IPR Protection in China’s Second Tier

Sunday, February 11, 2007 23:28

For the most part, the news in China about IPR protection is bad news. There are copies od DVDs everywhere, LV bags are sold in bulk, and fake pharmaceuticals are a real concern for the government.

The general consensus is that for issues found in their city, there are things that the local governments can do, and they are willing to. however, many times, the goods being faked are not produced in the big cities, and therefore it is often difficult for those governments to close the suspect factories.

But the news isn’t all bad. In fact, while conducting a 20 city survey on manufacturing we decided to add a simple question:
Are there any specific cases where IPR suits have been filed, and what was the outcome?

Some of the answers were quite surprising, and while only the tip of the iceberg for sure, it looks like there is some progress being made in these cities:

In 2005 Ningbo Customs seized a total of 135 cases of import and export goods infringing intellectual property rights, the value of goods worth about 16.63 million RMB. This achievement rank 4th at Chinese customs offices.

Specifically ,Hainan Youming Trading Co.,Ltd imported faked “LV” bags and in March 2005 there was a seizure of goods valued at about 240,000 yuan.

Wuhan Government publishes a White Paper on protection situation of the intellectual property, which summarizes the achievements of the intellectual property protection in 9 different aspects including patents, brands and copyrights. Recent cases have involved fake drugs, patent infringement, selling pirated teaching materials, DVD production/ sales, and even selling fake alcohol using a global brand.

Xian-Jannssen Pharmaceutical’s official documents were used to sell fake medicines to a company in Gansu, and the resulting profit was over 450,000yuan. In Sep. of 2004, Zhangye Municipal Court and Police Office quickly worked on this case to gather evidence and in September 2005 the Zhangye City Intermediate People’s Court made the final judgment. The suspect was given three years six months in prison and the fine of 515,000 yuan.

In May 2003, Xiamen Customs found more than 30, 000 bags with pictures and logo of ‘Barbie’ girls applying for export. After confirming with USA Mattel Inc, the owner of ‘Barbie’ that these bags violated IPR of Mattel Inc., Xiamen Customs confiscated these bags.

In 2005, Nanjing Intermediate People’s court worked on several important and influencing cases successfully. French company Hope Aigefu has the LOGO of “cotton ball”, which is used for series production called” Australia chloro phenol-ju”. Nanjing No.1 pesticide factory illegally put that LOGO on their own production, and made profit of 6,780,000RMB. Nanjing Court judged that Nanjing No.1 pesticide factory used Hope Aigefu’s LOGO without any permission, and it was trademark infringement. Nanjing No.1 pesticide factory should stop the infringement, apologize and compensate for loss of 6,780,000RMB.

In 2005, Chengdu was approved as one of the first nine national intellectual property model cities (the only city in western China). In 2005, the Court was involved in the resolution of IPR protection cases for Nippon Paint, Baoxiniao, Dunhill, Tyfo Music, and other.

Remember. No matter what, China is a first to file country. Regardless of where your products are made or sold, filing the papers in China is a good idea. If you don’t believe me, just ask the people over at Pfizer.

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2 Responses to “IPR Protection in China’s Second Tier”

  1. The Hao Hao Report says:

    February 20th, 2007 at 7:53 am

    IPR Protection in China’s Second Tier…

    For the most part, the news in China about IPR protection is bad news. There are copies of DVDs everywhere, LV bags are sold in bulk, and fake pharmaceuticals are a real concern for the government.

    But the news isn’t all bad. In fact, while conducti…

  2. Learn Chinese says:

    July 2nd, 2007 at 9:11 am

    I do not think government, single part, can control IPR. Legal DVD is too expensive for normal Chinese people.
    Another way, sales of illegal DVD and software generally are never well educated. 80% of them are pregnant women who use children to protect themselves. Policemen cannot arrest them based on humanitarianism.
    these sales are farmers and poor. they do not think life and children is more important than money. They have to make a living through selling illegal DVD.