How to Protect Intellectual Property in China

In an effort to move away from being the world's factory floor to becoming a global innovation leader, China's government provides tax breaks and other incentives for companies investing in R&D. However, as enterprises invest more in developing new technology in China, they are becoming even more concerned about how to protect the intellectual property that they are developing.

To help address these intellectual property issues, this month's Industrial Asset Management Forum (organised by RightSite.asia) will feature a presentation on intellectual property safeguards in China by Benjamin Bai of US law firm Jones Day. Mr Bai will explain to investors how to effectively protect their technology in China and speak about his experience in IP litigation. Mr Bai is a partner with Jones Day's Shanghai office and one of the coordinators for the firm's China IP practice. The forum will be held on Wednesday, March 24^th at the Royal Meridien Hotel in Shanghai.

R&D Incentives Creating Investor Interest

In an attempt to bring in more high tech manufacturing, many incentives have been put in place in China for companies looking to create R&D operations. Companies that make sufficient investment in research and development in China can qualify as “high and new technology enterprises” (HNTE) which brings them a host of benefits.

Incentives for HNTEs in China include reduction in the business tax from 25% to 15%, eligibility for low interest loans and other financing. More importantly, companies are permitted to deduct R&D expenses from their corporate income tax at a rate of 150 percent. Furthermore, revenue for companies developing technology is exempt from China’s business tax.

Safeguarding Intellectual Property in China

However, while these incentives have already helped many companies to begin developing new technology in China, many more businesses hesitate to invest money and time into intellectual property if they believe it can't be protected. Stories of 80% of software in China being pirated, and markets full of fake Gucci bags have only served to reinforce this understanding.

However, Mr Bai is working to change that perception. In his recent article for the Wall Street Journal Mr Bai argues that patents are protected in China and “learning how to work within the system is more effective than merely wishing the system were better.” As one of China's leading experts on intellectual property protection, Mr Bai has compiled a dossier of successful IP protection cases, and argues that, given the right approach, companies' rights to their own technology can be protected within China's judicial system.

About Jones Day and Benjamin Bai

Mr Bai's practice focuses on global patent litigation in Asia and the US with over a decade of IP experience. A native of China, Mr Bai earned a doctorate in chemistry, as well as a law degree from universities in the US. His record in protecting the rights of investors have made him a trusted advisor to many Global 500 companies in IP enforcement in China.

Jones Day is the 8^th largest international law firm in the world employing around 2,500 lawyers in 32 offices in four continents. This year, Jones Day China ranked in the top tier for both Foreign Patent Firms and Foreign Copyright Firms in a survey conducted by Managing Intellectual Property magazine. Former Jones Day attorneys include US Supreme Court Justice Antonin Scalia, US Congresswoman Jane Harman and Nobel Peace Prize recipient David Morse.

About the Industrial Asset Management Forum

The Industrial Asset Management Forum is a monthly series of events organised by RightSite.asia that bring together all members of China's manufacturing, logistics and industrial asset management community to learn more about issues affecting profitability and sustainability in the market.

Event Details

China Industrial Asset Management Forum

789 Bar

Royal Meridien Hotel Shanghai

789 Nanjing Donglu

Shanghai

Time: 6:30 to 8:30 pm

Date: Wednesday, March 24th

Dress code: Business attire

Admission is RMB 150 and includes two free drinks and canapes.

Attendance is limited to 150 persons, so please RSVP by email to customerservice(at)rightsite.asia or by phone to 86-021-6253-1769 x8011 at least 3 days in advance to ensure admission. Tickets will be sold at the door.

Proudly sponsored by RightSite.asia!