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” »
Our final article for the Vietnam series covers how SMEs can work with Vietnamese authorities to use customs controls as an effective tool against infringement.
Customs can provide a last line of defence against infringement, stopping existing infringing goods from leaving or entering a country. This brief article gives an overview of Vietnam’s existing customs controls and gives some advice on how SMEs can work with the authorities to prevent the spread of infringing goods.
If, after reading you still feel all at sea, just get in touch with our experts and they’ll put you back on track!
Several weeks ago, 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.Continue reading “Marking Your Territory: Choosing a Trade Mark in China” »
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 businesses as a platform for the distribution of counterfeit goods which infringe intellectual property rights (IPR).