No Squatting: Online IPR Protection in China

shutterstock_167099189China possesses a population of over 1.3 billion people;[1] of these, there were 632 million internet users in China by the end of 2014 – this is approximately half the population of China and three times the number of internet users in South-East Asia.[2]

The share of internet users in China now equals 46.03% according to the state-administered China Internet Network Information Center (CNNIC). [3] Trends also suggest that internet use in China is set to experience further growth in coming years.

E-commerce is well developed in China today, and is predicted to account for around 10% of total retail purchases by the end of 2015, in contrast with 6 to 8% in Europe.[4] Furthermore, a study undertaken by KPMG predicts that as wealth, internet penetration, brand awareness and loyalty spread, online retail in China is also set to expand.[5]

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Industry Spotlight: IPR in the ICT Industry

shutterstock_182269964China’s IPR (intellectual property rights) protection system is expanding and improving, but it remains separate and distinct from the European system. Accordingly, to be successful in China your business must take preventative measures to protect your intellectual property rights; one must obtain valid IPR rights in China as a minimum first step. In other words, the protection of IPR rights should be a key part of your business strategy, whether entering or expanding operations in China.

While some IPR issues are common to all types of European companies doing business in China, others are specific to the ICT industry. The China IPR SME Helpdesk outlines appropriate patent and trade secret strategies, the type of patents particularly relevant to ICT companies and suitable IPR enforcement measures. Enforcement of IPR is discussed through a case study of an IT company that has taken enforcement actions in China.

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China’s Revised Patent Examination Guidelines (Draft): implications for business

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Insights into the “patent quality” landscape in China are increasingly important for understanding wider issues ranging from the types of risks businesses face when operating in China to the direction of the innovation-economy in the country. By way of one insight, this article discusses a recent initiative from the State Intellectual Property Office (SIPO) to improve patent quality in China and its implications for businesses.

Ongoing concerns

Utility model patents and design patents in China are cheaper and easier to obtain than invention patents because of lower patentability thresholds and because they do not undergo a rigorous mandatory examination. As a result, low quality utility model and design patents run a higher risk of being granted than low quality invention patents. Continue reading “China’s Revised Patent Examination Guidelines (Draft): implications for business” »