IntellecPro: Using Litigation as a Tool to Stop Infringement

Tian Ying Zhao from IntellecPro, a sponsor company at the marcus evans Litigation Asia Summit 2012, on using litigation as a negotiation tool.
By: Stacey melvin
 
Nov. 7, 2011 - PRLog -- “The scope of infringements for copyrights, trademarks and patents in China is considerably large”, says Tian Ying Zhao, Partner - Attorney-in-Law, IntellecPro. By combining administrative processes and Intellectual Property (IP) litigation, violators can be stopped in a timely and cost effective manner.

From a sponsor company at the upcoming marcus evans Litigation Asia Summit 2012, Tian Ying Zhao discusses why lawsuits in China are primarily used for leverage.

Why is it necessary to combine litigation with other strategies when enforcing IP rights in China?

Tian Ying Zhao: The scope of infringements for copyrights, trademarks and patents in China is considerably large. Many foreign companies are facing small-scale violators. Litigation is an expensive, time consuming way of enforcing rights and an execution of court judgement is difficult, therefore we must consider other means.

Companies could file a legal case every two to three years and use that judgement to send warning letters to small offenders. This is cheaper and more effective than going to court for all cases.

The Chinese government has set up an administrative enforcement system, which provides a relatively inexpensive and speedy alternative for IP right holders.

How can counterfeiting in the Asian market be reduced?

Tian Ying Zhao: There is no need for legal action when looking at counterfeiting. The Administration for Industry and Commerce (AIC) will accept complaints filed by trademark right holders, conduct onsite inspections, seize counterfeit products and issue a fine. The AIC can usually carry out a raid within one or two weeks, and issue a fine within three months. Large scale infringers, who have executable properties, can then be taken to court.

You may find that the trademark being used is not 100 per cent identical, but similar enough to confuse consumers. This creates a complicated case where the AIC may feel reluctant to act against the transgressor. It is recommendable to first go to court and prove that the trademark is infringed. After a favourable court decision is obtained, one may use that to persuade the AIC to act upon similar infringements, or send warning letters to other violators to pressure them to stop these acts.

Compensation is likely to be received only from large companies. It is easier to settle with the other party and come up with a mutual agreement.

How can IP Officers stop patent and copyright infringements?

Tian Ying Zhao: It is common for copyright owners to file an impeachment as leverage for negotiation. For example, a music production company may pursue those using its music without permission. The company will file a lawsuit, approach the other party and oblige them to begin a formal business agreement where they will pay loyalty each year for the music they use. After the contract has been signed, the case is dropped. Litigation is currently being used as a tool to do business.

Inventions, designs and utility models are classed as patents in China. The IP Office is the government body administering patents, and unfortunately does not have the power to issue a penalty to violators. Although it can order the infringer to stop infringement, without any enforcement power, it works rather as a mediator. Yet, companies can still insert considerable pressure on the culpable party by filing a complaint before the IP office. With the help of this office and a couple of court judgments in hand, the patent owner can, in many cases, reach a settlement and receive compensation.

Any final comments?

Tian Ying Zhao: Foreigners filing cases in China have to wait one to two years for a court decision, whereas Chinese nationals usually wait six months. When filing a lawsuit in a small town, it is advisable to work with local counsel to communicate and speed up the process with the local judge.

Through a combination of administrative proceedings and litigation, we can stop infringements with fewer costs.  


Contact: Stacey Melvin, Journalist, marcus evans, Summits Division

Tel: + 357 22 849 400
Email: press@marcusevanscy.com


About the Litigation Asia Summit 2012

Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The Summit includes presentations on cost-effectively managing disputes, foreign jurisdictions and the importance of building strong relationships with external counsel.

For more information please send an email to info@marcusevanscy.com or visit the event website at http://www.litigationasiasummit.com/TYZPR

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Complementing our summit format, the Legal Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations.

LinkedIn: www.linkedin.com/groups?gid=3676301&trk=hb_side_g
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Please note that the summit is a closed business event and the number of participants strictly limited.

About IntellecPro

IntellecPro is a law firm headquartered in Beijing, offering a full range of IP services in the areas of trademark, patent, copyright, domain names, and unfair competition. As legal professionals who think in business terms, IntellecPro is committed to provide cost-effective services tailored to the client’s needs and aimed at making IP rights profitable.    

www.intellecpro.com


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marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-to-one business meetings. For more information, please visitwww.marcusevans.com
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