China and Intellectual Property. Is it safe?

China and Intellectual Property

China and Intellectual Property. Is it safe?

China, Business, Intellectual Property

How safe is your companies intellectual property when you decide to do business with China?

Many companies that are considering doing business with China, or maybe they are already doing business with China, are concerned about their Intellectual Property (IP). This would include their patents, trademarks and copyrights. How much should they be worried that thie information will be unfairly taken?

As a member of the World Trade Organization (WTO), China has put in place all of the necessary laws to proctect Intellectual Property. Protection of IP is not just an issue for foreign firm. China local firms are also creating more and more IP and they are also concerned about competitors taking the fruits of their labor. So it is in the interest of the Chinese government to protect IP, both of foreign and local firms.

With this being said, China is still a risky place for Intellectual Property. Gorgon Cheung of Durham University in England said it best when he said something to the effect of "In China, piracy is the norm, so act accordingly". So, despite the fact that there are laws in place, it is difficult to change people's habits. The is a long culture of copying, and even some people say that Confuscianism looks at copying as a way to honor past masters instead of as theft.

The conclusion is to follow Chinese laws. Hire a good IP lawyer and make sure they register your IP with the appropriate Chinese authorities. Then setup your own internal procedures to protect what is important to you.

Steve

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