China And Your Intellectual Property

China is now the second largest economy after the USA, currently the world's largest exporter and the largest market for passenger vehicles. China's 1.3 billion consumers present a market opportunity that many firms just can't ignore. As South African trade with China grows, so does the risk that South African brands sold in the country could be appropriated by unauthorised Chinese companies or third parties.

Statistics concerning trade mark registration activity indicate that China's own citizens are increasingly seeking the unauthorised registration of third party trade marks. This trade mark "squatting phenomenon" is evident in the trade mark registration figures which have increased by more than 450% since the year 2000. The vast majority of trade mark applications in China are filed by Chinese organisations. In 2008, non-residents accounted for approximately 30% of total trade mark applications. China represents approximately 13% of all trade marks