November 9, 2011

Posted by Dan Houton

China’s intellectual property rights (IPR) violations are diverse and vast, posing significant challenges to American companies domestically as well as in China, or globally for that matter.  While attention is usually paid to counterfeit goods and piracy, a growing problem relates to Chinese infringers filing patents in China based on foreign patents.      

On Friday, November 4, MEMA filed comments in response to a Federal Register Notice (FRN) from the U.S. Patent and Trademark Office (PTO) seeking public comment regarding concerns/challenges right holders may have with patent enforcement in China.  This is part of a multi-agency effort to “identify and assess the challenges U.S. inventors are facing with China’s judicial and administrative patent enforcement systems.”

 “Given the growing economic relations between the U.S. and China, the world’s two largest economies, it is imperative that intellectual property enforcement in China meets a standard that allows American companies and American innovation to remain competitive” the comments state, reflecting the concerns parts suppliers have with patent enforcement in the increasingly important Chinese market.

The supplier industry is responsible for nearly 40 percent of the U.S. automotive R&D and is responsible for two-thirds of the value of a new vehicle. Much of the intellectual capital required for the design, testing and engineering of new parts and systems for motor vehicles comes from suppliers.  Ensuring foreign governments, particularly in developing countries like China, have the legal and enforcement  mechanisms in place to protect IP is essential for enabling American companies to compete in growing overseas markets. 

MEMA’s PTO comments addressed five key areas of China’s patent enforcement system that were highlighted in the FRN; (1) Acquisition and enforcement of utility model and design patents (2) evidence collection and preservation in Chinese courts (3) obtaining damages and Injunctions (4) enforceability of court orders and (5) administrative patent enforcement.

MEMA continues to be active in advocating policies and other efforts that better protect its members’ intellectual property rights.