Posts Tagged: "China"

Emerging Antitrust Regulation of Intellectual Property Licensing in Asia

Both Korea and China are major players on the global patent stage, and the leading companies of these countries file and obtain thousands of patents annually. But it seems increasingly clear that the governments of these countries are attempting to support their domestic companies via antitrust enforcement to lower the price of access to patented technologies of foreign competitors.

Is the patent system self correcting, or are we going too far?

Everybody has to be careful because you’re right if we undermine our patent system that is the only thing that allows America to remain strong competitively because China they just have labor rates that are a fraction of ours. We couldn’t possibly make products as cheaply as China. We need to make sure that Congress isn’t hearing so much about how bad the patent system is that they without intention undermine it in significant part and then hurt our competitive advantage against China. I mean that’s all possible. I agree. I share that concern. Are we going too far?

Volvo to begin American sales of Chinese-made S60 Inscription this summer

The first Chinese shipments of the S60 Inscription are not expected to be high in volume. Volvo expects to ship 1,500 units to the U.S. in 2015 and 5,000 in following years, according to remarks made by Volvo CEO Håkan Samuelsson this April. 2015 sales levels of the Volvo S60 base model for the luxury sedan have only reached 8,884 units through mid-June, a figure that was down 13 percent from sales figures for the same time period in 2014. This low shipment volume is also likely to temper the skepticism which is expected from American consumers who will face the prospects of the first significant Chinese vehicle on the American market.

The first ever CES Asia highlights growing consumer base in China

The first ever CES Asia took place between May 25th and 27th in Shanghai, China. The inaugural industry event showcased the many different technologies that will be entering China’s consumer market in the coming months and years. The three-day exposition was the first Chinese technology trade show coordinated with the Consumer Electronics Association since 2012. More than 200 companies came from 15 countries to display emerging consumer technologies from knockoff versions of Google Glass to home cinema technologies. The forecasts for the Chinese consumer market for emerging technologies would give any technology developer reason to believe that nothing but fair weather awaits them in that country.

The U.S. and China Launch High Risk Experiments in Innovation

While Chinese President Xi is cracking down on political dissidents and solidifying his power over the army, the country has begun a huge push for innovation. While it’s easy for us to look askance at that proposition, we may be about to launch an equally quixotic experiment of our own: seeing if American innovation can survive the undermining of our patent system.

Chinese support of indigenous innovation is problematic for foreign IP owners

The definition of indigenous innovation is “enhancing original innovation through co-innovation and re-innovation based on the assimilation of imported technologies.” Those familiar with China’s joint venture rules for foreign businesses, which require them to transfer some patent licensing powers to Chinese companies in order to enter their market, are wary of statements like this that essentially support a siphoning of foreign intellectual property.

Alibaba: One of China’s Greatest Innovators

Alibaba is a highly valuable organization doing business in a market that could be described as a combination of the markets addressed by eBay, Amazon, PayPal, and Google. Alibaba.com started as a business-to-business portal to connect Chinese manufacturers with buyers all over the world. In September 2014, the conglomerate of web portals became the world’s largest IPO, valued at over US$230 billion.

Chinese Joint Venture Rules and Respect for IP Cause Concerns

These rules of the game for operating within the Chinese market are especially troubling given the lack of respect paid to American patent rights by Chinese firms. Foreign companies operating in China are forced to operate as 50-50 joint ventures with domestic companies and technology transfer has been a part of the price of entering the Chinese market going back to the early 1980s. Nominally, this practice runs afoul of tech transfer regulations that the Chinese government must respect as a member of the World Trade Organization, which it joined in 2001. However, as the economic policy paper points out, the regulations are difficult to enforce, private firms are dissuaded from speaking out publicly about negotiations while entering the Chinese market and the Chinese government stands to gain by letting the system continue as it has.

An International Economy Means I Need An International Patent, Right?

Before selling your product outside the United States, you need to take into account the vastly different cultural and market preferences outside the country. As anyone who has ever gone into an international supermarket knows, packaging, taste and product selection can differ greatly from what is available on shelves in the U.S. You need to conduct some market research to ascertain the depth of product demand before making the leap. Some countries may be culturally similar to the United States, and your product would only require minor modifications. Additionally you will need to develop relationships with local distributors, which can be another substantial hurdle to overcome. Before investing millions in manufacturing your product for an international market, you will want to conduct this extensive research.

The Real China: A Lack of Privacy, Censorship & Infringement

Near the end of her presentation Bartow asked a particularly enlightening question. If China can crackdown so thoroughly on its citizens why couldn’t they crackdown on intellectual property infringement and IP crimes? She explained: “Because it isn’t in their interest.” Bartow explained that in the Chinese view it doesn’t make sense to change their view of intellectual property rights because so many within the country are becoming wealthy as a direct result of widespread intellectual property infringement. Bartow ended by saying that as long as this is the view of intellectual property it will be difficult to attract the companies that they really want to attract.

USPTO and the State Intellectual Property Office of China Launch Direct Electronic Priority Document Exchange

The new service will allow the USPTO and the SIPO, with appropriate permissions, to obtain electronic copies of priority documents filed with the other office from its electronic records management system at no cost to the applicant. With this new service, applicants will no longer need to obtain and file paper copies of the priority documents; however, they are still responsible for ensuring that priority documents are provided in a timely manner.

Doing Business in China: Understanding China’s Patent System

Even with the discretionary substantive examination in a utility model patent application, they are generally much easier to obtain and much cheaper to get. There may also be advantages to utility model patents in China. While the fact that they are not substantively examined might make it seem that they would be easier to invalidate, that isn’t the case in reality. Under the Chinese system a maximum of 2 references can be used to fashion an obviousness rejection. “In our industry there is rarely a silver bullet,” Moga explained. It is certainly true that obviousness is the real hurdle to patentability and it is extremely common to see obviousness rejections in the U.S. that weave 3 or more references together to provide the foundation for an obviousness rejection.

Doing Business in China: A Legal and Commercial Review

On Friday, October 3, 2014, the University of Toledo College of Law will host a one-day seminar titled “Doing Business in China.” One of the goals of Doing Business in China is to refute myths regarding intellectual property protection in China and to provide an attorney or business person sufficient information to begin the risk assessment with respect to whether China represents a good strategic investment for a small-to-mid-size business. A highlight of the program will be a presentation on cross-cultural communication and negotiation for businesses and attorneys who will work with the Chinese counter parts with a discussing on how to avoid miscues and miscommunication.

Patent Quality in China

As a result of filing the world’s highest number of patent applications, China is often attacked for trading in quality for quantity. However, Michael Lin of Marks&Clerk explains that a better understanding of the State Intellectual Property Office (SIPO) and the Chinese patent system shows that patent quality is in fact, not declining but increasing.

Trade Secrets and Employee Mobility in the U.S. and Asia

Employers often spend considerable resources recruiting, hiring and training key talent, only to face potential disaster when those trusted employees quit to join a competitor, often taking sensitive files on their way out the door. Even if they don’t act in bad faith, departing employees carry critical, confidential information inside their heads, which can’t be deleted. Fortunately, various remedies may be available for the former employer, from confidentiality and non-competition agreements, to lawsuits for actual or threatened misappropriation of trade secrets and the doctrine of inevitable disclosure. But there’s a conflict. Employers have a legitimate interest in preventing misappropriation of trade secrets, while employees have a legitimate interest in utilizing knowledge and skills gained through work experience and working for employers of their choosing.