Intellectual Property

The vitality of the Chinese economy and its effect on the rest of the world is staggering. China’s economy is growing exponentially. China has rapidly transformed its economy and mind-set by changing its business laws to better conform to world business practices. The strong growth of international franchising, and its overwhelming popularity as a way to do business, is just as spectacular. Franchising has been embraced by a large number of countries.Not surprisingly, the explosion of China's business growth and franchising's worldwide popularity have merged to create a big bang of opportunity in China today. This article will briefly explore franchising in China and some of the best strategies for achieving your goal of company growth.

Franchise originated of coach handbags in the United States has more than 100 years of history, but until the 20th century until the 80 into China. August 1984, the first in the form of trademark license to settle down in Beijing ? Pierre Cardin store opening, is considered the beginning of our franchise. 1987 and 1990, KFC and McDonald's have settled in China, but they often choose to form joint ventures or wholly owned by opening new branches.

    After a number of international franchise organizations have moved into inland markets, have adopted the form of franchise business, mainly in the catering, printing services, cleaning phase, apparel and other industries, such as crocodiles, Goldlion clothing store, Fuji, Kodak and other similar specialty store . Demonstrations and international brands under the influence of vision, the courage to explore the local companies began to try to achieve rapid expansion franchise, and have achieved certain results. For example, the first implementation in 1993, Coach outlet Company to establish its own chain of franchised monopoly system, and thus become the first Chinese sports brand, has become the franchise's first in China to create a myth. In the same year, became the nation's oldest Quanjude companies with franchise representatives to restore the vitality of enterprises. Franchising as an advanced form of brand expansion, with incomparable charm. Franchise to the concessionaire by the Hui people and brought unexpected benefits, including higher efficiency, better cost control, a stronger brand and better market applicability. So, despite the franchise started late in China, but the development speed very quickly.

    China Chain Store & Franchise Association recently released statistics show that the end of 2007, China's number of more than 2800 franchise companies, franchise nearly 230,000. The number of franchise system in China has become the first in the world beyond the United States, a large franchise, also produced the present day, a large number of new franchise. Clearly, our franchise industry has entered a boom period, an important sign is the franchise has grown from the original retail, catering and service penetration to the other, such as wireless communications, agriculture, internet, fitness, and other new areas. Currently associated with the franchise industry categories, more than 50 different kinds of coach outlet store franchising has gradually penetrated into every aspect of people's lives. As the franchise business model that the rapid development in China, the domestic research on the franchise become a common practice. However, most marketing experts and scholars are from the perspective of science and management to discuss the franchise, the right franchise legal issues in the study but whom few. As the franchise started late in China, is China's market economic system with the emergence of a new thing, so our current special legislation on franchising few. So since the people's franchise because of legal knowledge, poorly understood and relevant laws and regulations supporting the lag in the process of franchising development will inevitably occur on the kinds of problems of coach outlet online , such as the franchise contract disputes, intellectual property infringement disputes. In fact, according to China's current "Regulations of Commercial Franchise" states: "The term business franchise, is the registered trademark owners, corporate logo, patents, proprietary technology and other business resources, business (the franchisor) to contract form their own operating resources of other operators (franchisees) to use, to be licensed in accordance with the contract under a unified business model for doing business, to pay franchise fees franchise business activities. "Thus, Franchise franchisor and the franchisee is actually a series of intellectual property rights among the core of the contractual relationship.

   Thus, between the franchise and intellectual property is inextricably linked to natural harbors, leaving the intellectual property, franchising there is nothing. As the franchise started late in China, developed quickly and the legal environment of imperfect, leading franchise in the field of intellectual property disputes, legal issues, especially after another. Franchising laws are complex, on the protection of intellectual property franchise is unique. This article attempts to franchise or Keneng often arise in intellectual property issues of some superficial opinions, and legislative proposals, discount coach outlet start a discussion hope it will stir sympathy Xiangguan experts and scholars and legislative attention. This paper is divided into three parts, each introduced and relevant knowledge of Commercial Franchise Development in China; franchise in its protection of intellectual property rights; China's Legislation on Franchising and perfect suggestions. The first part introduces the basics of franchising. Including the origin and history of franchise development; franchise concepts and terminology used; the legal characteristics of franchising; the type of franchise; the relationship between the franchise and intellectual property.

    All companies must strive to maximize their intellectual property. Whether it be a patent, trademark or a trade secret, knowledge that is controlled by a company is critical to its continued success in the marketplace. China has unique challenges in this regard. China, like many countries, often follows the “first to file” rule in trademarks. This rule often allows companies to trade on internationally-known brands in an unfair manner. For example, in 1996, TGI Saturday’ opened within sight of the TGI Friday’s flagship store. While such blatancy is finally ebbing from the Chinese market, the local competition can still be fierce, and should not be underestimated. However, since brand registration is still on a first comefirst served basis, with limited exceptions for some “sufficiently well-known” brand names, it is best to move early. Another concern is protecting your company’s trade secrets. One of China’s leading reasons for encouraging foreign company investment was to learn certain information or “technology transfer” of foreign companies’ business practices. If your company has certain trade secrets, they are entitled to protection in today’s China by contract. In the past, contracts had little value, since China did not follow the rule of law. It is critical for any entry into China that your company’s intellectual property needs are reviewed and protected.

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