Writing a Good Manufacturing Non-disclosure Agreement in China

MP900438585In today’s blog post we are discussing how to protect IP when seeking Chinese manufacturers and will address what it takes to design an NNN (non-use, non-disclosure, and non-circumvention agreements) which can pose enough of a credible threat to dissuade contract violations.

Defining protected information: keeping everyone on the same page

NNN agreements should clearly define which rights are being disclosed or licensed, their nature, and their scope. Clear mechanisms for identifying and marking, accounting for, and maintaining secrecy for this information (or indications of who will bear these responsibilities, what general types of information should be considered confidential, or processes for retroactively marking material as confidential) should be present. If desired, additional clauses can also outline what types of information will not be considered confidential. Naturally, before these types of information can be identified, an SME should first understand just what its trade secrets are. Conducting an IP assessment and audit can identify key IP which was otherwise taken for granted or not fully appreciated by the SME and can assign a value to the IP which will make calculating contract damages much easier.

While the contract is in force, these rules should be strictly followed. Over the course of the contract, additional IP may be generated as a result of the work of employees or independent innovations on the part of the manufacturer. NNN agreements can also include clauses which dictate that all such IP belongs to the SME and can thereby avoid future disputes. Note, however, that China places restrictions on the export of some technology—meaning that agreements automatically granting new IP to the SME could be struck down in court. Continue reading “Writing a Good Manufacturing Non-disclosure Agreement in China” »

Intellectuele eigendom toetsing bij buitenlandse overnames in China

denver-business-law-firm-intellectual-propertyIn onze meest recente blog-post, vertelt externe China IPR SME Helpdesk expert Reinout van Malenstein, als Senior Counsel werkend bij HFG Law & Intellectual Property, u meer over intellectuele eigendom toetsing bij buitenlands overnames in China. Voor bedrijven die geïnteresseerd zijn in dit onderwerp zal deze blog u meer vertellen hoe de huidige beleiedsstrategie CM2025 intellectueel eigendom in China zal beïnvloeden, en hoe u daar als Nederlands bedrijf in China het best mee om kunt gaan. Deze blog is geschreven in het Nederlands en is eerder gepubliceerd op China2025.nl, het China crowdblog.

Behoud de Nederlandse innovatieve eredivisie op het wereldtoneel

Zoals de European Union Chamber of Commerce in China de laatste jaren meerdere malen heeft aangegeven, is het zeer lastig voor Europese bedrijven om Chinese bedrijven over te nemen, terwijl dit omgekeerd relatief gemakkelijk is. De regelgeving in Nederland en Europa is gemaakt als fair level playing field voor binnenlandse en buitenlandse bedrijven. Dat is natuurlijk heel fair en ideaal, maar het is belangrijk dat Nederland en Europa zich realiseren dat China een andere agenda heeft, en dat Chinese ondernemingen in bepaalde sectoren worden beschermd ten opzichte van buitenlandse ondernemingen op de Chinese markt.

China Manufacturing 2025

De bescherming van bepaalde markten en het doel om in bepaalde sectoren controle te verkrijgen over intellectuele eigendom blijkt duidelijk uit China Manufacturing 2025 (CM2025). CM2025 is door de Chinese overheid in 2015 ingevoerd als lange termijn strategie om China op het internationale toneel tot innovatieve speler te maken. In dit beleid verandert China van goedkoop land met betrekking tot het produceren van goederen in een innovatief land. Een strategie à la Apple: “made in China, designed in California“, maar dan in die zin dat de grote winsten van de intellectuele eigendom naar China gaan en niet naar buitenlandse bedrijven. Fijn voor China in dit beleid, is dat veel grote Chinese spelers op de markt staatsbedrijven zijn, en dus makkelijk kunnen inspelen op voorgeschoteld beleid van de overheid. Continue reading “Intellectuele eigendom toetsing bij buitenlandse overnames in China” »

Trade Fairs in China: Steps to Protect You IPR

Page 1. 1.Protecting your IP at Trade FairsIn today’s blog post we are taking a closer look on how European SMEs can protect their intellectual property when they attend trade fairs in China. You’ll learn how to prepare for a trade fair, what to do and pay attention to during the trade fair and, of course, what to do in a case that someone is violating your IPR rights.

Trade fairs are an excellent opportunity for a business to showcase their new products and scout out business partners for manufacturing, promotion, and distribution. Unfortunately, in China these exhibitions are a common prowling ground for infringers, so it is of utmost importance to ensure all intellectual property precautions are undertaken. It is not sufficient to merely gain intellectual property rights for a company’s assets – steps should be taken before, during and after a trade fair to ensure maximum protection. This article takes a look at some of the steps foreign businesses should take.

Before the trade fair: fail to prepare, prepare to fail

Determine your strategy in advance of the trade fair. Do you want to take enforcement action at the fair, or only use the fair as an opportunity to gather evidence? If you are not certain about securing all necessary evidence and paperwork to carry out an action at the fair, gathering evidence there first may be a better strategy.

Prepare the required documents – some may need to be notarised and legalised which can take up to two months. The required documents include: Continue reading “Trade Fairs in China: Steps to Protect You IPR” »

The realities of doing business in China – Copyrights and Trade Marks

dreamstime_m_24720610In today’s blog post we are taking a closer look at copyrights and trade mark rights in China. You’ll learn how to protect these right in China and how to create a comprehensive trade mark and copyright protection strategy before entering China’s market.

China’s intellectual property rights (IPR) system has come a long way in the past 30 years, and development continues – a revision of the trade mark law came into force in May, paving the way for more thorough protection for rights holders. Although China is now coming into line with international IPR standards, there are still many ways in which the system differs from the European one. Below, the China IPR SME Helpdesk takes a look at two major types of intellectual property rights, trade marks and copyright, and considers how these differ from European standards.

Copyrights

The Chinese system for copyrights is very similar to that used in Europe. Copyrights last for 50 years from the date of creation, or the lifetime of the author plus 50 years, and it protects a range of creations, such as artistic works, books, websites, or computer software. As in Ireland, copyrights are automatically protected as long as the creator can be clearly identified; however, unlike most countries in Europe, China also offers copyright registration for owners, a process handled through the Copyright Protection Centre of China (CPCC). Continue reading “The realities of doing business in China – Copyrights and Trade Marks” »

General Office of Communist Party of China and State Council issued Opinion regarding Reform and Innovation for Trial of Intellectual Property Cases

RegisteredToday’s blog post has been kindly shared with us by our China IPR SME Helpdesk external expert Mr. Charles Feng from East & Concord Partners. In this article, Mr. Feng interprets and explains the recent “Opinion regarding Improvement of Reform and Innovation for Intellectual Property related Trials” jointly issued by the General Office of Chinese Communist Party and the State Council.

On February 6, 2018, General Office of Chinese Communist Party and State Council jointly issued the official document namely “Opinion regarding Improvement of Reform and Innovation for Intellectual Property related Trials” (the “Opinion”). Vice President of Supreme People’s Court (“SPC”), Judge Tao, made interpretation to the IP Opinion during the press conference and was interviewed following the issuance on February 27.

The IP Opinion consisting of four parts includes the General Requirement, Perfection of IP Trial System, Enhancement of IP Court System, and Improvement of Arrangement and Coordination, which were specified as follows.

I General Requirement

The Opinion positioned the IP protection issue as the basic measure for encouragement and guarantee to innovation and creation that builds the foundation to the National Strategy to establish a Nation that is strong in IP as well as science and technology.

Comments by Charles Feng

The Opinion was the first strategic document issued by CPC and State Council, the top administrative body of China, which declared the IP protection as the major approach to protect innovation and development.  Continue reading “General Office of Communist Party of China and State Council issued Opinion regarding Reform and Innovation for Trial of Intellectual Property Cases” »