US-China Green Technology Transfer Strained By Circular Reasoning

Last month (October 22nd 2009) The Economist had a special report about the relationship between China and the US. In the article ‘The price of cleanliness’ the circular reasoning is pointed out that makes solving the environmental challenge in China very difficult:

Technology transfer will also be a thorny issue. China resents the idea of American clean-energy companies taking advantage of China’s predicament to profit from their expertise. But American companies will not be keen to hand over advanced technologies without adequate protection for their intellectual-property rights. China’s lack of attention to this area is bitterly resented by many American businesses, not just high-tech ones.

Read James Miles’ article for The Economist article here.
In other words: China lacks trust that US will transfer their patented green technology; US lacks trust China is protecting US green IPRs; etc.; etc. Wood absorbs water; water rusts metal; metal breaks up earth; earth smothers fire; fire burns wood; etc.; etc.

UPDATE:
China also wants Japan to transfer its patented green technology. Kyodo News International reports via iStockAnalyst, read here: [Chinese Vice Premier] Li [Keqiang] requested that Japan accelerate the transfer and promotion of environment-related technology to China, while promising that China will ensure that the intellectual property rights of Japanese companies are protected. Japan and China are scheduled to hold a first working-level meeting on intellectual property rights in Tokyo on Nov. 19.

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iSuppli: China’s Grey Mobile Phone Market Explodes

In China there is a vast amount of grey cell phones, which are phones manufactured in China that are not recognised or licensed by government regulators. Grey market shipments are set to be 145 million units. Read market research firm iSuppli’s article about it here.

The rise of the small scale handset makers that provide the grey cell phones was helped by the providers of chips such as Mediatek from Taiwan, which also offer turnkey software products.

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Sino-Korean Dispute About Dragon Boat Festival

A bit late, but too interesting to let it pass unnoticed, here is the article by Dr. Zhang Quanyi about South Korea and China who both applied at the UNESCO to put the same dragon boat festival on the list of Intangible Cultural Heritages; Dano versus Duanwu, see here. Who is going to win the … eh race.

On the list are already the following intangible cultural heritages:

In 2001 ‘Kun Qu Opera’ ;
in 2003 the Guqin and its music;
in 2005 the Uyghur Muqam of Xinjiang;
in 2005 the Urtii Duu – Traditional Folk Long Song.
See here.

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First Issue The WIPO Journal Includes Articles About IPR in China

The first issue of the brand new ‘WIPO Journal: Analysis and Debate about Intellectual Property Issues‘ has just been published. I have not read the issue yet, but I am sure Professor Peter K. Yu, the general editor of the magazine includes China in his article. So do Handong Wu and Peter Drahos. And probably also Christoph Antons, and maybe the other authors too. Check it out for yourself:

The WIPO Journal First Issue

Foreword
Francis Gurry
Director General of the World Intellectual Property Organisation

The global intellectual property order and its undetermined future
Peter K Yu

The pre-history and establishment of the WIPO
Christopher May

International norm-making in the field of intellectual property: a shift towards maximum rules?
Annette Kur

Some consequences of misinterpreting the TRIPS Agreement
Susy Frankel

Seizure of generic pharmaceuticals in transit based on allegations of patent infringement: a threat to international trade, development and public welfare
Frederick M. Abbott

Threshold requirements for copyright protection under the International Conventions
Sam Ricketson

Rethinking of copyright institution for the digital age
Yoshiyuki Tamura

Internet piracy as a wake-up call for copyright law makers – is the “graduated response” the good reply??
Alain Strowel

The Lisbon Agreement’s misunderstood potential
Daniel Gervais

What is “traditional cultural expression”? – international definitions and their application in developing Asia
Christoph Antons

One hundred years of progress: the development of the intellectual property system in China
Handong Wu

The China-US relationship on climate change, intellectual property and CCS: requiem for a species?
Peter Drahos

Intellectual property and the transfer of green technologies: an essay on economic perspectives
Keith E Maskus

I wouldn’t want to be starting from here, or why isn’t intellectual property research better than it is?
Jeremy Phillips

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Professor David Llewlyn Explained All IPRs in One Hour

IP Dragon was attending yesterday evening the very inspiring lecture of Professor David Llewelyn at the University of Hong Kong, about the importance of intellectual property rights for not only experts, but everybody.

Professor Llewelyn made clear that the lecture was a public lecture meant for non-experts; the normal consumers; and put experts and expertise in perspective. He quoted Lord Denning that in the dictionary for example the word barrister comes directly after bankrupt and just before bastard. “IP needs to be understood, especially in this part of the world [referrring to Asia] by many constituencies that don’t relate to each other. Patent people can only think about patents. Trademark people about trademarks etc.” Professor Llewelyn was determined to speak only about the good things of intellectual property rights, so not about counterfeiting, pirating and the pressure of the developed countries on local developing governement officials.

Professor Llewelyn was referring to patent in all its meanings. The sentence: “It is patent” for example means “It’s available.” He was recalling Huawei who overtook the number one position of the company with the most patents from Panasonic. Professor Llewelyn was going to say only good things about IPRs, but as a good friend of IPRs, he critisised IPRs starting with patents: most were vanity publishing.

Then he was filleting the quality of some Hong Kong patents, and after a pit stop to the “stepsister of patents’: trade secrets, he was off to trademarks. Professor Llewelyn told about the dispute between Jiangyou in Sichuan province and Anlu in Hubei province, who both claim their city as the hometown of the famous poet from the Tang dynasty called Li Bai.Jiangyou was not amused when they became familiar with a commercial on China Central Television (CCTV) that identified Anlu as the hometown of Li Bai. According to the South China Morning Post, Xinhua reported that the Jiangyou had registered the trademark “the Hometown of Li Bai, the City of Chinese Poems” in 2003. Therefore Anlu’s commercial allegedly violated the trademark. Never mind that Jiangyou nor Anlu was the birthplace of the ancient poet, which was small town in what now is Kyrgyzstan, as the South China Morning Post mentioned.

Professor Llewelyn urged companies to think ahead: Chinese computer maker wanted to expand abroad, but they forsaw problems with the trademark legend that was already trademarked in many countries. Therefore they decided to change their name into Lenovo, which is distinctive enough and not descriptive or laudatory. Professor Llewelyn pointed out the possibility that trademarks could be used in an unfair manner, to bully other companies into submissiveness. As an example he gave KFC who sued an neighbourhood restaurant for infringement of the use of the trademarked term ‘family feast’. He draw the history of Hong Kong artist Michael Lau and his relation to trademarks/bootlegs.

Genericide was discusses as well. Escalator, tabloid were generic names, but not roller blades.

Then the subject changed to geographical indications. The danger always lurks that two states, such as Indonesia and Malaysia start fighting over a term for food: such as who owns Nasi Lemak.

The territorial nature of intellectual property rights were discussed.

Copyrights you obtain for nothing; but the flipside is that they only forbid the right to copy; and another challenge is the digital era, as you can read in “Free”, the book by Chris Anderson. Professor Llewelyn referred to China’s threats to sue over fake terracotta warriors, as a subject that is outside the scope of copyrights. Professor Llewelyn compared it with the Egyptians that want to copyright the pyramids.
Normal copyrights are the life of the creator plus 50 years (China, which is TRIPs standard) or 70 years (many countries). In the UK there is special legislation for the play ‘Peter Pan, or the boy who whould not grow up’ to give it perpetual copyright in order to finance the Great Ormond Street Hospital.

Among intellectual property rights are strange creatures, such as database rights.
And many new players such as UNESCO are getting in to the act as well to protect rather exotic new intellectual property rights.

Intellectual property rights are liabilities, unless you do something with them. Commercialisation is getting more popular.

There are only five countries in the world with a net balance of payment: US, UK, Japan, Sweden and France. China has taken this well into account and makes sure that it is self innovating in order to avoid to pay too much royalities.

When one analyses intellectual property rights one can do it from many perspectives. An academic (access to information) has another perspective than an author of a book (control of information). Professor Llewelyn told about a student in Beijing who asked him to sign a copy of his book that was “better bound than [his publisher] Sweet & Maxwell.”

Anti-competition law is becoming more important in intellectual property right law. Professor Llewelyn advocates a balance between extremes.

A development we must take an eye on is according to Llewelyn developing countries, such as India, that demand green technology of the developed world.

Hong Kong lawyers were always more interested in transactions of IPRs, registering etc. than in advising them about how to best exploit their IPRs.

In 60 minutes Professor Llewelyn covered a lot of ground. Ron Yu asked him whether IPRs are not getting too complicated for the average consumer. Professor Llewelyn answered: “Yes and also too complicated for the experts.”

IP Dragon asked him about his take on the new international IPR forum ACTA, and whether it would be a threat to forums such as WIPO and WTO’s TRIPs? Professor Llewelyn answered that he does not like the new forum, it will be more complicated.

So there will be a great need for people who can explain and illuminate these complicated issues in an inspiring way in the future, just like Professor Llewelyn.

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“Games on iPhone Are 50-90 Percent Pirated”

Simon Carless of Gamasutra wrote that Vice-President Alan Yu of game developer ngmoco:) said at the GDC in Shanghai that iPhone game piracy is a big issue, with 50%-90% piracy estimated in the first week of release on Ngmoco games. 50 to 90 percent of the potential income wiped out, thrashed, removed from the balance sheet. This gives the name of the upcoming ngmoco game “Eliminate” a whole new meaning. Read Mr Carless’ article here.

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Professor Llewelyn Asks Rhetorical Question About IPRs: “Too Important to Leave to the Lawyers?”

Tonight, IP Dragon is looking forward to attend the lecture of Professor David Llewelyn about the relevancy of Intellectual Property Rights for everybody.

“As Premier Wen Jiabao has been saying since 2004, world competition in the 21st century will revolve around competition for intellectual property rights (IPRs). But what are these rights, what can you do with them and how can we foster the innovation and creativity they protect?”

Professor David Llewelyn is Honorary Professor IPR Law at the University of Hong Kong and King’s College in London. He is also Deputy Chairman and External Director of the IP Academy in Singapore, and Partner and Head of IP at international law firm White & Case in its London office, and Chairman of IPR-X (Asia Pacific) Pte Ltd, a Singapore-based IP strategy and investment company. Professor Llewelyn is one of the world’s leading experts on the protection and commercialisation of IPRs.

Professor Llewelyn is well known for his co-authorship of the book: Cornish, William & David Llewelyn, ‘Intellectual Property: Patents, Copyrights, Trademarks and Allied Rights’.

See the blog ‘Professor David Llewelyn Explains All IPRs in One Hour‘ about his lecture here.

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Chinese Counterfeit ICs Sold To US Navy. How To Identify Them?

With the Somalian pirates hijacking ships (a Chinese container carrier fell into their hands), key words such as “piracy” and “pirates” seem to be reclaimed by the old fashioned thugs. Read here. However, the newer version of the pirates: trademark counterfeiters and copyright pirates can have just as deadly an effect. October 9, 2009, the US Department of Justice released a press statement that three California family members were indicted in connection with the sales of counterfeit high tech parts (read Integrated Circuits (ICs)) to the US navy military. The counterfeit ICs were imported from China and sold via the internet. Read the press release here.

What to do when even your navy is not safe against counterfeit ICs? Well first you have to be able to identify what is counterfeit and what is not. The Semiconductor Industry Associtation Anti-Counterfeiting Task Force (SEMI) just announced that it developed new standards to facilitate the identification of counterfeit ICs. Read more about it on Electronics News here.
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ASEAN-China: IPR Cooperation and Standard MOUs

The Association of East Asian Nations (ASEAN) which includes Thailand, Indonesia, Philippines, Singapore, Malaysia, Brunei Darussalem, Cambodia, Myanmar, Lao PDR and Viet Nam will meet in Hua Hin, Thailand, from October 23 to 25.

The ASEAN, ASEAN + 1 (ASEAN plus China), ASEAN + 3 (ASEAN plus China, South Korea and Japan) and East Asian Summit (ASEAN plus India, Australia and New Zealand) are held in Hua Hin, Thailand from Oct. 23-25.
According to Xinhua, documents to be signed by ministers include:
  • Memorandum of Understanding between ASEAN and China on Cooperation in the Field of Intellectual Property;
  • Memorandum of Understanding between ASEAN and China on Strengthening Cooperation in the Field of Standards, Technical Regulations and Conformity Assessment.

Read Deng Shasha’s article here.

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Russia to China: Kalashnikov’s Copyright Should Be Protected

Topix reports that Russia and China are trying to reach an agreement on copyright protection of the Kalashnikov, the world famous assault rifle. Read here. More about the most famous Kalashnikov the AK-47 here.

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Massive Chinese Copyright Trade at Frankfurt Book Fair

“Die Chinesen sind da,” (“The Chinese are there”, in German) was the motto of the biggest book fair in the world: the Frankfurter Buchmesse (October 6-10, 2009). China was Guest of Honour and the Chinese book publishers did show themselves prominently: Chinese publishers have exported 1,310 copyright items, and imported 882 titles to foreign counterparts.

Read the Xinhua article, via China.org.cn, here and see the Frankfurter Buchmesse’s Guest of Honour site here.
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IPR/Espionage Ping-Pong Case: Fiat Sues Great Wall, Great Wall Sues Fiat

Fiat sued Great Wall, because it alleges that the Great Wall Peri infringes the intellectal property rights of the FIAT Panda. After this Great Wall sued FIAT at the Shijiazhuang People’s Court, based on “evidence” provided by FIAT to the court that they made photo’s of production facilities.

Fiat suspected Great Wall to have infringed its Panda’s IPRs (ping), so it made photo’s of Great Wall Peri’s production facilities, so Great Wall sued Fiat for espionage (pong). Is this how it went? Is this how it continues? Ping-pong, ping-pong.

Read the China Briefing article here, or at the Financial Times, via the site of Autonews Gasgoo, here.

Comment of the week:
IP Dragon’s friend Richard Osinga (writer and digital entrepreneur) wrote: “I guess the Chinese don’t like it if an Italian car manufacturer calls its model Panda.”

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USCC 2008 Report to Congress: From Visible IPR Infringements To Undectable Cyber Espionage

The US-China Economic and Security Review Commission came up with their 2008 Report to Congress. The conclusion includes:

  • China continues to violate its WTO commitments to avoid trade distorting measures. Among the trade-related situations in China that are counter to those commitments are restricted market access for foreign financial news services, books, films and other media; weak intellectual property protection; sustained use of domestic and export subsidies; lack of transparency in regulatory processes; continued emphasis on implementing policies that protect and promote domestic industries to the disadvantage of foreign competition; import barriers and export preferences; and limitations on foreign investment or ownership in certain sectors of the economy.
  • China has an active cyber espionage program. Since China’s current cyber operations capability is so advanced, it can engage informs of cyber warfare so sophisticated that the United States maybe unable to counteract or even detect the efforts.

So it’s all about intellectual property rights violated, noticed or unnoticed. Read the 405 page report here.

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China Written Works Copyright Society Objects Google Settlement

The China Written Works Copyright Society, representing 570 Chinese authors, objects to be included in the Google Class Action Settlement, between Google and US authors and publishers. They claim that the copyright of the Chinese authors is infringed. Read Elaine Kurtenbach’s article with Bonnie Cao and Ji Chen, for Associated Press here.

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20th Joint Commission on Commerce and Trade Between China and US

China and the US will hold their 20th Joint Commission on Commerce and Trade (JCCT) in Hangzhou (Zhejiang province) on October 29th 2009. The first JCCT was established in 1983 as a forum for the two countries to discuss trade and intellectual property matters. It will be the first JCCT meeting under the Obama administration. Li Xianzhi wrote for Xinhua that the meeting will be co-chaired by Chinese Vice Premier Wang Qishan, U.S. Secretary of Commerce Gary Locke and U.S. Trade Representative Ron Kirk. Read more here.

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Economic Espionage Case Against Suspects Allegedly Sponsored By China

The time that the Russians were the only bad guys in James Bond movies or John le Carré books is over. Jaikumar Vijayan has written an interesting article for Computerworld called ‘Trial set to begin in economic espionage case involving China’. The suspects that allegedly stole secrets from Netlogic Microsystems are prosecuted under the Economic Espionage Act. Read here.

Read Dan Levine’s article ‘Defense blames Chinese Espionage Case on Neglected Wive’ for Law.com here.

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IPR Challenges in Geely-Ford Talks About Volvo

Keith Naughton and Cathy Chan wrote about the effort of Geely to buy Volvo of Ford jeopardized because of intellectual property rights related challenges, read the Reuters article here.

The struggle about IPRs comes in the wake of the FBI’s Oct. 14 arrest of former Ford engineer Xiang Dong Yu, 47, who was charged with stealing trade secrets from Ford in an effort to get a job with a Chinese car company.

Xiang Dong Yu, worked at Ford from 1997 to 2007, according to the U.S. Justice Department and is is charged with stealing more than 4,000 Ford documents and using them to seek employment with Shanghai Automotive Industry Corp., according to the U.S. indictment. He eventually was hired by Beijing Automotive Corp. in China, according to the indictment.

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Professor Peter K. Yu General Editor of WIPO Journal: Analysis and Debate of Intellectual Property Issues

There is a new peer reviewed IPR journal: WIPO Journal, a platform for the global IP debate. The prolific Professor Peter K. Yu, will be its general editor and specialist for China and the United States. I am looking forward to it very much. Read more about it here.

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Gartner Predicts 2012 Software Piracy in China Will Fall To 50 Percent

Kelvin Soh and Melanie Lee report that “Gartner estimated that software piracy rates in mainland China would fall as low as 50 percent by 2012, putting it almost on a par with rates in developed Asian markets like Hong Kong. See there Reuters article, via the MSNBC site here.

The Business Software Alliance claims the following economic benefits of lowering software piracy in China from 82 percent in 2008 to 72 percent in 2011, see here.

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Revolutionary Lessons For China From Michael Carrier’s Book ‘Innovation for the 21st Century’

‘Innovation for the 21st Century, Harnessing the Power of Intellectual Property and Antitrust Law’ by Michael A. Carrier. Oxford University Press.

Professor Michael Carrier of Rutgers University School of Law, wrote an excellent book about intellectual property rights (IPR) law and antitrust law, the intersection between the two disciplines and how both systems can be improved. IPR and antitrust law have the same goal, but use opposite methods: where IPR law grants, protects and enforces monopolies that give positive incentives to innovation, antitrust law is trying to avoid and combat monopolies that give negative incentives to innovation. Not only does Mr Carrier explains in a very clear language with a lot of good examples what the problems are, regarding patents, trademarks and copyrights, but he also comes up with ingenious, concrete and concise answers. In fact he comes up with ten revolutionary (which is defined in the I Ching as “fire ignites within the lake, defying conditions that would deny it birth or survival”) proposals to resolve the biggest problems of the US IPR-antitrust system.
To some degree these solutions could be applied to other jurisdictions, such as China (innovation is crucial for China’s economic growth), as well. Let’s look at his proposal to reduce invalid patents, which could limit competition and thus increase price which leads to adverse effects on innovation and complicated, complex and expensive antitrust cases. Bad patent award legal rights that are far broader than what their relevant inventors invented, in regard to technologies that are economically significant:

“1. A post-grant opposition system that would allow any party to challenge a patent after it is issued. This would target the most valuable patents and provide a quicker and cheaper determination of validity that litigation.”

Advantages:
  • Instead of perfecting the application process, post-grant opposition makes use of the knowledge of competitors and patent applicants;
  • Litigation is costly, skewed incentives (patentees spent more than infringers and a successful validity challenge benefits all infringers so you get a free-rider problem);
  • Reexamination (limited participation for requesters as well as estoppel provisions);More information can lead to higher quality patents;
  • Post-grant does not require early disclosure: there is no risk that sensitive information fill fall into the hands of competitors.
Disadvantage:
  • Mark Lemley, Douglas Lichtman and Bhaven N. Sampat propose in their 2005 article ‘What to do about bad patents?‘ (free download at SSRN via pdf) also the post-grant opposition system. They also warn about the risk of collusion: “If an applicant can get a buddy to raise a straw man challenge to his patent and, through that, walk away with a stronger presumption of validity, the whole process will collapse.”
Could this be applied to China’s patent system? Like many countries the China Patent Office has the problem of issuing invalid patents. Valid patents could foster innovation, while invalid ones “threaten to increase price and limit competition without any countervailing benefits”, according to Carrier.

1984 Patent Law: First China had an pre-grant opposition procedure (sometimes also called dissenting procedure). Before patents were granted the China Patent Office would publish them three months before, so any person could lodge their opposition at the China Patent Office. If at the end of the three month period no opposition procedure was filed, the patent was granted. Any person could initiate an invalidation procedure at the Patent Re-examination Board (PRB).

1992 Patent Law: Post-grant revocation procedure was set up. Within six months after the grant of patent anyone could request the Patent Office to revoke the patent (article 41). The patentee or the requester of the revocation procedure can file a request for re-examination of the decision at the PRB. The decision (invention patent, but not utility patent nor design patent) of the PRB can be appealed at a People’s court within three months. After the six months after the grant of a patent had expired any person could use the invalidation procedure at the PRB to invalidate the patent. The decision of the PRB (invention patent, but not utility patent nor design patent) can be appealed at the People’s court within three months.

2000 Patent Law: Post-grant revocation procedure was eliminated. A change in the invalidation procedure is that the PRB decision regarding utility patent and design patent can now also be appealed at a People’s court within three months.

2008 Patent Law: Invalidation procedure Every patent infringement case is met by an invalidation procedure.

China never had a post-grant opposition. However, they had a pre-grant opposition system, but because there were few oppositions and they wanted to shorten the examination time and quicken granting of patents, they god rid of it. The last two reasons could also be solved by implementing a post-grant examination. Mr Carrier’s book is interesting and can be read by a wider audience interested in patent reform. China’s Third Amendment to its Patent Law did not make any great changes in its patent prosecution provisons. Maybe, some of Mr Carrier’s lessons will be taken into account for the next amendment.

Illuminating book for everyone interested in innovation and the IPR and antitrust systems that can harness it.
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Sweet Irony: Is IP Dragon Liable For Hosting IPR Infringing AdWords?

Law is often walking a few steps behind the developments in society. I propose the term “law lag”, whereby I apply the “cultural lag” concept developed by Thorstein Veblen to law. Of course intellectual property and cyberlaw are not immune for this. One important question that should be answered is to what degree are internet service providers liable for content that infringes intellectual property rights on their site. In Europe there have been cases of Louis Vuitton; Gucci; and Chanel against eBay. And of course in China there were the Baidu and Yahoo! China cases (both companies were sued by music companies at different times with different outcomes), see here.

Another category of cases that is of interest is about Adwords. September 22, 2009, the Advocat-General of the European Court of Justice gave his advice for a pre-judicial decision about whether a Google adwords (for example where Louis Vuitton products are promoted by other companies than authorised by Louis Vuitton or even selling fake Louis Vuitton products) can infringe Louis Vuitton’s trademark, that was requested by the French Cour de cassation. In short the advice included: the links in AdWords used do not equal to trademarks (those could be infringed on the sites to which they lead), the AdWords do not prejudice the functions of the brand, guaranteeing quality of the goods or the communication- or the promotional function. Contributory infringement is not part of the legislation in most EU countries. However, if the trademark holder finds that the AdWords link to IPR infringing websites and requests Google to remove these links, Google will be held liable and the trademark holder can get damages. Google was not exempt from liability for hosting, because it is not a neutral information instrument, as is requested by article 14 EC directive 2000/31.
Why I am writing this, you might aks, since IP Dragon is about IPR in China and not EU law?

Well although most of the IPR infringing products, that are key in all of these cases, originate from China, I got the following email (September 24, 2009) that concerned yours truly:

Dear Mr. Friedmann,
I am a regular reader of your blog, and I enjoy your articles about IP in China. That being said, I noticed today a peculiar Google Ad on your page: « Louis.V. Handbags 50% Off ».Intrigued, and you may guess why, I followed the link :
http://www.handbagstime.com/?gclid=CMqR2oDQiZ0CFZQA4wodBG8J3A hum…. A quick look at the « contact us » page : http://www.yeslvgifts.com/contact_us.html It seems to confirm what I thought…What do you think ?
Cheers
Philippe

This could happen, since IP Dragon writes frequently about fake, counterfeit and IPR infringing products and makes use of Google AdSense (which is the mirror of AdWords), which adapts its content to the subjects and some AdWord users choose these categories to promote their maybe dubious goods. If I would not block these AdWords after I was warned, in principle I would end up being liable. What do you think? Thanks, Philippe, for pointing me out the links.
Photo: Danny Friedmann
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Murdoch, Procrustus and the WTO Copyright Cases

October 12, Sky Canaves of the Wall Street Journal has an article about Rupert Murdoch who is urging China to enforce copyright piracy and open up its market for copyrighted products. See here (or on page 8 of the printed WSJ). Mr Murdoch used the World Media Summit in Beijing to tell the Chinese leadership present that these two points are crucial if China wants to achieve their ambition to develop a global media industry.

Mr Murdoch’s advice is similar to the two claims the US made against China at the WTO dispute settlement body: DS 362 (China – Measures affecting the protection and enforcement of intellectual property rights) and DS 363 (Measures affecting trading rights and distribution services for certain publications and audiovisual entertainment products), based on the minimum enforcement levels of the Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPs) an integral part of the Agreement Establishing the World Trade Agreement (WTO Agreement).

Thinking about TRIPs, and the divergent views it provokes, IP Dragon was reminded about the story of Procrustus. Procrustus was a “hospitable” man who invited guests to his home. There was one problem. If the bed was too big for the guest, Procrustus simply stretched the guest by brute force. And if the bed was too small for the guest, Procrustus would amputate the parts that could not fit in the bed. And because Procrustus had in fact two beds, no guest was ever fitting for both beds. If you are in an imaginative mood, you can see the Greek myth as a metaphor for China that was invited over to do trade under the WTO system, of which TRIPs is an integral part. Some argue that TRIPs is too demanding and that countries such as China are stretched to the limit, while some argue that TRIPs’ ambition level is just too low and that more needs to be done like cutting off IPR infringing activities in China. And the two beds can be seen as a double standard in historic perspective: when the developed countries were developing, for example when the US broke free from Brittain, they were infringing IPR as well, and now that they are a developed country to expect developing countries to protect and enforce the same minium standards of IPR rights. Even though TRIPs has built in some flexibilities, it is considered by some as a straight jacket, a “one size fits all”, “take it of leave it” treaty.
Picture is taken by exo_sh
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Is Coffee-Mate a Generic Term for Coffee?

Stan Abrams over at China Hearsay is posing a question mark whether Coffee-Mate in Chinese is a generic term and therefore diluting the trademark of Nestlé. See the China Hearsay article which is not devoid of humour here.

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China Appeals WTO DS 363 About Market Access of Copyrighted Goods

China is appealing the panel decision DS 363 (Measures affecting trading rights and distribution services for certain publications and audiovisual entertainment products) by the Dispute Settlement Body, in which many of the US allegations were uphold. According to the BBC, no documents with the grounds for the appeal have been released, yet.

How does a DSU (Dispute Settlement Understanding) appeal work?
  • “A standing Appellate Body shall be established by the DSB. The Appellate Body shall hear appeals from panel cases. It shall be composed of seven persons, three of whom shall serve on any one case.”: article 17 (1) DSU;
  • “As a general rule, the proceedings shall not exceed 60 days from the date a party to the dispute formally notifies its decision to appeal to the date the Appellate Body circulates its report. In fixing its timetable the Appellate Body shall take into account the provisions of paragraph 9 of Article 4, if relevant. When the Appellate Body considers that it cannot provide its report within 60 days, it shall inform the DSB in writing of the reasons for the delay together with an estimate of the period within which it will submit its report. In no case shall the proceedings exceed 90 days.” article 17 (5) DSU;
  • “An appeal shall be limited to issues of law covered in the panel report and legal interpretations developed by the panel.” : article 17 (6) DSU;
  • “An Appellate Body report shall be adopted by the DSB and unconditionally accepted by the parties to the dispute unless the DSB decides by consensus not to adopt the Appellate Body report within 30 days following its circulation to the Members.” : article 17 (14) DSU.

This case, DS 362, can be read in connection with DS 363. Restrictions of market access of copyrighted goods can be conducive to a copyright piracy rich climate.
Read Deng Shasha’s article for Xinhua here.

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EU Afraid To Share Sensitive Proprietary Info With China

The executive summary of the 2009 Position Paper of the European Union Chamber of Commerce about China shows the concerns the EU has about China’s alleged industrial-intervention policies and foreign investment restrictions.

The results of the European Chamber Business Confidence Survey 2009, [..], indicate that European investors in high-tech and branded goods are more interested than ever in the Chinese market. However they are extremely cautious about further investment. They have concerns about the protection of Intellectual Property Rights if they transfer technology, and about the relatively unpredictable mergers and acquisitions policies. Meanwhile, the barriers to market entry – the establishment costs in capital requirements, licensing, forced joint ventures and ownership caps – are making China less and less appealing as an investment destination for European companies.

The executive summary of the paper states that the EU is more important for China than vice versa. China’s exports to the EU represent 7 percent of China’s GDP, while the EU’s export to China represents only 0.7 percent of the EU’s GDP. Therefore, the EU claimes it is in the interest of China, to open up its markets, so that EU companies will continue to invest in China.

The paper itself consist of four themes:

  • market access (An important channel of knowlegde transfer is the licensing of patent-pending or patented inventions, which “typically involves the purchase of production or distribution rights and the underlying technical information and know-how”, according to Keith E. Maskus, who wrote extensively about the subject. See ‘Transfer of Technology and Technological Capacity Building. ICTSD-UNCTAD Dialogue,’ 2nd BellagioSeries on Development and Intellectual Property. Sept. 2003, pg 18-23. So, when the protection/enforcement of IPRs in a developing country is less than perfect, chances are bigger that companies from developed countries transfer technology via exports or foreign direct investments, instead of licensing. Also, according to the executive summary China made a not very generous offer during the negotiations of the World Procurement Agreement (WPA), which would delay China’s accession. I hope to speak about the IPR implications of the WPA with
  • transparency The promulgation by ministries ofadministrative rules and interpretations is still generally characterised by a disturbing lack of transparency.;
  • administrative coordination;
  • IPR: there is a growing concern amongst European companies about the leakage of confidential information which can occur at various stages of business development, such as: project approvals, product certification, environmental impact assessments, patent filings, marketing approvals and registration. For example, during the CCC process (China Compulsory Certification, a precondition to market access for 130 product categories), highly confidential information, which goes far beyond the scope of information necessary for the approval concerned, is frequently requested by testing labratories.

In the same vein: the EU has problems with article 19 of the Third Amendment of the Patent Law (passed on December 27, 2008) which prescribes any entity or individual intending to file a patent application abraod for an invention-creation made in China, shall apply in advance for a confidentiality examination conducted by the patent administrative department under the State Council.

So in order to get market access or intellectual property protection EU companies need to share confidential information. However, they are afraid that if they do, there is a chance that this information is misappropriated. For example given to a Chinese company that can register first or make sure that the information belongs to the prior art or prior design.

Read the executive summary here (10pg PDF).

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IPR Protection For Traditional Chinese Medicine Needed

On April 1st, IP Dragon wrote about how to protect Traditional Chinese Medicine, see here. And it was certainly not an April Fool’s Day joke. But a lot in this fields need to be done. Exactly that is pointed out by the State Council (the highest legislative body) which came up (April 21st, 2009) with “Some Opinions of the State Council on Supporting and Promoting the Development of the Traditional Chinese Medicine Industry, No. 22, 2009.”


Relevant passages are:

IV. Promoting the TCM inheritance and innovation
ii. (..) You should strengthen the support and protection of famous brands, famous trademarks in the TCM industry; optimize the export structure of TCM products, enhance the added value of export TCM products, and support TCM enterprise to expand the global market.

iv. Strengthening the TCM legal system construction and the intellectual property protection: we should actively promote the legislation process of TCM, improve laws and regulations, strengthen TCM intellectual property protection and utilization, improve the TCM patent examination standards and the TCM species protection system, study and formulate a TCM traditional knowledge protection inventory, and gradually build a special TCM traditional knowledge protection system; and should strengthen the origin protection of good and genuine TCM materials, and transform the advantage of good and genuine medicine materials into the intellectual property advantage.

v. Strengthening the management of the TCM industry: the regions and departments concerned should strengthen the unified planning of the TCM industry, and manage the TCM in accordance with its characteristics and rules; should promote the TCM informationisation construction, build and improve a comprehensive statistical system; should promote the TCM standardization construction, build a standard system, and promote the transformation of China’s TCM standards into international standards; should rigidly supervise TCM law enforcement, heavily strike the acts of illegal medical practice in the name of counterfeit TCM, releasing false or illegal TCM advertisements, manufacturing or selling counterfeit or inferior TCM; and should strengthen the construction of local TCM management agencies, reinforce their management functions and enhance their management levels.

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Marco Polo Hiuui: Knock-off Of Knock-off = Knock-off Square




Recently IP Dragon reported about Polo Santa Roberta, an “original” knock-off of Ralph Lauren’s Polo brand and Burberry tartan pattern. However, when IP Dragon was taking a stroll down his Mong Kok neighbourhood, he learned that the knockoff is not so “original” after all. Marco Polo Hiuui is doing the same thing: mixing the Polo brand with that of Burberry’s tartan pattern.

Ironic that Marco Polo, the iconic Italian explorer that marvelled about the Chinese technological developments and innovations of 1271 CE (actually especially the Mongol court, that, however, incorporated the best of Chinese culture and technology) that were unknown to the West, is now used as an icon for Chinese knock-offs. Given the incredible developments in China, I am sure China will again come up with original inventions, brands and artistic works, unknown to the West, soon.
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“Class” Justice in Trademark Rights: Lan Kwai Fong

Lan Kwai Fong, an L-shaped expat-trap of bars and restaurants in Central, Hong Kong Island, founded by Allan Zeman (see its history here), is that well known in China and Macau many registered the name in all kinds of classes.

Neil Gough and Denise Tsang of the South China Morning Post wrote (September 14th) that Allan Zeman, Hong Kong entrepreneur is starting another aggregation of bars and restaurants in Chengdu, Sichuan province. Zeman will called it Lan Kwai Fong. In 2002 several of Zeman’s British Virgin Island companies began registering Chinese trademarks for combination of the English and Chinese versions of the name Lan Kwai Fong, for restaurants, housing estate management, and beer.
However, Lan Kwai Fong has been registered in other classes by other people as well:
Luo Ming, Guangzhou (Guangdong province), registered a trademark for shoes, swimwear and other clothing in 2003
Zhuang Shaohai, Shantou (Guangdong province), registered a trademark for handbags and underware in 2006.
Chongqing (Chongqing municipality) registered a trademark for medicinal beverages, disinfactants and women’s sanitary napkings.
Then there is the Lan Kwai Fong casino hotel in Macau (Macau SAR), opened last month and Lan Kwai Fong restaurant in Shamian Island on Guangzhou (Guangdong province).
Lan Kwai Fong is a case in point how imporatant your brand name is and that you have to register your tradenames in all classes of products and services that you want to be active in.
Check the Trademark Office of the State Administration for Industry and Commerce’s trademark database here, click then on login and write down the name. You have to fill in a class number between 1 and 45 (International Trademark Classification under the Nice Agreement). For example class 43 is “Services for providing food and drink; temporary accomodation.”
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Exxon Mobil Wins 500,000 RMB Because of Trademark Infringement

Parties: Plaintiff Exxon Mobil; defendants: American Mobil International Petroleum Group and Xi’an Yanqing Technology Development Co.

Dispute: “defendants registered web addresses that included the Chinese characters for ‘Mobil’.” Probably with this is meant the characters 美孚 (mei3 = good, beautiful; fu2 = confidence, trust) and not the Chinese characters that translate mobil, because this word in the English language does not have any meaning. Correct me if I am wrong.

Ruling by the Shanghai No.1 Intermediate People’s Court: defendants infringed Exxon Mobil’s registered trade mark and engaged in unfair competition. Defendants must cease the infringing activity and pay RMB 500,000 Yuan.

Rouse’s excellent newsletter China IP Extress 320 states: “The Court held that, although relevant judicial interpretations have not dealt with the issue, using another’s trade mark in a web address can constitute trade mark infringement.”
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HK Government Wants Your Views on Copyright Tribunal Rules

click picture to enlarge

Which direction should the Copyright Tribunal Rules go?

Since 1999 Hong Kong uses a Copyright Tribunal, which is an independent and quasi-judicial body established under the Copyright Ordinance to hear and resolve disputes about:

– Licensing schemes;
– Licensing by licensing bodies;
– Determining the award for employees for using his/her work outside reasonable contemplation;
– Obtaining Tribunal’s consent on behalf of owners of right of reproduction of a performance or on behalf of the owner of the performers’ rental rights;
– Applications for determination of equitable remuneration to persons entitled to restrain rental by virtue of commencement of section 10 of the Intellectual Property (World Trade Organisation Amendments) Ordinance 1996;
– Applications for determination of compensation arising from contrary rights as a result of the commencement of the Copyright Ordinance.

See more about the scope of the Copyright Tribunal here.
The current Copyright Tribunal Rules you can find here.

Key proposals on the drafting approach and direction are:

* applying the relevant principles of the Civil Justice Reform as the fundamental value of dispute resolution before the tribunal;
* prescribing one standard procedure and application form for all types of applications/references before the tribunal;
* empowering the tribunal to exercise active case management;
* promoting alternative dispute resolution;
* empowering a single member of the tribunal to exercise certain adjudication powers;
* using practice directions to regulate proceedings before the tribunal, if appropriate; and
* prescribing a set of self-contained rules.

Public consulation closes September 30th, see here.
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Harvest of Counterfeit Louis Vuitton and Gucci in 15 Minutes at Mong Kok Station





I was standing less than 15 minutes at the MTR station of Mong Kok, the most bustling and dense populated part of Kowloon, the peninsula of Hong Kong. I saw 5 ladies with a bag that could be counterfeit. Some were a bit shocked that I did not want to make a picture of them, but of their bags. All told me they did not buy their bag in the official Louis Vuitton or Gucci shop, and each bag costed them less than 300 HK dollar (30 euro). Conclusion: all were fakes.
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IP Dragon Will Blog About Two Conferences in Hong Kong About IPR in China, Hong Kong and Europe

4 and 5 September the IP & IT: Theory and Practice conference is organised by:

  • Law and Technology Centre Faculty of Law, University of Hong Kong (HKU)
  • Dept of Computer Science, HKU
  • School of Law, King’s College London
  • Faculty of Law, University of Zurich
Friday, 4 September
Panel I: Trademark Protection: Struggling Ahead.
Chair: Dr Zhao Yun, HKU
Welcome Professor Johannes Chan, SC, Dean, Faculty of Law, HKU
Protecting Brands in Europe – A Step too Far
Professor John Phillips, King’s College London
Stay With Europe or Sever the Link – a Dilemma for Trademark Law in Hong Kong
Ms Alice Lee, HKU
Professor Michael Pendleton, CUHK; Emeritus Professor, Murdoch University (Australia)
Enforcement of IP Rights (Trademark) in the PRC
Ms Annie Tsoi, Partner, Deacons
Combating Counterfeit Products Online: Trademark Protection
Ms Vivian Wong, General Counsel, Asia Pacific, Chanel Ltd
Ms Pilar Woo, Senior Counsel – Intellectual Property, Chanel Ltd
Panel II: Challenges in Software Protection
Chair: Professor David Cheung, Head, Dept of Computer Science, HKU
IP Law and Software in Europe: the Struggle Continues
Dr Tanya Aplin, King’s College London
Issues in Software Protection in Hong Kong
Dr Kevin Pun, HKU
Software Protection in WTO: Any Results at the End?
Professor Rolf H. Weber, University of Zurich
Software Copying and Adaption: A Case Study on Criminal Investigation
Dr KP Chow, HKU
Saturday, 5 September
Panel III: Policy, Strategy and Competition Practice
Chair: Dr Richard Wu, HKU
IP Strategy in China: from a Business Perspective
Dr Yahong Li, HKU
Competition Law Issues in Standard Setting Activities
Mr Thomas Cheng, HKU

IP as Tool of Competition Law
Professor Reto Hilty, University of Zurich; Director, Max Planck Institute for Intellectual Property
IP and Competition Law in Network Industries: A Practitioner’s View
Mr Marc Waha, Partner in International and European Anti-Trust Practice, Norton Rose (Hong Kong)
Council Chamber, 8/F Meng Wah Complex, HKU
You can register online here. Email Ms Leung at fkleung@hku.hk to reserve a place.
Wednesday 9 and Thursday 10 September there is another interesting conference ‘Asia-Pacific IP Forum‘ in Kowloon, see here and the programme here.
Hope to you see you there.
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Polo Santa Roberta “Original” Mix of Ralph Lauren’s Polo Brand And Burberry Tartan Pattern



Spotted today in Nathan Road, Mong Kok, Hong Kong: a shop with bags that carry the brand Polo Santa Roberta. Sounds very similar to the brand of Ralph Lauren; Polo and it looks very similar to the tartan pattern of Burberry.

Ai-ah! Another knock-off using the same ingredients: see Marco Polo Hiuui, here.

Continue reading

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Creemers’ Summary Of And Comments On DS363

Rogier Creemers of the University of Maastricht summarised 491 pages of the panel report on DS363: China – Measures Affecting Trading Rights and Distribution Services for Certain Publications and Audiovisual Entertainment Product, and gave some comments, see here.


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60 percent of Hong Kong Young Download Films or Music Illegally

Adrian Wan, of the South China Morning of Friday, August 21st, reported that 60 percent of young people in Hong Kong download films or music illegally, according to Hong Kong Federation of Youth Groups (HKFYG) survey.

17 perent of 559 respondents aged 10 to 24 were unsure whether they were breaking copyright law.

More can be found via the HKFYG website in the article Youth Research Centre and Lakshmi Jacota on the rise of connectivity: statistics and behaviour.

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Tomatolei.com Copyright Infringement Case: Four Sentenced To Imprisonment

See the verdict of the Suzhou Huqiu District People’s Court’s in the copyright infringement case against tomatolei.com at the BSA site here.

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WTO Report of the Panel DS363

Intellectual property enforcement and market access are interrelated. About the first part we have seen the report DS362, and August 12th 2009, WTO’s panel issued a report about the latter: DS363: China – Measures Affecting Trading Rights and Distribution Services for Certain Publications and Audiovisual Entertainment Product.
See here all 491-pages of the report. Must be studied. If you want to fast forward to the conclusions and recommendations by the panel, see here.
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If You Have .hk HKIRC Will Give You .香港 For Free

James Nurton of Managing IP reports about an announcement from the Hong Kong Internet Registration Corportation (HKIRC). If ICANN will introduce new non-Roman country code Top Level Domain (ccTLD) names, including Chinese characters, HKIRC will give everyone with a .hk address an extra .香港 for free.

Read Mr Nurton’s article here.
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New Red Dawn in Patents: More Chinese than Foreign Companies Filed Chinese Invention Patents

Joff Wild of IAM Magazine has another great blog: ‘Major breakthrough for Chinese companies in the patenting stakes’ , read here.

Mr Wild observes that according to SIPO’s statistics the first half of 2009 show that Chinese domestic companies filed more invention patents than foreign companies. In 2007 only 1 percent of all Chinese companies filed any patent. That is 99 percent to go. Mr Wild: Can you imagine the numbers involved when, say, 10% of them are making use of the patent system?
Yes, an exciting era has started.

Picture: Alfred Smith

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Cherkizovsky Market Closed Because of Counterfeit and Pirated Goods From China

Cherkizovsky Market, Russia’s biggest market was closed down after discovery of more than 6,000 containers of counterfeit and pirated goods from China worth US$ 2 billion. The market was described by Russia Today (RT) as a “country within a country”. Read RT’s article and watch their video about it here.

Global Times, China’s other official publication beside Xinhua, does not mention the reason for the closure at all in an article called ‘Can-do Russians work around trade problems’, read here.

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News From The Front Lines

Guest article and picture by Mikołaj Rogowski

Writing that the all-front global IPR war between the owners and the infringers is well underway might sound a bit of a truism so I will simply skip to the notable news from the trenches.

Chinese government owned China Daily and Taiwanese China Post both have some worth reading articles regarding details of the Beijing No 1 Intermediate People’s Courts recent decision. The amount of +67000 dollars of compensation is by no means a substantial sum for a corporate giant of Microsoft’s size but it’s more than sure that it will be a motivation for the likes of Strongwel to make sure that no one under their roof is selling computers with illegal software.

Remember how some of the commentators used to mention that a time will come when the entire trend of litigation against Chinese based entities will turn against some weiguo firms? The time is now, it seems : China Post reports that Wall Mart and Best Buy have been sued in US court, by a Chinese company on the grounds of patent infringement. The article has some interesting data regarding the number of Chinese patent applications.

Final piece of news: not surprisingly my previous post on the topic of the health reform in china and what it means for the “western” medical companies is not the only material that focuses on the opportunities and threats that come with this Chinese reform. Go to Reuters. Once again, some very interesting numbers are attached.

This is the third guest contribution of Mikołaj Rogowski, law student at Jagiellonian University, author of several IP articles and Polish-English translations, specializes in Polish, European, Chinese and American IP law, China assistant to MEP Jan Olbrycht. His first guest contribution can be found here, second here.

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Good Old Days of Counterfeiting in Hong Kong?

Adrian Burden of No to Fakes interviewed Sarah McCartney, the writer of the book Fake Factor.

Sarah McCartney: A couple of decades ago people could only buy fakes if they went abroad for them. Part of the fun of visiting Hong Kong was coming back with a fake luxury watch that you’d got by going to a secret backstreet shop with a man who whispered at you in the street as you explored the market stalls. You’d fool your friends, then explain how you could tell the difference, adding a bit of insider knowledge to your illicit purchase. It was about being daring and exotic and had a bit of James Bond glamour to it.

Well, although this depiction of the counterfeit products purchasing of yesteryear is a bit too romantic, I agree with that counterfeiting has expanded enourmously. And these days one can hardly tell the difference between genuine and fake products.
Read the interview here.
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Effect of DS362 on Copyright Piracy in China Nil?

Rogier Creemers of the University of Maastricht, Faculty of Law, has written an interesting article that will be published in the forthcoming number of European Intellectual Property Review:

‘The Effects of WTO Case DS362 on Audiovisual Media Piracy in China’.
The outcome of the recent WTO case China – Intellectual Property Rights, mainly concerned with copyright matters, was touted by both the U.S. and China as a victory. Looking beyond the rhetoric, however, shows that the effect of this case on copyright piracy in the real world is limited. The article outlines the case and analyzes its effects. Furthermore, it widens the scope of analysis, to include other factors influencing IP infringements in China, which are crucial in creating and supporting copyright piracy.
You can download the 22-page article from the SSRN site here.
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Obama Endorses Fake Blackberry? Yea, right…

Jason Dean and Ellen Zhu of China Journal of the WSJ, have a nice post about a rip-off version of Blackberry called Blockberry which pretends in an advertisement to be endorsed by the president of the USA. Read here. I ask myself why did they not call the apparatus Obamaberry in the first place?

Thank you Sir CH of Mobimania (new site will be up soon)

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Recession + E-commerce = Counterfeiting

Robert Klara wrote a very nice article: ‘The Fight Against Fakes’ for Brandweek.

His article is about:
  • the economic crisis and advent of e-commerce that prove to be a fatal mix for brands; trademarks are increasingly being infringed upon; if global dimension of this fatal mix is well described by Mr Klara: The same Wild West quality of the Internet that makes it so enticing to shoppers is also why it’s most terrifying for upscale brands, most of which have little hope of foiling the sale of a fake handbag made in China and bought by a customer in South Carolina from a Web site based in Estonia.
  • consumer education campaigns such as FakesAreNeverInFashion.com and Fake Watches Are for Fake People (see picture);
  • brands that produce mass-market extensions of their high-end lines in China, so that they are easier to copy;
  • ACTA (anti-counterfeiting treaty agreement);
  • At the end of the article Mr Klara mentions luxury good firms such as Luis Vuitton and l’Oréal as plaintiffs against eBay about the question who is liable in case of goods offered on eBay that are intellectual property infringements. Mr Klara writes: “Some legal experts predict this latest ruling from London will effectively end suits against eBay.” I believe that some legal experts predict this, but I do not agree with them.
Mr Klara interviewed representatives of intellectual property firm Marks & Clerk, fashion magazine Harper’s Bazaar, CMO Council (council for chief marketing officers), INTA (International Trademark Association), Luxury Institute, Federation of Swiss Watches, Swiss watchmaker Les Cubeurs and the Fragrance Foundation.
Good article, read here.
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Article 6ter Paris Convention Online: Hong Kong (2), China (0), Netherlands (37)

March 31, 2009, WIPO’s first electronic publication of signs, emblems etc. protected under article 6ter Paris Convention for the Protection of Industrial Property, see here. On this day (July 13, 2009), if you type in China, you see only the emblem and flag of Hong Kong S.A.R. witn the stylised form of Bauhemia Blakeana. That is a very small number for such a big country such as the People’s Republic of China (0) and Hong Kong (2), compared to the tiny Netherlands which protects 37 signs, emblems (including for such collective marks as Holland Cheddar Cheese etc), Germany (128), USA (117), United Kingdom (38), Italy (32). Then again Japan and France each only had two signs in the database.

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EU Customs Report 2008 About IPR Enforcement Activities not IPR Infringements from China

Yesterday the European Commission Directorate-General Taxation and Customs Union (DG TAXUD) published the ‘Report on EU Customs Enforcement of Intellectual Property Rights. Results at the European Border 2008’.

On page 9 we find a crucial alinea, which disclaims the scope the report:
Although the overall amount of IPR infringing goods entering or leaving the EU cannot be
ascertained from these figures, or whether the problem is growing, the figures do show that IPR
enforcement continues to be a priority for customs authorities in the EU.
Of course it would be interesting to know whether the IPR infringements that originate from China were growing or decreasing. That was the very reason why I devised theEnforcement/Infringement Ratio, see here.
The report states that 80 percent of the cases concerned seizures that were requested by the right holder and that 20 percent of the cases were done on the initiative of customs (ex-officio). So the number of cases and articles detained and the percentages of the countries of origin and provenance were all these products come from are interesting, but only show the perception of the right holders and customs of the goods that are suspected of infringing IPRs. A few times in the report the distinction is not made between seized goods that may or may not infringe IPRs and goods that actually do infringe IPRs.
Read the report here.
Thank you Rogier Creemers for pointing out to me the report.
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Fake iPhones: Rip-off or Innovation

iPhone in relation to China is in the news again. Stan Abrams of China Hearsay wrote about the alleged looming problems with Apple’s iPhone trademark in China, see here. And then I was interviewed by Sophie Pilgrim of France 24, the French BBC so to say, about a video by MacMedics and about iPhones, counterfeiting and what you can do about it.

However, the third point I make about what to do against counterfeiting was not: “Get a strong legal team. This isn’t very useful in China, though, where foreign companies are afraid of saying anything because they want to continue investing in the country, since it’s very cheap to manufacture there.”

It must be:

“Register your IPR’s (or so you will get a strong legal team). But you need to be willing to litigate. Some foreign companies are afraid of saying anything because they don’t want to jeopardise their investments in the country, and they want to keep on manufacturing there, since it is still relatively cheap.”

You can check out the interview here.

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May You Live In Interesting Times Online: Does China’s Green Dam Includes Pirated Code?

May you live in interesting times on the Chinese internet: pre-installed filtering technology which is used to censor, a passionate opinion against it supported by a massive internet survey, and last but not least the very filtering software might be qualified as copyright infringement.

Of course I am talking about Green Dam: China wants its citizens to use pre-installed filtering software to avoid that they will be exposed to pornography and I assume also to texts that include words deemed a threat to the Chinese government. This censorship method China called Green Dam. Alexa Olesen of the Associated Press quoted an anonymous Chinese official saying that Green Dam is not compulsory, see here. However, I guess not pre-installing Green Wall might not be conducive for computer manufacturers that want to sell in China. Then again, Chen Weihua, reported in an unprecedented frank way ‘Let’s not allow the Green Dam software to block our way into the future‘ on China Daily about an opinion poll on Sina.com, which showed that 90 percent of the people polled will not use Green Dam, read here. By the way: to stop all unwelcome information is not feasible for any government; the higher the dam the more forceful the water will stream out through the cracks.

Now, US software maker Solid Oak Software has sent cease and desist letters to computer manufacturers Dell and Hewlett-Packard, because it alleges that the Green Wall software includes code of which the graphical user interface (GUI) has the same look and feel as Solid Oak’s Cybersitter software, which would constitute copyright infringement.
Isn’t it ironical that the filtering software that could be used (maybe with different technology) against copyright infringements itself might be pirated?
Read Mark Hachman’s article for PCMAG.com, which links to many relevant PCMag.com articles about the same subject.
UPDATE
I was linking the expression ‘May you live in interesting times’ to the Wikipedia page about it. This is what Charles R. Stone has to say about it. Thanks Charles.

Charles R. Stone: My vote for a possible Chinese origin for “May you live in interesting times,” if indeed we should be looking for a Chinese source, is: 多事之秋。It’s found a few times in classical histories and Ming dynasty novels, as a Google search will show. (Insert pages of footnotes.) The problem, of course, is that it’s not used as an imprecation in these sources. It figuratively means something like “a season of much trouble.” The step to “may you live in a season of much trouble,” or “may you live in interesting times,” is not a big one. In any event, it seems more plausible than “It’s better to be a dog in a peaceful time than be a man in a chaotic period” as the Wikipedia link speculates.
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Supreme People’s Court of China: “Current Economic Situation Makes Granting IPR Injunctions More Difficult”

December 2008, I dealt with the ‘Influence of the Financial Crisis on the Enforcement of Intellectual Property in China‘. In this post I wrote:

In China there are still villages dependent on the production of counterfeit and pirated goods. The incentive for the Chinese government to enforce intellectual property and make these people de facto unemployed and thus prone to protest is not very likely. The Chinese government might temporarily look the other way when it comes to intellectual property infringement.

Well, the Chinese Supreme People’s Court does not look the other way: they came up with an opinion (Opinion on Certain Issues with Respect to Intellectual Property Judicial Adjudication Under the Current Economic Situation) that says for example that courts should consider other measures than injunctions in case an injunction would run counter to the public interest.

This this not contravene China’s obligations under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs): Articles 7 and 8 TRIPs, taken together may provide, “a basis for seeking waivers to meet unforeseen conditions of hardship,” J.H. Reichman, The TRIPs Agreement Comes of Age: Conflict or Cooperation with the Developing Countries, 32 Case W. Res. J. International Law, 2000, pp. 441 and 461.

Drastic times call for drastic measures, what do you think? And how temporary is the Opinion?

Read Peter Ollier’s article about the opinion at Managing Intellectual Property Magazine here.

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