What are Intellectual Property & Trademarks issues in China?

Other counterfeiting companies copy or slightly modify foreign patents, or use advances in technology, and file these under a form of Chinese protection.

Toshiba was dismayed to learn in 2002 that it had captured 11.5% of the market in computer batteries, as it didn't sell its batteries in that country!

Local companies have the right to appeal twice, which may drag out a case over the life span of high-tech products.

Courts often cap maximum damage at half a million yuan (around $600,000) which disreputable business factor in as part of the cost of doing business.

The US Patent & Trademark Office has appointed an intellectual property attaché at the US Embassy in Beijing , the first such official assigned to a specific country.

Solutions are if the product cycle is short, you should be able to keep ahead with new technology.

Another route is a WFOE or only bringing in part technology and leaving the rest offshore.

Ultimately the risk of not going to China is probably greater, there is a view you should use your technology now or lose it.