lBrief Guide to Intellectual Property in China

The People’s Republic of China presents an enormous opportunity as well as a substantial challenge to Intellectual Property Owners. Many still believe it is impossible to protect IP in China and that there is no credible legal framework to enforce IP. As an Individual who has been working with the Chinese IP system for over 15 years, I strongly disagree. This note aims to explain why.

What is Intellectual Property?

Intellectual property is a specialized area of law design to encourage creativity and fair competition in the marketplace. It protects the rights of those who have transformed their ideas into property by granting rights to the owners of those properties. Such rights are granted by governments in order to foster and encourage human creativity in exchange for a limited monopoly to use the intellectual property to the exclusion of all others.

China is the fastest growing economy in the world at the moment. Business opportunities are enormous. So are the risks. But with proper attention to your intellectual property rights, these risks can be substantially reduced.

Some of the questions and specific areas to pay attention in developing your opportunities in the People’s Republic of China are:

1. Do I have IP in China? – The Essential IP Rights
   a. Trademarks
   b. Patents (and Designs)
   c. Copyright
   
   
2. I’ve got it, but can I enforce it?
   a. Investigation
   b. Cease and Desist Letters
   c. Administrative action
   d. Civil action through the People's Courts
   e. Criminal Investigation through Public Security Bureau
   f. Preliminary Injunctions
   
   
3. Show Me the Money! – Commercial Exploitation
   a. Investigating a potential business partner before entering into the deal usually pays dividends.
   b. In a acquisition or joint venture where part of the value of the deal is the IP assets which the target brings to the table, due diligence by experts in China IP issues is essential.
   c. Once the partner has been selected, it is highly recommended the written contracts be entered into
   d. In the context of supply or distribution chains, it is particularly vital to have good contractual control at all levels of the chain
   e. Finally, some IP-Intensive industries, such as pharmaceuticals or high technology, are heavily regulated. Know the proper guidelines of rules and regulations.
   
   

AGT can help you organization by bringing together the our AGT Staff and the right groups in developing partnerships, product manufacturing, legal consultancies, design, engineering and product delivery to your door with reduce risk to your rights in intellectual property.