CustomsRegistrationofTradeMarksinChina

Ms AlessandraChies2nd December2015

Welcometothewebinar

29th December2015

Alex Bayntun-LeesProject Executive

China IPR SME Helpdesk

Webinarinteractiontools

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Snapshot:HelpdeskServices

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Today’sSpeaker

Name:AlessandraChiesFirm: FERRANTEINTELLECTUALPROPERTYLocation:BeijingEmail:mailbox@ferrante.asia

Alessandra is Partner of FERRANTE INTELLECTUAL PROPERTY, a full service IntellectualProperty Law firm, fully licensed to operate in China. She is located in Beijing since2009, and has advised and assisted International companies on various aspects of IPProsecution and enforcement in China, including administrative, civil and criminalactions, customs border protection measures, assessment of intellectual propertyrights portfolios, designing IP protection and enforcement strategies.

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Agenda

• ImportanceofIPrightsregistrationinChina• HowtoregisteraTrademarkwithChinaCustoms• Customs’seizureprocedure• Casestudies

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PollQuestion1

• HaveyouregisteredyourIPrightsinChina?

A. YesB. NoC. Notyet,butIwasplanningto

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Notrademarkregistration=Noprotection(andnoCustomsRecordal)

InChina,youcangetprotectionforyourtrademarkonlyifitisregistered(inChina)

Chinaapplies“firsttofile”principle(notthe“firsttouse”):bequick

ForHongKong,Taiwan,Macao,youneedaseparateregistrations

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Ifyourtrademarkportfolioisweak,yourCustomsprotectionwillbeweaktooandcounterfeitproductswillbeexportedin

foreignmarkets

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2015SituationReportonCounterfeitingintheEuropeanUnion

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https://oami.europa.eu/ohimportal/documents/11370/80606/2015+Situation+Report+on+Counterfeiting+in+the+EU

ChinaCustomswillproactivelystopcounterfeitsifthetrademarkisrecordedwithGAC

AfteratrademarkisrecordedwithGeneralAdministrationofCustomsofChina(GAC),thelocalCustomsofficialscanproactively stopcounterfeit

imported/exported

=

LesscounterfeitsexportedfromChina(orimportedintoChina)

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OtheradvantagesofactivatingCustomsprotection

• Gatherinformationandevidenceaboutinfringingactivities

• Deterrenteffectforfutureinfringements:ü Thegoodswillbeconfiscatedandafineimposedontheinfringerü Theexporter‘scredibilityisaffectedü Forseizuresthatmetthecriminalthreshold,thecasecanbetransferredtothePolice

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AllIPR canberecordedwithCustoms

• Trademarks,Designs,InventionPatents,UtilityModels,Copyrightcanberecorded

• ForeignRightownerswithnopresenceinChinashallusearegisteredChineseAgent

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Recordationprocedure

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Graphics from: http://english.customs.gov.cn/zscqbh/main.html-page=04.htm

RecordationformisinChinese

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Documentsneededfortrademarkrecordal

• PowerofattorneyfortheIPR CustomsAgent

• RightownerbusinesslicenseorPassport(ifrightownerisanindividual)

• Copyofregistrationcertificateoftrademark.Forinternationalregistrationtheconfirmationcertificateisneeded

• Photosoftheoriginalgoodsandpacking

• AnyadditionalinfothatcanaidCustoms’riskassessment

Oneseparaterecordationforeachtrademarkineachclass

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Howmuchdoesitcostandhowlongdoesitlast

CustomstrademarkRecordationfee:free!

CustomstrademarkRecordationlastsforthelifeoftrademark(renewable)

InformCustomsofanychange(ie changeofownershipetc)otherwisetheCustomscancancelyourrecordal

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GAC recordationcovers41CustomsDirectorate(andabout600Customssub-Customs)

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PollQuestion2

• HaveyoufoundcounterfeitproductsoriginatingfromChina(inEUorothercountries)?

A. NoB. Yes,foreignCustomsstoppedsomecounterfeitscomingfromChinaC. Yes,IfoundtheminthemarketplaceandIthinktheywhereproduced

inChina

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2routesforCustomsintervention:Ex-officiodetentionprocedureanddetentionuponrequest

1. Oncetherecordationisactive,CustomsOfficialswillproactivelystopsuspiciousshipmentsandinformyourregisteredCustomsAgent(ex-officioadministrative procedure)

2. RightownersdirectlyinformCustomsofashipmentofcounterfeits(verydetailedinfoneededandwillneedtofilealawsuit)

2018March2015

CustomsSeizureex-officioprocedure

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TheCustomscantransferthefiletothePoliceifvalueofproducts seizedmeetscriminalthresholds

HowtheCustomsBondiscalculated

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DECLAREDVALUEOFSEIZEDGOODS

REQUIREDBONDPAYMENT

LessthanRMB20,000(approx.EUR2,900)

100%ofthedeclaredvalueofconsignment

RMB20,000– 200,000(approx.EUR2,900– 29,000)

50%ofthedeclaredvalueofconsignmentbutnotlessthanRMB20,000(approx.EUR2,900)

OverRMB 200,000(approx.EUR29,000)

RMB100,000(approx.EUR14,700)

HowtopaytheCustomsBond

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Option one: Pay the bond in RMB into designated account of Local Customs;The bond will be returned at the end of the procedure, minus thewarehouse and handling fees (paid by the right owner)

Option two: Setting up General Bond with GAC (no need of paying bond ona case by case basis)

Sometimes,no bondisrequired

HowtoavoidoriginalgoodsbeingstoppedatCustoms

AccordingtoCustomsstatistics,50%oftheauthorizationlettersareforged

CustomsestablishedadatabaseforrecordingAuthorizedexporters (onlyifthetrademarkhasbeenrecorded)

Theinformationarenotreleasedtothepublic

Alternatively:liaiseinadvancewithCustomsnotifyingofanauthorizedshipment(notallCustomsacceptit)

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Whathappenstotheinfringinggoods?

• NormallyCustomsdestroystheinfringingproductsinannualceremonies

• Alternatively:• IPHolderpurchasethegoods• Customsdonatethemtocharity• Customauctiontheinfringinggoodsafterremovinginfringing

labels/featuresetc

• StorageanddisposalcostarepaidbytheRightOwner

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DetentionuponApplicationprocedure

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IPRownerfinds

infringinggoodstobeexported

Lodgesapplication

withCustomsandpaybond

(verydetailedinforequired)

CustomsseizethegoodsandsendOfficial

Notice

Filecivillawsuitwithin20workingdays

Goodsofficiallyseized

Courtdecision

Warehousefee

payment/bond

refund/Destruction

IfsomeoneelsehasregisteredyourtrademarkinChinatheycanstopatbordersyourproducts

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Company A has registered and recorded with Customs atrademark “XYZ” covering the core business (i.e. food)

Company B registers and records with Customs same“XYZ” trademark covering T-shirts

Company A produces in China some “XYZ” T-shirt asmerchandisingand ships themabroad

The Customs seize the products on the basis of trademark infringement (so, fine, good destructions etc)

TrainingCustomsofficialsisextremelyimportant

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Trainingsarenecessary toimprovefrontlineCustomsofficials’knowledgeofforeignproducts/brandsandpassthemimportantinformationtotargetinfringingshipmentsmoreefficiently

CaseStudy:EffectivenessofCustomsTrainings

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210kgofchocolatepralineinfringingFERREROROCHER 3DtrademarkseizedbyGongbei Customs

http://zh.southcn.com/content/2015-08/27/content_131670112.htm

Resultsof2014ChinaCustomsenforcement

In2014Chinacustomsdetained23,000shipmentsinvolving90milliongoods

• 96.9 %ofthetotalseizureswerefortrademarkinfringement• 96.5%shipmentswereintendedforexport• 98.2%wereproactiveseizurebasedIPR recordal• Only2%ofseizuresweremadeduetoapplicationfiledbyrightowner• Thehighestvolumeofcounterfeitsissentviaseashipcontainers• Mailshipmentusedfor80%ofseizures(butlowquantityofgoods)• Shenzhen,ShanghaiandNingbohadhighestnumberofseizedproducts

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CaseStudy- importedgoods

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Take-awayMessages

• Register your trade mark in Chinaas soon as possible

• Record your trade mark withCustoms

• Train Customs on the details ofyour brand

• Maintain good relationship withCustoms officials by assisting alsoin seizure with low quantity ofgoods

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Q&A

Name:AlessandraChiesFirm:FERRANTEINTELLECTUALPROPERTYEmail:mailbox@ferrante.asia

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Keepyourquestionscoming!

Snapshot:HelpdeskServices

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PLAYtheSeriousGame

• Interactivetrainingandlearningtool• Commonbusinessscenariosto

experiencedoingbusiness,protectingandenforcingIPinChina

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Availableonline at:http://www.chinaiprhelpdesk.eu/en/serious-game/

Thankyou

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