The Increasing Bite of IP in China
January 22, 2009
China is often cited as a high risk country for organisations to effectively enforce their intellectual property rights. There are however, a growing number of success stories where brand owners have successfully enforced their rights through the courts.
Early signs of this shift included cases such as German automotive company MAN A.G. winning an IP lawsuit against a Chinese bus maker who had copied the design of their 'Starliner' bus.
It is not just foreign brand owners enforcing rights against home grown manufacturers. Around the same time, Nestlé secured compensation from a competitor for copying the design elements of a milk powder product on sale in China.
The number of foreign owned trade mark cases is continuing to increase in China. The number of foreign-owned trademark cases continued to rise year on year. There is a similar increase in domestic trade mark infringement actions between Chinese companies as well – brand proprietorship in the Chinese economy has become central to many manufacturers’ success.
Whilst it is fair to say that tackling counterfeit goods remains a perennial problem for brand owners in emerging markets such as China, the increased presence and strength of domestic as well as international brands in economies such as China can only continue to promote the cause of IP brand owners.
Since this post was written, China has substantially strengthened its IP enforcement framework, with major Trademark Law reforms in 2019 and 2023 significantly increasing damages for infringement and improving enforcement mechanisms for brand owners.
If you're considering protecting your brand in China or other international markets, get in touch with Azrights.
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