Protect your IP in China and other overseas markets
If you are thinking of exporting into a foreign market you need to ask, does your business own or use any kind of intellectual property (IP)?
IP is the intangible property of your mind or intellect. The IP owned or used by a business can include trademarks, copyright works, designs, patents and trade secrets.
Even though you may have created your IP, you do not always automatically have the exclusive rights to use, exploit or stop others from using it. Furthermore, in some instances it may be possible for others to stop you from using your IP even though you created it.
In Australia (except for copyright and circuit layout rights) you must take steps to protect your IP, either under a formal registration system or by contractual means. It is also important to check that use of your IP is not infringing on other people’s existing IP rights.
The IP used by your business should be treated in the same way when expanding overseas. Before entering foreign markets you should ensure that IP risk management forms a central element of your business strategy.
IP risk management identifies and manages your IP risks and allows your company to make decisions on how to maintain important controls over its ownership without infringing existing IP rights of others in a foreign country.
Failure to ensure that your products don’t infringe on the IP rights of others in a foreign market before you enter that market can be costly.
For example, if you use a trademark in a foreign country which is identical or similar to another trademark registered in that country by a third party for similar goods, you could be liable for trademark infringement.
If infringement is suspected, your products may be detained at the border and their distribution stopped. If you are found to infringe another party’s IP rights, in addition to hefty fine imposed at the border, you may be forced to cease selling the infringing products or pay damages if litigation ensues.
As well as identifying and managing your IP risks, the next step before venturing overseas is to protect your IP from being infringed. This is because if your exported products are popular overseas there is a likelihood that opportunists will want to market or develop similar goods by copying your products, technology or branding.
Without sufficient IP protection in place it may be difficult or impossible to prevent piracy of your IP. This will ultimately result in a loss of market share or profit for your business and, in some circumstances, damage to your company’s reputation (from low quality imitation products).
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