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Language and CultureLanguage and Culture
Impact on Trademark Strategy in China
Unitalen Attorneys AT Law
INDEX
Chinese market overview
Culture and language impacts on
trademark protection in China
Right approach to trademark protection in China
How is the Chinese Market Like?
Wine industry as example
1.4 billion population
Long history of alcohol consuming
Unique culture of alcohol consuming –
How is the Chinese Market Like?
In stead of tasting wines this way
How is the Chinese Market Like?
Many Chinese drink wine this way
How is the Chinese Market Like?
Year 2012
430 million liters of imported wines
USD 6 per liter
Total value - USD 2.5 billion
30% of total market share in China
The 5th largest consuming country for wine
How is the Chinese Market Like?
The other side of the story
Limited knowledge about wine
Less knowledge about imported wine
Spaces for counterfeits and imitations
How is the Chinese Market Like?
Counterfeit -
How is the Chinese Market Like?
Imitations -
How is the Chinese Market Like?
Imitations -
How is the Chinese Market Like?
Imitations -
Culture and Language Impacts
Why China is a highly risky market?Why China is a highly risky market?
Culture and Language Impacts
Cultural impacts
Copy – worship of masterpiece Limitation of creativity Fast food culture Lack of IP consciousness
Culture and Language Impacts
Linguistic impacts
Regional differences Traditional Chinese vs Simplified Chinese Translation vs Transliteration PIN YIN - phonetic spelling of Chinese
Culture and Language Impacts
Regional differences
Culture and Language Impacts
Linguistic impacts
Traditional Chinese vs Simplified Chinese
國畫 国画
Culture and Language Impacts
Linguistic impacts
Translation vs Transliteration
DELTA 三角洲 德尔塔 / 戴尔它 / 达乐他 ……
Culture and Language Impacts
Linguistic impacts
PIN YIN – phonetic spelling of China
海 尔 hai er
Culture and Language Impacts
60 Million USD
Culture and Language Impacts
卡斯特 卡思黛乐卡斯特 卡思黛乐33,730,000 RMB damage
Culture and Language Impacts
Culture and Language Impacts
THEFACEBOOK THEFACEBOOK
FACEBOOK FACEBOOK
SOUNDBOARD SOUNDBOARD
FACEBOOK DEVELOPER GARAGEFACEBOOK DEVELOPER GARAGE
Culture and Language Impacts
飞书博 飞思簿 飞思博 菲丝博克翡思簿 费司布克 脸谱 面书 脸书
Culture and Language Impacts
How to protect your trademark in the How to protect your trademark in the risky market?risky market?
Trademark Protection in China
No registration, no protectionNo registration, no protection First to file, first to registerFirst to file, first to register No use requirement for filingNo use requirement for filing
Trademark Protection in China
What can be registered as trademarks - Word marks
- Logo marks
- Sound marks (coming soon!)
Need a Chinese character mark?
Yes!!!
- Easy access to Chinese market
- Additional protection
Trademark Protection in China
BMW 宝 马(precious horse)
BENZ奔 驰
(running fast)
GUCCI古 奇
(ancient legend)
Trademark Enforcement Measures
• Administrative - Trademark oppositions and Invalidations
- AIC raid action - Customs protection
• Judicial - Civil lawsuit
- Criminal lawsuit
AIC Raid Action
AIC = Administration for Industry and Commerce
Having the power of
Maintaining market orderProtecting trademark rights and taking initiative
action against trademark infringementTaking initiative action against unfair-competition
AIC Raid Action
AIC took action against 59,085 Trademark
Infringement cases in 2012
Including
14033 cases involving foreign trademarks
576 cases transferred to public security bureau for criminal investigation
AIC Raid Action
Receive complaint from TM ownerReceive complaint from TM owner
Verify infringing factsVerify infringing facts
Conduct raid actionConduct raid action
Issue detaining noticeIssue detaining notice
Issue penalty decisionIssue penalty decision
Dispose infringing goodsDispose infringing goods
Transfer serious cases to PSBTransfer serious cases to PSB
AIC Raid Action
AIC Raid Action
AIC Raid Action
AIC Raid Action
AIC Raid Action
AIC Notice of Detainment
AIC Raid ActionAIC Penalty Decision
Customs Protection
Record registered trademarks with China General Administration of Customs
20 days – 2 months
Customs Seisure - ex officio
- upon request by trademark owner
Customs ProtectionNotification of Customs Seisure
Advantage
Quick, simple & relatively cost-effective
Suitable for straightforward trademark counterfeits & infringements.
Evidence preservation for potential court action.
Litigation – Civil
87,419 IP related litigation cases accepted and concluded in 2012
An increase of 46%including 15985 trademark cases An increase of 52.5%1429 foreign related IP cases
concluded in 2012
Litigation – Civil
Two instances 6-12 months for first instance 3-6 months for second instance
Statutory Damages up to 60,000 EURO (present)
up to 360,000 EURO (as of May 1, 2014)
Litigation – Criminal
13104 IP related Criminal Cases accepted in 2012
An increase of 129.6%
including 4664 trademark infringement cases
An increase of 150.2%
15338 persons confirmed guilty
Conclusions
Register your mark in China ASAP Register your mark also in Chinese characters
Educate Chinese consumers how to identify and where to purchase your authentic products
Never hesitate to take action against infringers
Consult your IP lawyer before there is a trouble!
Unitalen Attorneys at Law
Leading IP firm in China 700 employees 21 Branch offices in China Proficient in both prosecution and
litigation
THANKS FOR YOUR ATTENTION
THANKS FOR YOUR ATTENTION