Tuesday, January 17, 2012

How to Lose your Intellectual Property in China by the Wall Street Journal

Geoff Nairn of the Wall Street Journal wrote a great article entitled the Patents are Virtue: Countering the Counterfeiters.  He notes in the article that: "China is not the only source of pirated goods but it is by far the worst offender, accounting for 85% of counterfeit goods seized in the European Union last year, according to the European Commission."
The article has great advice on some of the reasons why companies doing business in China are plagued with IP issues.  The article quotes advice from Dan's china law blog on the ABC of Losing Your IP in China.
A: Failing to use employee invention agreements. These specify that any invention made using the company's time, material or facilities belongs to the company, not to the employee.
B: Thinking that patents are the only IP that matters. Western companies underestimate the importance and value of trademarks and trade-secret agreements in China.
C. Neglecting the three Ns. Non-disclosure agreements stop suppliers disclosing IP to third parties. Non-use agreements stop Chinese contract manufacturers setting up as your competitors. Non-circumvention accords stop contractors selling direct to your customers.
What do you think?

1 comment :

  1. Yes, agree that those are some important IP issues to take note of.

    In additional to that, I came across some articles on how to register trademark in China, how to patent products in China, IP theft prevention etc and those questions were answered by some of the experts.

    It's all under the resource page: Protecting IP in China


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