ipr protection for wine producers & distributors in china...ipr protection for wine producers...
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IPRProtectionforWineProducers&DistributorsinChina
Dr PaoloBeconcini9th December2015
Welcometothewebinar
29th December2015
Alex Bayntun-LeesProject Executive
China IPR SME Helpdesk
Webinarinteractiontools
39th December2015
Snapshot:HelpdeskServices
49th December2015
Today’sSpeaker
Name:Dr.PaoloBeconciniFirm: Carroll,Burdick&McDonoughLLPLocation:Beijing,ChinaEmail: [email protected]
59th December2015
Dr. Beconcini, Esq. consults to companies seeking legal action against infringers—advising on issues of law and enforcement, conducting evidence gathering, and piloting their cases through the Chinese legal system.
A sought-after authority on IP litigation in China, Dr. Beconcini regularly appears in Chinese courts and attends IPR raids on local counterfeiters. His record of success in patent infringement lawsuits includes a landmark case once designated "case of the year" by several IP journals.
He is frequently invited to speak at conferences devoted to the growing field of Chinese IP, and is regularly interviewed on China IP matters by media around the world such as the Wall Street Journal, CNN, Bloomberg, La Tribune and Il Sole24 Ore to name a few.
Agenda
• InthiswebinarwewillintroducethemajorIPchallengeswinemakersanddistributorsfaceinChina;
• WewilltalkabouttrademarktheftandwhyitissoimportantforyoutoregisteryourbrandsandnamesastrademarksinChina.
• Wewillshowhowtopreventtrademarktheftandhowtofixitwhenitalreadyhappened.
• WewilltalkthenaboutsupplychainandhowyouneedtobecarefulwithyourpartnersinChinawhenitcomestobuildupbusinessrelations;
• Wewilleventuallyshowpossibleremediesagainstcounterfeiters;• WewillclosewithTakeAway.
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China’sOpportunitiesandRisks
Opportunities
• EmergingWineMarket• Growingmarketforsmallervineyardsasconsumers’tastegrows• Establisheddistributionnetworks
IPBottlenecks
• TrademarkTheft• Counterfeiting
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SUPPLY CHAIN!
PollQuestion1
• DoyouknowthebrandofthemostexpensivewineinChina?Anditsvalue?(Pleaseanswerusingthechatfunction)
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$5MillionUSD!
ProtectyourTrademarksagainstThieves
TRADEMARKSQUATTING:
• PeopleregisteryourtrademarkinChinabeforeyoudoandblackmailyoutobuyitbackathighprice
• Squatters– Theyknowyouexist– TheyknowtheChineselaw– ThemaydecidetostopyourproductfrombeingsoldinChinabyfilingtrademark
infringementlawsuitsagainstyou(Trolls);
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ProtectyourTrademarksagainstYourChinesePartnersTRADEMARKTHEFT:
• YourpartnersregisteryourbrandsastrademarksinChinawithouttellingyou:
– Itisagoodthingforthemtokeepyouransomifyouwanttofindanewimporteroneday!
– Theydeterminethebrandimage(willalsofindyouaChinesenamewithoutyouevenknowing);
– TheywillmisleadthebuyersinChinatobelievethemisYOU!– Withthetimetheymaysellyourwineusingyourtrademark:
RESULT:• Youloseprofit• Itdilutesyourbrandname• Youmaybeheldliableforinjuriestoconsumersforthewinetheymakeunder
yourname
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PollQuestion2
• HaveeitheryouoryourcompetitorsdiscoveredthattheirnamehasbeenregisteredinChinabyothers?
A. YesB. NoC. Don’tknow
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HowToPreventTheRisk:Law
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§ Manyformsoftrademarkareregistrable:Signs,logos,words,images,slogansandnowincludingsounds.
§ Jointownershipispossible:NeverRecommendable!
§ Theregistrantofatrademarkenjoystheexclusiverighttousethetrademark,whichshallbeprotectedbylawforaperiodof10yearsrenewableeverytenyearswithouttimelimit.
§ "Collectivemark“:markregisteredinthenameofagroup,association,oranyotherorganizationandusedinbusinessactivitiesbyitsmemberstoindicatetheirmembership.
§ BottlelabelscanbeprotectedalsounderAnti-unfairCompetitionlaw:butmustbewell-knownanddistinctive.
HowToPreventTheRisk:Law
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§ First-To-File.
§ PriorUsewithoutregistration:Onlylimitedlegaleffect.
§ Internationalvs.Nationaltrademarks:
– Nationaltrademarkapplicationsenjoypossibilityofdivision– Claimofpriorityofforeigntrademarkispossible– GoodsareselecteddirectlybytheapplicantandnotrandomlyassignedbyTMO– Noriskofnullificationofmultiplefilingasininternationaltrademarks
HowtoPreventThisRisk:Solutions• FileYourEnglishTrademarksinChina
– FavornationaltrademarksoverInternationalones– Selecttherightclassestodetermineeffectivescopeofprotection
• Goods• Services• Merchandise
– Trademarkyourcompanynameifthat isnotthenameofyourproduct– Trademarkthenameofyourvineyardsifdifferentfromthewine’sname– TrademarktheChinesetranslation/transliterationofalltheabove
• Monitor theChinesemarket– Checkroutinelythetrademarksofyourimporteranddistributors– ChecktheChinatrademarkdatabase
• SetupproperTMlicensing relationswithimporteranddistributors
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PollQuestion3
• Haveyoueverundertakenoneoftheactivitiesindicatedabove?Ifyeswhichone?
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HowtoReacttoSquattingandTheft
• Investigatefactstocollectintelligenceandevidencethatwillsupportstrategicdecisions
• Selectmostsuitableaffirmativeaction– Opposition– Invalidation– Non-useCancellation
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HowtoReacttoSquattingandTheft
• Opposition– Grounds:Article10(SignsofState),article11(Lackofdistinctiveness
article12(3Dmarks),articles13(Wellknown),15(Badfaithagent),16(fraudulentgeographicalsigns),30(identical/similartopriortrademark),31(trademarkregisteredonthesamedatewhichoneusedfirst),32(otherpriorrightsandreputedunregisteredbrands):Onlypriorrightholderorhisexclusivelicensee;
– NoGenericBadFaithGround
• Timing:Threemonthsfrompreliminaryexamination
• Notrecommendableincaseofsquatters
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HowtoReacttoSquattingandTheft• Invalidation
– FraudulentMeans(Notfraudulentintention)
– Grounds:Article10(SignsofState),article11(Lackofdistinctivenessarticle12(3Dmarks),articles13(Wellknown),15(Badfaithagent),16(fraudulentgeographicalsigns),30(identical/similartopriortrademark),31(trademarkregisteredonthesamedatewhichoneusedfirst),32(otherpriorrightsandreputedunregisteredbrands):Onlypriorrightholderorhisexclusivelicensee;
– NoGenericBadFaithGround
• Timing:fiveyearsfromdateofregistration.Nolimitsifpriorrightiswellknown
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HowtoReacttoSquattingandTheft
• Non-UseCancellation– Non-UseforThreeconsecutiveyears– BurdenofProofonRightHolder
• Butrequirementofprimafacieevidence– “ProperReasons”fornon-use:forcemajeure,policylimitation,bankruptcyandliquidationandotherobjectivereasons…..
FastandinexpensivebuthighrateofrejectionbeforeTMO,highestrateofsuccesswhencaselandsinCourt
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TrademarkCounterfeiting• Largescalecounterfeitingaffectingfamouswines(mostlyFrench)• Formofcounterfeiting:
– Rebottling– Fakebottles
• Counterfeitingorganizationswillfocusonhighmarginofprofit,thereforeonwinethatareveryexpensiveorsellmanybottles.
DoesThatMeanitdoesnotaffectyou?
• Inyourcasethecounterfeitersmaybe:– Yourimporters/distributors– Individualstore-sellviainternet
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TrademarkCounterfeiting:HowtoProtectYourself
• Facetoimporters/distributors– Registeryourtrademarkrights– Recordthematcustoms– Secureyourrightsthrougheffectivelicensingcontracts:
• Havethemdiscloseasmuchaspossible• Havethemagreeyouretainsomecontrolonbranding
– Monitortheiractivitiesgoingundercover(discoverover-production);– Implementsomewaste-managementmeasurestoavoidyourbottlestoremaininto
circulation(criticalwhenyoursalesincreases);
• Facetothirdparties– Monitortheinternet(We-chat,Weibo,Taobaoetc.):take–downs.– Knowsomegeography(RumorsareinGuangdongtherearelotsoffakewines, lessso inthe
East!);– Adoptpreventivemeasurestofacilitaterecognitionofgenuineproductsfromfakes;– Takeactionagainstcounterfeiterstoprotectyourbrandandyourclients.
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TrademarkCounterfeiting:Remedies
• AICEnforcement- Cheaperbutwithnodeterringpower- Repetitionofinfringementlikely- AICdoes nothaveeffectiveinvestigative
powers- AICiseasily“corruptible” anduses discretion• CustomEnforcement- Itisveryefficientonpaper- Inpracticenosufficientmanpowertocover
thewholecountry• PoliceEnforcement- Requiresgoodrelationswithlocalpolice- MonetaryThresholds- Veryexpensive andtimeintensive- Useless ifnofollow-up incivillitigation
AdministrativeEnforcement
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TrademarkCounterfeiting:RemediesJUDICIALENFORCEMENT• JudicialenforcementofIPrightsismorereliable thananyadministrative tools• Hasstrongdeterringeffect• Canrecoverpartofthecostsofabrandprotectionprogram• Courtsaregenerallymoreimpartial thanadministrativebodies
OLD TRADEMARKLAW NEWTRADEMARKLAW REMARKS
▶ MaxStatutoryDamages:1,000,000RMB
▶ Nopunitivedamages
▶ MaxStatutoryDamages:3,000,000RMB
▶ Punitive damagesuptothreetimestheawardedcompensatory damages
▶ Destructionofmanufacturingtools!
▶ Civil litigationcanbealsoveryswiftandisnot muchmoreexpensive thanaPoliceenforcement.
▶ Damagecompensation andestructionofinfringing toolsareaneffectivedeterrent.
▶ Inmanycasestheyareabetterdeterrentthanapolicearrest,especiallywhenthearrestedarejustthelowlifeemployees ofthecriminalmastermind!
CASEEXAMPLEComprehensiveStrategy
EXECUTIVESUMMARY PSBACTION
Targetscurrentlyraided 3
Productsseized 10,661
Estimatedvalue SeveralMioEuro/Pending
Individualsdetained 19
Natureoftargets 2factories,1tradingcompany,alllegallyregistered
Numberofbrandsinvolved 1
AdditionalIntelligenceListofotherfactories,warehousesandhundredsofclients
ActionsCriminalcase+threecivilclaims fordamagecompensation
Take-awayMessages
• Register your trademarks in Chinaas soon as possible;
• Register your Chinese nameas well• Take action to recover your
trademarks before it’s too late;• Bind importers and distributor by
written licenses and contracts;• Implement some form of
preventive measures to reduce riskof counterfeiting;
• Monitor the activities of yourpartners;
• Take action against counterfeiting!
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Q&A
Name:Dr PaoloBeconciniFirm: Carroll,Burdick&McDonoughLLPLocation:Beijing,ChinaEmail: [email protected]
269th December2015
Keepyourquestionscoming!
Snapshot:HelpdeskServices
279th December2015
PLAYtheSeriousGame
• Interactivetrainingandlearningtool• Commonbusinessscenariosto
experiencedoingbusiness,protectingandenforcingIPinChina
289th December2015
Availableonline at:http://www.chinaiprhelpdesk.eu/en/serious-game/
Thankyou
299th December2015