China As IP Paradise
A loyal reader just sent me an email asking me what I think of a China Daily article, entitled, "Courts see surge of foreign-related IPR cases." I think the article is a good reflection of what is really going on in the world of China IP.
The article has the usual Chinese government induced fluff on how China is doing this or that to protect intellectual property, but it also includes some very telling numbers:
China has seen a surge in foreign-related intellectual property rights (IPR) court cases since joining the World Trade Organization (WTO) in 2001.Domestic courts nationwide tried and concluded 668 such cases in first instance last year, compared with only 43 in 2001, said officials attending a national court conference in Jinan, capital of Shandong Province, on Wednesday.
The following nearly immutable rules apply to international business and litigation:
1. Businesses almost always spend money based on a legitimate belief it will give them a return on their investment. Therefore, if foreign businesses are spending money registering their intellectual property in China, they are doing so because they deem it to be good business and it almost certainly is.
2. Litigation is expensive.
3. In light of numbers 1 and 2 above, businesses do not pursue litigation unless they have reason to believe doing so will give them a good return on their investment or in some other way benefit their business.
Bottom Line: Foreign companies are realizing it makes sense to register their intellectual property (China trademarks, copyrights and patents) in China because there is legal recourse against those who infringe upon their IP rights.
