In the context of building a dual circulation system and creating a unified domestic market, China is guiding all enterprises to strengthen their compliance management to prevent business risks at home and abroad, promote modernization and transformation, and improve competitiveness.
The compliance system is to cover areas such as market transactions, environment, human resources, finance, intellectual property, cybersecurity and data protection. IP compliance is not only about identifying legal risks and preventing the infringement of others’ intellectual property rights, but also about protecting one’s own rights as much as possible.
Identifying legal risks and preventing infringement should be reflected in all aspects of business operations. For example, companies should conduct freedom-to-operate analyses before starting technology or R&D projects; they must also avoid publishing technical information that could constitute a trade secret, for example in articles, catalogs or marketing materials. A background check should be conducted before hiring new employees in sensitive areas. To manage the company owned IP rights, the company should establish a set of organizational management documents, including the general principles for planning, creating, managing and protecting IPRs within the company. Procedural rules or guidelines on filing patents and trademarks, registering copyrights, licensing and transferring IPRs are also included.