Dan Ovsey, Financial Post, National Post
[Extract]
Just how risky it is to do business in China is difficult to quantify. Given the unreliable and often self-serving nature of China’s information system, the number of IP-theft incidents is difficult to ascertain.
…
Brad White, a partner at Osler, Hoskin & Harcourt LLP and Chair of the National Intellectual Property Department, believes China’s emphasis on intellectual property protection will inevitably move closer to western standards as the nation’s economy and entrepreneurs set sights on developing their own innovations rather than reverse-engineering those of foreign organizations.
“It’s in China’s own self interest to develop a sophisticated IP regime and enforcement regime because they want to protect their own developing intellectual property,” he says.
However, Mr. White also notes that with China’s inclination toward greater patent protection, a new kind of risk emerges for western companies operating there — namely the risk of litigation by Chinese companies for patent infringement.
As they tend to get their own IP, the flip side of the risk is you’re subject to infringement or arguably IP blocking in China by their own native patent applications,” he says, noting western firms have little choice but to apply for patents in China to ensure they can take legal action if and when necessary to protect their own IP but also to protect themselves against legal action should the need arise.
To read the full article, click here.