Showing posts with label EU. Show all posts
Showing posts with label EU. Show all posts

Friday, July 22, 2011

85 percent of all products seized at EU border originate from China

85 percent?!.
If only the other IP infringing countries could sue China
for anti-competitive behaviour...
For the statistically inclined, Commisioner Algirdas Šemeta, responsible for customs of the European Union, shared some results about the seizures at the EU border. According to the Lithuanian:

-  "Overal, China continued to be the main source country from where goods suspected of infringing an
IPR were sent to the EU (85% of the total amount of articles)."
- Hong Kong was the main source for memory cards. 

Read the complete 33-page Report on EU customs enforcement of intellectual property rights, results at the EU border 2010 here
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Monday, April 11, 2011

Trends Counterfeit Trademarks/Infringed Patents From China: Smaller Scale, Bigger Risks


Two trends can be abstracted from the 2010 report of the Austrian Federal Finance Ministry to the National Council about the application of Council Regulation (EC) 1383/2003 of July, 22 2003, concerning customs action against goods suspected of infringing certain intellectual property rights and measures against goods found to have infringed such rights. According to the report these trends are in line with the other countries of the European Union.
Unlike in the movie
Matrix, there is no choice
between a blue or red pill.

Only blue pills.
But which one is real?


• Trend 1. From containers and trucks to postal packages via internet

The Austrian customs administration in 2010 seized 2,803 cases after it implemented the EC Counterfeiting Regulation 2004, these consisted out of 292,606 articles. This resulted in (because sometimes a consignment involves more than one person) 4,038 prosecutions. The products represent a value, if they were genuine goods, of € 6,765,057. This is much less than in 2009, when the amount was 16 million euro. So smaller amounts representing lesser value per consignment. These were ordered via the internet and send via the postal service.

• Trend 2. From counterfeit luxury goods to counterfeit daily products with lower original prices
and higher risks

Mass consumer products such as food, cosmetics and hygiene products, auto spare parts, toys and equipment, with all inherent health and safety related risks. Fake drugs were mainly lifestyle drugs such as sexual enhancers, diet pills and hair growth preparations. These trends together are quite a challenge for customs the world over. To check each and every postal package is hardly feasible. If customs in cooperation with industry can find an automised way to authenticate goods, it could decrease risks.

The report says that the EU-China customs action plan, which intensifies the contact between the respective customs, will be extended to 2012. The action plan was a pilot project and will now probably become institutionalised.
For those who can read German, read the Piracy report 2010 of the Federal finance ministry of Austria (in German): Produktpirateriebericht 2010 des Bundesministers für Finanzen (III-226 d.B.) , April 1, 2011.
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Wednesday, March 23, 2011

China’s global patent docket

The People's Daily reports that in 2010 China filed 6,552 invention patent applications at the USPTO, 2,049 at the European Patent Office, 1,001 at the Japan Patent Office and 496 at the Korean Intellectual Property Office. IP Komodo had some research done a while back on Asian emerging markets which showed that China was consistently filing over 6,000 PCTs a year now. By comparison, India is around half that - in 2008 Indian inventors filed 2,879 patents. More detailed data on the comparatively much lower SE Asia filings is on my IP Komodo blog here

Is this more evidence that China is blazing a trail towards developed country levels of patent filings and leaving its Asian emerging neighbours far behind? We know there are some poor quality patents China’s global docket – patents filed because government grants paid for them and otherwise disinterested applicants filed them anyway. Or patent thickets created by some of China’s global IT players to find a way into the pools and standards groups. IP Komodo would be interested in seeing how many Chinese triadic patents there are – that is patents filed in the US, EU and Japan. This by virtue of the cost and difficulty reaching grant is a better measure of strong patents and thus innovation at a fundamental level. In 2005 Europe, US and Japan still accounted for 88% of triadic patents, with Korea as a close 4th. Does anyone have any up to date data on whether China is increasing its triadic patent count?

Guest post by IP Komodo Dragon
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Monday, November 09, 2009

R&D in China: No Genuine Research, Only Development Thanks to Poor Execution IPR Laws

New Europe reports about EU firms' enthusiasm about China's market prospects and their concern about the execution of the IPR laws in China.

"
“China’s intellectual property laws are not bad. The problem is their implementation,” [EU’s Chamber of Commerce in China (EUCCC) President Joerg] Wuttke said. One result of the poor execution of IPR laws is that companies don’t conduct “genuine” research and development in China, he said. “Companies build R&D centers, but the focus is on development, not really on research,” Wuttke said. “For the research part, companies are more willing to transfer Chinese scientists elsewhere to guarantee IPR protection.” "

Read the New Europe article here.
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Wednesday, October 14, 2009

Sweet Irony: Is IP Dragon Liable For Hosting IPR Infringing AdWords?

Law is often walking a few steps behind the developments in society. I propose the term "law lag", whereby I apply the "cultural lag" concept developed by Thorstein Veblen to law. Of course intellectual property and cyberlaw are not immune for this. One important question that should be answered is to what degree are internet service providers liable for content that infringes intellectual property rights on their site. In Europe there have been cases of Louis Vuitton; Gucci; and Chanel against eBay. And of course in China there were the Baidu and Yahoo! China cases (both companies were sued by music companies at different times with different outcomes), see here.

Another category of cases that is of interest is about Adwords. September 22, 2009, the Advocat-General of the European Court of Justice gave his advice for a pre-judicial decision about whether a Google adwords (for example where Louis Vuitton products are promoted by other companies than authorised by Louis Vuitton or even selling fake Louis Vuitton products) can infringe Louis Vuitton's trademark, that was requested by the French Cour de cassation. In short the advice included: the links in AdWords used do not equal to trademarks (those could be infringed on the sites to which they lead), the AdWords do not prejudice the functions of the brand, guaranteeing quality of the goods or the communication- or the promotional function. Contributory infringement is not part of the legislation in most EU countries. However, if the trademark holder finds that the AdWords link to IPR infringing websites and requests Google to remove these links, Google will be held liable and the trademark holder can get damages. Google was not exempt from liability for hosting, because it is not a neutral information instrument, as is requested by article 14 EC directive 2000/31.
Why I am writing this, you might aks, since IP Dragon is about IPR in China and not EU law?

Well although most of the IPR infringing products, that are key in all of these cases, originate from China, I got the following email (September 24, 2009) that concerned yours truly:

"Dear Mr. Friedmann,
I am a regular reader of your blog, and I enjoy your articles about IP in China. That being said, I noticed today a peculiar Google Ad on your page: « Louis.V. Handbags 50% Off ».Intrigued, and you may guess why, I followed the link :
http://www.handbagstime.com/?gclid=CMqR2oDQiZ0CFZQA4wodBG8J3A hum…. A quick look at the « contact us » page : http://www.yeslvgifts.com/contact_us.html It seems to confirm what I thought…What do you think ?
Cheers
Philippe"

This could happen, since IP Dragon writes frequently about fake, counterfeit and IPR infringing products and makes use of Google AdSense (which is the mirror of AdWords), which adapts its content to the subjects and some AdWord users choose these categories to promote their maybe dubious goods. If I would not block these AdWords after I was warned, in principle I would end up being liable. What do you think? Thanks, Philippe, for pointing me out the links.
Photo: Danny Friedmann
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Saturday, July 11, 2009

EU Customs Report 2008 About IPR Enforcement Activities not IPR Infringements from China

Yesterday the European Commission Directorate-General Taxation and Customs Union (DG TAXUD) published the 'Report on EU Customs Enforcement of Intellectual Property Rights. Results at the European Border 2008'.

On page 9 we find a crucial alinea, which disclaims the scope the report:

"Although the overall amount of IPR infringing goods entering or leaving the EU cannot be
ascertained from these figures, or whether the problem is growing, the figures do show that IPR
enforcement continues to be a priority for customs authorities in the EU."

Of course it would be interesting to know whether the IPR infringements that originate from China were growing or decreasing. That was the very reason why I devised theEnforcement/Infringement Ratio, see here.

The report states that 80 percent of the cases concerned seizures that were requested by the right holder and that 20 percent of the cases were done on the initiative of customs (ex-officio). So the number of cases and articles detained and the percentages of the countries of origin and provenance were all these products come from are interesting, but only show the perception of the right holders and customs of the goods that are suspected of infringing IPRs. A few times in the report the distinction is not made between seized goods that may or may not infringe IPRs and goods that actually do infringe IPRs.

Read the report here.

Thank you Rogier Creemers for pointing out to me the report.
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Monday, May 18, 2009

Grim audits of EU-China Relations – IPR to the rescue?

Guest article by Mikołaj Rogowski

Dragons Nightmare, an article from the last month’s edition of The Economist drew a rather pessimistic picture of the European Union – China relations landscape.  According to The Economist the EU is a tough spot. The Economist argues that currently the conflicting policies of the member states are far from rising to the task of coping with the challenges of the emerging of China.

“If you wanted to design a competitor to show up European weaknesses most painfully, you would come up with something a lot like China. It is a centralized, unitary state, which is patient and relentless in the pursuit of national goals that often matter more to the Chinese than anyone else. European governments do not even agree on what they want from China”.

That picture is grim. On the far reaches of the horizon the author sees a possibility of a world where “Chi-American” G-2 is in charge and the European states are no longer treated as meaningful world powers. 

This gloomy vision might just be one of many possible outcomes of the current geopolitical struggle, however the newly published Policy Report by the European Council on Foreign Relations confirms most if not all defects of the current European position outlined by The Economist. 

The report written by John Fox, ECFR Senior Policy Fellow; and François Godement, ECFR Senior Policy Fellow, Professor and Director of the Asia Centre at Sciences Po, proposes what its authors call a “reciprocal engagement” a new policy based on 4 R’s: reduction and reciprocity, relevance and realism: 

“… interest-based approach with two principles and two criteria. The principles: European offers to China should be focused on a reduced number of policy areas, and the EU should use incentives and leverage to ensure that China will reciprocate. The criteria: relevance to the EU, and a realistic expectation that a collective European effort will shift Chinese policy.”(pg. 13) 

Unsurprisingly many of the actions proposed by the report are focused on IPR. The paper perceives the strengthening of the IP protection in China as one of the key factors that could shape the new rebalanced economic relationship between China and EU. One that stands out the most among the anticipated actions is the proposition of establishing “an IPR and patent support fund, supervised by the EU delegation or Chamber of Commerce in Beijing, to which European SMEs could apply for financial support and legal advice to assist with IPR registration/protection in China. “(pg. 56) I am sure that many European companies that are currently considering entering Chinese market would welcome such a move. 

The report’s appendix also proves to be a source of interesting information. It summarizes the approach of every EU member state towards China, highlighting certain areas, including IPR (You can find out i.e. that Poland, as far as the foreign policy goes, is blissfully unconcerned about IPR in China). 

All too all ECFR’s paper is a read worth recommending. It gives the reader a coherent view of the current Eu-China relations and suggests several appealing solutions. It would be interesting to hear what others have to say on the topic of the current EU policy, its proposed changes and how they could affects IPR and IP focused business in China.

Text  Mikołaj Rogowski

This is the second guest contribution of Mikolaj Rogowski, law student at Jagiellonian University, author of several IP articles and Polish-English translations, specializes in Polish, European, Chinese and American IP law, China assistant to MEP Jan Olbrycht. His first guest contribution can be found here.

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Thursday, April 09, 2009

China and ACTA: Why Is The Problem Not Made Part Of The Solution?

Medio December 2008 IP Dragon wrote about the controversial genesis of the China-less Anti-Counterfeiting Trade Agreement (ACTA) by Japan and the US (joined by Australia, Canada, the European Union, Mexico, Morocco, New Zealand, Republic of Korea, Singapore and Switzerland) whose goal it is to stem the tide of counterfeit and pirated goods that originate for the lion share from China, read here.

ACTA is not only controversial because it was born in darkness (then again out of darkness beautiful flowers grow), but also because:

- Why start a new multilateral trade agreement when the international community has already the World Trade Organization (WTO)'s Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPs). Then again it is hard to reform TRIPs because there are many WTO members. So the way of least resistance is to start a new trade agreement with pre-selected countries that think the same about a TRIPs plus level of IPR enforcement;
- If the People's Republic of China causes the initiators of ACTA such headaches, should they not involve this country in some way with ACTA? In the philosophy of Yin and Yang, the problem (China's lack of IPR enforcement) is existent in the solution (multilateral trade agreement) and vice versa;
- ACTA's content is unknown, so this opens the gates to speculations.

Now the United States Trade Representative has posted ACTA's 'Summary of Key Elements Under Discussion' (Summary) which gives the countours of the draft structure:
  • Chapter 1. Initial Provisions and Definitions;
  • Chapter 2. Legal Framework for Enforcement of Intellectual Property Rights;
Section 1. Civil Enforcement

Section 2. Border Measures:
Under discussion is whether border measures should apply not only to importations (as TRIPs prescribes) but also to export and transit of goods;
Another possible point of contention is whether travelers can import counterfeit or pirated goods for their personal use (de minimis exception);
It is no surprise that ACTA tries to solve some of the points, which especially has frustrated the US (which among other reasons brought a claim against China at the WTO: DS 362): measures to ensure that infringing goods are not released into free circulation and the destruction of goods that have been determined to infringe intellectual property rights.

Section 3. Criminal Enforcement; the holy grail (overestimated to my taste) remains criminal enforcement of IPR. In the leaked out version of the ACTA proposal of 2007, see below on page 2 here, it was proposed to apply criminal sanctions to IPR infringements on a commercial scale "IPR infringements for purposes of commercial advantage or financial gain. This sentence that I could not find back in the Summary was a bit unclear, because either you apply criminal sanctions if a commercial threshold of the infringed goods is reached (problem: which threshold is not arbitrary and what to do with infringers that keep their activities just under the threshold) or you sanction the intention of commercial advantage/financial gain plus the infringement of minimal one product.

Section 4. Intellectual Property Rights Enforcement in the Digital Environment: surprisingly no draft proposal has been tabled yet.
  • Chapter 3. International Cooperation;
  • Chapter 4. Enforcement Practices; I cannot stress the importance of the exchange of best practices enough. Transparence of IPR enforcement information, including statistics is key;
  • Chapter 5. Institutional Arrangements;
  • Chapter 6. Final Provisions.
Expect a lot more discussion when the first draft provisions are disclosed (or leaked).

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Monday, January 12, 2009

Does China Export In Violation of License EU Train Technology Back To Europe?

Mr Philippe Mellier, CEO of Alstom Transport, the second manufacturer (after Bombardier Transportation) of high-speed trains, locomotives and metro cars, is calling on countries for a boycot of Chinese trains according to the Financial Times, here. In an interview Mr Mellier said that
  • China was closing its domestic market;
  • Chinese companies export trains that use foreign technologies.
The Associated Press said that the Financial Times suggested that these exports could be in violation of licensing agreements. Read here.

The spokesman of China's railway ministry Mr Wang Yongping has denied the allegations.

Mr Wang said that that Chinese companies paid foreign firms money for learning how to develop trains with average speeds of 300 kilometers per hour, but that China's new generation of high-speed trains which travel at 350 kilometers per hour were completely homegrown.

"This is the innovative results of our wholly owned intellectual property and there's no stealing of Western technology, " Mr Wang said according to Associated Press, read here.

France24's Owen Fairclough talks about it here in English: Don't buy Chinese trains, says Alstom Transport boss and his colleague Sébastien le Belzic in French, Alstom prône le boycott des trains "made in China".

Siemens, the number three high-spreed train manufacturer, has also problems with China,
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Wednesday, December 17, 2008

First Coordinated EU Customs Campaign Catches 34 Million Counterfeit Medicines

Reuters reports that the customs officials of the 27 EU members worked together to intercept counterfeit antibiotics, anti-cancer, anti-malaria and anti-cholesterol medicines, painkillers and Viagra.

"The main countries of origin for the illegal products were China, India and Pakistan, a [European] Commission official said."

Read the Reuters article here.
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Tuesday, May 20, 2008

Mr László Kovács: "Customs in 2008, a real test for EU-China trade relations"


Mr Lászlo Kovács, European Commissioner for Taxation and Customs Union wrote an interesting article to commemorate the 40th anniversary of the Customs Union. Is there something to celebrate you might ask yourself?

Well at least the Commissioner is belligerent to fight counterfeit and pirated products:

"The growing trend in counterfeiting in some health-threatening sectors like foodstuffs, pharmaceuticals or spare parts is worrying. The EU is a target market of fake products, and China the main source of production, with almost 80 % of all articles seized by EU customs coming from there. Chinese people and companies are equally affected by this illegal industry. But we can do something about this. The EU is committed to strengthen customs cooperation with China in the fight against counterfeiting and the enforcement of IPR. We want to see concerete results in the shape of less counterfeited products on our markets. I am confident that this year, the EU and China can agree on an ambitious strategy to effectively reduce trade in counterfeit goods."

If the EU wants to see concrete results, a plaudible goal, it should consider applying the enforcement/infringement ratio, as IP Dragon suggested here and in its thesis, see here.

Read Mr Kovács article he wrote for the China Daily here.
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Thursday, May 15, 2008

EU Internal Market Commissioner: Anti-counterfeiting and -piracy Solutions To Be Found In Public-private Cooperation


On a 13 May commission-sponsored high level conference, the Internal Market Commissioner Mr Charlie McCreevy stressed that regulation is not the only answer to fight counterfeiting and piracy, but that the private sector itself is best placed to lead the battle against the fakes. Tomorrow exactly two years ago, when Mr McGreevy visited China to advance the international regulatory agenda, he probably had higher hopes for regulation, read here (pdf).

Marc-Antoine Jamet, president of l’Union des Fabricants, whose members include Pfizer, Lacoste, Microsoft and Disney, said:

"There is qualitative change as activities become global, and diversification into goods and products such as wine, car parts, clothing, and toys, he said. Counterfeiting is increasingly carried out by organised crime, and industrialisation means tourists no longer have to travel to Thailand to buy fakes from China but can find them anywhere, including online [..]".

Read Dugie Standeford's article for Intellectual Property Watch here.
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Thursday, April 17, 2008

China and EU Customs Unveiled Plans to Share Information

The EU and China unveiled plans for an intelligence network to share information among ports to crackdown on counterfeiting. Source WIPO Magazine (February 2008, no.1).

"Despite the increased efforts of the Chinese authorities to crackdown on counterfeiting, EU Customs Commissioner Laszlo Kovacs said that China is currently the main source of counterfeit goods seized in European ports. The intelligence network will help to tighten enforcement, resulting in greater controls in both European and Chinese ports."
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Wednesday, February 28, 2007

"Lax IPR Keeps Chinese Companies Lazy In Terms of R&D"

BusinessWeek runs an article of Associated Press about the 'Study on the Future Opportunities and Challenges in EU-China Trade and Investment Relations 2006-2010' prepared by Philip Bartley of the Emerging Markets Group consultancy, for the European Commission.
Bartley said that China would also benefit from opening up its market, mentioning EU and U.S. concerns over copyright and piracy enforcement. "Lax intellectual property rights in may ways keep Chinese companies lazy in terms of their own research and development."


Read the BusinessWeek article here.


The study is comprised of 11 sectoral issues (Machinery, Chemicals, etc.) and 1 about IPR, exploring China's IP environment, which was written by Dr. Paul Ranjard of UNIFAB Beijing and Benoît Misonne of the EU-China Trade Project.

See the complete study here and the chapter about IPR in China here.
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Friday, January 26, 2007

EU Survey: 40 Percent sees China As Biggest IP Threat

The Economist Intelligence Unit published a white paper 'The Value of Knowledge, European firms and the intellectual property challenge', after it surveyed 405 European executives about their perceptions of IP.

Here are the China relevant quotes:

"European IP remains under threat from both developing and developed markets.
China is the respondents’ biggest worry (cited by 40 % as the chief geographic source of risk). Executives are optimistic, however, that the country’s IP regime will improve in the short to medium term, as local firms develop their won."

"Wim Klop, managing director of Dutch chemical company DSM’s IP arm. “It’s still hard to have a legal impact on Chinese companies in China, so we tend to sue their partners in Europe,” he says."

"Thomas Ehmer, head of IP at Puma, a German shoe and sportswear manufacturer, speaks for many exectutives when he points out that China’s immature IP regime, coupled with its cheap yet advanced manufacturing base, makes it the ideal environment for counterfeiting. “Counterfeiting products are … produced for the entire world,” he says, adding that the operations have become much more professional in the past year alone. “We are now facing organised crime,” he concludes."

"Mr Ehmer (Puma), Mr Hourcade (chief technology officer at Thomson, a French electronics firm) and other executives believe that China’s central government sincerely wants to strengthen IP enforcement, but that it has less influence over local authorities than it would like. And it is only the local authorities, they point out, who can really crack down on the counterfeit factories and other unsavoury ascpects of Chinese capitalism."

Read the EIU's white paper here.
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