by Silvia Capraro
Fairs in China are surely a fundamental showcase for global business and trade. However, they also constitute a substantial risk for intellectual property (IP) infringement due to the large number of exhibitors and the high volume of products on display.
As China continues to strengthen its IP enforcement, the fairs remain a focal point for both IP protection and enforcement strategies. Here’s an overview of how IP protection is managed during fairs and what IP owners can do to protect their rights.
1. IP Protection
Fairs in China have evolved their IP protection measures over the years. The Canton Fair is China’s largest and most prestigious trade fair in the Country.
Taking as an example the Canton Fair, it first began addressing IP concerns in 1992 and has since developed a comprehensive system to address and mitigate IP violations. Today, the Special IP Group —established in 1997— is responsible for managing complaints and implementing enforcement measures during the fair. This group plays a key role in:
• Monitoring and investigating complaints: The IP Group reviews complaints related to trademarks, patents, and copyright infringements.
• Enforcing action: The group works with local authorities to act against exhibitors suspected of infringing IP rights, such as removing infringing products.
In 2007, the China Foreign Trade Center formalized the process by issuing the “Implementation Details for the Complaints About and Settlement Provisions for Infringement of Intellectual Property Rights”. This detailed document outlines the complaint process, evidence requirements, and penalties for IP violations during the fair, further solidifying the event’s commitment to IP protection.
2. Local Authorities in Enforcement
During the fairs, local authorities provide important assistance in enforcing IP laws. These authorities assist in managing offline complaints, ensuring that IP violations are properly addressed.
Over the years, they have handled numerous cases involving patent and trademark infringement, with complainants coming from multiple countries such as the USA, Japan, and France.
In 2023, the Canton Fair’s Complaint Station handled a total of 1,500+ intellectual property (IP) infringement complaints. These complaints involved various types of IP violations, including patent, trademark, and copyright infringements. The fair’s IP enforcement mechanisms, such as the Special IP Group, worked in collaboration with local authorities to investigate and address these issues.
3. Evidence collection
An often-overlooked aspect of IP protection at the fairs is the evidence gathering and fixing opportunities it provides.
Exhibitors at the fairs, many of whom are manufacturers or exporters, offer IP owners a unique opportunity to track emerging trends and detect potential infringements before they escalate.
• Surveys and on-site visits: IP owners can use their time at the fairs to conduct surveys or visit booths to look for potential violations of their IP. This includes checking if exhibitors are selling counterfeit products or using trademarks, patents, or designs without permission.
It is important to conduct this activity in the very beginning of the event, in order to be able to plan in advance the best strategy and to involve the local authorities.
• Engagement with manufacturers: The fair gives IP owners a direct line of contact with manufacturers and suppliers, which can help discover the source of infringing products. IP owners, in fact, can use these opportunities to make business connections with suspected infringers and later conduct deeper factory visits to gather further evidence, such as product stock, production tools, and materials used for counterfeiting.
• Notarization: In China, notarized evidence is a key tool in IP enforcement. During the fair, IP owners can collect physical evidence of infringement, such as product samples, and have them notarized on-site.
This notarization process makes the evidence legally admissible in court and can be fundamental for future litigation. This is particularly useful for design patent infringements, where clear pictures of infringing products are crucial for proving violations.
4. Online infringement
As infringers become more sophisticated, identifying and enforcing IP rights becomes more complex. In many cases, infringers may try to cover their tracks by selling altered versions of counterfeit products, or by using intermediaries who obscure the actual source of the infringement.
This is particularly true for online infringement cases where products listed on platforms like Alibaba may differ slightly from those found in physical trade shows.
To address these challenges, IP owners need to be vigilant and conduct thorough checks. The trap purchase method, where suspected infringing products are bought under controlled conditions, is one of the most effective ways to gather evidence of infringement. Notarizing these purchases ensures that the evidence is legally valid for enforcement in the Chinese Courts.
IP owners should adapt by taking several actions:
• Monitor online platforms: Like traditional monitoring at the offline fair, IP owners should closely monitor the online components of the related fair for any unauthorized use of their IP.
• Use digital tools: Many IP owners are now leveraging digital tools for online IP protection, such as automated image recognition software to detect counterfeits in virtual product listings.
• Enforce through digital channels: IP owners should be proactive in sending takedown notices and cease-and-desist letters to infringing parties also considering the online phase of the fair.
5. Conclusion
Fairs remain a critical venue for international trade, but they also present significant challenges for IP owners. Fairs in China have nowadays developed a comprehensive IP protection mechanism over the years, including specialized IP groups, collaborations with local authorities, and processes for evidence notarization.
IP owners can really maximize their protection during the fair, using the event as a tool for detecting infringements, and working with enforcement authorities to take swift action.
As the fairs continue to embrace digital formats, IP protection must also evolve to address new challenges in the virtual space, ensuring that intellectual property remains secure in both physical and digital marketplaces.
Allasya’s extensive experience in both Chinese law and IP enforcement allows us to guide foreign companies through the complexities of protecting their intellectual property in China. By taking a proactive approach and leveraging our deep understanding of local regulations, we help businesses safeguard their valuable IP assets during trade fairs and beyond.
If you are attending a trade fair in China and have concerns about potential IP violations, Allasya is here to provide the legal support and expertise you need to take decisive action.
For more information on how we can assist with IP protection at Chinese trade fairs, contact our team of experts today!