4 Facts About Protecting Intellectual Property in China

Protecting Intellectual Property has been a long-standing concern for companies that utilize, or are considering utilizing, Chinese companies to produce their products. The majority of information available casts the option of outsourcing to China in a negative light, but in recent years China has made great strides in proving to the American inventor that they can be a strong partner in speedy, reliable manufacturing, with minimal risk.

Historically, China has been thought of as an untrustworthy source and U.S. entrepreneurs have been wary to trust China’s manufacturing companies with their precious designs. However, recent changes within Chinese government are paving the way for American companies to align with product manufacturers overseas sans previous attitudes towards Chinese outsourcing.

Here are 4 reasons why you can start to set your worries aside:

  1. The Chinese government has begun opening specialized intellectual property courts in Beijing, Shanghai, and Guangzhou. Even though China’s patent laws are comparably new (approximately 30 years old), China has already released the 4th Amendment to its current IP laws, which now increased statutory damages from 5 million yuen ($727,000 U.S. dollars), and is still expanding a number of patent and enforcement regulations.

    Given the new legislative amendments and the resulting upturn in positive judicial decisions, it could even be claimed that it is easier to protect software, business processes, and technical inventions in China than the United States.

  2. China’s IP courts heard approximately 110,000 intellectual property cases in 2015 which included more than 11,000 patent cases. In fact, total civil IP litigations filed in the United States only make up about 13% of the total litigations filed in China. By these standards, the likelihood of encountering a patent violation is actually higher in the U.S.!

  3. China has cracked down on IP enforcement. In accordance with the new IP laws, any citizen or organization entitled to intellectual property rights who believe their rights and interests have been infringed upon by another may bring a lawsuit to civil court. China has made great strides in not just affording these rights to everyone, but enforcing them as well.

  4. China is quickly establishing itself as a global leader in both IP protection and enforcement. In addition—and in a move that proves its ongoing commitment to evolving their IP laws—China has been accelerating its own intellectual property system and taking tremendous strides to protect the assets of all companies, both outsourced and citizen-based.

While it can’t be denied that China continues to have noteworthy IP violation issues, its leadership and government agencies have made continued concentrated efforts to drive their intellectual property operations into the 21st century. The China of today is far removed from the China we knew long ago. Given their resolution to advance its IP systems and protocols, a few decades from now, China just may end up lapping the U.S. as the epicenter for intellectual property.

Contact Us

If you are considering product manufacturing in China, or have related IP questions, BRADFORD, LTD can help. We focus on intellectual property law and idea protection, and we actually have a relationship with Chinese IP cases. The attorneys at BRADFORD, LTD can aid you in any stage of your business’s plans for outsourcing. Give us a call today to see how we can help you, at 303.325.5467!

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