China Enhanced Protection of Foreign Trade Marks

China's related departments are enhancing efforts to protect foreign trade marks and fight against counterfeit products to improve the investment environment and safeguard foreign investors' rights and interests in China.

The latest statistics from the State Administration for Industry and Commerce said that China handled 1,810 cases involving violations and the counterfeiting of foreign trade marks in 1999, up 43.6 percent from the previous year. Penalties for these illegal activities were more severe than in 1998. Bai Dahua, deputy director of the administration, said China will further increase the penalties this year, and stricter supervision will be carried out nationwide on a number of famous brand names. For this purpose, the Trade Mark Protection List of Key Enterprises drafted last year will be revised, he said. He also disclosed that the revision of the Trade Mark Law, which was promulgated in 1994, is progressing steadily. The revision will include regulations for solving problematic trade mark cases and conflicting cases involving enterprise trade marks.

The administration also plans to cooperate with the European Union on protecting property rights. A nationwide network on trademark protection will be established by August this year, providing technological backup to local law enforcers. Foreign enterprises with investments in China have also formed alliances to protect their interests. The Quality Brands Protection Committee (QBPC) under the China Association of Foreign-Funded Enterprises was unveiled yesterday to fight counterfeiting. This coalition was formed by 28 multinationals with a total investment of over 6 billion U.S. dollars, including Coca-Cola and Adidas.

The committee plans to cooperate with Chinese government agencies to advocate legal and enforcement reforms and raise the counterfeiting issue through the media and educational programs. "Counterfeiting is a serious impediment to multinational's current business and future investment in China," said Joseph Johnson, president of Best foods China and chairman of the QBPC. He hopes that "the collaborative approach will bring more experience, expertise, and resources" to the protection of property rights in China.

The powerful mass media are also lending a hand, trying various ways to inform the Chinese public about trade marks and promote "brand name consumption". They also utilize public channels such as TV, newspapers, and the Internet to release news on crackdowns on trade mark violations and counterfeiting.

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