The Basics of Copyright Protection in China

Earlier this week, China and the United Kingdom have signed a bilateral agreement to accelerate the filing of patents in China. This recent development has encouraged many of my friends’ to know more about the patent, trademark, and copyright laws in China. 

China’s laws on IP protection is not radically different from other countries’, but many people that I know are still hesitant about doing business in the country. To bring light to the Chinese IP protection landscape, I will start discussing about the IP basics in the country. Let’s start with copyright protection.

So what are those works that China protect?

Literary works

Oral works

Choreographic works

Fine arts

Architectural designs

Photography

Cinematographic works

Computer software

Maps

Technical drawings

What copyrights are protected in China?

China’s copyright laws protect the right of:

Authorship

Alteration

Publication

Protection against distortion

Leasing

Reproduction

Exhibition

Performance

Broadcast

Distribution over an information network (such as the internet)

Adaptation

Translation

Compilation and annotation

A work has to be published first in China before it can be registered for copyright protection. In order for that right to be granted, the National Copyright Administration must first verify that the work is original. As with the rest of the world, originality is the primarily requirement for the granting of copyright in China.

Is registration necessary?

Registration with the National Copyright Administration (NCA) is not necessary in order to obtain protection. However, it is best for companies to volunteer registration with NCA. If the need for enforce copyright arises, the registration will serve as an evidence of ownership.

What are the best ways to protect copyright in China?

Incorporating copyright protection in contracts – Include copyright protection in your contract before doing business with an individual or organization in China. Make sure that this copyright clause does not expire even after your business terms have ended.

Know which best actions to take if an infringement happens – There are many ways to enforce your rights. These include (but may not be limited to): raids, product seizures, and civil suit.

Acquire professional advice – Professional advice is extremely important from the protection to the enforcement of your rights. As copyright circumstances can vary greatly, there is no single rule that will work best for everyone.

This is why the advice of a local law firm is indispensible. They can assess best the appropriate level of protection and method of enforcement for your rights. Moreover, they can also help in accelerating the registration of your copyright.

Bridgestone Strengthens Trademark Protection After Fierce Lawsuits

Bridgestone has been embattled by trademark and patent cases this year. For an established company doing business in China, this may seem routine. Bridgestone currently has 141 manufacturing plants in 24 countries and a worldwide popularity. It seems natural that smaller unscrupulous businesses will attempt to ride this reputation to leverage their campaign.

GencoTire's trademark

This year, the Japanese tire company has succeeded in two copyright and patent infringement campaigns. Both successes portend a favorable future for foreign businesses in China, as Chinese courts move towards more exhaustive measures in protecting business rights.

The two-year battle against Guangzhou Bolex

Bridgestone started its lawsuit against Guangzhou Bolex Tyre Ltd. in March 2010. Bridgestone alleged that Guangzhou Bolex infringed its trademark by marketing in a similar sound “Gemstone” brand. Moreover, the “Gemstone” mark has a typeface that closely resembles Bridgestone’s.

The court battle began in the Tianjin Binhai New Area People's Court. The verdict favored Bridgestone. Guangzhou Bolex immediately filed for an appeal, taking the case to Tianjin No.2 Intermediate People's Court. The court upheld the initial decision, siding Bridgestone in its claim that the Chinese manufacturer did breach their trademark.

Guangzhou Bolex was ordered by court to immediately stop the manufacture and sales of their Gemstone brand. Subsequently, Guangzhou Bolex was ordered to pay damages (the amount remains undisclosed).

A patent case against Qingdao Genco Industrial Group Co

Barely three months after Bridgestone won the case against Guangzhou Bolex, it won another court battle against Shandong-based Qingdao Genco Industrial Group Co. Bridgestone accused Qingdao Genco of using a tire tread pattern that is similar to their designs for bus and truck tires.

Following the victory, Bridgestone announced that it will continue to take aggressive measures to protect its trademark.

Points to ponder for 2014

China is becoming an increasingly relevant market for both big and mid-sized firms. Even smaller firms are seeing a goldmine in the Chinese market. Not only is China ideal for manufacturing and research, the growing purchasing power of its consumers is also luring more firms to enter the dragon.

But businesses, the smaller firms especially, should take more precaution in protecting their trademark before taking that slow boat to China. Even big firms, backed by highly paid lawyers, did not escape the chains of trademark squatters and copyright infringers.

Businesses and organizations should take more rigorous precaution in protecting their rights. It is best to register ahead of time, and China is a market that no growing company can neglect. A local law firm is the best option when it comes to protecting business rights in China.

By the way, if you want to know more about the biggest trademark cases in China this year, please check out this excellent article I have found recently. 

A Guide to the Basics of Business Dinner Etiquette in China

A few days ago, I read a very interesting article about a business meeting etiquette in China and I would like to add and emphasize more about it.

Personal relations are extremely important when doing business in China. That is why business dinners should be as essential as the business meeting itself. It is your chance to build a good rapport with your partners and earn their trust.

photo from business-in-asia.com

Time. Dinners are usually scheduled at 6pm or 6:30pm in the mainland while in Hong Kong, it usually starts at 8pm.

General seating arrangement. The highest ranking person hosting the dinner takes the head of the table, seated in the direction that faces the door. If the table is round, the highest ranking person of the other business will be seated to his right. If a rectangular table is used, that person will be seated directly across him.

If you are the one hosting the dinner, you will be taking the seat that faces the door. A napkin in a glass which is sticking out higher than the rest is also used to indicate the spot of the highest ranking delegate. The host is also the first person to eat during the meal.

Pouring of drinks. You never pour your own drink in a business dinner in China. The person on either side of you does that. Conversely, it is your responsibility to pour drinks for them. You have to make sure that their glass never goes empty.

Cutlery and chopsticks. Your potential business partners will appreciate it if you know how to use chopsticks. But do not put too much pressure on yourself if you do not know how to. Cutlery are available during the banquet and using them is not exactly frowned upon.

Refusing food. Never decline anything that is offered to you. If you served something that you prefer not to eat (delicacies like fish eyes), do not show displeasure about it. Take little bites around the food if you really cannot bear eating it.

Leaving the plate empty. Leaving your plate empty means that you still want more. Therefore, they will continue to refill your bowl. If you are already full, leave just a little amount of food so they will not serve you more. The same goes for teacups: leave a little at the bottom if you do not want it to be refilled anymore.

Flat plates and bowls. It is acceptable to lift the rice bowl when eating especially when it is nearly empty. However, lifting a flat plate may be frowned upon.

Slurping. Slurping and belching noises are common so do not be offended to hear them. In their culture, it simply means that they are enjoying their food.

Refusing alcohol. The sense of camaraderie is also expressed in joining the group for a drink. If you want to abstain from drinking, it is best to attribute health reasons instead of saying it is a personal choice. This is a very polite way of declining their drink.

Reciprocating. Dinners are considered a gesture of kindness. In Chinese culture, every gesture of kindness is best reciprocated. Therefore, it is best to invite your host to your own banquet as a sign of appreciation. But remember to not be too lavish in your own banquet as it might embarrass the former host.

There are many more protocols that you will learn as you go along. Your business partners will understand if you breach a few of them, especially by accident. However, it is best to learn every little bit of their dining etiquette as it can be essential to clinching a successful business deal.

Have you experienced dining with Chinese people recently? What other etiquette points should we remember?

Burberry’s Fight to Keep their Tartan Trademark in China

Burberry is once again engaged in a legal battle in China. This time, the UK luxury goods manufacturer is fighting to retain rights to its red and black tartan trademark. The company is in danger of losing the checkered pattern, which is almost synonymous with its brand, because they have not used it for the last three years.

Their registration for the trademark would not have expired until 2020, but due to its inexistent use in the past three years, competitors now stand the chance of owning it.

In Burberry’s case, their greatest threat to the ownership of the trademark is Polo Santa Roberta. The two companies have been engaged in legal feuds in the past years over trademark ownership. The most recent of which is the 2010 case Burberry won over Polo Santa Roberta’s use of confusingly similar check pattern designs.

Burberry is adamant about losing their tartan pattern in China, and for good reasons too. Last year, Chinese consumers were the biggest purchasers of luxury goods. Data compiled by news agency Bloomberg L.P. shows 39% of Burberry’s income is from the Asia Pacific. Connecting the dots presents the picture of China as a key market (possibly the most important) in the Asia Pacific region.

Up for grabs? Burberry is fighting to keep their tartan trademark.

Burberry and the Chinese Trademark Law

Article 44 of the Trademark Law of the People's Republic of China states that: “Where any person who uses a registered trademark has committed any of the following, the Trademark Office shall order him to rectify the situation within a specified period or even cancel the registered trademark: where the use of the registered trademark has ceased for three consecutive years.”
This means that any individual or organization can apply for the revocation of a trademark if it has not been used for the past three years. Currently, Polo Santa Roberta is increasing its campaign in Chinese courts to acquire the tartan pattern.

The Fight for the Trademark Right

The non-use petition usually takes one to two years to be decided by the Chinese court. If Burberry loses the battle, it will be a huge blow to its marketing strategy in the Asia Pacific region.
This recent case is not a unique one. It is quite common for individuals and businesses in China to keep track of the unused trademarks to petition for their cancellation. They are hoping to capitalize on the name the brand owners have or force them to purchase their registration.

This is a form of trademark squatting that is quite prevalent in China. There are newly proposed amendments to the Chinese trademark law but it does not seem to revise the non-use clause.

Protecting Your Own Brand

Big names are not the only targets of unscrupulous companies and individuals in China. Even small and mid-sized businesses are not safe. Losing a trademark is a huge roadblock to growth. If somebody gains “lawful” ownership of your trademark, you will no longer be able to manufacture, sell, or do research in China.

China is a rising giant, it has now moved past its slumbering days. If you plan to expand in the country, you need the help of a legal team that can help protect your rights. China has one of the most complex trademark laws and it is best that you engage the help of a local firm to do business successfully.