The Supreme People’s Court of China has an annual report on IPR (intellectual property rights) protection, which has been released in English.
Some of the highlights of the new report include:
Filings
- Civil IPR case filings increased 46 percent over 2011 to 87,419.
- Patent cases increased by 24 percent.
- Criminal IPR cases increased by 130 percent, to 13,104 cases.
Adjudication
- The increase in backlogged cases was only 0.3 percent with the courts handing down decisions in over 97 percent of the number of cases filed
- 70 percent of the cases files were settled.
- Appeals experienced a very modest growth, which indicates the difficulty of overturning administrative decisions.
Foreign cases
- Cases filed by foreign entities increased only 8 percent in 2012 to 1,429.
- As a proportion of total civil IPR litigation, foreign actions dropped from 2.2 percent to 1.6 percent.
- Increased transparency and administration were noted as well as the fact that there is room for improvement.
The report underlines China’s evolving IPR and trademark protection system and points to some important trends.
- China has gotten more involved and protective of IP and trademark issues as its domestic IPR issues have grown. Hardly surprising given at the beginning of China’s entrance to the WTO (World Trade Organization), it had next to no vested interest in the patent and trademark systems which had been developed in the West.
- The efficiency of Chinese courts in terms of the volume of disputes handled surpasses our western systems. Remarkable given the inexperience of the officials involved and the massive increases in cases and a sharp contrast to our own systems where cases can take years and massive sums to maintain.
- Foreign firms while they complain about IPR and trademark issues are not doing enough to effectively register and enforce their rights within China. Given the number of IPR and trademark issues there should be a growing not shrinking utilization of China’s registration and administrative systems.
What should you take away from this?
- Although China is a signatory to the international treaties on IPR and trademark protection, it is best to register whatever you have with the government as soon as possible. For example, for a modest $45 U.S., some form filling and about a months’ worth of waiting, you can register your trademark. From the date you register, you have created a bright line, which will be difficult for any copycats to dispute. Keep in mind the simpler you make things the stronger your protection.
- Chinese courts are interested in clearing their caseloads, which means that rather than looking for obscure meanings, obtuse legal theories or obfuscating testimony they want to simplicity. Dated filings and good documentation will outweigh tedious legal arguments and oral testimony and gives the court a solid foundation to rule on.
- Chinese courts are becoming more rational about IPR protections, not because they want to protect the interests of foreign companies, but because they are faced with making rational rulings which affect their domestic IPR interests.
Here are some practical tips on protecting your trademarks in China:
Filing
- China follows the “first to file” policy, registering your trademark as quickly as possible is the key to protecting your IP.
- Register multiple similar names, categories and subcategories of goods.
Trademark infringement actions:
- Police your IPR and trademarks, have someone do a monthly online search.
- Use the administrative process aggressively. Lawyers are cheaper, resolutions are quicker and your reputation will precede you, if you make sure your success is reported in the press.
- Keep in mind that if there is fraud or danger to the public, dangerous goods or unlicensed services, getting the administrative powers to make raids and seize goods is an option.
- Use court proceedings to seek damages and to obtain well-known trademark status.
- Notes on cases and suggestions cribbed from http://www.klgates.com/what-your-company-should-know-about-protecting-against-trademark-infringements-in-chinas-fashion-apparel-industry-04-17-2013/
Einar Tangen, formerly from Milwaukee, now lives and works in Beijing, China. He is an adviser to Heilongjiang Province, Hebei Province QEDTZ, China.org.cn, China International Publishing Group, Beijing Baotong and DGI DESIGN. He is also a weekly public affairs commentator for CCTV News’ Dialogue and the author of “The Kunshan Way,” an economic development history of China’s leading county level city. While in Milwaukee, he was a partner at Jackson, Morgan and Tangen, president of E-Tech and a senior vice president at Stifel Nicolaus. He chaired various boards in Milwaukee and was a member of the Federal Home Loan Bank of Chicago. Readers who would like to submit questions or suggest areas of interest can send an e-mail to steve.jagler@biztimes.com.
