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How to shatter trademark barrier for enterprises to go abroad


22-Mar-2005 - People's Daily
Hisense, Tongrentang and Wuliangye Liquor, the famous trademarks in China have always been taken advantage for preemptive trademark registration in overseas.

The event of much concern that the Hisense was taken advantage for trademark registration by German Bosch-Siemens overseas has finally been ended with the two parties to shake hands for a peaceful settlement. On March 3, the two enterprises issued a joint statement in Beijing that the two parties had reached a peaceful solution on the trademark dispute. Though so, the peaceful settlement doesn't mean that Hisense can use freely the "Hisense" as a trademark in Germany for the "Hisense" trademark belongs still to the Bosch-Siemens in Germany.

In January 1999, the Bosch-Siemens Holding Co. took the advantage to register the "Hisense" trademark in Germany and further carried on the international registrations in the EU and Madrid Agreement / Protocol. However up to now, the Bosch-Siemens engaged in the manufacturing of household electric appliance hasn't used any such trademark as "Hisense" on its own products. Nevertheless, the action taken by it has barred the Hisense Group, a rivalry engaged in the same trade out from the market, making the Hisense to suffer a full blockade in the European market.

As expert introduced, of the trademark grabbed away from among the famous Chinese trademarks in alien lands, the Hisense is not the only one and there were still some others, such as "Guifaxiang Shibajie" of Tianjin, "Liubiju" , "Tongrentang" and "Dabao" of Beijing, and Wuliangye, a famous liquor produced in Sichuan. They have all suffered from being taken the advantage for trademark registration. We've seen an average of over 100 suchlike cases to happen every year. And along with the stepping up of the paces for Chinese enterprises to go abroad the cases will come to increase as likely as not.

Though for three years on end the Chinese trademark registration has been on the top of the world China remains still not a strong country for trademark registration. The domestic enterprises should "apply for trademark registration first before they are going out to enter the market".

Up to the end of 2004, the total number of the trademarks China registered came to 2.24 million items, a world top number for three years on end, said An Qinghu, Director-general of the State Industry and Commerce Administration. Ours is a big trademark country true to its name and is proceeding towards a trademark strong country. Either the market share or the competitiveness of the Chinese goods is enjoying a very good privilege in the domestic market. And in the international market a big batch of famous goods with Chinese trademarks have realized their "going abroad" and won the appreciation from the consumers overseas. However, the Chinese trademark being taken the advantage very frequently for registration overseas has betrayed a fact from another profile that the influence and competitiveness of the Chinese trademarks are becoming stronger and stronger.

Expert reminds, along with the daily-increasing influence and competitiveness of the Chinese trademarks in the world, some foreign enterprises have already taken the Chinese enterprises with famous trademarks as their rivalries and are now trying their best by legal means to retard and ward the Chinese enterprises off from the international market. For this, the domestic enterprises should keep a clear mind about it and take active measures to protect their own benefits and interests in case that the "gold bowl" earned with toils be easily lost to others.

The preemptive registration of trademarks with an evil intention has at present become a new trend in the wrestle for businesses in international market, holds Zhang Ping an expert of the intellectual property rights of Peking University. Some foreign enterprises are setting up new trade barriers by way of preemptive trademark registration. It is a motion that deserves high attention and awareness of the domestic enterprises. The expert suggests, domestic enterprises should make an alteration in their way of thinking in the development of traditional market. It's not the way wherever the goods are sold follows with the registration of the trademark but should make a calculation beforehand. The trademark is the passport for the goods to enter a market and only by "the trademark goes before the goods enter the market" can an enterprise access the international market without any hindrance.


"Expressway" for international trademark registration without going abroad
For majority of enterprises it is an unbearable expense and great consumption of energy to get their trademarks registered from country to country in the world. In this regard, Lu Hemu, deputy chief of the comprehensive department of the trademark bureau of the State Industry and Commerce Administration said, China has for a long time joined the Madrid Agreement and Protocol system for international trademark registration and enterprises can make their international trademark registration without setting their feet outside the gate of China. The trademark proprietor has only to submit an application to the trademark bureau and the trademark bureau will apply for the trademark registration to the international bureau for intellectual property rights on their behalf. The time required for the application, examination and verification will last for some 18 months and if haven't got any reply during the 18 months' time it means that the trademark turns out automatically effective. Up to now, the countries joining the Madrid Agreement and Protocol for international trademark registration have already reached 76 in total, including the US and EU, having basically covered all major trade partners of China in the world.

As the reporter learned from the department concerned, in 2004, the number for trademark application by foreign appliers in China by way of the Madrid System reached over 10,000 items while the number for the purpose by Chinese enterprises via the Madrid System in alien lands came only to several hundreds of items. That is to say the domestic enterprises do not know much about the channel for international trademark registration.

22-Mar-2005 - People's Daily

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