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IPR and China – How companies can best be protected

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IPR and China – How companies can best be protected. Protecting Innovation Securing Global Competitiveness. SMEs. The Helpdesk Initiative. Opportunities Challenges Eg : EUCCC; VDMA. China. Business Associations European Parliament. Assistance. The Helpdesk Initiative.

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Presentation Transcript
slide1

IPR and China

– How companies can

best be protected

slide2

Protecting Innovation

  • Securing Global Competitiveness

SMEs

The Helpdesk Initiative

  • Opportunities
  • Challenges
  • Eg: EUCCC; VDMA

China

  • Business Associations
  • European Parliament

Assistance

the helpdesk initiative
The Helpdesk Initiative
  • European business is 99% SMEs, about 2/3 of employment & about 57-58% of value added (a bit like ratio of Chinese origin goods to all counterfeit seizures….)
  • Definition of SMEs isn\'t only \'micro-enterprises\' (under 10 people) but extends up to 250 employees, so covers more of economy than you might think
  • SMEs tend to assume that IPR is: costly, technical, \'too complicated\' and \'not for me\' leading them to do even less than they could do otherwise
  • SMEs have fewer resources so need help
workshop agenda
Workshop Agenda
  • Why Do Greek Companies Need To Consider IPR?
  • What Do You Need to Protect?
  • How Can Businesses Best be Protected:
        • - Before you start
        • - While doing business with China
why do greek companies need to consider ipr
Why Do Greek Companies Need To Consider IPR?

Trade between Greece & China = US$3.5 billion in 2008

Exports from Greece to China over US$150 million

As of November 2008, China is Greece’s 30th export market & ranked 3rd for imports

Source: Mofcom

why do greek companies need to consider ipr1
Why Do Greek Companies Need To Consider IPR?

Mechanical and electrical products - $955 mln

Transportation equipment – $608 mln

Furniture, toy, miscellaneous products - $427 mln

Textile and raw materials - $424 mln

Base metal and products – $353 mln

Shoes & boots, umbrella and other light industry products - $209 mln

Plastics, rubber - $127 mln

Pottery, glasses - $123 mln

Leather products, boxes and bags – $116 mln

Chemical products - $84 mln

Wood and wooden products - $55 mln

Optics, clocks, medical devices - $54 mln

Cellulose pulp, paper - $51 mln

Plants - $25 mln

Artwork - $22 mln

Examples of 2008 Imports to Greece from China:

why do greek companies need to consider ipr2
Why Do Greek Companies Need To Consider IPR?

To protect your products & ideas

To protect & harness your brands & reputation

To justify research & development costs

To make sure new rights belong to you

To prevent other companies from utilizing your inventions & designs

To keep your competitors at a distance

To create market space for future development

To create a strong defence in case of conflicts / infringement

To record unique technology & designs for investors

To create a platform for licensing- & co-operation agreements;

To create a qualified knowledge base for decisions about registering rights internationally.

what do you need to protect
What Do You Need To Protect?

Brand names

Inventions

Technology

Artistic works

Literary works

Domain names

Designs

Software

Systems & procedures

Know how

Trade secrets

how can businesses best be protected
How Can Businesses Best Be Protected?

How can you minimise the risks?

- treat it like your house, bank account, wallet…

Issues before you start doing business with China

- know before you go

While you are there –

- Dealing with 3rd parties

- Sourcing

- Manufacturing

- Licensing

- Trade fairs

how can businesses best be protected1
How Can Businesses Best Be Protected?

Issues before you start doing business with China:

Is it registered?

What countries are covered?

What about Chinese versions?

Who are you dealing with?

How do you know if they are reliable?

how can businesses best be protected2
How Can Businesses Best Be Protected?

China is a “first-to-file” country when it comes to IPR registrations.

- Key issue for many EU Businesses – case study

China, Hong Kong and Taiwan use separate legal systems, i.e. there is a need to file in both.

For trademarks: register broadly in many classes, Chinese versions of your TM should be registered

how can businesses best be protected3
How Can Businesses Best Be Protected?

While you are there:

Contracts/NDAs/confidentiality – notarise agreements

Are they likely to develop your product – what about IPR?

Does your supplier/manufacturer have control of brand labels/moulds/production equipment/proprietary information?

Assess risks – who else does supplier work for; is there a conflict?

how can businesses best be protected4
How Can Businesses Best Be Protected?

Consider how you want the relationship to work and what controls you need to put in place to secure your rights

Conditions should be put into a written agreement and accurately translated and understood by all parties

Take steps to verify that your potential business partner are genuine and share the same goals as you

If possible, consider keeping your most valuable IP a ‘trade secret’, for example, the formula for Coca-cola.

Business partners and IPR protection

how can businesses best be protected5
How Can Businesses Best Be Protected?

Consider what samples and promotional materials you provide to potential partners

Ensure that your property is protected after an agreement has ended e.g. include the return of moulds within the written agreement

Clearly state what Intellectual Property Rights are owned by whom in respect any items you supplied

Use confidentiality, non-competition and non-disclosure agreements

Specifically state that your supplier may NOT use a sub-supplier without your permission

Business partners and IPR protection

summary
Summary

Register rights – if you don’t own it you can’t protect it

You need to be the first to file IPR in China

Use good contracts

Prevention better than cure

Be proactive

Next – Ways to deal with Infringement/Counterfeiting…

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