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How to protect intellectual property from China

On Behalf of | Apr 3, 2023 | Blog, Intellectual Property

All business people need to shield their intellectual property. After all, unscrupulous individuals are willing to steal any successful product they can.

It is not only Americans who infringe on others. The problem often crosses borders. This may be because prosecuting such crime internationally is particularly challenging. China remains a common violator, even with massive brands. Thankfully, there are easy measures that can help guard an organization.

Protective task #1: Register a Chinese trademark

Chinese squatters are constantly on the lookout for what is up for grabs. The country uses a first-to-file trademark system, so it is simple for them to poach brands they have no right to. Once the paperwork goes through, they demand money from the rightful business holders. Acting first blocks this from happening. Registering trademarks in China is both easy and inexpensive.

Protective task #2: Use Chinese-friendly contracts

For anyone doing business in China, revealing intellectual property may be unavoidable. Possible partners should sign an NNN Agreement, the Chinese version of an NDA. Also, they can consider including a licensing agreement, confidentiality agreement or noncompete clause. Using the appropriate documents provides an essential layer of security.

Protective task #3: File with China Customs

The Chinese government blocks infringing products from leaving the country. Filing with China Customs severely reduces the financial incentive from manufacturing knockoff goods. This lowers the likelihood of counterfeit items crossing the border.

Entrepreneurs need to be conscientious about the reality of international threats. Shielding oneself from Chinese offenders could prevent a legal headache or financial loss.