Protecting your IP whilst Transferring Technology to South-East Asia

xiandaishangwu2_221In today’s blog post, the Helpdesk team will provide you some valuable tips on how to safely transfer your technology to South-East Asian countries.

In recent years, European SMEs have started to look to the Association of South-East Asian Nations (ASEAN) to be a key player in the investment and development of several different types of technologies across a multitude of industries. Relatively low labor costs, high skill levels and diversity in the level of development across the region, enabling South-East Asia to attract a range of technologies, are making the region so attractive for the European SMEs.

Whilst accessing the lucrative South-East Asian markets, the European SMEs are often willing to ‘transfer’ some of their technologies and designs to local subsidiaries of European firms, joint-venture partners, or local manufacturing and service companies. One of the challenges facing European companies coming to South-East Asia is devising creative solutions to minimize the risk to their intellectual property associated with technology transfers. A technology transfer can happen in a number of different ways. European companies most commonly transfer their technology by licensing their patents, designs, software, trade secrets, and know-how.  A common misconception is that a technology transfer is limited to transfers of high technology. However, many European companies using contract manufacturing to manufacture low technology, consumer, or industrial products, such as those based on product designs, must deal with the same risks to their IP as their high technology counterparts. Continue reading “Protecting your IP whilst Transferring Technology to South-East Asia” »

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” »

Taking Action Against Trademark Infringement in Indonesia

shutterstock_81193486-520x345Today’s blog post has been kindly drafted for us by our IPR SME Helpdesk expert Mr. Somboon  Earterasarun from Tilleke & Gibbins. Mr Earterasarun gives an excellent overview on how to fight against trade mark infringements in Indonesia. 

Indonesia uses a “first-to-file” system, under which trademark owners must register their trademarks before they are able to take action against infringers for trademark infringement. The earlier your trademarks are registered and the wider their scope of protection, the better chance you have to exercise your rights and protect your intellectual property (IP).

As a trademark owner facing infringement of your IP rights in Indonesia, there are a number of important considerations to be aware of, and you have various means of recourse available to you. Continue reading “Taking Action Against Trademark Infringement in Indonesia” »

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” »

Back to the Basics Series: Protecting Trade Secrets in China

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fgjNearly all businesses in all industries and sectors possess trade secrets. Trade secrets are a valuable and highly useful form of intellectual property that are nevertheless often undervalued and overlooked by their owners. This is not least the case in the service sector where the relative value of trade secrets as intangible assets can be extremely high. For example, a logistics firm may not hold any patents or few trade marks and substantial copyrights, but the value of its operations could heavily derive from information contained within client lists and standard procedures.

A considerable advantage for trade secrets is that unlike some other forms of IP rights, such as patents and copyrights that have a finite term, trade secrets can theoretically enjoy an infinite term of protection so long as the trade secret remains just that – a secret. The main difference between protecting something by patent or as a trade secret is that, while technical information is publicly disclosed in patents, it is kept away from the public eye in trade secrets. A trade secret can last forever as long as the confidentiality measures that protect it continue to work. An invention patent typically expires after 20 years.

On the other hand, legal protection of trade secrets is easily lost. Once the information becomes public information, it no longer enjoys any legal protection. As a result, prevention is the golden rule when it comes to protecting your trade secrets, because once your secret is out, there is usually very little that you can do about it. China, like most other countries, provides a legal framework for the protection for trade secrets, and the law provides for remedies in the event that your trade secrets are unlawfully disclosed. Part one of this two part article will describe what constitutes a trade secret and outline the measures you can take to protect them. Continue reading “Back to the Basics Series: Protecting Trade Secrets in China” »