Yesterday, we flagged a few recent items from The Deal on M&A, PE and VC action in Asia. Today, we draw your attention to a few more letters dealmakers should focus on when the subject is Asia: IP and .CN
This week, CNNMoney.com ran a piece on the necessity of registering trademarks in China. Whether or not you are already doing business in China, any company hoping to survive in the global economy should register their intellectual properties there before others swipes your valuable assets from you.
The article cites several reasons why China is a particularly messy problem for IP protection. The nation is a manufacturing hub for a large number of international brands. Also, China has a "first to file system" regarding trademarks. Therefore, "if a local Chinese registrant files for a U.S. trademark that's not already registered, he or she then legally owns the brand, and has the right to manufacture and sell the branded product in China."
Of course, any business should have a comprehensive international IP strategy, but too often, that is not the case. In an issue of "Corporate Dealmaker" last year, Alan Cohen highlighted some of the challenges dealmakers face when acquiring brands and trademarks as part of an international deal.There is no international IP law governing the control and protection of a trademark, so dealmakers need to do careful IP due diligence up front - and take proactive measures whenever possible in Asia's emerging markets.
Which brings us to .CN. Developing a country-by-country IP strategy can take months, but that shouldn't stop anyone from registering their prized domain names today. Just as each nation has its own trademark laws, they also each have their own country code domain name. For China, that is .CN. Registering a domain name with the .CN extension does not earn you any IP protection, but it does protect you from cybersquatters, and, at least in U.S. courts, prior ownership of a domain name has been a benefit in trademark squabbles.—Tom Groppe
China: Your company name may not be yours (CNN)
When brands change hands (Corporate Dealmaker)
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