How to Protect Interior Designs of Shops in China

shutterstock_385731427In today’s blog post, we will take a look at how SMEs can protect the interior design of their shops, which can be as important as protecting their brand and other types of IP. 

When Brent Hoberman, founder of online interior design and furniture store Mydeco.com, made a trip to China one man was particularly keen to meet him. When they met, the man explained that he wanted to launch a web business but had no idea how to do it until he found Mydeco.com and copied it. He only wished to express his appreciation personally to Mr Hoberman.

In 2011 the residents of Kunming, a city in the South-Western region of China were delighted to find an IKEA shop there. The copycat store is an enormous, multi-level shop that sells modern IKEA-like furniture and even copies the distinctive blue and yellow branding. The residents realized it was a fake, but have little choice as the closest real IKEA is in Chongqing, 940km away.

Store layouts, colours and designs become synonymous with a brand, so imitation of a store interior is very damaging to companies. At times it is increasingly difficult to separate the real from the fake. Continue reading “How to Protect Interior Designs of Shops in China” »

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” »

The Last (or First) Line of Defense: Using Customs to Protect your IPR in China

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customs1Businesses in Europe have increasingly benefited from Customs authorities acting to prevent counterfeit products from entering their borders – seizures of products infringing on others intellectual property (IP) make news stories around Europe every week. Not many businesses, however, realise that unlike most countries the Chinese Customs authorities not only have the power to examine and seize criminal imports, but also exports. China Customs have the authority to protect IP rights by confiscating infringing goods and imposing fines on infringers. If the infringement of IP rights exceeds a certain threshold, then the Customs authorities will also arrange for criminal proceedings to be brought against the infringing party.

The Customs IP Regulations provide that IP rights can be recorded with the General Administration of Customs (GAC) in Beijing. Although it is not compulsory to record IP rights at the GAC in order to apply to local customs for enforcement proceedings, it is beneficial for a company moving goods in and out of China, because if IP rights are registered with Customs, then Customs has the power to detain at will any suspected infringing consignment of goods. In addition, local customs offices are more proactive when IP rights are recorded with GAC mainly because the recordal provides Customs officials with easy access to internal IP databases and makes it easier for them to determine whether goods passing through Customs are genuine or counterfeit. Recordal of IP rights also facilitates the process of commencing Customs enforcement proceedings.

Given that the recordal of IP rights with GAC is free and straightforward, recording with GAC is recommended by the China IPR SME Helpdesk experts.
Continue reading “The Last (or First) Line of Defense: Using Customs to Protect your IPR in China” »

Bad Faith Trade Mark Registrations in China

Prior trade mark registrations, also called ‘bad-faith registrations’, are a significant problem that many European companies encounter in China. This process commonly involves a Chinese company first registering the trade mark of a foreign company in China with the express intention of selling it back to the foreign company at an inflated price. Finding out that a Chinese company has registered a bad faith trade mark is one of the biggest complaints of European Small and Medium Enterprises (SMEs) trying to enter the Chinese market. These prior registrations can limit the foreign company’s freedom to operate by restricting its ability to enter the China market or even to source goods from China.

As an example, a Scandinavian SME used a Chinese factory to make its goods for export. The Chinese supplier registered the Scandinavian company’s trade mark in China and engaged China’s customs to intercept export goods bearing the trade mark, thereby disrupting the Scandinavian company’s business. Continue reading “Bad Faith Trade Mark Registrations in China” »

Protect your Product’s Design in China: Know before You Go

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shutterstock_385731427Product’s design is often one of the most important aspects of a consumer product – the way companies shape and package their goods plays a crucial role in customers purchasing decisions. Distinctive and easily recognizable visual design carries the identity and reputation of a particular brand across the globe, including the vast Chinese market. Expanding into China represents an exciting opportunity for European SMEs to reap additional profits, but how can enterprises simply and inexpensively protect their designs? The most common types of intellectual property relevant to the design of the goods themselves are design patents and copyright, while packaging can be protected in China under additional types of IP law, such as the Trademark Law, the Patent Law, the Copyright Law and the Anti-unfair Competition Law.

Given the variety of options available, it is recommended to carefully plan a strategy of combined and layered protection through registration of IP. Depending on your specific business and your specific budget needs, your SME may choose to opt for only one kind of registration or may choose to combine different registrations as a bundle of rights for more comprehensive protection. While products themselves and technical features of packaging can be protected as utility models or invention patents, packaging and aesthetic features of industrial products are most commonly protected under design patent registration.  Design patents include any of the following external features of a product that are rich in aesthetic appeal and are fit for industrial application: Continue reading “Protect your Product’s Design in China: Know before You Go” »