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” »

IP Protection Strategies for the Manufacturing Industry in Indonesia

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Manufacture5The Republic of Indonesia is the largest economy in Southeast Asia and the 16th largest worldwide. It is also the most populous country in the region with an estimated total population of over 255 million representing a huge market opportunity for European trade.

Despite its size and status as an ASEAN economic heavyweight, Indonesia is currently only the EU’s fifth largest trading partner in the region. That said, growth in trade between Indonesia and the EU is steady, with EU imports to Indonesia rising 5.2% and Indonesian exports to Europe hitting 6.4% between 2014 and 2015[1], with total trade in 2015 reaching EUR 25.3 billion. Indonesia represents a fertile market for EU products and services, with rapid economic development, advances in technological capabilities and increasing disposable incomes leading to increased demand for quality machinery and products.

Whilst manufacturing represents a declining share of the economy in most developed countries, in Indonesia, manufacturing is one of the fastest growing industries. For example, private consumption and investment in the manufacturing sector have gone up by 10.5% in Indonesia, compared to 2015[2], prompting the industry to grow at a significant rate. Continue reading “IP Protection Strategies for the Manufacturing Industry in Indonesia” »

Protecting Your IP at Trade Fairs in South-East Asia

Page 1. 1.Protecting your IP at Trade FairsTrade fairs in South-East Asia provide European SMEs with the opportunity to present their innovations and ideas to potential business partners and customers whilst also allowing them to learn from and collaborate with other innovators. There is, however, a risk in that disclosing their innovations to the public may leave them exposed to third parties copying and infringing their IP. Infringement of innovations may not necessarily be straightforward ‘counterfeiting’ – i.e. exact product, packaging and brand imitation. It is more likely that competitors could be using, intentionally or otherwise, a certain part of a European SME’s product or innovation. It is therefore advisable to be as diligent as possible and to get to know your competitors’ products.

SMEs planning to attend trade fairs should therefore be aware of potential for IP infringements and of the measures that they can take to protect their products. A practical and realistic approach must be taken when preparing for and attending trade fairs. IP owners must also be patient and pragmatic, as it is unlikely that immediate action can always be taken against the infringer. There are, however, steps that IP owners can take before, during and after the event to best protect their IP. Continue reading “Protecting Your IP at Trade Fairs in South-East Asia” »

Industry Spotlight: IPR Strategies in China for Cleantech Industry

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MC900437625China is the fastest growing market for wind and nuclear power generation, and is investing heavily in exploring alternative, renewable means of addressing its immense energy needs. With a large potential cleantech market, and strong government support for the development and adoption of new clean technologies, China presents great opportunities for European cleantech SMEs.

China’s large market potential means that cleantech businesses cannot risk losing a strategic foothold in China by waiting to act. However, cleantech businesses that enter China need to understand that while good execution, effective management, and access to financing is critical to maintaining a competitive advantage, protecting good technology is also equally critical. Although technology transfer can be structured in a way that minimises IP risk, additional preparation and measures directed at the IP environment in China need to be considered as well.

How IP fits into an overall business strategy will depend on whether the firm is a start-up or a growth business, and also whether the technology itself is new and untested in the market, or mature and ‘off-patent’ (technology that is no longer protected by patent). Different businesses will use IP to achieve different objectives, such as to maximise revenue-generation by monetising their IP portfolio through licensing, increase opportunities for partnerships and cross-licensing, or bar new market entrants. Continue reading “Industry Spotlight: IPR Strategies in China for Cleantech Industry” »

Back to the Basics Series: Protecting Trade Secrets in China Part II

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ConfidentialLast week we explored Chinese laws on trade secrets and discussed some measures that the SMEs can take to protect their trade secrets. This week we get more practical and discuss how the SMEs can use non-disclosure agreements and confidentiality agreements to protect their trade secrets. We will also take a look at the measures the SMEs can take, once the trade secrets have been illegally revealed.

Nearly all businesses in all industries and sectors possess trade secrets. Trade secrets are a valuable and highly useful form of intellectual property right (IPR). As the name suggests however, trade secrets are a non-registrable form of intellectual property; they only enjoy legal protection as long as they are not disclosed publically. It is therefore crucial to prevent your trade secrets from being divulged in the first place. Once out, there is usually very little you can do about it. This concluding piece of a two-part article describes measures you can take to help ensure trade secrets aren’t lost through employees and third parties as well as options available to you should your secrets be disclosed. Check the last issue of Eurobiz for part I of this series which outlined how to identify a trade secret and the physical, technical and contractual barriers you can put in place to protect them.  Continue reading “Back to the Basics Series: Protecting Trade Secrets in China Part II” »