IPR experience in China

BCECC, October 2015

Chinese patent law

• 1985 – promulgated, world novelty required

– offices Beijing, Hong Kong, Shanghai• 1992 – regulations on implementation• 1993 – law revised• 2001, 2008 – further revisions

Original product

•

Product history

• A very successful existing product• Thousands of pieces sold worldwide• Patented in China in 1986 (via Hong

Kong)• Installed in Tianjin in 1987 - imported• Production started in China 09/1988

first copy

Copy history

• 1st copy on Chinese market in 06/1988• Gained patent case against original 1990• That copy maker sold 2 times more

products than the original in China• Copymakers’ price = 50-60% of original

price in China.

War of the 90’s

• All existing products not patentable• China was booming• Products for cities and buildings were

important =

enough food for originals

enough food for copymakers

Commercial strategy 90’s

• Another existing model launch at full speed, several times per year

• Market pays premium for the latest• Copymakers follow the latest• Price adaptation after copy shows up• Technical and quality advantage• Newly designed models patented regularly

90’s tendering process for public works projects

• Everybody proposes a product• The product is chosen by authorities• Everybody is invited to bid for the same

product• Authorities refuse to care about patent

ownership or design authorship

Original product…

… and its copy

… and a product “inspired” by original

Another original product…

… and a copy…

And another copy

One more original…

… and a copy

And an “inspired” product

A very appreciated original…

… and some of the many copies

Copy of a French product

Copy of another French product

Copy of a Spanish product

Copy of a German product

21st century New age – New mood

• Technical spec in public purchases – levelled and not in focus - OUT

• Decorative effect of public projects - IN

Aesthetics of a product became important

Copyright

Copyright law

1990/2001/2010 – WTO, TRIPS

工程设计图、产品设计图、地图、示意图等图形作品和模型作品

“drawings of engineering designs and product designs and description

thereof”

Practice: what may be deposited as model, should be…

Present IP situation

• Decent set of laws and implementation rules

• Established procedures and systems• Applicable and applied

….whenever unavoidable

Start only those wars you are certain to win!

Trade Mark protection

• October 1995Request for registration of the logo (left)

• May 1996Refusal by Trade Mark Office because ‘similar’ to existing TM

Research 2003

• TMs registered since – all local

Conclusions

• Protect your name/TM , in Chinese characters also

• Build your patents and be cautious with copyright

• Make sure it cannot backfire• Sign NDA with your personnel in China• Be prepared for a commercial battle, do

not rely on legal protection only

Thank you