3 Major Foreign Companies That Won the Trademark Cases in China Successfully

To save your product idea and brand image, money spent on filing trademark registration is a wise decision. Although the process of trademark registration in China is a bit time-taking, the protection and security it offers to your company are simply unparalleled. Even before your trademark is approved, the pending process could also deter counterfeiters to imitate your valued brand. Registering your trademark protects it from anyone that attempts to profit from your marketing and product development. Obtaining a registered trademark for your brand’s IP will allow you to use the registered trademark symbol “®” in the name, logo, designs, slogans, and any words associated with your brand.

 

Monitor New Trademark Applications

It’s your responsibility to monitor trademark registrations that might conflict with your registered mark. It is a good idea to monitor closely if someone else is trying to bring the same product that might conflict with your one.

Here is a list of foreign companies won trademark cases in China:

 

Alfred Dunhill– This year, British luxury label Alfred Dunhill—which specializes in menswear, leather goods, and accessories—won its trademark infringement lawsuit against Chinese brand Danhuoli.

 

New Balance– Boston, MA-based athletic shoe and apparel company New Balance had won a victory in a trademark infringement case in China against three defendants that had used the firm’s signature N logo to sell footwear under the brand name New Boom. A Chinese court has ruled that three domestic shoemakers must pay New Balance $1.5 million in damages. It the is largest trademark infringement award ever granted to a foreign business in China.

 

Michael Jordan– In 2016, China’s supreme court has ruled in favor of US basketball legend Michael Jordan in a trademark dispute.The People’s Supreme Court ruled a Chinese sportswear company must stop using the characters for Jordan’s name, read as Qiaodan in Chinese. In a ruling by the Chinese supreme court, Qiaodan Sports Co, based in south-eastern Fujian province, must stop using the Chinese characters for Qiaodan on its merchandise.

Can trademarks without the purpose of use be terminated?

Trademark squatting is a major issue in China. One of the greatest challenges that many foreign companies face when entering the Chinese market, is that their brand has already been registered as a trademark by a Chinese company. In order to tackle this problem, Chinese authorities have taken a few effective steps and made changes in the trademark law. The “purpose of use” added in Article 4 of the revised Trademark Law is the basic stone for all legal norms to curb the application for registration of malicious trademarks. According to the revised Trademark Law, applicants should be required to submit evidence of “actual use” or “honest use intention” at the time of registration of the trademark application.

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A Complete Guideline on Developing Proprietary Products in China

 

China Manufacturing

Proprietary products or services allow businesses to develop customer loyalty and continuously build on their offerings. When you’re taking advice from the financial institution on the purchase of proprietary products, check if the institution promotes third-party funds. You may be limiting your chance of building your asset with the institution if it only offers proprietary products.

It is suggested to enquire what will happen to the asset if you move your account away from the institution that issued it. There are proprietary investments that are not portable. As a business owner, you might have to sell them before going to another firm. This may result in a capital gain/loss.

 

NNN agreement could prove to be a vital element if you wish to produce your proprietary products in China. NNN agreement should be written to be enforceable in a Chinese court with jurisdiction over the Chinese defendant. This means that Chinese law is the governing law, Chinese is the governing language, and exclusive jurisdiction is in a Chinese court with jurisdiction over the defendant. the China-specific Non-Disclosure, Non-Use, and Non-Circumvention Agreement (NNN) and accompanying Original Equipment/Design (OEM/ODM) Manufacturer Agreements. These agreements are used to protect your confidential information and to prevent your Chinese manufacturer from competing with you or going around you to your customers or vendors. In other words, they make sense for almost every company doing business with China.

 

Protecting the IP and Trademark of your Proprietary Products

China has become one of the world’s major IP jurisdictions. Innovation and IP protection have been encouraged by the Chinese government. Foreign companies can register IP in China for trademarks, patents, designs and copyright. However, each of these is administered by a different government body. The primary law in China pertains to copyright. This protects copyrighted works of foreigners that are either first published in China or in countries that are signatories to the World Intellectual Property Organization (WIPO) copyright protection treaty.

 

Manufacturing price that sounds too good to be true might be a trap for the scammers. Inexperienced importers fall victim of the deception and select the cheapest price. They have no idea that this move is going to cost them dearly at the latter stages. Most of the time foreign importers are lured with amazing product images and unrealistic assurances by the manufacturers and the importers went on to make the deposit without visiting the factory.

 

Dispute Settlement

Under the international trade law, there are different provisions for dispute settlement which is done with the help of WTO and GATT. It was governed by Article XXII and XXIII of the GATT, which set up a system of consultation for the settlement of disputes among the member nations. The dispute settlement system evolved over time, and there were additional documents, and legal instruments were created to incorporate changes. Even with certain changes, the dispute resolution mechanism was not considered satisfactory. International Trade laws deal with certain subjects which are inclusive to all the member nations under the WTO.

 

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