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‘Behaviour is even worse’: China steps up protection of intellectual property in courts, but foreign firms still wary
- Rulings in favour of Michael Jordan and New Balance seen as encouraging sign, but many companies are still limiting involvement in Chinese market
- Economic pressure from coronavirus pandemic could bring more infringements, according to lawyer
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Foreign businesses and experts say protection of intellectual property in China has been stepped up through the courts, but it is still a big concern – and economic pressure from the Covid-19 pandemic may bring more infringements.
They say recent landmark court rulings in favour of US sports star Michael Jordan and shoe giant New Balance against Chinese infringers are an encouraging sign for foreign businesses.
“I think IP matters have developed in a good direction,” said Lars-Ake Severin, the Beijing-based founder of security consultancy PSU China.
“We have seen clear improvements in how IP legislation is being implemented and executed throughout the IP courts,” said Severin, who is also chairman of the Swedish Chamber of Commerce in China.
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Earlier this month, a Shanghai court ordered Chinese firm New Barlun to pay US$1.54 million in damages to New Balance for unfairly using an “N” symbol that closely resembles the American company’s signature logo.
It came two weeks after China’s top court overturned the rulings of two lower courts in favour of six-time NBA champion Jordan, finding that Qiaodan Sports had illegally used his Chinese name – Qiao Dan.
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