Your IP in the Chinese Automotive Industry

The automotive industry in China has seen rapid expansion over the last decade; the automotive parts market alone was worth RMB 1.5 trillion (€179 billion) in 2010 and the increasing volume of vehicle sales in the country predicts that the trend is set to continue. There are clear opportunities for European businesses to profit from this booming market but precautionary steps must be taken to meet the challenges that China poses.

When  it  comes  to  Intellectual  Property  (IP)  protection,  international  small  to  medium-sized businesses that invest in the local automotive industry should be aware of the IP risks that they run when operating in China, and the main tools at their disposal to protect against those risks.

Currently, the most important factors that allow international automotive businesses to operate in Chinese Tier 1 and Tier 2 markets, are their established contacts with global car manufacturers (the Original Equipment Manufacturers, or OEMs who produce parts or components for sale to other manufacturers to market under their own brand name – for more information you can watch the China  IPR  SME  Helpdesk   webinar  on  OEM  in  China),  their  technological  capabilities,  and  their reputation for quality. This gives them an edge over many Chinese competitors that are relatively new and lack the regimented processes that are required to guarantee a high level of quality. Therefore  IP  –  in  particular  with  regards  to  new  technologies  and  the  ability  to  protect  this technology from Chinese competitors – will be a key factor in the battle for market share. Continue reading “Protection of IPR in the Automotive Industry in China” »