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IPR: Shandong’s Tech-Driven Growth and IP Protection
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Shandong’s Tech-Driven Growth and IP Protection

By China IPR SME Helpdesk

BT 201709 IPR 06
      山东省一直是我国各类产业尤其是制造业大省。在过去的五年中,即“十二五”期间,山东省全省规模以上制造业增加值年均增长11.9%,高于全部工业平均增速1.1个百分点;制造业累计完成技术改造投资4.9万亿元,年均增长19.3%;一批高水平重大项目集群式落地,企业装备水平大幅提升,产业和产品结构明显优化;此外,全省上马省级以上技术创新项目1.7万项,其中达到国际先进水平以上的占33.7%。从各项数据可以看出,山东省制造业发展增长快、优化到位、技术创新实现领先。在此承上启下的阶段,山东省政府提出了制造业在“十三五”时期的重点发展规划,强调以提高发展质量效益为中心,以促进制造业创新发展为主题,以加快新一代信息技术与制造业深度融合为主线,拉长产业价值链,加快构建产业新体系,推动制造业保持中高速增长、迈向中高端水平,推进山东省由制造大省向制造强省跨越。

      不言而喻,在政府的大力支持下,在山东发展制造业是一个好选择。但是蓬勃的发展背后也存在着很多侵犯知识产权的问题。如复制设计、商标或专利发明。假冒医药产品也层出不穷。此时,通过专利保护公司的发明创造是极其必要的,及时注册商标保护公司品牌也是保护企业的重中之重。有些小企业认为自己的商品不在市面销售所以无需注册,然而其实这是错误的想法。这类情况往往更容易给不法分子以可乘之机。

      及时注册中国商标,才能为自己的企业和知识产权保驾护航。

BT 201709 IPR 02
Business continues to boom in Shandong with manufacturing dominating the economy; in the past the province has been a cradle for some of China’s better known national champions, such as electronics manufacturers Haier and Hisense and others that are likely to soon follow. Machinery and component manufacture has been particularly important in driving the industrial development of Qingdao and this has been boosted by the local government’s efforts to attract high-tech foreign firms to Shandong via special high-tech and export zones.
 

BT 201709 IPR 04
Qingdao and the other major industrial cities in Shandong (like Yantai, Zibo, Weifang, Jinan) are an attractive option for advanced manufacturing, not least because of their relatively cheap rent, easy access to a large concentration of suppliers and well-established shipping routes. However, the threat of intellectual property theft such as the copying of designs, patented inventions or company trademarks remains high throughout China and no less so in Shandong.
 

BT 201709 IPR 02
Technology and IP related issues in Shandong

Counterfeit industries can operate on a vast scale in China. An underground industry for fake mechanical bearings and fake medicine and medical products grew rapidly in Shandong until a recent crackdown by the local government. Bearings are essential moving-part components of many industrial and consumer machine goods and rarely visible in a finished product, thus less easily spotted as fakes. Moreover, for the same reason it is much easier for these types of non-finished goods to enter supply chains.
 

BT 201709 IPR 07
In majority of these cases, Chinese counterfeiters use well-established foreign trade marks to pass off lower quality products. The substandard quality of goods can be devastating for foreign companies, damaging their reputation at the same time as eroding their customer base. However, the problem often partly stems from foreign companies themselves assuming that for any component or machine goods the focus need only be on protecting inventions.
 

BT 201709 IPR 03
IP Protection

Protecting an invention or innovation through a patent is without doubt essential, but it is often just as important to safeguard a company’s brand through a trade mark. The process to register a trade mark in China is relatively simple and the system follows a ‘first-to-file’ rule, meaning the first company to apply for the mark will be granted use rather than the first to use (even if it has been registered in other countries). This has resulted in countless ‘bad faith’ registrations: registering a mark with the intention to make a profit from the rightful owner.

hl iprThe ‘bad faith’ registration phenomenon is not restricted to smaller companies. Tesla recently offered RMB 2 million to buy the rights to the Tesla name from a Guangzhou-based business man who registered it in 2009. Castel wines from France also battled against a registration of a Chinese-character phonetic equivalent of its name, eventually losing the legal dispute and having to pay a RMB 33.7 million fine, as well as rebrand its’ products in China.
 

BT 201709 IPR 05
Tips to protect your IP in Shandong

The lesson to be learned here is that registering a trade mark should be done as soon as possible. It doesn’t matter what it is, if it represents goods or services of decent quality that will earn a reputation among consumers, it is worth applying for long before entering the market. It is common for small- and medium-sized businesses to think that they are not at risk because they do not sell consumer goods and are not well-known amongst the general public. But this is a misconception, as in many ways it is easier for a counterfeiter to pass off fake components and intermediate goods. In the end prevention is the best cure when it comes to intellectual property rights.
 

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