In addition, Chinese government has regulations on foreign exchange remittance. Applying that to licensee fee for trademark, if the licensor (usually a foreign parent company) can not timely get registration of the licensed trademark from the Chinese Trademark Office ("CTO"), the licensee will have difficulty in remitting corresponding license fee to the licensor. Usually, it will take 30-36 months to obtain the approval for a trademark registration in China (recently the CTO has determined to speedy its trademark application handling).
The key to protecting your trademark in China is actually very simple: register it in China BEFORE you do business there (Note: One must register one''''s trademark in a particular category or categories, which matters. Western companies frequently complain of someone having infringed on "their trademark" in China, when in fact there has been no infringement because the Western company actually never registered a trademark in the particular category in which the allegedly infringing product belongs). This can usually be done at a relatively small cost. You should also consider getting the Chinese equivalent as well. The goodwill accumulated on your foreign trademark (usually outside of China) can not natually extends to your Chinese trademark according to Chinese judicial practice.
© 2009, Patrick Ma, MWE China Law Offices
Contacts:
+86 21 6105 0550
Patrick_maning@yahoo.com.cn
www.chinaiplawyer.com.cn
This article is not intended to give, and should not be relied upon for, legal advice in any particular circumstance or fact situation. No action should be taken in reliance upon the information contained in this article without obtaining the advice of an attorney.