Voluntary Report - public distribution

**Date:** 3/22/2007

**GAIN Report Number:** CH7023

CH7023

**China, Peoples Republic of**

**Agricultural Situation**

**Going to China?: Trademark your Intellectual Property Now!**

**2007**

**Approved by:**

![](media/image1.wmf)Maurice House

FAS Beijing

**Prepared by:**

Kevin Latner

**Report Highlights:**

United States producers lost more than \$84 billion last year from
intellectual property rights infringements in the People's Republic of
China. Automobiles, sports equipment, drugs, food and other agricultural
products all suffer. The more a product is recognized as a quality
product, the more likely it is to be counterfeited and sold in the local
market, in other countries, or even re-exported to the U.S. China is
rapidly developing the tools necessary for you to protect your
intellectual property, however. A very small investment of time and
money can provide large dividends and future protection.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Beijing \[CH1\]

\[CH\]

United States producers lost more than \$84 billion last year from
intellectual property rights infringements in the People's Republic of
China. Automobiles, sports equipment, drugs, food and other agricultural
products all suffer. The more a product is recognized as a quality
product, the more likely it is to be counterfeited and sold in the local
market, in other countries, or even re-exported to the U.S. China is
rapidly developing the tools necessary for you to protect your
intellectual property, however. A very small investment of time and
money can provide large dividends and future protection.

China\'s rapid growth in production, income and spending has led to a
commensurate growth in demand for food and other products. The expanding
number of middle and upper-middle class consumers are increasingly
interested in food quality and safety. In China, U.S. food products are
considered to be of high quality and safe. For example, U.S. Pork,
California Grapes, Sunkist Oranges, Washington Apples and Northwest
Pears on supermarkets shelves complement or the more than \$7.5 billion
U.S. exports of food and agricultural products to China.

While quality U.S. food products often make it to store shelves, an
estimated 20-30 percent of products are counterfeit. \"Top Ten\" canned
tomatoes that look very similar to Del Monte\'s brand, lemons labeled
with \"Sunkist Valencia\" or \"California Pistachios\" on what are
clearly domestic or imports compromise brand value and diminish profit.
The Wisconsin Ginseng Board reports they have lost over one US billion
dollars in exports to China over the last ten years as a result of
counterfeit products.

Big companies that have established themselves in China include
protecting their intellectual property as an integral part of the cost
of doing business. This means registering your patent, copyright or
trademark, and ensuring you understand as well

as use the progressive enforcement mechanisms available in China to stop
infringers.

The first step in protecting intellectual property in China is to
trademark your logo or brand name. While there can be some pitfalls
related to registration, it is a relatively easy process. Basic
trademark registration requires an application, six copies of the
trademark, and a power of attorney authorizing a trademark registration
agent to submit the application on your behalf. Geographical
indications, and collective and certification trademarks are all special
or unique cases with special solutions.

Problems can also arise if you trademark is already registered.
Squatting, which is a phenomenon from the early days of Internet domain
name registration, is still common in China. China is a \"first to
file\" trademark registration country, and American firms accustomed to
operating in the U.S., which is a \"first to use\" trademark
registration country can be caught off guard. Prevention is the best
solution to squatting, so registering a product in China, perhaps most
markets early is critical. The alternatives: litigation; purchasing your
own trademark, and can be costly.

Registration requirements are straightforward. Professional intellectual
property rights attorneys or trademark registration agencies can do a
basic registration, including a search for prior registrations, document
preparation and submission, for under \$500. This is a one trademark per
\"classification\" cost, so where your product crosses classification
boundaries the cost increases. Because U.S. and Chinese classification
systems differ, having an intellectual property rights specialist assist
in the classification of your product is key (also make sure you, and
not your agent is the applicant). Get started as early as possible since
registration often takes two to three years.

Once you are registered, your protection is extensive. Whether it is at
the shores of the U.S. or China you can request appropriate officials to
seize counterfeit product based on your certification the product is
counterfeit and a citation to the China Trademark Office\'s Internet
website where your registration is located. China\'s increasingly large
infrastructure of 'piracy police' are developing into a significant
force to deal with China\'s counterfeiting challenges, and once your
product is registered you have the option of focusing their attention on
the protection of your intellectual property.

In response to these intellectual property threats, FAS China
established the FAS Beijing IPR Office located in Agricultural Trade
Office (ATO) Beijing. The office provides intellectual property
protection assistance to U.S. cooperators, agricultural companies, and
interests newly entering or already established in the China market.
Contact LaVerne E. Brabant, Kevin Latner or Yuanchuan Liang at
ChinaIPR@usda.gov.

The complete contact information is:

+-----------------------------------+----------------------------------+
| Agricultural Trade Office         | Agricultural Trade Office,       |
|                                   | Beijing                          |
| US Embassy Beijing                |                                  |
|                                   | Kerry Center, South Tower        |
| PSC 461 Box 50                    |                                  |
|                                   | 24th Floor Suite #2425           |
| FPO AP 96521-0002                 |                                  |
|                                   | No. 1 Guanghua Lu, Beijing       |
|                                   | 100020                           |
+-----------------------------------+----------------------------------+
| Tel: (86-10) 8529-6418            | Fax: (86-10) 8529-6692           |
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