Marking Your Territory: Choosing a Trade Mark in China

trademarkChoosing a Chinese equivalent for your brand name can oftentimes be a challenging task.  In today’s blog post we’re taking a closer look at what you need to know when choosing your trade mark in China.  We are using the famous New Balance case to offer some tips on how to choose a good trade mark in China. 

In one of the most famous trade mark infringement case, New Balance Trading (China) – the Chinese affiliate of US sports footwear brand, New Balance – was ordered by a Guangzhou court to pay RMB98 million in compensation (equivalent to approximately EUR14.3 million), and to publicly apologise to Chinese businessman, Mr Yuelin Zhou, for trademark infringement. The trade mark in question was “新百伦”, or “Xin Bai Lun”, a Chinese transliteration of “New Balance”. This case serves as a sharp reminder of how vital it is for foreign brands to register a Chinese trade mark in China, and how cutting corners may result in high financial penalties later down the line. This article takes a look at how to best choose a Chiniese name for your brand when doing business in China.

Chinese consumer culture: why choose a Chinese name?

China possesses one third of the world’s consumers and is the largest market for luxury goods in the world. Between 2010 and 2014, European Union (EU) imports to China grew by around 12% on average annually.

Taking time to carefully consider a Chinese trade mark when importing a brand to China is important for several reasons. Firstly, because foreign brands or company names are often difficult to pronounce – or carry different meanings – in Chinese. If a company fails to provide its own Chinese name or trade mark, Chinese consumers will choose their own. Secondly, in a country where each character holds its own distinctive meaning, the characters used in a foreign branded trade mark, along with the sound, tone and look of Chinese characters, can significantly impact a brand’s reputation. Continue reading “Marking Your Territory: Choosing a Trade Mark in China” »

IP Protection in the Philippines for the Food and Beverage Industry

shutterstock_173260598In Today’s blog post we are taking a closer look at the IP protection in the Philippines in the food and beverage sector, which has recently also started to offer many business opportunities for European SMEs. You will learn more about how to protect your brand and your precious recipes. Besides brand protection, package design is also important in the Philippines, as consumers often make their purchasing decisions based on the attractiveness of the packaging. Finally, we’re also discussing the options for Geographical Indications’ protection.  

The Philippines’ rapidly growing food & beverage industry is one of the biggest contributors to nation’s economy making up about half of its manufacturing sector and contributing about 23-24% of the country’s GDP[1]. The Philippines is one of the Asia’s largest producers of food, with the value of food processing sector exceeding 24 billion EUR.[2] Given the Philippines’ government’s commitment to further developing the food and beverage industry as one of the priority industries and opening it further up to foreign investments, the Philippines’ F&B industry has become more attractive for European SMEs.

Propelled by increasing disposable income amongst the upper and middle classes and the proliferation of retail and shopping centers as well as by highly urbanized population, the Philippine’s domestic food and beverages market looks quite promising for the European SMEs. The Philippines’ consumers appreciate the high quality and healthy nature of European food and beverage products. As a general trend, the Philippines’ young and fast-growing consumer base is gradually becoming more health-conscious and is increasingly willing to try out new products. As the spending power of the upper-middle and middle class is increasing, there is also greater demand for imported premium products, which offers many business opportunities for the European SMEs.  Continue reading “IP Protection in the Philippines for the Food and Beverage Industry” »

Practical tips for protecting your IP in China and South-East Asia

dreamstime_m_24720610Protecting your IP is extremely important when doing business in China or in South-East Asia, as inadequate IP strategy can often lead to the end of your business endeavor in both regions,  since counterfeiting and other IP violations are still commonplace in China and South-East Asia. In today’s blog post you can find some practical tips for protecting your IP in China and in South-East Asia,  allowing you to draft a sound IP strategy for both regions.

China and the majority of South-East Asian countries have recently shown considerable efforts in creating stronger intellectual property rights (IPR) protection systems and in bringing their existing intellectual property laws in line with, or closer to, international standards. However, counterfeiting, trade mark infringements and other IPR infringements remain one of the major issues both in China and in the South-East Asian region. When European SMEs enter these markets, there are some key points they need to look out for in order to ensure their IPR is effectively protected.

IP Laws are territorial, register your IP

European SMEs should be aware that IP laws are territorial (and this applies in both South-East Asia and China), meaning that IPR are only enforceable upon valid domestic registration. SMEs planning to enter the South-East Asian and Chinese markets are faced with the question of when to register their trade mark, patents or designs. The answer is as soon as a company considers internationalizing its sales and activities, they should take steps to register their trade marks and other IP in the countries of destination. Obtaining the relevant information and taking advance action is the key to effective protection. Continue reading “Practical tips for protecting your IP in China and South-East Asia” »

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 Protection Strategies in China for Start-ups

growthIn today’s blog post we are taking a closer look at how start-ups, planning to set up their activities in China or have their products produced in China,  could best protect their IP rights. You will learn more about the importance of patent protection and trade mark protection and why these types of IP are essential for the start-ups.

For small start-ups the prospect of where to even start with an IP strategy can oftentimes be a daunting task as other concerns like building a good team, structuring the company, attracting investment and developing the product tend to take up all the time and attention of the business owners. At the same time, a robust IP Strategy is crucial for business’ success when planning to enter the lucrative market of China. Besides helping the start-ups to protect their innovations from competitors, IP assets can also be a significant pull-factor when attracting investors.

Protect your inventions with patents

Patent protection in extremely important for start-ups as patents protect innovations, limit competition and help to defend against claims of infringement by other companies producing similar products. Furthermore, patents can attract investors, which is fundamental for start-ups. Thus it is important to apply for patent protection in China when planning to enter its market. Continue reading “IP Protection Strategies in China for Start-ups” »