. Continue reading “IP Protection in the Food & Beverages Industry in Thailand” »