Intellectual Property

June 17, 2009 by Chinatex 

You would think that the term “Intellectual Property” would be significant enough to cause businesses to really try and protect it.  I mean it is a fairly significant word just by itself.  But maybe it is just an oxymoron like military intelligence or maybe it just causes moronic behavior or inaction – which is worse. Consider that for many companies, IP is one of their main assets. While Old Chinatex doesn’t know a whole lot about GAAP and FASB and other complicated bean counter stuff, I do know that if you want to sell your company, raise money, get loans, or go public you can count IP in your valuation and it is even better if it is real and protected and enforceable IP. So, Chinatex wonders why companies that operate outside of the seemingly safe confines of U.S. IP law and legal system don’t do more to protect their IP?  Anyway, this issue has come up as I receive more enquiries from foreign companies asking for help protecting and enforcing IP rights.  Here is the bottom line:

  • IP in China is governed by the State Intellectual Property Office (SIPO)
  • China is a first to file jurisdiction.  This means the first one to file and have the application approved is the IP holder.
  • China does not recognize IP rights from other jurisdictions such as the U.S., the EU and those filed under the Madrid Protocol.
  • Patents and Trademarks are valid for 10 year periods and are renewable.
  • Intellectual Property rights must be registered with the SIPO and other government organizations each year in order to remain effective and to increase the chance of enforcement.
  • Damages in litigation are not based upon precedent but on judges discretion.

Well, there’s a little more to it than that, but hopefully you get the point.  If you don’t file you don’t have any rights and you don’t have any intellect or intellectual property!  If you are thinking about protecting and/or enforcing your IP, we can help you.  If you are thinking about bringing your products to the China market, you better darn sure protect your IP before you start showing your products and ideas to factories and partners and distributors.

As always yeeha!!!  Chinatex

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