Unitalen Attorneys AT Law

1. Unitalen Attorneys AT Law Language and Culture Impact on Trademark Strategy in China

2. Chinese market overview Culture and language impacts on trademark protection in China Right approach to trademark protection in China INDEX

3. Wine industry as example 1.4 billion population Long history of alcohol consuming Unique culture of alcohol consuming – How is the Chinese Market Like?

4. In stead of tasting wines this way How is the Chinese Market Like?

5. Many Chinese drink wine this way How is the Chinese Market Like?

6. Year 2012 430 million liters of imported wines USD 6 per liter Total value - USD 2.5 billion 30% of total market share in China The 5th largest consuming country for wine How is the Chinese Market Like?

7. The other side of the story Limited knowledge about wine Less knowledge about imported wine Spaces for counterfeits and imitations How is the Chinese Market Like?

8. Counterfeit - How is the Chinese Market Like?

9. Imitations - How is the Chinese Market Like?

10. Imitations - How is the Chinese Market Like?

11. Imitations - How is the Chinese Market Like?

12. Why China is a highly risky market? Culture and Language Impacts

13. Cultural impacts Copy – worship of masterpiece Limitation of creativity Fast food culture Lack of IP consciousness Culture and Language Impacts

14. Linguistic impacts Regional differences Traditional Chinese vs Simplified Chinese Translation vs Transliteration PIN YIN - phonetic spelling of Chinese Culture and Language Impacts

15. Regional differences Culture and Language Impacts

16. Linguistic impacts Traditional Chinese vs Simplified Chinese 國畫 国画 Culture and Language Impacts

17. Linguistic impacts Translation vs Transliteration DELTA 三角洲 德尔塔 / 戴尔它 / 达乐他 …… Culture and Language Impacts

18. Linguistic impacts PIN YIN – phonetic spelling of China 海 尔 hai er Culture and Language Impacts

19. Culture and Language Impacts 60 Million USD

20. Culture and Language Impacts 卡斯特 卡思黛乐 33,730,000 RMB damage

21. Culture and Language Impacts

22. THEFACEBOOK FACEBOOK SOUNDBOARD FACEBOOK DEVELOPER GARAGE Culture and Language Impacts

23. 飞书博 飞思簿 飞思博 菲丝博克 翡思簿 费司布克 脸谱 面书 脸书 Culture and Language Impacts

24. How to protect your trademark in the risky market? Culture and Language Impacts

25. Trademark Protection in China • No registration, no protection • First to file, first to register • No use requirement for filing

26. Trademark Protection in China • What can be registered as trademarks - Word marks - Logo marks - Sound marks (coming soon!) • Need a Chinese character mark? Yes!!! - Easy access to Chinese market - Additional protection

27. Trademark Protection in China

28. Administrative - Trademark oppositions and Invalidations - AIC raid action - Customs protection Judicial - Civil lawsuit - Criminal lawsuit Trademark Enforcement Measures

29. AIC = Administration for Industry and Commerce Having the power of Maintaining market order Protecting trademark rights and taking initiative action against trademark infringement Taking initiative action against unfair-competition AIC Raid Action

30. AIC took action against 59,085 Trademark Infringement cases in 2012 Including 14033 cases involving foreign trademarks 576 cases transferred to public security bureau for criminal investigation AIC Raid Action

31. AIC Raid Action Receive complaint from TM owner Verify infringing facts Conduct raid action Issuedetaining notice Issue penalty decision Dispose infringing goods Transfer serious cases to PSB

32. AIC Raid Action

33. AIC Raid Action

34. AIC Raid Action

35. AIC Raid Action

36. AIC Notice of Detainment AIC Raid Action

37. AIC Penalty Decision AIC Raid Action

38. Record registered trademarks with China General Administration of Customs 20 days – 2 months Customs Seisure - ex officio - upon request by trademark owner Customs Protection

39. Notification of Customs Seisure Customs Protection

40. Quick, simple & relatively cost-effective Suitable for straightforward trademark counterfeits & infringements. Evidence preservation for potential court action. Advantage

41. 87,419 IP related litigation cases accepted and concluded in 2012 An increase of 46% including 15985 trademark cases An increase of 52.5% 1429 foreign related IP cases concluded in 2012 Litigation – Civil

42. Two instances 6-12 months for first instance 3-6 months for second instance Statutory Damages up to 60,000 EURO (present) up to 360,000 EURO (as of May 1, 2014) Litigation – Civil

43. 13104 IP related Criminal Cases accepted in 2012 An increase of 129.6% including 4664 trademark infringement cases An increase of 150.2% 15338 persons confirmed guilty Litigation – Criminal

44. Register your mark in China ASAP Register your mark also in Chinese characters Educate Chinese consumers how to identify and where to purchase your authentic products Never hesitate to take action against infringers Consult your IP lawyer before there is a trouble! Conclusions

45. Unitalen Attorneys at Law • Leading IP firm in China • 700 employees • 21 Branch offices in China • Proficient in both prosecution and litigation

46. THANKS FOR YOUR ATTENTION