Thoughts on Intellectual Property when doing business with China.

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Mission of today’s seminar

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A brilliant idea… and what’s next?
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3. The importance of Intellectual Property!
Intellectual Property:
- protects creations of the mind
- only exists by law
- enables exclusive rights
- is of commercial value
- enables legal means to take action against copycats and infringers
It is also a property right which can be sold, bought, licensed, valued etcetera
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4. Innovation and protection
Thoughts
idea
concept
production
market
Step by step
- Can not be protected
- Right down, save and/or file (e.g. I-depot or notarial deed)
- Treat it as confidential information!
- Time to market or time to protect your IP?
- Check what is available (trademarks, names, patents etc) or already taken
- Decide on your territory, markets opportunities, business model etcetera
- Take care of confidentiality and IP of third parties (freelancers, investors etc)
- Register IP and/or take care of transfer of IP according to your plans
- Take care or agreements: manufactures, licensees, (re) sellers, agents etc.
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5. i-DEPOT
What is an i-DEPOT?
The i-DEPOT is a legal means of proof that issues a date stamp for your idea or creation similar to a
day stamp issued by the tax authorities or placed on a notarial deed.
It can be used to file an idea, concept, design, invention, model, musical composition, film script or
prototype.
Having evidence of existence can protect you in the event of a dispute.
However, an i-DEPOT does not protect your idea
The i-DEPOT does not offer (intellectual) property rights and does not offer legal protection.
Advantage: proof of existence
Disadvantage: no proof of IP
Costs: € 45,= per depot / 5 years period
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6. IP overview
The main types of IP are:
- Copyright protects literary and artistic works
- Designs protect the appearance (objects)
- Trade Marks protect marks identifying trade origin (likelihood of confusion)
- Patents protect technological inventions
Also: plant variety rights, related rights, data protection etcetera
Parallel ‘rights’:
- Trade name: name used to identify the company
- Domain name: online excess to website / also trade mark and/or trade name
- Confidential information: no legal status but important in agreements, correspondence
Registration by law “First come, firts serve” No registration (required)
Trade marks Copyright
Designs Trade names
Patent
Domain names Unregistered designs
Confidentional information
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Do’s and don’ts
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Do’s and don’ts
Trademark mistakes…
Fiat Uno ‘uno’ means ‘loser’ in Finish
Nescafé means ‘no coffee’ in Portuguese
Ikea had to change the product names Fartfull, Jerker and Fukta for the UK market
Nigiria and Gazprom came up with the name ‘Nigaz’ …
Chinese market
Quaker was named Lǎorénpái in China which means ‘old men’s name’.
Ralph Lauren got know in China as Sānjiǎomǎ, which means ‘horse with 3 legs’
Peugeot picked the name Biāozhì, which means ‘beautiful’ but is pronounced almost like biǎo​zi,
which means ‘prostitute’ in Chinese.
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9. Types of distribution
Types of distribution:
The producer / manufacturer / IP owner has to decide on the appropriate business channel:
Direct sales – full control and maximum profits but also full responsibility and burden of organization
Agency – agent arranges the sales based on commission (territory, authorization, ‘goodwill’
upon termination, exclusivity etcetera.)
Distribution – intensive, selective or exclusive (territory, IP license, use of marketing, stock upon
termination, minimum sales etcetera)
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10. Innovation and protection
Thoughts
idea
concept
production
market
Step by step
- Can not be protected
- Right down, save and/or file (e.g. I-depot or notarial deed)
- Treat it as confidential information!
- Time to market or time to protect your IP?
- Check what is available (trademarks, names, patents etc) or already taken
- Decide on your territory, markets opportunities, business model etcetera
- Take care of confidentiality and IP of third parties (freelancers, investors etc)
- Register IP and/or take care of transfer of IP according to your plans
- Take care or agreements: manufactures, licensees, (re) sellers, agents etc.
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A true Dutch story
how it all started
senz° was born out of pure frustration with traditional umbrellas.
You're probably very familiar with all of the well known umbrella
struggles yourself: Umbrellas go inside-out, break, poke you in
the eye, limit your visibility, don't protect your back, etc. Today,
some 3400 years after its invention in Egypt, the umbrella is
basically regarded as a necessary evil that everybody all over the
world dislikes.
The story of senz° goes back to the fall of 2004, when a young
and naïve Industrial Design Engineering student, Gerwin
Hoogendoorn, experienced one week in which three of his
umbrellas broke down. Being sick and tired of the massive
amount of crappy umbrellas, he decided to devote his graduation
project to designing the ultimate umbrella: One design that
resolves all of those nasty umbrella frustrations.
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IP portfolio
http://www.senzumbrellas.com/
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13. Distribution channel Senz
Australia & New Zealand
senz distribution Co Australia & NZ PTY Ltd
Benelux & Duitsland (retailers only)
senz° umbrellas bv
Benelux (only design retailers within the Benelux)
InZicht BVBA
Colombia
Finland
France
Greece
Italy
Japan
Russia
South Korea
Spain
Switzerland
Taiwan
Turkey
Uruguay
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Guard the ownership of your IP
Who owns what? IP rights and there protection depend on ownership.
Ownership of patents and copyrights initially resides with the inventor / author and must be
assigned to a company.
Works made for hire (e.g. copyrights on website design or artwork) are of special interest because
paying for works does not imply legal transfer of IP.
Employee agreements and IP law may be sufficient but formal assignments pertaining to the
intellectual property is preferable (e.g. employment agency, pay rolling).
Use the proper legal means and forms to transfer IP
Check with your accountant how IP is valued and if fiscal options are used (e.g. innovation box).
Also:
Check from time to time if all IP is registered and owned by the company.
IP is often forgotten when there is a change (take over, change of entity, new holding, domain
names registered by the founder, new or ended licenses etc.)

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When going abroad…
Once your IP in the Netherlands and abroad is order: remain focused!
Check with insurance company if your foreign business is covered
Check who you are dealing with before exchanging information 
Hire local advisors such as attorneys and translators
Use NDA’s and confidentiality agreements
Check prototypes and agree on the ‘golden sample’
Use spec sheets and clear definitions (standards, measures, materials etc.) www.rvo.nl
Arrange for ‘During Production Checks’ and/or ‘Pre-Shipment Inspection’
AND
Listen carefully to what Henry Liao has to say after the break….

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Feedback, questions or suggestions?
Fruytier Lawyers in Business B.V.
Keizersgracht 442
1016 GD Amsterdam
The Netherlands
P. +31 (0)20 521 01 30
F. +31 (0)20 521 01 31
E. nwong@flib.nl en mvanhasselt@flib.nl
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