Regionalization: Avoiding Loss of Control

Many international companies are currently considering regionalizing their production and upstream supply chains for specific markets to a greater extent and making their subsidiaries in different world regions more independent of each other. The goal is to secure supply chains by deepening regional value creation and to better meet regional customer needs through regionally manufactured… Continue reading Regionalization: Avoiding Loss of Control

China’s Drug Patent Linkage System

Innovation in China’s patent system: On July 4, 2021, the National Medical Products Administration (NMPA) and the China National Intellectual Property Administration (CNIPA) published methods for the early resolution of drug patent disputes. Thus,  China now has a system of patent linkage. The patent linkage system links the market approval of generic drugs to the… Continue reading China’s Drug Patent Linkage System

Alternative Foods Conquer China

Healthy nutrition is becoming increasingly popular among Chinese. This is clearly reflected in the purchase of alternative nutrition products via online platforms – its volume almost doubled in 2020. Around 75% of online consumers of alternative foods are new customers, and most repeat orders are placed within 30 days. The reason for the boom is… Continue reading Alternative Foods Conquer China

Patentability of Software-Related Inventions

Since patents were traditionally intended to protect technical solutions such as those required for mechanical devices, it is still not possible to obtain a patent for a computer program per se. However, there are ways to include software in a patent application. In 2020, the China National Intellectual Property Administration (CNIPA) revised its examination guidelines… Continue reading Patentability of Software-Related Inventions

Fluid Trademarks Can Create Free Space for Counterfeiters

Fluid trademarks appear in different and frequently changing variations, all based on a specific base brand. While they can be a creative way to connect with audiences, brand owners should use this tool with caution. Those who change their visual brand identity frequently can quickly confuse customers. The brand becomes undifferentiated and loses contour, leading… Continue reading Fluid Trademarks Can Create Free Space for Counterfeiters

The New Stamp Duty Law also Reduces the IP Costs

On June 10, 2021, the new Stamp Tax Law of the People’s Republic of China (中华人民共和国印花税法) was passed by the National People’s Congress. It will reduce or even eliminate the stamp tax previously levied on certain legal documents, licenses or certificates issued by an administrative authority. The new law replaces the previous Transitional Stamp Tax… Continue reading The New Stamp Duty Law also Reduces the IP Costs

Undesirable Technology Transfer through Chinese Investment

The method is familiar, what is new is that a lawsuit is being filed over it. Highly innovative U.S. company Icon Aircraft has filed a lawsuit in Delaware Chancery Court against its Chinese majority shareholders, including major shareholder Shanghai Pudong Science and Technology Investment (PDSTI). Icon developed the A5 amphibious aircraft, which set new standards… Continue reading Undesirable Technology Transfer through Chinese Investment

China Expands IP Legal System

The Chinese government is focusing more on legal certainty in intellectual property and is condensing the network of agencies responsible for IP. Currently, the structure of courts handling IP infringement lawsuits is organized according to the principle of “1 plus 4 plus 22.” Here, the number 1 represents the IP court at the national level,… Continue reading China Expands IP Legal System

IP Due Diligence Reduces Risk of Investments in Startups

Because new technologies such as artificial intelligence, Big Data, the Internet of Things and blockchain are developing rapidly in China, Chinese high-tech startups have become the most popular investment targets for multinational companies. While intellectual property is the greatest asset of these startups, it also poses a high risk to investors. Is its IP protected… Continue reading IP Due Diligence Reduces Risk of Investments in Startups

China Promotes Blockchain for Evidence Preservation

In August 2020, the Chinese Supreme People’s Court published the Opinions on Enhancing Protection of Copyright and Related Rights (Draft for Comments).To improve the evidences rules in intellectual property litigation and help the IP right holders to get more comprehensive protection, especially to solve the difficulty of preserving evidence, this draft encourages the IP right… Continue reading China Promotes Blockchain for Evidence Preservation