China E-ventions
Patent News from the Middle Kingdom
Vol. 3 , No. 2 - February 25, 2003
TOPICS THIS ISSUE:
- Lego to Build on China's Success in Ongoing Fight Against Fakes
- CISCO Sues Huawei for Violating Patents
- Multinationals Take New Tack in Investment Strategy
- Japan and U.S. Agree on Need to Stop China Auto Parts Imitation
- China Invests Over US$ 13 Billion in R&D in 2001
Personalizing Patents in 2003 | Lynn speaks both Chinese and English. Please get in touch at:lxin@lehmanlaw.com | | | |
Lego to Build on China's Success in Ongoing Fight Against Fakes
Lego, the Danish toy manufacturer, has won a case against a Chinese company that copied characteristics of its snap-together plastic building blocks in what some are calling a landmark case in China's legal development.
The Beijing High People's Court delivered a judgment in favour of Lego that confirms copyright protection of industrial design/applied art. In addition, the judgment makes it clear that it is possible to gain what is known as "double protection" under the existing Chinese legal regulations. This means that a company can register design protection and simultaneously obtain copyright protection of the product.
In recent times, foreign businesses have complained that China is failing to fully enforce its laws, forcing them to spend extra money on anti-piracy technology and tactics while trying to stop customers being snatched away by unscrupulous competitors.
Lego filed suit in 1999 claiming some of the fake Lego blocks in China were duplicated right down to the logo. The court ruled the Chinese company's design violated Lego's copyright on 33 of the 53 elements claimed. The court also ordered the company to stop production of the counterfeit blocks and to turn over toy molds to the court to be destroyed.
Additionally, the company has been ordered to print an official apology in the Beijing Daily newspaper and to compensate Lego financially.
The Lego decision suggests China is moving to protect the foreign companies it needs to keep its economy moving, experts say.
"I think it's a positive response," said To-Hai Liou, director of the Center for WTO Studies at National Chengchi University in Taiwan. "The violations will still exist for a while. But within a few years, the cases will decrease because of these kinds of verdicts."
(Source: The Associated Press)
CISCO Sues Huawei for Violating Patents
Cisco recently filed a claim against Huawei in the US District Court in Texas, claiming Huawei copied parts of their Internet Operating System software that directs traffic in corporate computer networks and the Internet.
Cisco claims that Huawei copied its Internet Operating System so thoroughly that Huawei's software even contains the same "bugs" as in its own system. They also claim that Huawei copied portions of their technical manuals.
Cisco is seeking damages from Huawei for lost income wants to prohibit it from continuing to sell the products in question.
The companies have tried to resolve the issues between them, but have not succeeded in doing so to date. Huawei officials have denied the charges of copying the technology.
"Overseas customers will definitely be more cautious about Huawei products," according to the director at Beijing-based Norson Telecom Consulting. "A lot of people had suspected there might be some intellectual property issue about the company." Therefore the suit is likely to have a bad influence on Huawei's expansion plans.
Huawei was one of China's most promising high-tech companies, actively preparing for a global market. Huawei customers include Singapore Telecommunications Ltd. and Telefonica SA from Spain. Huawei was hoping to increase its overseas sales by at least 80%, even after major Chinese Telecom operators cut their spending by a fifth last year.
(Source: Chinabiz.org)
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Multinationals Take New Tack in Investment Strategy
Multinational corporations (MNCs) are adopting a more aggressive and systematic investment strategy in China, following its entry into the World Trade Organisation, a new study has found.
Professor Wang Zhile, who led the study of 255 of the world's top 500 companies with investments in China, identified five key investment trends by MNCs:
1. They are boosting their investments in China. Last year's actual foreign investment in China hit US $52.74 billion, up from US$46.84 billion the previous year as China became the world's leading recipient of foreign direct investment.
2. Aside from continued heavy investments in the manufacturing industry, MNCs are large amounts of capital into research and development centres.
3. They are also exploring different ways of investing in China, instead of merely going into joint ventures with a Chinese partner. More are either acquiring Chinese companies or insisting on being the sole investor in some projects.
4. Their investments tend to be concentrated in regions like the Beijing-Tianjin corridor, the Pearl River Delta and Yangtze River Delta.
5. Finally, they are integrating their investment strategies with management policies, redeploying resources according to the strengths of various regions in Greater China.
Despite the rosy outlook, speakers at the forum also pointed out that problems such as piracy, red tape and a much-lacking legal system continue to present formidable problems for MNCs.
(Source: The Straits Times (Singapore))
Japan and U.S. Agree on Need to Stop China Auto Parts Imitation
Japan and the United States have recently concluded two days of talks on automobile trade and agreed that China should strengthen efforts to prevent the imitation of foreign auto parts. The two countries also agreed China needs to step up efforts to protect intellectual property rights, including those for foreign auto parts, the officials said.
There was no discussion on specific measures to urge China to protect intellectual property rights as officials felt it is necessary to take a unified action with other industries on the issue, Japanese officials said.
Japan also told the U.S. that the two countries, acting together with Europe, should try to open up world auto markets through a new round of global trade talks under the World Trade Organization.
(Source: Japan Economic Newswire)
China Emerges as Low-Cost R&D Power
With U.S. telecom equipment giant Motorola Inc. planning to spend US$100 million on a research and development centre in Beijing, China is strengthening its claim to being more than simply a low-cost manufacturing centre for western companies.
Timothy Chen, Motorola's top executive in China, said: "We plan to open the research and development centre as part of efforts to make China one of our global research and manufacturing centres."
The Motorola investment points to a trend where western companies also transfer research to China. In the past, most Chinese research input came in the form of thousands of bright ex-patriates working in North American research operations.
China had 200.3 million mobile users at the end of November 2002, the most in the world, official figures show.
(Source: Ottawa Citizen)
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China E-ventions is intended to be used for news purposes only. It should not be taken as comprehensive legal advice, and Lehman, Lee & Xu will not be held responsible for any such reliance on its contents
