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Made in China, Invented in Europe

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Made in China, Invented in Europe Made in China, invented in Europe A study to the most effective strategies for European trademark holders to prevent and abolish trademark infringement and counterfeit activities by China Student : Nathalie Francis Felix Student number : 5871441 Date : 24 June 2014 Content : Master thesis, concept version Word count : 15.834 words Education : MA European policy, European Studies, University of Amsterdam Supervisor : drs. E. Dirksen Second reader : mr. dr. A.C. van Wageningen 1 N.F. Felix Made in China, invented in Europe Abstract This study examines how European trademark holders can prevent and abolish trademark infringement and counterfeit activities by China in the most effective way. On the one side, the fight against Chinese counterfeiting has been going on for many years and has resulted in several strategies. On the other side, research shows that Chinese trademark infringement is a still growing problem nowadays. If so, how effective are currently executed strategies of anti- counterfeiting? Should trademark holders not change their anti-counterfeiting strategies? Comments of academicians from different disciplines will be studied and subsequently compared with the experiences of European trademark holders and protectors, assessed through personal interviews. It appears that early and international registration of trademarks, good relationships with all involved parties and warnings for penalties are most prominently effective measures in the combat against Chinese counterfeiting. Key words: intellectual property rights, trademark violation, trademark infringement, counterfeiting, China, Europe. 2 N.F. Felix Made in China, invented in Europe Table of Contents Abstract ...................................................................................................................................... 2 Table of Contents ....................................................................................................................... 3 List of abbreviations .................................................................................................................. 5 Introduction ................................................................................................................................ 6 1. How can the situation of IPR protection and IPR violation in China be described? .......... 9 1.1 Basic concepts of IPR ...................................................................................................... 9 1.1.1 Definition of term ..................................................................................................... 9 1.1.2 From Vienna Congress to ACTA-agreement ......................................................... 10 1.1.3 Forms of IPR ........................................................................................................... 11 1.1.4 Trademarks ............................................................................................................. 12 1.2 Basic concepts of trademark infringement and counterfeiting ...................................... 13 1.2.1 Definition of term ................................................................................................... 13 1.2.2 Market structure ...................................................................................................... 13 1.2.3 Demand side ............................................................................................................ 14 1.2.4 Supply side .............................................................................................................. 14 1.2.5 Institutional side ...................................................................................................... 15 1.2.6 Quantities, products and provenance ...................................................................... 16 1.3 The IPR environment in China ...................................................................................... 18 1.3.1 Historical context .................................................................................................... 18 1.3.2 Economic context .................................................................................................... 19 1.3.3 Legal system versus enforcement ........................................................................... 19 1.3.4 Impacts of WTO-membership: the situation after 2001 ......................................... 20 1.3.5 Causes of weak enforcement .................................................................................. 21 1.3.6 Efforts of the Chinese central government ............................................................. 22 1.4 Economic consequences of trademark infringement and counterfeiting ....................... 23 1.4.1 Effects on European trademark holders .................................................................. 23 1.4.2 Effects on European consumers .............................................................................. 24 1.4.3 Effects on European governments .......................................................................... 24 1.4.4 Effects on the European general economy .............................................................. 25 1.5 The combat against IPR violation .................................................................................. 26 1.5.1 Europe must not push for better IPR enforcement in China ................................... 27 1.5.2 Europe must push for better IPR enforcement in China ......................................... 28 2. How to combat counterfeit activities and trademark infringement: the possibilities ....... 30 2.0 Action or no action? .................................................................................................. 30 2.1 Actions aimed at consumers ...................................................................................... 31 3 N.F. Felix Made in China, invented in Europe 2.1.1 Preventive actions ................................................................................................... 31 2.1.2 Repressive actions ................................................................................................... 32 2.2 Actions aimed at manufacturers ................................................................................ 32 2.2.1 Preventive actions ................................................................................................ 32 2.2.2 Repressive actions ................................................................................................... 33 2.3 Actions aimed at distribution channels ...................................................................... 34 2.3.1 Preventive actions ................................................................................................ 34 2.3.2 Repressive actions ............................................................................................... 35 2.4 Actions aimed at retailers .......................................................................................... 35 2.4.1 Preventive actions ................................................................................................... 35 2.4.2 Repressive actions ................................................................................................... 36 2.5 Actions aimed at Chinese local authorities ................................................................ 36 2.5.1. Preventive actions .................................................................................................. 36 2.5.2 Repressive actions ................................................................................................... 37 2.6 General actions .......................................................................................................... 37 2.6.1 Preventive actions ................................................................................................... 37 2.6.2 Repressive actions ................................................................................................... 39 3. Managerial and industry efforts to combat counterfeit activities and trademark infringement: in practice .......................................................................................................... 41 3.0 Action or no action ......................................................................................................... 41 3.1 Actions aimed at consumers .......................................................................................... 42 3.1.1 Preventive actions ................................................................................................... 42 3.1.2 Repressive actions ................................................................................................... 43 3.2 Actions aimed at manufacturers ..................................................................................... 44 3.2.1 Preventive actions ................................................................................................... 44 3.2.2 Repressive actions ................................................................................................... 45 3.3 Actions aimed at distribution channels .......................................................................... 46 3.3.1 Preventive actions ................................................................................................... 46 3.3.2 Repressive actions ................................................................................................... 46 3.4 Actions
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