China’s New Ecommerce Law: What this will mean for Consumers, Operators and Providers

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shutterstock_167099189Today’s blog post has been kindly drafted for us by our China IPR SME Helpdesk expert Mr. Daniel Albrecht from Starke Beijing. In this article, Mr. Albrecht gives a comprehensive overview on the latest changes in China’s new e-commerce law that will inevitably effect the activities of consumers, operators as well as providers. 

China’s Ecommerce Market 

In accordance to analysis by digital marketing researcher eMarketer, cross-border Ecommerce in China was due to hit USD 85.76 billion in 2016, up from USD 57.13 billion in 2015. Furthermore the China Internet Network Information Center (CNNIC) reported 710 million Internet users in June 2016. Notably, 40 per cent of China’s online consumers are buying foreign goods and eMarketer estimated the amount of money that each of them would have spent an average of USD 473.26 in 2016. 

If the projection that cross-border Ecommerce will have a compound annual growth rate of 18 percent through to the end of the decade — reaching an estimated USD 222.3 billion — will come true, the consequence would be that China’s Ecommerce market will catch up with those of the US, Britain, Japan, Germany and France combined by 2020. 

China’s New Ecommerce Law 

As the Ecommerce market is constantly changing and undoubtedly its major impact on social life and the current economy cannot be denied, it seems to be necessary to provide a legal framework to give answers to upcoming questions within the scope of Ecommerce. 

Hence a new Ecommerce law is in progress and drafts are waiting to be adopted. The new law shall remedy the current situation by promoting the Ecommerce market’s development, putting things straight and satisfying all the parties’ interests. These central ideas are laid out in Article 1 of the recent draft law and shall summarize simultaneously the political objectives pursued by this law. 

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IPR Protection in China for the GNSS Technologies

technology-2082642_1280Driven by consumers’ obsession with smartphones, China’s market for GNSS technologies offers promising business opportunities for European SMEs whose top-notch technology is highly sought after in China. European SMEs wishing to do business in China should however be aware of the fact that IP infringements are still relatively common in China and thus a comprehensive IP strategy is needed in order to succeed in China’s market. Today’s blog post, thus, offers an overview of IP protection tools in China, focusing especially on the GNSS technologies.  

GNSS and China

In an increasingly technologically advanced and interconnected world, technology utilising GNSS has risen year on year, with both entirely new applications being developed along with improvements and adaptations to existing technologies.

At present there are two globally operating GNSS systems; the United States’ Global Positioning System (GPS), and the Russian Global’naya Navigatsionnaya Sputnikovaya Sistema or (GLONASS) system. There are also two GNSS systems currently under development; Galileo, a European Union-led initiative and the expansion of the Chinese BeiDou system to the global Compass Navigation System. Both of these systems currently provide incomplete or regional coverage and are scheduled to be fully operational globally by 2020.

GNSS technology has a wide range of applications including LBS, maritime transport, public regulated services, road transport, agriculture, surveying, aviation, civil protection and timing and synchronisation.

These technologies depend on a number of factors, including ‘availability’ i.e. the percentage of time the minimum number of satellites are in view, ‘indoor penetration’ i.e. the ability of signal to penetrate inside buildings, location accuracy, continuity of service and signal reliability. Success in the GNSS market depends on the successful exploitation of technology to maximise the success of devices abilities to transmit and receive in line with these dependant factors. This makes protection of IPR crucial to maintaining market advantage and adequate returns on research investment. Continue reading “IPR Protection in China for the GNSS Technologies” »

IPR Protection for the Chemical industry in Malaysia

Chemist Writing Molecular DiagramThe chemical industry in Malaysia has recently caught the interest of many European SMEs as the industry offers several promising business opportunities for the European companies. Since counterfeiting and other IP violations are still commonplace in Malaysia, South-East Asia IPR SME Helpdesk has decided to address the issue of IP protection in Malaysia in today’s blog post, focusing especially on the chemical industry. 

Malaysia’s chemical industry

Malaysia’s chemical trade with the European Union, excluding pharmaceuticals, reached 1.19 billion euros in 2015, equalling 8.4% of all EU exports to Malaysia. Chemical imports into the EU reached 1.03 billion euros, a total of 5.3% of all EU imports from Malaysia[1]. The chemical industry feeds into most of Malaysia’s other major industries, including automotive parts, electronics, and construction equipment, and is dominated by petrochemicals (43.6%, with major exports consisting of polymers of ethylene in other forms, methanol, and saturated polyesters in primary forms) and oleo-chemicals (21.9%, with major exports consisting of industrial fatty alcohols, palm fatty acid distillates, stearic acid, soap noodles, and acetic acid)[2]. Major chemical production centres include dedicated zones in Gebeng, Kertih, Pasir Gudang, and Pengerang. Continue reading “IPR Protection for the Chemical industry in Malaysia” »

IPR Protection in China for the Fashion Industry

fashion2The fashion industry is booming in China and offering also many promising business opportunities  to European SMEs as Chinese consumers appreciate European fashion design. European SMEs should, however, keep in mind that even though Chinese IP laws and regulations have improved a lot, counterfeiting and other IP infringements are still commonplace in China. This blog post gives an overview of IP protection in the fashion industry and explains through one well-known case study the importance of registering also the Chinese version of your brand.  

The fashion industry encompasses the design, manufacturing, distribution, retailing, marketing and promotion of clothing, footwear and accessories and is worth billions of Euros every year.

While the fashion industry initially developed in Europe and the United States (the Italian footwear industry is one of the largest in the world and the textile industry is one of the United States’ most important employers in the manufacturing sector), today, fashion is an international and highly globalized sector.

China’s fashion industry, for instance, is set to become the world’s second largest fashion market by 2020, with sales expected to reach over RMB 1.3 trillion (EUR 182 billion) – roughly three times their current level.[1] According to the Boston Consulting Group, China will account for 30% of the global fashion market’s growth over the next five years.[2]  Continue reading “IPR Protection in China for the Fashion Industry” »

Patent Strategies for Startups

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Today’s Post will focus on Patent Strategies for Startups in South-East Asia and has been kindly drafted for us by Ms. Chan Wai Yeng who is a patent specialist at Taylor Vinters Via LLC. Ms. Chan Wai Yeng will explore three patent strategies and several alternatives to ensure your product is best protected.

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Startups generally worry that acquiring a patent is prohibitively expensive

As discussed in the first patent article, the cost of patenting is high and generally several order of magnitudes higher than the cost of acquiring other IP rights such as trade mark and industrial design rights.

A cohesive patent strategy can yield significant competitive advantage

The high level of financial investment involved in patent filing may deter startups from developing a comprehensive IP strategy that includes patent filings at its initial development stage. However, startups with a cohesive patent strategy that aligns with their business can benefit from gaining a strong competitive advantage in the market. Having a patent filing strategy can also mitigate litigation risks from competitors.

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