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New customs agreement between China and the EU. What does it mean for brand owners?

Beijing Silk Market
(from gruntzooki via Flickr)

China and the European Union have signed an agreement
mutual recognition in customs cooperation
whose main objective is
facilitate customs procedures for those merchants who are considered de
confidence.
. Two new initiatives have also been signed that complement
the agreement, a new “Strategic Framework for Customs Cooperation” and a
new “EU-China Action Plan on Industrial Property Rights and
intellectual".
The figure of the “trusted merchant” also
known as “Authorized Economic Operator”, has been present at the
EU customs regulation since 2008 and is characterized by enjoying
simplified customs procedures as long as you prove that you are an operator
safe, reliable and compliant with safety regulations. Therefore, the
Trusted merchants go through fewer customs checks and
They have faster procedures when entering and leaving the Economic Area
European (EEA)
China is not the first country to sign such an agreement.
type with the EU; There are mutual recognition agreements already signed with countries
like the USA (2012) and Japan (2011), but the incorporation of China has
become the most accepted certified trading system in the world
As
which currently includes around 15.000 companies certified as
safe traders (for more information see Press release from the
European Comission).
It is necessary, however, to highlight another point. China
has the sad reputation of being a country in which
infringements against intellectual property. Nonetheless, on May 1
2014 the new Trademark Law came into force
(for more details on the modifications,
see the previous entry on our blog) which will presumably reinforce the
protection of trademark owners against infringement and bad claims
faith. It is still early to know how it will be carried out in practice, but the
combination between the new Trademark Law and the signed customs agreement
recently is, without a doubt, good news for the holders of
rights.
Our experience in China, however, has
demonstrated that the European headlines
of brands They tend to have more problems withtrademark squatters" that
with infringers of intellectual property rights. The reason is simple:
It is a widely established practice among European car owners.
brands manufacturing their goods in China and then selling them in the
European market, but without registering its brands in China.
This can have a consequence: any company or individual
Chinese can go to the Trademark Office (SAIC) and register the European trademark
without any problem since the trademark registration system in China is based on
the principle of "first-to file".
Then they can also register the trademark with Chinese customs (GAC) and
when the owner of the European brand tries to send his next shipment to Europe,
products are detained at customs for infringing a Chinese trademark
registered. With which, the European owner is forced to choose one of these
two options, equally negative: pay a significant amount of money to
acquire your own brand in China or go to trial/TRAB.
One of the most common routes is to try to cancel said
registration due to bad faith or lack of use from the first three years of the
inscription. In this case, the biggest problem faced by the owner
legitimate is to demonstrate the use, or at least, some influence of your brand in the
Chinese market. Indeed, at present it is almost impossible to demonstrate the
use of a European brand in these cases since manufacturing for the
export is not considered actual use of the trademark (there is no precedent in the
China's judicial system, so Chinese courts are not bound
to follow previous decisions, even if there are any) and only some brands
very famous have managed to be recognized by the courts when they are not
had used in the Chinese market.
With the strengthening of the good faith requirement in the
registration and use by China's new Trademark Law and the
mutual recognition with the EU, the cases mentioned above should
decrease.
Not only because of the reinforced protection offered by the law, but also
because customs cooperation would facilitate the fight against “trademark
squatters
” through the recognition of European traders of
confidence in China, a fact that may encourage EU companies to
Register your trademarks in this country in order to be fully protected.
In this way, Chinese customs could dedicate many more resources to the
high-risk traders and fight infringements more
experience.
Although Chinese legislation on
related to industrial and intellectual property and the actions of the
authorities are getting better every day, we must be aware of the
dangers that still exist
to adapt our property strategy
intellectual according to them. For the average citizen in China, the
efforts of the authorities are almost invisible, which demonstrates once again
the magnitude of the violations and the enormous amount of resources and time that
we must dedicate ourselves to this fight. If the owner of a brand is dedicated to
manufacturing or plan to use your brand in the Chinese market, your rights should
be registered before to commence any commercial or other activity
in China. In case the owner is in the Chinese market, it is
highly It is advisable to register trademarks as soon as possible.
as possible.

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