Training of Trainers Programme organised by WIPO, MyIPO, MDeC, 24 February 2011 TEO BONG KWANG...
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Transcript of Training of Trainers Programme organised by WIPO, MyIPO, MDeC, 24 February 2011 TEO BONG KWANG...
Training of Trainers Programmeorganised by WIPO, MyIPO, MDeC, 24 February 2011
TEO BONG KWANG Advocate & SolicitorRegistered Trade Mark, Patent and ID AgentManaging Partner,Wong Jin Nee & Teo
Enforcing Intellectual Property Enforcing Intellectual Property Rights in MalaysiaRights in Malaysia
Road Map of the Talk
Why enforcement is important
The overall strategy Criminal enforcement Civil enforcement
Importance of Protecting Importance of Protecting and Enforcing and Enforcing IPRIPRss
Important for various reasons: Maintaining competitive
edge Enhance brand loyalty Protect goodwill over brand Generate more income Maintain & enhance value of
IP
Enforcement of IPRs – Some Preliminary Observations
Crucial to adopt a vigilant attitude against improper use of IPRs so as to prevent dilution of prestige of brands or damage to goodwill
To be effective, such vigilance policy has to be implemented and practised by the top management and all level of marketing personnel
The employee should be the ear and eye for the trade mark owner
Overall Enforcement Approach
Strategic planning and implementation BIG picture & holistic approach Policing Regular and consistent enforcement Internal policy Publicity Engagement
How to Curb Infringing or Counterfeiting Activities
You cannot eradicate them completely but you can definitely reduce them.
Report suspected cases immediately Buy trap purchases – keep receipts,
jot down the identities of the sellers. Consider surveillance/investigation
against big target like wholesaler, importer.
The Pyramid of an Effective Enforcement
Enforcement
EducationEngagement
EEnforcement Stepsnforcement Steps
Identifying instances of infringing activities Evaluating leads Gathering evidence Taking action against offenders
Warning notice Cease and Desist letters Criminal raid Civil action
Two Main Enforcement Routes
Criminal Enforcement Civil Enforcement
Criminal Enforcement
Criminal sanctions (through Enforcement Division of the Ministry of Domestic Trade, Co-operatives and Consumerism) are key to protection and enforcement of IPR Element of fear Demonstrates gravity and seriousness Deterrent sentences – fines and jail
sentence
Enforcement under Trade Descriptions Act (‘TDA’)
Prohibition against false trade descriptions Applying a false trade descriptions to
goods Supplies or offers to supply goods to
which a false trade description is applied
in the course of business
What is Trade Description?
Any indication whether given directly or indirectly, and by whatever means given of any of the following matters with respect of any goods: Nature or designation; Approval by any person Person by whom the goods is
manufactured, produced.
What is a False Trade Description?
Any trade description which is false to a material degree
Penalty for False Trade Description
For individual, on conviction, shall be liable to a fine not exceeding RM100,000 or to imprisonment for a term not exceeding 3 years or to both.
For corporate offender: a fine not exceeding RM250,000.
Trade Description Order (“TDO”)
An order issued by the High Court declaring certain mark or get-up to be a false trade description.
Peculiar to Malaysia
Effect and Importance of a TDO
Effect of a TDO: It is admissible and conclusive proof of
a false trade description. No need to prove that the mark or get-
up as specified in the TDO is a false trade description again in any proceedings under the TDA
Effect and Importance of a TDO
The IPR owner who obtains a TDO will go to the Enforcement Division (‘ED’), lodges a complaint regarding the infringing activities.
The officers of the ED are obliged to investigate the complaint and seize the infringing goods.
Search and Seizure Prosecution of the infringer.
CIVIL ACTION
Notice before action
Normally, before a civil suit is instituted, the IPR owner will issue a cease and desist letter (‘C&D letter’)
Before instituting a civil suit, think about the following….
Litigation: Going to WarLitigation: Going to War ?? Sword
Is litigation necessary? Infringer refuses to comply
with C&D To avoid an image of
“paper tiger” Right to sue
Recordal of Assignment? Registered User Exclusive Licensee
Check your weapons Any flaws – e.g. non-use
for 3 years Ability to substantiate
claims based on records? Aggressive but not reckless Aim for quick result and
adopt pragmatic approach Summary judgment
Shield Any way to avoid litigation
Settlement on a without admission of liability basis?
Licensing/acquisition? Challenge validity of IPR? Investigate defences
available Can someone else pay?
Source of supply Warranties/Indemnity
provided by suppliers Do not discount out of court
settlement at any stage
Pre-emptive remedy: Anton Piller Order
If there is reason to believe that the Defendant may destroy the offending goods or evidence of infringement – IPR owner may consider filing for an Anton Piller Order (‘APO’).
Pre-emptive remedy: Anton Piller Order
APO: the Nuclear Weapon of civil procedure.
Pre-emptive remedy: Anton Piller Order
An order permitting the applicant to enter specified premises to inspect and take into custody documents or articles relevant to the action, which may be otherwise destroyed.
The main objective: to preserve material evidence.
Pre-emptive remedy: Anton Piller Order
Conditions for an Anton Piller Order: The plaintiff has an extremely strong
prima facie case that the defendant is liable for infringement
That the defendant has in his possession incriminating documents or evidence
That there is a real possibility that such evidence may be destroyed
Ways to End Litigation Quick
Interlocutory Injunction Anton Piller Order Summary judgment Early trial? (instead of applying for
interlocutory injunction)
Case Study: Abercrombie & Fitch Co. & Anor v Fashion Factory Outlet KL Sdn Bhd & Ors (reported in [2008] 4 MLJ 127; [2008] 7 CLJ 413)
Cease and desist letter sent Letter of Undertaking (LOU)
signed Criminal enforcement raid
done Civil suit filed based on result
of criminal raids Summary judgment obtained Directors permanently
injuncted as well Payment of damages Publication of apology ad
Case Study: Leo Pharmaceutical Products Ltd A/S v Kota Pharma (M) Sdn Bhd (reported in [2009] 5 MLJ 703)
Attempts were made to settle - failed Action for trade mark infringement
and passing off filed Attempt for interlocutory injunction
failed Full trial completed – succeeded on
both causes of action Substantial damages assessed and
agreed
Case Study: Leo Pharmaceutical Products Ltd A/S v Kota Pharma (M) Sdn Bhd (reported in [2009] 5 MLJ 703)
Fucidin v Axcel Fusidic
Fucicort v Axcel Fusi-corte
Any other issues Questions??
THANK YOU!
Mr. Teo Bong Kwang Tel : +603 20923322
Email : [email protected]
Copyrights & Trade Marks of third parties in this presentation belong to the respective owners and are used solely for purpose of private study & a non-
commercial basis
Wong Jin Nee & Teo, February 2011