The Chinese IP landscape bears many risks for foreign companies. Those who wish to successfully enter the market must carefully analyze the terrain and protect their interests diligently. Therefore, Western companies seeking to do business in China should bear in mind the following:
- China seals off its market with the so-called "Great Wall of Patents"
- Chinese companies exploit weaknesses in patent protection and loopholes in the patent portfolio to push foreign competitors out of the market
- In global markets, companies from China and other Asian countries are progressively filing their own patent applications, thereby narrowing the scope for established companies
New Challenges in Patent Protection
Western companies are well advised to take Chinese competitors, their IP strategies, and their innovations seriously. Increasingly, experts have been warning about a "Patent Flood" by Chinese companies - not only in China, but also abroad.
Henceforth, it has become significantly important for companies to know their competition:
- What intellectual property do Asian competitors own?
- What should one protect, and by what means?
- How and where do they attack?
- What medium and long-term strategies do they pursue?
Effective Protection of Intellectual Property
CHINABRAND CONSULTING has been developing successful measures in the protection of intellectual property for well over 17 years. Benefitting from our international network of experts as well as the latest Chinese software tools, we systematically identify, analyze, and evaluate the innovations and intellectual property of Chinese and Asian companies, expose new developments at an early stage and advice on the formulation of appropriate strategies.
The so-called “junk patent” of a competitor interfered with our client’s business in the Chinese market. As the client’s own patent had been granted two days after the opponent's application, and therefore not published at the time of the Chinese application, it was impossible to claim it as prior art in a cancellation procedure. However, our client could prove the prior use of his patent in the market and delete the opposing property right.
In-depth analysis of a market-leading German pump manufacturer’s trademark applications exposed dangerous gaps in the brand's subsections. Chinese counterfeiters could have easily taken advantage by filling these gaps, for instance when it comes to online services. Thanks to such gap analysis, this German company could close the gaps precautionarily.
CHINABRAND conducted comprehensive patent analyzes for an Austrian producer of new materials. It came as a surprise that Chinese competitors were - in some segments - far more advanced than expected. This information encouraged our client to modify his strategy and business goals just in time.
A trademark registered in Taiwan posed a serious threat to a German machine manufacturer operating in China. As it was impossible to pursue this target by legal means, we carried out an undercover purchase of this trademark for our client.