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The Three Keys to Protecting Your IP in China

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A new client the other day asked me what it should be doing to protect its IP in China and I asked whether they wanted the ten minute version or the ten day version. Fortunately for the both of us (and not surprisingly) they chose the ten minute version. The below is basically that.

I regularly speak on how to protect IP in China and my first PowerPoint slide for those talks is invariably the following:

The first of the three keys is having a good partner. Having a good partner matters for the simple reason that good, financially healthy Chinese companies are less likely to steal your IP because they have something to lose, both with you and generally. China’s economy is in a substantial downturn right now, especially its manufacturing economy, due in large part to the onslaught of US tariffs and US and EU duties being put on Chinese products. This means there are right now more Chinese companies today that are not good partners than yesterday and so finding a good partner just got tougher. See e.g. China Trademark Theft. It’s Baaaaaack in a Big Way.

The second key is having a good contract with anyone in China to whom you will be revealing your IP. The right contract or contracts will depend on your specific situation. The most common contract for IP protection is an NNN Agreement (this is a more thorough, more complicated and, most importantly, more China-centric version of an NDA). But this might also include a trade secret agreement, a non-compete agreement, a confidentiality agreement, a non-use agreements, a licensing agreement, and many more.  For making sure whatever contract that fits your situation actually works for China, check out The Five Keys to A China Contract That Works.
The third key is good registrations. This might include any combination of trademarks, copyrights and patents. It also usually makes sense for you to register your IP with China Customs and oftentimes with the Customs Office in the country to which your products will be going as well.
And then just constantly monitor….

We will be discussing the practical aspects of Chinese law and how it impacts business there. We will be telling you what works and what does not and what you as a businessperson can do to use the law to your advantage. Our aim is to assist businesses already in China or planning to go into China, not to break new ground in legal theory or policy.


Source: https://www.chinalawblog.com/2019/06/the-three-keys-to-protecting-your-ip-in-china.html



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