Is it possible to protect your Intellectual Property Rights (IPR) when doing business in China? A lot of people ask me this, and it is a great question and a very interesting topic. Things have changed dramatically in just the past few years in this area, most especially in China.

What launched this change has to do with China’s entry into the World Trade Organization. Just a few years ago the US and WTO watchmen applied enough pressure on the Chinese government to get serious about cleaning up copyright violations. In order for China to join the WTO club they had to show a serious commitment to curbing violations in intellectual property rights.

The result was new laws and a new legal perspective in China. US Customs and Border Protection (CBP) recently released statistics indicating that seizures are down 33% from last year. Apparel topped the list of infringing products followed by handbags. The list continues; cigarettes, footwear and consumer electronics. Computer hardware was down to only a 5% share of IPR-related seizures.

Counterfeiting is big business and most brands do not suffer significant damage. Copycats are knocking off branded items, these brands are big names. Big brands have the attorneys on the ground in Asia keeping an eye out for their brands. Companies that take a proactive role usually don’t have a problem.

Violators can expect to do jail time for breaking the law. Criminals who profit from copying are now realizing that the laws are for real. Fines for violators are over $60,000 USD.

So if you have a product that is really unique and you don’t want it copied, apply for a patent. The right kind of patent will protect you on a global scale. Under the Madrid System, a US application for patent has protection globally. If your item is so unique you should file a patent in China for further protection. The thrust of China’s new laws is that they work both ways, the laws are written in harmony for protection on both sides.

Today overseas factories are not taking any chances. Besides, there is plenty of business to go around. They are busy making money.

Political as well as commerce opportunities have brought the two nations together in a partnership like nowhere other time in history. Success comes down to working with trusted partners with years of experience in dealing with these issues.

About the Author:

Tom Galey, China Sourcing Consultant Boulder, Colorado http://www.3Chinas.com

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