Industrial espionage is a concern for any business that has decided to move its manufacturing to China. In spite of being a global leading in outsourcing of manufactured products, the United States government continues to warn business owners of the Chinese propensity to steal intellectual property and use the information to develop products that force U.S. companies out of the global market. With these tips for IP protection, you can safeguard your designs from theft.
1. File Chinese IP Registration for IP Protection
Having your IP registered in the U.S. won’t help you in China. You make take steps to ensure your IP is registered in China. Trademarks and patents have different filing processes and protections. China follows a first-to-file system for trademarks, so even if you are just a start-up, get your trademark registered. Patent applications from U.S. filings must be registered in China before any public disclosure, though backdating an application to just before disclosure may be possible if filed within 12-32 months of the initial U.S. filing.
2. Register Products With Customs
By registering your patents and trademarks with Chinese Customs, you have a better chance of having the Chinese government blocking infringing products headed out of the country. Provide Chinese Customs with as much information as possible, such as the different manufacturers or ports you are using, to help stop export at the source. This is a long-term solution for IP protection.
3. Follow Takedown Procedures for Chinese Websites
The leading Chinese websites, such as Taobao, Alibaba and Baidu, have takedown procedures when product infringement is detected. You will generally be required to submit proof of your IP rights and identification, as well as the information depicting or identifying the infringement. Takedowns can sometimes be completed within a week, though a number of sites allow a defendant to challenge your takedown request.
4. Follow Trademark Filings in China
Thanks to the regular publishing of trademark applications by the China Trademark Office, you may be able to spot an infringement before a trademark gets registered. It is much more efficient and effective to stop the application than to push for the cancellation of a mark. The simple solution for a mark cancellation is a fight for non-use, but this requires a minimum of three consecutive years of non-use.
5. Safeguard Manufacturing Facilities
In addition to the digital and trademark protection, you can protect your IP through physical measures taken at the manufacturing facilities. One great way to prevent theft is to rely on different original equipment manufacturing companies for specific components of your product and have these pieces shipped back into the U.S. for final assembly. This keeps any single OEM from knowing the full details of your product design and manufacturing process. You should also restrict the presence of computers, USB sticks and mobile phones with visitors to your facilities and strictly control customer lists, source code and other important information on a need-to-know basis.
Trust China 2 West With IP Protection for Your Proprietary Information
When you work with China 2 West for your manufacturing outsourcing, you don’t have to worry about IP protection. We take your business and partnership very seriously, carefully safeguarding your data, designs and processes. Contact us to find out more about our services and how your IP would be protected.
