It is always important to register your trade mark in China, as IP rights are territorial and European trade marks will have no automatic protection in China. Oftentimes, European SMEs ask their local partners to take care of trade mark registration as local partners already have a good understanding of the registration process. However, a case study of today’s blog post demonstrates that European SMEs should always be on top of their trade mark registration as local partners may sometimes register European SMEs’ trade mark in bad faith.
Intellectual property (IP) is a key factor in the competitiveness of business in the global economy and it is particularly relevant to the SMEs as they internationalise their business to areas such as China. Although SMEs often have limited time and resources, it is important to be aware of how IP can benefit the business. Besides helping the SMEs to protect their innovations from competitors, IP assets can also be an important source of cash-flow for SMEs through licensing deals, as well as a significant pull-factor when attracting investors.
Even though China’s IPR regime has improved over the years, counterfeiting and other IP infringements still persist in China. Thus, IP protection is of utmost importance when doing business in or with China. SMEs normally start with registering their trade mark in China when starting their business activities. Because they invest time and money into building the reputation of the company, it would be very damaging to business if someone else began using their name to sell their own products or services. Trade mark registration offers protection against infringers, as in most cases only companies with registered trade marks are able to enforce their rights in China. Continue reading “Bad Faith Trade Mark Registration in China: a Case Study” »