The importance of registration of intellectual property rights with China customs

Why I am suffering such a big loss even though I have registered for China customs intellectual property rights?

PS: All screenshots comes from China customs intellectual property right registration system.

In this picture you will find that the two different companies register the same brand and the same logo, they are both legal and protected by Chinese Intellectual Property Law. How come? How can two companies own the trademark and logo at the same time?

The dirty trick is here, look at the following screenshots:

The company, briefed as Company A, is the real owner of the brand (Star Track), and it registered the intellectual property rights for the brand and logo on October 7, 2009.

The company, briefed as Company B, registered the intellectual property rights for the same brand and logo on December 7, 2012.

Why did China customs accept the registration by Company B on December 7, 2012 since Company A has already registered for intellectual property right?

Here is the reason: the same band and logo can be registered under different commodity categories pursuant to intellectual property laws in China.  Company A is TV set top box and Star Track is their brand. The product they register is TV set top box.Company B is a Chinese company and the product they register with the same brand is remote control.

TV set-top boxes and remote controls are defined in accordance with China intellectual property right laws as two different products, so China trademark office and the intellectual property law department of China customs allows legislate registration of remote controls by Company B.

Then comes the problem, we know that the set-top box is sold with a remote control. The container of company was seized by China customs when they exported TV set-top boxes because they had Star Track brand remote controls in the container, which violated the intellectual property of Company B. Company A tried every means to explain to the customs, but that did not help, and they even commissioned a lawyer for litigations in China, they lost the lawsuit because Company A forgot the remote control in the registration for the set-top box. Company B took advantage of this and Company B had to pay Company A for reconciliation. After that, Party A had to pay Party B licensing fees or use of the remote control brand; otherwise it would take the risk of infringement. Until now, in China customs intellectual property right system, the two companies still legitimately own the intellectual property rights of the same brand and the logo.

Let us check the registration of intellectual property right at China customs by Company B:

We are really surprised when we find that the company has the intellectual property rights of almost one hundred brands and logos, all of which are relevant to home appliances. Company B is taking advantage of the loophole of other companies. The companies really specialized in home appliances forgot to register the remote control in registration, that is why it has been beholden to Company B and paid a price.

Those companies who are really involved in product operation generally entrusted a law firm, a brand registration company or a Chinese plant to register in China and for intellectual property rights with China customs. Those entrusted have their limitations, so they usually cannot be familiar with products, laws and regulations at the same time. Irreparable damage will be caused if they miss any detail. FIC is different, over the years, it has faced various demands from countless customers that involve all aspects, including foreign trade, customs, and trademark registration. We are well versed in relevant laws and rules and have accumulated a wealth of experience, which enable us to help you to be thoughtful and avoid all possible negative consequences.

  • What are our advantages compared with your counterparts?
    1. China company verification: FIC Logistics can verify suppliers, ensure trade security, and avoid trade fraud.

    2. China port & customs inquiry: This can eliminate the information postponement and fault between suppliers, ports, customs and logistics, so that all your processes will become transparent and controllable as never before.

    3. Warehouse data information services: real-time inquiry and accessibility to information of warehoused goods.

    4. Integrated customs clearance control service: Handles all kinds of customs clearance and customs clearing, addresses complicate problems such as multi-suppliers and names of goods that cannot be handled by generally designated freight forwarders.

    5. All-around QC auxiliary services: keeps customers abreast of production process of goods, ensures quality of goods and faithful delivery.

  • Why are we so confident that you have never met a comprehensive China shipping forwarder like FIC Logistics before?
    Because we found in our long-term business process that the service concept of existing logistic companies, no matter how large the scale is, is limited to the level of transportation only. However, what you need for your business is more than that. What you want is to have such a person or a company in China which can help you link the entire trade and logistics links, integrate all the resources and information, and seamlessly integrate all aspects, so as to eliminate the information postponement and fault, and then make your trade and logistics more secure and rapid. FIC Logistics is convinced that in today's information age, a huge gap exists between international trade and logistics service, which is still in the very primitive stage, so this situation must be changed!
  • Why You Should Find a Local Forwarder in China?

    1. China shipping forwarder can provide personalized service for you. Without the intermediate links, customer attention is higher than the forwarder in your country.

    2. China shipping forwarder can provide more efficient and flexible service for you. Without the intermediate links, you will greatly improve the operational efficiency.

    3. China shipping forwarder can provide more convenient service for you. Without the intermediate links, the communication will be more smoothly.

    4. China shipping forwarder can provide the cheaper price for you. Without the intermediate links, no middlemen to earn price difference, you will greatly reduce your cost of shipment.

  • Why customer attention is higher when you choose to direct cooperation with China shipping forwarder?
    Because China shipping forwarder provide personalized service for you, to offer you a one-on-one customer service, they can empathize with your daily stresses as you are not just a number for them and can pay more attention to your problems and come up with a solution quickly. 
    And in China's freight forwarding market, the priority and resources given to direct foreign customers and foreign freight forwarders are completely different, and there is a very clear distinction. For example, during the peak season, direct foreign customers have priority and their orders are often handled by the most experienced service personnel; in the event of special circumstances, Chinese freight forwarders will also tend to give priority to orders from direct foreign customers.
  • Why the service will be more efficient and flexible when you choose to direct cooperation with China shipping forwarder?
    There are a lot of paperwork and administration, logistics, timings, time differences, currency, language barriers and strict import, export and customs procedures to take into consideration. And every country will have different regulations that have to be fully understood and satisfied by the international freight provider to guarantee safe and speedy delivery of goods. China shipping forwarder have many more choices in selecting the best routing, carrier, price combination. They also can more easily adapt and change their operations to secure directly towards you – the importer.
    The likelihood that an independent does everything in their power to resolve an issue is much higher than a multinational, which probably faces too many problems in an attempt to help you with a sense of urgency. Especially in case of customs clearance when you make a purchase from more than one suppliers or sensitive goods are involved, the customs declaration process becomes very complex and cumbersome because foreign freight forwarders do not have the declaration qualification and the local freight forwarder are unwilling to assume the corresponding risk, instead, they choose to shirk responsibility, which finally waste a lot of time and money, and result in unnecessary losses. 
  • Why the price will be cheaper when you choose to direct cooperation with China shipping forwarder?
    Cheaper will be the most important reason as the same as you choose products in China. The lower labor cost, lower exchange rate, lower expenses and other factors, make China shipping forwarders’ charge much more competitive, not only the shipping rates, but also other handling expenses.
    The situation here permits them to work out the best pricing on the basis of your specific logistics demands. And this translates to bigger profit margins for purchase makers, or can be able to sell at more competitive prices.
    Please be noted that most international freight forwarders with operations in China will resort to a local logistics or forwarding company because of their lower costs and local knowledge, which implies the shipping agents in your country cannot handle China shipments directly.
  • Why the communication will be more smoothly when you choose to direct cooperation with China shipping forwarder?
    It’s really essential for China shipping forwarder adjusting their operations quickly to better suit your needs and also offer flexibility in how to handle your shipments.
    As a buyer, when imports from China, finding a shipping forwarder nearby or in your country is much easier, you think it more reliable and more convenient to communicate with them, and actually most people have this idea. Yes , it’s true. But this is not smart and wise. Because in China they have no office, if any, they do not have the advantages a China shipping forwarder has. In most cases, the forwarder you choose pass your shipment to a China shipping forwarder, so they do nothing and earn you extra money. Maybe you would like to spend more money to buy your convenience. However, in many cases, it may affect other more important aspects. Actually if you choose a forwarder in your country, information feedback will not be timely, many inconveniences will be caused and that might even lead to irreparable damage because of intermediate links, poor communication and misunderstanding.