Due to the ‘first to file system, the outcome of any trademark dispute primarily hinges on who registered it first in China. The China National Intellectual Property Administration (CNIPA) performs an ex officio examination of the existence of identical and/or similar earlier rights to the one intended to be protected as a trademark.
It means that the existence of identical or similar earlier rights can prevent the registration of a trademark filed at a later stage and that the filing must be done as soon as possible. So, if you are planning to do business in China, it is important to register your trademark first.
Overseas companies willing to invest in China need to understand the requirements of the Chinese government first. Chinese authorities want several things from foreign enterprises that are willing to sell to the Chinese population. Here is a rundown of their requirements-
- The Chinese government wants that foreign companies must open factories to employ and give preference in employing Chinese workers.
- Foreign companies must share their technology and forcing foreign firms to hand over their technological secrets as the price of entry to the massive Chinese market.
- Foreign firms must strictly adhere to the China employment law and do business over here in a Chinese way.
Importance of Cultivating a Strong Compliance Culture in China
Cultivating a robust compliance culture and a strong compliance tone from the top is paramount. Your most important first step to preventing China’s corruption compliance problems is to establish a strong anti-corruption policy that addresses both China’s anti-corruption laws and those of your home country. Under Chinese President Xi Jing Ping’s anti-corruption campaign, the enforcement has expanded to focus not only on governmental officials but also on the business communities. Now Chinese procurators and judges now put more weight on penalizing the crime of bribery.
Always remember to get the Chinese documents verified by your Chinese lawyer because there is a difference between the English and the Chinese versions. Moreover, the English version does not hold true in the Chinese court, and hence getting it documented in Chinese is absolutely necessary. Also, they will require more time to prepare a contract that can protect both the parties and particularly the foreign party from ending up in a soup.