ipr and china – how companies can – how companies can best be protected
TRANSCRIPT
IPR and ChinaIPR and China
– – How companies can How companies can
best be protectedbest be protected
Assistance• Business Associations• European Parliament
China• Opportunities• Challenges• Eg: EUCCC; VDMA
The Helpdesk Initiative
SMEs
• Protecting Innovation
• Securing Global Competitiveness
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
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?
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 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 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?
• 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 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 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 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 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?
Case study: Great idea – poorly executed…
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 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
• 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…