Protecting Your IP in China: A Practical Guide

Why IP Protection Matters in China

China operates on a "first-to-file" system for intellectual property rights. This means that whoever registers a trademark, patent, or design first owns it—regardless of who created it or used it first. This fundamental difference from Western "first-to-use" systems catches many foreign businesses off guard.

Key Steps to Protect Your IP

1. Register Before You Share

Before sharing any designs, specifications, or product information with Chinese manufacturers, ensure you have registered your trademarks, patents, and designs in China. Chinese IP registrations are separate from US, EU, or other international registrations.

2. Use NNN Agreements

Standard NDAs (Non-Disclosure Agreements) are often unenforceable in China. Instead, use NNN agreements that cover Non-Disclosure, Non-Use, and Non-Circumvention. These are specifically designed for the Chinese legal system and include provisions that Chinese courts recognize and enforce.

3. Register in Chinese

Register your trademark in Chinese characters, not just English. Many famous brands have lost control of their Chinese names because they failed to register them. Consider both a transliteration (sounds like your brand) and a translation (means something related to your brand).

4. Include Liquidated Damages Clauses

Chinese courts generally enforce liquidated damages provisions. Include specific monetary penalties in your contracts that will apply if your IP is misused. This provides a clear remedy and makes enforcement much simpler.

Coming Soon

This article is being expanded with more detailed guidance on IP registration processes, enforcement strategies, and case studies. Check back soon for updates.