Getting it right: Exploring China's new attitude towards intellectual property rights

As we look forward to welcoming in the latest Interclean Shanghai this December, there is a pressing issue that we need to explore if you’re an organisation looking to operate in the Chinese region and do business with the exciting range of Chinese cleaning tech companies at our innovative trade show.

This pressing issue is the global concern over protecting and upholding intellectual property rights (IPR). In this article we will explore China’s previously poor reputation surrounding the protection of IPR and how this is beginning to change and improve, allowing for better trust between China and the rest of the world in terms of protecting intellectual property and ensuring best practice.
 

China's past reputation: A hurdle for foreign business

In the past, it has been well known that China has not enjoyed a particularly positive reputation for protecting intellectual property rights. Counterfeiting and copyright infringements were common. This unfortunately led to longstanding concerns and hesitation from foreign companies when considering if they should even enter the Chinese market.
 

A shift in focus: China prioritises IPR improvement and recognises the need for a more robust IPR system

However, over the last decade, China has increasingly changed its attitude towards IPR and emphasised to the rest of the world a national commitment towards improving their global reputation in this arena. They have realised they can attract more foreign business by significantly strengthening their IPR system and laws.

Looking at this in detail, what are the changes have been implemented and how will they affect China’s key business relationships with the rest of the world going forward?

In 2023, the China National Intellectual Property Administration (CNIPA) drafted amendments to China’s trademark law to tackle “bad faith” trademark filings, trademark squatting, and hoarding by third parties. These bad practices have often impeded upon the market entry process of foreign companies into the Chinese market.
 

China's ambitious plans: A long-term vision to transform China’s IPR competitiveness and global image

Additionally, the Chinese government developed the “IP in China 2025” strategy to dramatically transform China from a “copycat” industry to an innovative OEM program leader, with the ultimate aim of the country becoming a leader in innovation and original equipment manufacturing at an international level.

China has also released an ambitious 15-year plan (2021-2035) for the development of its intellectual property rights into the future, with an ambitious aim to rank China’s IPR competitiveness among the top in the world by 2035.

Formulated by the Central Committee of the Communist Party of China and the State Council, this plan demands stricter IPR protection, greater market value of IPR by 2025, and a high level of public satisfaction in relation to intellectual property rights.

This long-term plan maps out a number of key interrelated tasks, including:

• Building an IPR protection system that supports a world-class business environment.
• Building a public IPR service system that is both beneficial and convenient for the public.
• Establishing an IPR market operation mechanism that encourages and promotes innovation.
• Stepping up participation in global IPR governance.
   

What these exciting new changes mean for your business

Having explored what China is doing around improving its reputation over intellectual property rights, what will these changes mean for you as a business operating in this fast-developing region?

While there have been many positive developments over the last few years surrounding IPR, it is nonetheless important to take great care to ensure that, as a business looking to operate in the Chinese region, your intellectual property is carefully protected.
 

Best practices for protecting your intellectual property in China

With this in mind, here are some points to consider surrounding IPR best practice:

• The first-to-file rule means that you should look to register trademarks as soon as possible to avoid complications and expenses associated with buying back rights from trademark squatters and hoarders.
• Trademarks and patents are granted by CNIPA. They identify three types of patents including: invention patents, utility model patents, and design patents. With differing registration processes, familiarising yourself with the types and considering what is most suitable is key.
• Setting up an internal protection system, including seeking legal advice on employee and business partner contracts, monitoring employee access rights, and tracking IP infringements online and at trade shows, can help improve the safeguarding of trade secrets and identify infringements early on, so legal action can be taken swiftly.
• Liaising with a Chinese legal team that specialises in intellectual property law can help you navigate local IP registration and enforcement processes with much more clarity and certainty.
   

A bold new era of collaboration: Attending Interclean Shanghai with confidence

Now that you have a wealth of knowledge behind you about how to navigate the reimagined intellectual property rights landscape that China is now keen to uphold, you can prepare yourself for doing business with our Chinese exhibitors at Interclean Shanghai 2024 with renewed confidence and excitement.

Interclean Shanghai, China’s premier professional international cleaning and hygiene trade show, runs from the 11th to 13th of December at Shanghai New International Expo Center (SNIEC).

For more information on the Interclean Shanghai event, including who is exhibiting and how to make the most of the show, visit our website at www.intercleanshow.com/china.