Japan Plans to Amend IP Laws
To Strike Counterfeits Harder

Japan plans to amend the Patent Law, Utility Model Law, Design Law and Anti-unfair competition Law, in order to suppress counterfeiting behavior. Related drafts have been filed to the Congress on January 20, 2006, the content of which is as follows:

1. Raise the maximum penalty amount for counterfeiting behavior in the above-mentioned four laws;

2. Prohibit the export of counterfeits;

3. Expand the protection range of Design Law; protect not only shapes of electronic products but also its screen display after connected to TV;

4. Extend the protection time of Design, from 15 years counting from the registration date to 20 years.  

5. That anyone holds a product of infringement with the purpose of assignment is considered as an infringement.

Four Factors Restrict The Development of Original
Brands in China

A recent article in People Daily says that the four factors that restrict the development of original brands in China are: weak consciousness of brand, incomplete use of resources, little awareness of self-protection and lack of guide from the government.

Weak consciousness of brand is embodied by the fact that many enterprises do not register their trademarks in time. This results in frequent preemption of Chinese famous trademarks.Statistics shows, since 1980s, trademark preemption of Chinese export goods have amounted to over 2000 times, which has caused about 1 billion Yuan as intangible assets annually.

As the article pointed out, many enterprises in China, esp. state-owned ones have nurtured many influential brands in China during their long-time manufacturing and management. However, due to the improper use, they leave their brands unused, which is a big waste. Also, the majority of enterprises does not have solid understanding of brand strategy and seldom vary in their marketing skills.

In addition, some enterprises have not built up effective protection for their original brands, so that they have been greatly influenced by a large number of fake and counterfeiting products at home while being oppressed by foreign-invested enterprises during their cooperation. Because of this, some independent brands gradually disappeared.

The article further mentioned that the spread of brand strategy involves the efforts of many governmentaldepartments, so a coordination system needs to be built among departments and general planning should be made. It is also necessary to take measures in financial policies and promote the development of original brands.

Feb.16, 2006                                  Source: China Industry and Commerce News

First IT Company to Protect Its Patent Right Abroad Netac Sued US Enterprise

Shenzhen Netac Technology Corporation Ltd. announced in Beijing today that it had submitted a petition to federal court in eastern district, Texas, USA on February 10 local time, accusing American PNY Company of infringing its US patent right (the patent number of which is US6829672). It is said that it’s the first time for a Chinese IT enterprise to search for patent protection abroad.

In 1999, Netac successfully developed the first flash disk in the world which is a new generation of mobile memory used for storing and exchanging data. The flash disk is commonly called U Disk. In July 2002, Netac was granted patent of this product in China. In December 2004, Netac got invention patent for flash disk in USA, claiming the rights ranging from flash disks to flash disk MP3, etc..

As it reveals, some international corporations are willing to cooperate with Netac and negotiate on patent licensing. If Netac wins this lawsuit against PNY, it may receive the highest amount of compensation for patent infringement in the field of flash disk thus far.

Related persons indicate that the action of Netac is consistent with the international practice that Patent Precedes. This shows that Chinese enterprises are taking a new look in international competitions.

China Won Patent Dispute on Battery in US

American federal eyre announced recently that the charge against USITC (United States International Trade Committee)by American Energizer Battery Corporation Ltd. was dismissed. This means that after bouts during almost three years, Chinese battery enterprises won again in the patent dispute with American counterparts. This also indicates that the export of mercury-free alkaline batteries from China to US is not likely to be entangled by patent infringement disputes.

On April 28, 2003, American Energizer Stock and EVEREADY Battery Corporation sued to USITC against 7 battery manufacturers in China including Fujian Nanfu Co., requesting Investigation 337. China Battery Industry Association allied several battery enterprises such as Fujian Nanfu, Ningbo Shuanglu and Baowang etc. to face up to the battle.

On October 1, 2004, USITC made final judgment on this case, announcing that the mercury-free alkaline battery patent that the American Energizer Stock and EVEREADY Battery Corporation held was invalid, so none of the 7 chinese enterprises such as Shuanglu shall be deemed infringement. However, the American Energizer Stock immediately appealed to the American federal eyre, with USITC as the appellee.

After hearing from USITC that the American Energizer Stock lost the case, an official from Fujian Nanfu said to the reporter, “The reason we have won the final judgment is that we have our own independent intellectual property in the field of mercury-free alkaline battery. What the American Energizer Stock said about infringement is nonsense.”

According to professional analysis, this victory not only swept away barriers on the way to US market for Chinese batteries, but also encouraged those export enterprises which suffer painfully from trade barrier.

Feb. 6, 2006                                                       Source: China Securities Journal

Problematic Patents & Rubbish Patents

The director general of the State Intellectual Property Office made the following description and explanation on problematic patents and rubbish patents that have attracted public attention these days.

Problematic patents refer to those patents whose protection range is too wide or whose rights do not conform to the patent law even after they are granted patent rights. Rubbish patents are patents which are not innovative but imitative of the prior arts or inventions of others. The former has problems but has progressed technology to some extent. The latter has no contribution to the prior arts at all.

How do these patents occur? Firstly, invention patents go through substantive examination, but utility models and designs only receive preliminary examination, which examines only the form. It is out of the consideration that patents which are entirely from copying and imitating are the minority and are not worth spending high social cost.

The life span of patent in China is mostly short. For example, invention patents have average life span of only 5 to 7 years, while its more than ten years abroad. The average life spans of utility models and designs are even shorter, about three or four years. It indicates that the ability of innovation in China needs improvement and the protection of IP rights needs more attention. Only in this way can intellectual property be a strong tool for the development and improvement of chinese companies.

Feb. 19, 2006                                                                             Source: www.gov.cn