China’s Smartphone Addiction and IPR for App Developers

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8585049088_9d1dbcdf1f_kIn 2014 China’s iOS App downloads surged with a 30% increase in quarterly downloads between Q1 2014 and Q1 2015. This rapid growth, stimulated by the release of the iPhone 6 and heavy investment in Apple’s retail presence in the country, has pushed China to the top spot for App downloads worldwide[1].

Asia is leading a mobile revolution, replacing older, less transportable technologies with a ‘mobile-first’ tech culture. Smartphone penetration in China is far deeper than anywhere in the West, many new users skipping desktop computing entirely in their adoption of smartphones and tablets[2]. In China alone it is estimated that there are more than 700 million active smartphones and there is still potential for further growth as lower cost alternatives increasingly cater for the lower end of the market.

These statistics, coupled with recent developments in Chinese mobile user payment structures makes China a very attractive market for existing and potential app developers, with content creators flocking to take advantage of the newly minted market.

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Engineering Success: China IPR in the Mechanical Engineering Sector

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China’s economic success has been built on a foundation of manufacturing on a massive scale. In 2013 Chinese machine industries netted global revenues in excess of EUR 678 billion, with growth of around 20% on the previous year[1].

This success, resulting in a reputation as ‘the world’s factory’ has made China’s demand for machinery, tools and related technologies insatiable, making it a fantastic potential marketplace for Europe’s high quality products and innovative technologies.

Unfortunately, rampant transgressions upon foreign IP by Chinese infringers in the past has left a black mark on China’s history, leaving potential importers and manufacturers wary of doing business in the country. It has been estimated that German mechanical engineering companies alone suffer a combined loss of approximately EUR 7.9 billion due to product and brand counterfeiting[2].Mech Eng 1

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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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Recommended reading: EU-China Collaboration – Sustaining Technology and Research

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A piece of recommended reading this week for European technology companies considering R&D in China….

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