How to Remove Counterfeit Goods from Major E-Commerce Sites in China

2. Credit CardDespite the fact that Chinese IP laws have improved a lot in the past years, counterfeiting still exists in China. In today’s blog post we are taking a closer look at how European SMEs can fight against counterfeits on China’s major e-commerce sites like Taobao and Jingdong. This blog post offers some advice on how to find counterfeits of your product online and explains the mechanisms that exist for removing counterfeits from major e-commerce websites.

China: Counterfeit goods and the internet

The internet has become a popular and easy channel for product distribution around the world. It has created a marketplace of more than half a billion users in China, more than a third of the world’s total online population, and is still expanding. Apart from being a forum for legitimate vendors and original products, the internet is also used by illegal and unscrupulous businesses as a platform for the distribution of counterfeit goods which infringe intellectual property rights.

As the internet provides a convenient platform for counterfeits, we recommend that every European SME (especially those with successful products) should monitor Chinese e-commerce sites for infringing products. By moving quickly you will be able to have infringing products removed from sale and preserve your market share. Although some companies find that internet monitoring is time consuming but you may find yourself at high risk if you sell your product on the Chinese market, manufacture your product in China or even if you have a popular product on sale in Europe.

This guide provides you with information on the regulations governing e-commerce and a practical introduction on how to have infringing products removed from two popular Chinese e-commerce sites: Alibaba and Taobao.

Continue reading “How to Remove Counterfeit Goods from Major E-Commerce Sites in China” »

IP Considerations in Singapore for Healthcare and Medical Technologies Sector

insurance-1991276_1920In Today’s blog post we are taking a closer look at the IP protection in Singapore’s healthcare and medical technologies sector that has been offering promising business opportunities for the European SMEs for a few years now. You will learn about what types of IP are connected to the healthcare industry and how you can best protect these types of IP in Singapore.

Underpinned by both raising disposable income and progressively aging population, Singapore offers various promising business opportunities to European SMEs engaged in healthcare and medical technologies sector, whose topnotch technology is increasingly sought after. Furthermore, Singapore’s healthcare expenditure is expected to grow about 10% by 2020 and the government is committed to offering better healthcare to its citizens as it has dedicated a budget of 2.64 billion EUR to developing the health and biomedical sciences sector in Singapore over the next 5 years.[1]

European SMEs who are engaged in developing medical diagnostics tools, especially in the areas of immunochemistry, point-of-care devices, and molecular diagnostics, or developing medical solutions catered towards functional ageing and fighting obesity-related and chronic diseases, can expect to find plenty of business opportunities in Singapore, as these areas are currently developing fastest in the country. Similarly, SMEs that are engaged in digital dentistry, can expect to find promising business opportunities, as there is rising interest in digital dentistry in Singapore.[2] As Singapore aspires to become Asia’s digital healthcare hub, European SMEs can also use Singapore as a gateway to other South-East Asian countries, whose demand for healthcare technologies is similar to Singapore.

Intellectual Property Rights are very relevant in the healthcare and medical sector as companies operating in the field heavily rely on technology, software, and brand reputation. Not only a way to help protect innovations and new products from competitors, IP assets can also be an important source of cash-flow through licensing deals or selling IP, as well as a significant pull-factor when attracting investors. European SMEs should, however, not forget to pay attention to protecting their IP and implement a strategy tailored to their needs. Well-managed IP is often a key factor for business success and neglecting these rights could be costly. Thus, a comprehensive IPR strategy is needed, when entering Singapore’s market, says Valentina Salmoiraghi, IP Business Advisor. Continue reading “IP Considerations in Singapore for Healthcare and Medical Technologies Sector” »

IPR Protection in China for the OEM Industry

cool20080814_015In today’s blog post we are taking a closer look at IP protection in China’s OEM industry. You will learn about the IP associated with OEM industry like trade marks, copyrights and design patents, as well as how to protect the IP relevant to OEM industry. The blog post also provides some tips on how to mitigate IP risks in OEM contracts. 

The term Original Equipment Manufacturer (‘OEM’) designates a company that only makes a part of a product, or a subsystem, to be used in another company’s end product. The extension, also designates the agreement whereby one company commissions another to manufacture products according to certain specifications and to affix a trade mark on such products; the said products are delivered to the commissioner who sells them in the market under his own name. The letters ‘OEM’ therefore designate both the manufacturer and the act of commissioning the finished product to a third party.

China’s OEM sector developed rapidly from its roots in the apparel industry to a sector comprising automotive parts, cosmetics, and ICT equipment. As the world’s leading manufacturer, China attracts manufacturing contracts from global customers, including many European SMEs, in almost every industry by capitalising on Chinese OEM’s core strengths—relatively low labour costs, experienced manufacturers, and skilled workers.

Even though China’s IPR laws and regulations have improved in past years, IP infringements are still commonplace in the country and thus protection intellectual of property rights related to the goods is a crucial element of a successful China OEM strategy. Continue reading “IPR Protection in China for the OEM Industry” »

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” »

Basics of Manufacturing Non-disclosure Agreements in China

Page 1. ContractsIn today’s blog post we are going to take a closer look at different contracts and agreements that help European companies to protect their precious IP in China. In particular, you will learn more about non-disclosure agreements and non-use, non-disclosure and non-circumvention agreements. 

Introduction: contracts in China

Many SMEs view Chinese manufacturers as cheap, technically-skilled, attractive options for manufacturing their products and as such pursue partnerships with them. While Chinese manufacturers can be the key to the products needed to give your company worldwide reach, China—like all countries—can be home to unscrupulous merchants with a taste for IP theft. As such, tailoring contracts to suit your intellectual property rights (IPR) is an important way to ensure that your company’s specific intellectual property assets are adequately protected when dealing with Chinese manufacturers. In particular, this article will address use of so-called NDAs (non-disclosure agreements) and NNNs (non-use, non-disclosure, and non-circumvention agreements) to protect an SME’s trade secrets—“any non-public technical or business information with commercial value that is guarded by confidentiality measures.”

What are NDAs and NNNs?

At its core, a non-disclosure agreement (NDA) between an SME and a Chinese manufacturer is an agreement which states that once the SME reveals its trade secrets to the Chinese manufacturer, the manufacturer will refrain from disclosing those secrets to anyone else. Once a secret loses its secrecy—once it is revealed to the public—it no longer has any kind of legal protection and, most likely, will lose its economic value. That is why NDAs are go-to contracts for any SME which seeks to use a Chinese manufacturer. Otherwise, the manufacturer could reveal the SME’s trade secrets, making those secrets impossible to protect and capitalise on. Continue reading “Basics of Manufacturing Non-disclosure Agreements in China” »