It is easy to find published articles that speak of the shortcomings of Chinese law enforcement in the trademark arena. “Unfair,” “unreliable,” and “unbelievable” are all common descriptions of the Chinese infrastructure meant to deal with trademark infringement. But are all of these articles fair and reliable themselves?
Consider this hypothetical…
A western company from Europe, “BigPig,” sells electronic merchandise in Africa. Specifically, this company sells light fixtures under the trademark “Light ‘Em Up.” BigPig does very well in their African market and enjoys more than adequate profit margins. Then, a Chinese businessman sees BigPig’s success as an opportunity. The businessman registers an identical trademark in China and manufactures the exact same product as BigPig’s, only in a slightly higher quality made at a cheaper price. The Chinese businessman exports his own “Light ‘Em Up” products to Africa and begins competing with BigPig. Of course BigPig suffers substantial financial loss, and because of their inferior product, BigPig eventually loses their place in the African market they created for the “Light ‘Em Up” fixtures.
This scenario is obviously unfair, and exemplifies situations that are not uncommon in the world market today. BigPig cannot successfully defend their rights in Africa, so they turn to China hoping to find equity in the country hosting the wrongdoer. But the western company has not registered its trademark in China and China does not have the jurisdiction to control market transactions in Africa. Perhaps if the western company had registered its trademark in China then Chinese laws and regulations might be used to help stop the Chinese businessman from manufacturing and exporting under the western company’s trademark. But since the western company had no established right in China what does the company expect China’s legal system to do?
Many companies who have experiences similar to BigPig’s are more than happy to let the media publish them into multinational sob-stories. China’s trademark law is relatively new, and it is true that their standards in rectifying trademark infringement are imperfect and have a long way to go. There are many genuine issues that need genuine improvement. But not all allegations of unfairness and unreliability are representing the truth accurately. The fact of the matter is, if a western company wants to defend its trademark rights against those of a Chinese company, their trademark needs to have been registered in China. It is common knowledge that China is a top player in many international markets and industries. Western companies need to recognize this and cover their bases if they expect an opportunity for equitable relief in China.
If you have a trademark, register it in China.