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…