Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals...

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Cultural and Creative Industries in China part 2: Computer Gaming and Software Development 17 December 2013

Transcript of Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals...

Page 1: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Cultural and Creative Industries in China part 2: Computer Gaming and

Software Development

17 December 2013

Page 2: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Welcome to the webinar

17 December 2013

Philippe Healey China IPR SME Helpdesk Project Manager

Page 3: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Webinar interaction tools

17 December 2013

Turn on full screen here

Raise your hand here

Send the IP expert a question here

Webinar 24 hour technical support number: http://support.gotomeeting.com ‘Contact Us’ section

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Enquiry Helpline

IP Guides & Newsletters

E-learning & Business Tools

Training Workshops & Live Webinars

Website & Blog

Snapshot: Helpdesk Services

17 December 2013

Page 5: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Purpose

• The EU SME Centre in Beijing is a project funded by the European Union

• To assist European SMEs to export to China and establish, develop and maintain commercial activities in the Chinese market

• Free, confidential information and advice, and practical support services

Page 6: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

BD

S&C

HR & Training

Legal

Information and advice •Enquiries

•Publications

•Training

•Webinars

•Databases

Support services •Hot desks

•Briefings

•Matchmaking and networking

Services

Page 7: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Today’s Speakers Miko Puhakka More than 20 years’ experience working with technology companies ranging from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners Email: [email protected]

Steve Dickinson The bulk of Steve’s practice is with foreign companies who do business with China. His work is done entirely in the Chinese language. Email: [email protected]

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Page 8: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

A project funded by the European Union

“GOING SMART IN CHINA’S

MOBILE GAMING FIELD: MARKET

DEC 17 2013

Page 9: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Mr Mikko Puhakka has more than 20 years’ experience working with technology companies ranging from start-ups to multinationals in Europe, USA and Asia. He has been on ''both sides of the table'' both investing into companies as a venture capitalist as well as helped companies raise money from both private and public sources. His most successful investment was a seed investment into MySQL in 2001 which was sold to SUN Microsystems in 2008 for 1 Billion USD. Mikko currently resides and works in Beijing advising both Chinese and international companies on both strategy and financing related issues.

Mikko Puhakka Founding Partner at Lion Partners Email: [email protected]

Our Speaker

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Poll 1

Question: Are you currently doing business in/with China

A: Yes

B: No

C: I am planning to

Page 11: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Agenda

China’s mobile gaming market: overview and latest development

1

2 Market access for EU SMEs

3 Adjusting to the Chinese market: popular formats and localization

Recipe for Success 5

4 Monetization and distribution platforms in China

Page 12: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

China’s mobile gaming market – overview and latest development

Page 13: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Market access for EU SMEs

Growing number of foreign games are winning Chinese hearts (eg. Clash of Clans), but failing to monetize

Language

Culture Native social network ecosystem

monetization

Culture Language

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Adjusting to the Chinese market: popular formats and localization

1. Its all about Android

(around 70-90% market share, depending on source and way of calculation) and IOS (the rest), both in phones and Tablets

Page 15: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Adjusting to the Chinese market: popular formats and localization

2. Localization needs are not just language needs, but cultural and business model-wise as well

Translation

Localization

Transcreation

Page 16: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Adjusting to the Chinese market: popular formats and localization

3. Partnering even more critical than in other fields of business

ByteRockers & Smartion

Touchten & Yodo1

Halfbrick & iDreamSky

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Monetization and distribution platforms in China

• 70% of Android phones lack Google Play Services (in-app payment system)

• Independent payment solutions: mobile carrier or Alipay together with a local publisher

• Co-operation with local app stores

• Hundreds of potential distribution platforms, some with already good track-record with foreign games - Yodo1 and iDreamSky to name two

Page 18: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Monetization and distribution platforms in China

Note: for illustration only, does not include all enterprises

Page 19: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Recipe for Success

! Culturalization, including monetization

! Partnering

! Timing - release game at the same time as internationally to beat the clones

1

2

3

Page 20: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

[email protected] www.eusmecentre.org.cn

Page 21: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

IPR Protection Strategies: Computer Gaming

and Software Development Industries in

China

Steve Dickinson 17 December 2013

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Page 22: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Today’s Speaker Name: Steve M. Dickinson Firm: Harris Moure PLLC Location: Seattle/Beijing/Qingdao Email: [email protected]

17 December 2013

Page 23: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Agenda:

1.Copyright registration for software, games and using the

unique Chinese software copyright registration regime

2.Importance of registering trade marks

3.Pursuing IP infringement – enforcement

4.Case study

5.Common mistakes and Take-away messages.

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Page 24: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Poll 2 Question: What is your operation in China? A. Mobile gaming

B. Computer gaming

C. Video gaming

D. Software development

E. Others

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Page 25: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Types of relevant IP Infringement • Verbatim Copying – copying of the exact software program

• Cloning – adapting basic concept of game into a completely

new format: very common in China

• Localization into Chinese language – translate a game in a

foreign language into Chinese ( relevant to both verbatim or

clone).

17 December 2013

Page 26: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Basic methods of protection You MUST register your product with the PRC Copyright Office

• Software: Registration under the Measures on Software

Copyright Registration (2002).

• Games: Registration as an audio-visual work under the

general provisions of the PRC Copyright Law.

• Register BEFORE infringement occurs, not after.

• Copy protection does not work in China. License restriction on

reverse engineering does not work in China.

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Page 27: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Secondary methods of protection Basic registration only protects against verbatim copying. It does

not protect against cloning and localization. You must do more!

- Register all copyrights

- Register trade marks

- Enforce your rights

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Page 28: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

17 December 2013

Poll 3 Questions: What kind of IP infringement you

faced in China? A. Verbatim

B. Cloning

C. Copied trade mark

D. Localization

E. Others

Page 29: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Copyright registration for mobile games • Characters – register your artwork because in China it might

be copied but given a different name.

• Scenes and maps - list all specific maps and scenes used in the

game.

• Implements and tools – any additional design in your games:

awards won, weapons etc.

17 December 2013

Page 30: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Copyright registration for software development Remember to register:

• Icons

• Screens

• Menus

It is important to register all designs in your software!

17 December 2013

Page 31: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Trade Mark registration – Important For games and software, register trademark in all important

verbal elements and distinctive logos:

• Title of software in original language and Chinese

• Distinctive tag words in original language and Chinese

• Logos and icons

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Page 32: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Enforce your rights • Take action against the online

distributor: website or mobile store • Take action against the online

distributor: website or mobile store. • Take action against the infringer as a

secondary strategy. • Action against CD/DVD manufacturers

and retailers and action against users has proved to be unsuccessful.

17 December 2013

Page 33: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Case Study

A foreign game developer contacted our firm concerning cloning of their very popular video game by a Chinese website well known for pirated films and games.

The owner of the website developed the game for their own use. This game was a clone: the storyline, characters, game features and scenes were all copied directly from the foreign game.

The only original element was the use of Chinese language for the interface and character names.

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Page 34: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Case Study The foreign game maker had: not registered the copyright in the original game in China not registered the copyright in the artwork for characters and scenes in China. not registered the trademark in the game name or other elements in China. After discovering the infringement, the game maker refused to do any of the recommended registrations. The game maker provided the infringer with a take down request relying on general copyright principles. The game maker was simply ignored and the infringement continued.

17 December 2013

Page 35: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Common mistakes 1. I don’t need to register because copyright protection is

automatic.

2. IPR protection is pointless because enforcement is impossible.

3. My software/game is in a foreign language so I don’t need to

worry about cloning/and localization in the Chinese language.

17 December 2013

Page 36: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Take Away Messages

Register in your IP before entering Chinese market

Once registered – it is possible to enforce your IPR in China

Remember that even foreign language games will most likely be translated into Chinese and copied anyway.

Do not hesitate to contact a lawyer if you are not sure how to proceed.

17 December 2013

Page 37: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

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Q &A

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Helpdesk guide for the Creative Industries

17 December 2013

Click here to access all Helpdesk publications

Page 39: Cultural and Creative Industries in China part 2: Computer ... · from start-ups to multinationals in Europe, USA and Asia. Founding Partner at Lion Partners . Email: pu.mo68@gmail.co

Thank you Both the China IPR SME Helpdesk and ASEAN IPR SME Helpdesk provide free, confidential, business-focused advice relating to China IPR to European Small and Medium Enterprises (SMEs).

Helpdesk Enquiry Service – [email protected] / [email protected]

Training & Events

Materials

Online Services - www.china-iprhelpdesk.eu / www.asean-iprhelpdesk.eu

For more information please contact the Helpdesks: Room 900, Beijing Sunflower Tower No. 37 Maizidian Street Chaoyang District Beijing 100125, P.R. China Hotline number: +86 (10) 6462 0892

17 December 2013