Now that China has officially (and rapidly) emerged from the pandemic emergency, it’s time for our companies to resume development projects in that country, which were slowed down or put on hold.
After all, China never stopped attracting foreign companies—quite the opposite.
In fact, during the pandemic, China overtook the United States in the ranking of countries attracting the highest foreign investment flows.
But in this newsletter, I don’t want to talk about the fear some SMEs have of going to China due to pandemic-related consequences. Instead, I want to address a more “ancient” fear—one that, as we’ll see, is increasingly unjustified: the protection of Intellectual Property!!
Since China joined the World Trade Organization (WTO) on December 11, 2001, the situation has improved dramatically.
Yet, horror stories continue to circulate among our entrepreneurs—sometimes spread intentionally by the media, for reasons we won’t explore here.
Stories of companies discovering that their trademark had already been registered in China, often by one of their own importers, forcing them to give it up or spend a fortune to regain control.
Or worse still—the nightmare of many SMEs—Chinese companies blatantly copying their products and selling them at rock-bottom prices not only in China but around the world.
So how can you protect yourself—or better yet, prevent these problems?
A good international law expert will rightly advise you to:
- Check whether your trademark is already registered in China;
- Proceed promptly with registration, possibly even in Chinese characters, for the relevant product categories;
- Consider patent registration in China;
- Take appropriate steps to safeguard your industrial know-how.
All solid advice.
But I want to offer you one foundational piece of guidance—a precondition for protecting your Intellectual Property in China:
Choose the right partners.
It sounds simple, but I assure you it’s not
especially when an importer you meet at a trade fair introduces themselves as a “market leader” and wins you over with flattery and grand promises.
Keep in mind: even if you’ve followed your lawyer’s advice to the letter, asserting your rights in a Chinese court against a local company is not guaranteed.
So how do you choose the right partner?
The three keywords, in my view, are: patience, caution and method.
What this means in practice, I’ll explain in an upcoming newsletter—but if you're curious to know now, feel free to contact me, and I’ll be happy to share more.
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