Hao Nan of China Daily wrote about the trade at the Quanzhou Trademark Trade Center in Fujian that almost dried up. Read here. Why did not Adam Smith's invisible hand work? Was the invisible hand here invisible, to quote Joseph Stiglitz, because it was not really there? Hao writes that the problem was that
sellers had an inflated expectations of the price of their brands.
Ge Yongli, general manager of the Fujian Asia-Pacific Intellectual Property Organization was quoted by Hao Nan as saying: “They quote high prices not because their trademarks have such great value but due to a strong resemblance to some international renowned trademarks.”
Stan Abrams of China Hearsay writes: “That doesn’t sound good at all. Not surprising, though. This is the short-cut mentality that you get with emerging markets, and despite the tremendous numbers of trademark filings in China, the commercialization side is still pretty young.” Read here.
This impasse might be a positive sign. Are the buyers just realistic, that in this time and age they better start with an original name to build up their own reputation? Wishful thinking? At the moment it might be not so nice for the people working for the Quanzhou Trademark Trade Center if they have nothing to do. But I am sure the market will come up with new realistic price, it always does. I hope in this price the possibility of getting sued for trademark infringement is factored in.