Chinese companies are falling victim to Chinese trademark pirates in foreign markets, in a surprise twist to the intellectual property problems frequently suffered by foreign companies in China.
In one of the most dramatic cases, two Chinese individuals have applied for trademark registration in Canada for the names and logos of more than 60 Chinese companies. The companies targeted include China Investment Corporation, Bank of China, state-owned resources companies such as China Minmetals, the Nasdaq-listed internet portal Sohu and traditional consumer brands such as the drink manufacturer Wang Laoji.
A European trademark expert in Beijing said such piracy had in the past been mostly confined to foreign companies seeking to enter China, but now Chinese companies operating in Hong Kong, the US, and in European and African markets were often targeted. Often the motivation is to disrupt a company's overseas expansion on behalf of a direct competitor. In other cases, customers, distributors or retail partners make the application for registration, or individuals apply with the aim of selling the trademarks back to the company.
The Chinese government is encouraging companies to adopt a more aggressive stance in protecting trademarks overseas, as part of an effort to combat perceptions that foreigners are the victims of IPR breaches and Chinese companies and individuals always guilty of infringements. (Apr. 28th 2009)