Intellectual Property - Engaging with China

China is well entrenched in the global marketplace, but with Chinese piracy reported at 90 percent, it's the third least friendly country for protecting intellectual property (IP).

China's accession into the World Trade Organization started four years ago. With this commitment to regulatory and economic restructuring, China has indeed been a country of economic opportunity for multinational corporations.

In theory, WTO accession means that WTO members can enjoy IP protections. In China, secure those patent protections carefully. Dot the i's, cross those t's and 'watch your language.' Also, anticipate litigation.

According to attorneys A. Jason Mirabito and Carol Peters, in a March 2005 article published in Chip Scale Review: "In the past there was little enforcement of IP in China. However, in 2002, Chinese courts litigated more than 6,000 civil cases involving IP issues. About 2,000 cases involved patent suits. The rest were trademark and copyright actions."

Those 2002 statistics pale compared to recent figures, reported by the International Herald Tribune: In 2005, "Chinese courts dealt with 12,205 civil intellectual property cases, an increase of 32 percent from 2003 and a few dozen two decades ago."

Consider one recent case, which demonstrates that China's legal savvy is climbing with its growing stake in US markets and the global economy. The case also demonstrates the role of US courts in patent and IP protection, along with the perseverant or 'energized' stance required by US companies threatened by counterfeit goods or the prospect of piracy.

Energizer & Eveready vs. Just about Everybody

The dispute started in the spring of 2003, when Energizer Holdings, a US company, and its subsidiary Eveready filed a lawsuit with the International Trade Commission (ITC). The complaint addressed a signature product, a long-lasting battery design