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After decades of efforts, the Chinese automobile industry has developed rapidly. The rapid development of China's auto industry faces many challenges. Among them, intellectual property rights are problems that must be faced and resolved. This is not only related to the development of the domestic auto industry, but also related to the export of domestic auto companies.
Under the current intellectual property system, domestic auto parts companies must really achieve smooth exports. From the perspective of intellectual property rights, they must pass three levels of clearance.
First Pass: Domestic Customs
The new "Regulations on the Protection of Intellectual Property Rights" was formally implemented on March 1, 2004. The new “Regulations on the Protection of Intellectual Property Rights†is slightly different from that of other countries. At a certain level, the level of protection is even higher than in some countries. It involves not only whether imported products infringe on the patents and trademarks of the host country, but also involve exports. product. The Regulations stipulate that if an exported product involves infringement of Chinese intellectual property, the obligee has the right to apply to the Customs for seizure of the product.
At present, many multinational automobile companies have their own companies and intelligence agencies in China. They are very concerned about this article and will pay more attention to competitors’ product exports. These foreign car manufacturers register products that require attention and protection at the customs. Once it is considered that some companies’ export products will affect their rights and interests, regardless of the country they export to, they can submit an application to the customs to seize the product and claim to infringe their intellectual property rights in China. There are various manifestations of such intellectual property violations, such as so-called imitation or counterfeiting.
In addition to customs, they can also sue you for infringement in the country at the same time, or you can tell you to counterfeit through the administrative department to stop your manufacturing in the country.
Second Pass: Foreign Customs
According to the provisions of the World Customs Organization, countries generally adopt border protection measures for intellectual property rights. If the competitors in the host country consider that the imported products infringe their intellectual property rights, such as imitation or counterfeiting, they can apply to the local customs. If the local customs deems it necessary, the imported product will be seized. At the same time, competitors may have to go to court to sue.
Most of the second level of work is done by customs. In the United States, the legal basis for this procedure is Section 337. If imported products violate Article 337, they must be detained at U.S. Customs. Article 337 measures of sanctions not only affect this shipment, but also all upstream and downstream companies associated with it. For example, the catalyst for Shandong chemical plant exported to the United States has many customers in the United States, but it is now facing a lawsuit against Section 337. Once it is confirmed that it violates Article 337, not this batch of products cannot enter the United States, and the company’s supply chain will all be damaged and it will bear a series of subsequent losses.
Nowadays, auto parts and components are also facing this problem. Whether they can enter foreign markets is the key to customs.
The third level: Intellectual property rights in the host country
Although it passed the local customs, it does not mean that everything is going well. Whether the product can stand still in this market, there is a basic condition that the product is not infringing the intellectual property rights of the country. Just as in China, products stand firm in China, relying on patents, trademarks, and brands. Similarly, if you violate foreign intellectual property rights, even if you are lucky enough to pass the customs, you will not be able to prosecute in that country. For example, a low-voltage electrical product in Wenzhou entered the German market for some time, but recently it was sued by a German company. More importantly, Chinese companies must respond to the laws in Germany. Dealing with lawsuits abroad is very difficult for domestic companies because domestic companies are not familiar with the situation abroad.
Domestic auto parts companies must pass these three levels, that is, pass three lanes of export products. The trio of these three loops boiled down, the most fundamental one is: Can not infringe on people's intellectual property rights.