Our IP practice in China - Freshfields
Our IP practice in China - Freshfields
Our IP practice in China - Freshfields
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Intellectual property<br />
Create, protect and<br />
maximise your <strong>IP</strong><br />
<strong>Our</strong> <strong>practice</strong> <strong>in</strong> Ch<strong>in</strong>a<br />
<strong>Freshfields</strong> Bruckhaus Der<strong>in</strong>ger llp
These days, <strong>in</strong>tellectual property is a<br />
board-level agenda item for bus<strong>in</strong>esses<br />
globally. How you create it, defend it<br />
and exploit it will directly affect your<br />
growth and profitability.<br />
But <strong>in</strong> Ch<strong>in</strong>a, hav<strong>in</strong>g the right <strong>IP</strong><br />
strategy can be decisive to the very<br />
success or failure of your bus<strong>in</strong>ess.<br />
Ten years ago, perception was that<br />
Ch<strong>in</strong>a offered little or no protection<br />
for <strong>IP</strong> rights. Now, <strong>IP</strong> has become the<br />
number one strategic weapon under<br />
Ch<strong>in</strong>ese law <strong>in</strong> the arsenals of both<br />
domestic and foreign companies.<br />
Get it wrong, and the pitfalls can<br />
be severe.<br />
We can help.
We can help you avoid the obstacles<br />
<strong>Our</strong> <strong>in</strong>tellectual property (<strong>IP</strong>) <strong>practice</strong><br />
is one of our firm’s core competencies.<br />
<strong>Our</strong> model is to be there for clients at<br />
critical times when it matters the most.<br />
For over a decade now, we have advised<br />
the lead<strong>in</strong>g companies <strong>in</strong> Ch<strong>in</strong>a, both<br />
mult<strong>in</strong>ational corporations and emerg<strong>in</strong>g<br />
Ch<strong>in</strong>ese companies. <strong>Our</strong> team comprises<br />
<strong>in</strong>ternationally qualified and PRC‐qualified<br />
lawyers experienced <strong>in</strong> advis<strong>in</strong>g<br />
clients <strong>in</strong> multiple jurisdictions and <strong>in</strong><br />
manag<strong>in</strong>g multi-jurisdictional projects.<br />
If you face the complex demands of<br />
<strong>IP</strong>/technology-driven M&A transactions<br />
or commercial projects, if you need<br />
counsell<strong>in</strong>g on bus<strong>in</strong>ess-critical<br />
patent litigation, or strategic advice<br />
on how best to manage complex<br />
brand portfolios, we can help.<br />
We focus on what really matters to you<br />
Six sectors, one worldwide network<br />
We focus on six primary <strong>in</strong>dustry sectors:<br />
• telecommunications, media<br />
and technology;<br />
• consumer and health;<br />
• energy and natural resources;<br />
• <strong>in</strong>frastructure and transport;<br />
• f<strong>in</strong>ancial services and bank<strong>in</strong>g; and<br />
• chemicals.<br />
We develop our specialist knowledge<br />
of these sectors and the commercial<br />
and technical contexts <strong>in</strong> which<br />
our clients operate – because that’s<br />
crucial to the services we provide.<br />
This enables us to go beyond simply<br />
respond<strong>in</strong>g to today’s issues. We th<strong>in</strong>k<br />
ahead: we identify future challenges<br />
and we use our understand<strong>in</strong>g to apply<br />
practical legal solutions that best fit<br />
your bus<strong>in</strong>ess’ needs and objectives.<br />
F<strong>in</strong>alist <strong>IP</strong> Law Firm of the Year<br />
<strong>in</strong> an Emerg<strong>in</strong>g Market<br />
Intellectual Property Awards 2011<br />
<strong>Freshfields</strong> Bruckhaus Der<strong>in</strong>ger llp<br />
Create, protect and maximise your <strong>IP</strong><br />
1
Here <strong>in</strong> Ch<strong>in</strong>a, we have a team of largely<br />
Mandar<strong>in</strong>-speak<strong>in</strong>g lawyers, many hav<strong>in</strong>g<br />
technical backgrounds. <strong>Our</strong> team works on<br />
PRC law <strong>IP</strong> issues day <strong>in</strong>, day out. We also<br />
help our Ch<strong>in</strong>ese clients with <strong>IP</strong> issues<br />
aris<strong>in</strong>g on outbound transactions and work<br />
with lawyers across the <strong>Freshfields</strong> network<br />
to provide a comprehensive and unified<br />
approach to resolv<strong>in</strong>g your <strong>IP</strong> issues. We<br />
share knowledge and best <strong>practice</strong> across the<br />
<strong>Freshfields</strong> network to ensure that we deliver<br />
a co‐ord<strong>in</strong>ated <strong>in</strong>ternational approach.<br />
We advise <strong>in</strong> key strategic areas<br />
• <strong>IP</strong> litigation, <strong>in</strong>volv<strong>in</strong>g patents,<br />
trade marks, pass<strong>in</strong>g off, copyright<br />
and confidential <strong>in</strong>formation;<br />
• <strong>IP</strong> and IT transactional advice <strong>in</strong> M&A,<br />
jo<strong>in</strong>t ventures and <strong>in</strong>itial public offer<strong>in</strong>gs;<br />
• negotiation of brand licens<strong>in</strong>g and<br />
trade mark co-existence arrangements<br />
and <strong>IP</strong> commercial agreements such as<br />
franchis<strong>in</strong>g, sponsorship, distribution<br />
and manufactur<strong>in</strong>g/sourc<strong>in</strong>g agreements;<br />
• co-ord<strong>in</strong>ation and strengthen<strong>in</strong>g of<br />
Ch<strong>in</strong>a trade mark, doma<strong>in</strong> name,<br />
patent and copyright portfolios and<br />
harmonis<strong>in</strong>g global fil<strong>in</strong>g strategies;<br />
• solutions to advertis<strong>in</strong>g and<br />
unfair competition issues;<br />
• development of practical bus<strong>in</strong>ess<br />
protocols that help reduce the<br />
threat of <strong>IP</strong> leakage and help realise<br />
the value of clients’ <strong>IP</strong> rights;<br />
• <strong>in</strong>ternet-related advice, cover<strong>in</strong>g<br />
e-commerce, m-commerce and new media<br />
issues, <strong>in</strong>clud<strong>in</strong>g website development,<br />
encryption, e-bank<strong>in</strong>g, <strong>in</strong>ternational<br />
cyber-piracy and doma<strong>in</strong> name disputes;<br />
• IT-related transactions and litigation,<br />
<strong>in</strong>clud<strong>in</strong>g software development<br />
transactions, licens<strong>in</strong>g arrangements<br />
(technology transfer), systems<br />
procurement and <strong>in</strong>tegration, research<br />
and development collaborations and<br />
transactions <strong>in</strong>volv<strong>in</strong>g major IT and<br />
bus<strong>in</strong>ess process outsourc<strong>in</strong>g and<br />
bus<strong>in</strong>ess separation (sp<strong>in</strong>-offs); and<br />
• data protection advice on stand-alone<br />
compliance projects, enforcement<br />
actions and corporate transactions.<br />
F<strong>in</strong>alist <strong>IP</strong> Law Firm of the Year<br />
Asian Legal Bus<strong>in</strong>ess Law Awards Hong Kong 2011<br />
2<br />
<strong>Freshfields</strong> Bruckhaus Der<strong>in</strong>ger llp<br />
Create, protect and maximise your <strong>IP</strong>
We offer not just reach but also<br />
real depth of expertise<br />
Examples of our recent<br />
<strong>IP</strong> experience <strong>in</strong> Ch<strong>in</strong>a.<br />
These should give you a flavour of<br />
the types of matters we take on<br />
and how we handle them:<br />
PepsiCo <strong>in</strong> its strategic alliance<br />
with T<strong>in</strong>gyi-Asahi<br />
When PepsiCo, the world’s second-largest<br />
food and beverage company, wanted<br />
to form a strategic alliance with one<br />
of its largest counterparts <strong>in</strong> Ch<strong>in</strong>a,<br />
T<strong>in</strong>gyi‐Asahi Beverages, it turned to us. The<br />
<strong>IP</strong> and commercial aspects were central<br />
to this deal. PepsiCo swapped its Ch<strong>in</strong>a<br />
bottl<strong>in</strong>g operations for an equity stake<br />
<strong>in</strong> T<strong>in</strong>gyi-Asahi Beverages. If approved by<br />
regulators, T<strong>in</strong>gyi-Asahi Beverages will<br />
become the master franchise bottler for<br />
PepsiCo’s branded non-alcoholic beverages<br />
<strong>in</strong> Ch<strong>in</strong>a and will be granted exclusive<br />
rights to manufacture and distribute<br />
all of PepsiCo’s signature non-alcoholic<br />
beverages, <strong>in</strong>clud<strong>in</strong>g Pepsi, 7Up, Gatorade<br />
and Tropicana, boost<strong>in</strong>g PepsiCo’s platform.<br />
This was a truly landmark deal <strong>in</strong> the Ch<strong>in</strong>a<br />
market and was awarded Ch<strong>in</strong>a Bus<strong>in</strong>ess<br />
Law Journal’s 2011 Deal of the Year <strong>in</strong> the<br />
category of foreign direct <strong>in</strong>vestment.<br />
The deal showcases our unmatched ability<br />
to structure and execute complex crossborder<br />
and cross-cultural franchise and<br />
brand<strong>in</strong>g deals. It is also a great illustration<br />
of the breadth of our <strong>IP</strong> <strong>practice</strong> <strong>in</strong> Ch<strong>in</strong>a,<br />
and of the benefits of <strong>Freshfields</strong>’ broad<br />
<strong>in</strong>ternational platform and strength <strong>in</strong> all<br />
key <strong>practice</strong> areas. We worked closely with<br />
colleagues <strong>in</strong> our corporate, antitrust, tax<br />
and dispute resolution departments from<br />
our Hong Kong, Beij<strong>in</strong>g, Shanghai, New York<br />
and London offices to br<strong>in</strong>g off this deal.<br />
Dyson <strong>in</strong> a patent and copyright<br />
<strong>in</strong>fr<strong>in</strong>gement action <strong>in</strong> Hong Kong<br />
Dyson has an enviable reputation for<br />
<strong>in</strong>novation. Its vacuum cleaners and<br />
other household appliances are protected<br />
by more than 700 granted patents and<br />
over a thousand patent applications.<br />
However, when it brought out its Air<br />
Multiplier bladeless fan to widespread<br />
acclaim, it almost immediately faced<br />
a major counterfeit<strong>in</strong>g threat from<br />
low-cost manufacturers <strong>in</strong> Ch<strong>in</strong>a.<br />
That was bad enough, but when a major<br />
and previously reputable high-street<br />
retailer <strong>in</strong> Hong Kong began sell<strong>in</strong>g a<br />
high‐quality copy, Dyson’s whole reputation<br />
for <strong>in</strong>novation and unique product<br />
features began to be called <strong>in</strong>to question<br />
on blogs and chat sites <strong>in</strong> the territory.<br />
So when we received the call from the<br />
UK late one even<strong>in</strong>g <strong>in</strong> 2011, we leapt <strong>in</strong>to<br />
action. <strong>Our</strong> client had just learnt that its<br />
first patent for the Air Multiplier would<br />
issue <strong>in</strong> Hong Kong a few days later, so we<br />
had to act fast. After a few weeks gather<strong>in</strong>g<br />
evidence and putt<strong>in</strong>g the submissions<br />
together, two hear<strong>in</strong>gs (and very little sleep),<br />
<strong>Freshfields</strong> had secured a rare <strong>in</strong>terim patent<br />
and copyright <strong>in</strong>junction at the High Court<br />
<strong>in</strong> Hong Kong to block further market<strong>in</strong>g<br />
and sales of the <strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g product.<br />
<strong>Freshfields</strong> Bruckhaus Der<strong>in</strong>ger llp<br />
Create, protect and maximise your <strong>IP</strong><br />
3
Merck/MSD on a pharmaceuticals<br />
jo<strong>in</strong>t venture with Simcere<br />
Pharmaceutical Group<br />
<strong>Our</strong> life sciences <strong>practice</strong> acts for many of<br />
the lead<strong>in</strong>g pharmaceutical, biotechnology<br />
and medical device companies <strong>in</strong> Ch<strong>in</strong>a.<br />
We believe that we are one of the few<br />
<strong>in</strong>ternational law firms <strong>in</strong> Ch<strong>in</strong>a to<br />
present the full cross-<strong>practice</strong> offer<strong>in</strong>g<br />
at the highest level, <strong>in</strong>clud<strong>in</strong>g antitrust<br />
and pharma regulatory and compliance<br />
advice <strong>in</strong> this vital growth market.<br />
Merck/MSD’s jo<strong>in</strong>t venture with Simcere,<br />
a lead<strong>in</strong>g emerg<strong>in</strong>g pharmaceutical<br />
company <strong>in</strong> the PRC which is listed on the<br />
NYSE, will provide significantly improved<br />
access to quality medic<strong>in</strong>es <strong>in</strong> major<br />
cardiovascular and metabolic therapeutic<br />
areas. The jo<strong>in</strong>t venture will offer a<br />
comb<strong>in</strong>ed portfolio of selected medic<strong>in</strong>es<br />
from both companies. The deal structure<br />
also <strong>in</strong>cluded a co-market<strong>in</strong>g agreement,<br />
believed to be one of the first of its k<strong>in</strong>d<br />
<strong>in</strong> Ch<strong>in</strong>a. Pharmaceutical co‐market<strong>in</strong>g<br />
agreements <strong>in</strong>volve a uniquely challeng<strong>in</strong>g<br />
<strong>in</strong>terplay of <strong>IP</strong>, antitrust, regulatory<br />
and commercial considerations.<br />
Draw<strong>in</strong>g on our experience of advis<strong>in</strong>g<br />
on similar co-market<strong>in</strong>g arrangements <strong>in</strong><br />
Europe and Japan, we helped Merck/MSD<br />
to execute this deal <strong>in</strong> less than a month<br />
from term sheet to signed agreement.<br />
Imagi International’s acquisition<br />
of Toon Express Group<br />
Imagi International is an animated motion<br />
picture producer and distributor listed<br />
on the Hong Kong Stock Exchange. Toon<br />
Express Group owns and manages various<br />
animation character assets, <strong>in</strong>clud<strong>in</strong>g the<br />
popular Ch<strong>in</strong>ese animation characters<br />
‘ 喜 羊 羊 与 灰 太 郎 Pleasant Goat and Big Big<br />
Wolf’ loved by children across Asia. We<br />
were <strong>in</strong>volved <strong>in</strong> detailed analysis of the<br />
<strong>IP</strong> portfolio (around 1,000 trade marks<br />
and several hundred copyright works),<br />
as well as of some 150 outbound licences.<br />
We also advised on structur<strong>in</strong>g the key<br />
strategic brand management co-operation<br />
arrangement between Toon Express and<br />
Creative Power Enterta<strong>in</strong><strong>in</strong>g, the creator<br />
and distributor of the Pleasant Goat<br />
and Big Big Wolf TV series and feature<br />
films, and on the agreement between<br />
Toon Express and the Disney Group for<br />
the worldwide merchandis<strong>in</strong>g of Toon<br />
Express’ animation assets. This is the first<br />
time that <strong>in</strong>digenous Ch<strong>in</strong>ese content<br />
has been exported <strong>in</strong>ternationally.<br />
Zhejiang Geely Hold<strong>in</strong>g Group<br />
on its $1.8bn acquisition of<br />
Volvo Car Corporation<br />
Geely’s acquisition of Sweden’s Volvo<br />
automobiles was the first takeover<br />
of a global premium carmaker<br />
by a Ch<strong>in</strong>ese corporation.<br />
The transaction was awarded the<br />
FT Innovative Lawyer Award for 2010.<br />
In its 2010 <strong>in</strong>novation report, issued<br />
<strong>in</strong> February 2011 and based on client<br />
<strong>in</strong>terviews, the F<strong>in</strong>ancial Times described<br />
the <strong>Freshfields</strong>’ work on this transaction<br />
as ‘stellar’. Members of our <strong>IP</strong> <strong>practice</strong><br />
were part of the large cross-<strong>practice</strong><br />
and <strong>in</strong>ternational team that was<br />
assembled to make this deal happen.<br />
4<br />
<strong>Freshfields</strong> Bruckhaus Der<strong>in</strong>ger llp<br />
Create, protect and maximise your <strong>IP</strong>
The FT <strong>in</strong>novation report stated that<br />
‘In the largest ever <strong>in</strong>ternational<br />
<strong>in</strong>dustrial acquisition by a private Ch<strong>in</strong>ese<br />
company, the firm overcame both<br />
technical <strong>in</strong>tellectual property hurdles<br />
and cultural barriers to complete what<br />
many had considered to be an impossible<br />
transaction. Deals of this complexity <strong>in</strong><br />
terms of <strong>IP</strong> issues and size had never been<br />
done before because of the suspicions<br />
of Western corporates regard<strong>in</strong>g lett<strong>in</strong>g<br />
some of their most valuable <strong>IP</strong> rights fall<br />
<strong>in</strong>to the hands of Ch<strong>in</strong>ese companies…<br />
‘This outstand<strong>in</strong>g deal showed lawyers<br />
act<strong>in</strong>g <strong>in</strong> a new way, as much as diplomatic<br />
dealbrokers as technical legal advisors.<br />
It was clear that without the presence<br />
of <strong>Freshfields</strong>’ lawyers, this transaction<br />
was likely to have fallen apart.’<br />
Hong Kong<br />
11th floor<br />
Two Exchange Square<br />
Central, Hong Kong<br />
Beij<strong>in</strong>g<br />
3705 Ch<strong>in</strong>a World Tower Two<br />
1 Jianguomenwai Avenue<br />
Beij<strong>in</strong>g 100004, People’s Republic of Ch<strong>in</strong>a<br />
Shanghai<br />
34th floor, J<strong>in</strong> Mao Tower<br />
88 Century Boulevard<br />
Shanghai 200121, People’s Republic of Ch<strong>in</strong>a<br />
Your <strong>Freshfields</strong> contacts <strong>in</strong> Ch<strong>in</strong>a<br />
Connie Carnabuci<br />
Partner<br />
T +852 2846 3300<br />
E connie.carnabuci@freshfields.com<br />
Mark Parsons<br />
Partner<br />
T +852 2846 3341<br />
E mark.parsons@freshfields.com<br />
Deal of the Year<br />
Ch<strong>in</strong>a Bus<strong>in</strong>ess Law Journal 2011<br />
Richard Bird<br />
Counsel<br />
T +852 2913 2660<br />
E richard.bird@freshfields.com<br />
<strong>Freshfields</strong> Bruckhaus Der<strong>in</strong>ger llp<br />
Create, protect and maximise your <strong>IP</strong><br />
5
www.freshfields.com<br />
<strong>Freshfields</strong> Bruckhaus Der<strong>in</strong>ger llp is a limited liability partnership registered <strong>in</strong> England and Wales with registered number OC334789. It is authorised and regulated by the Solicitors<br />
Regulation Authority. For regulatory <strong>in</strong>formation please refer to www.freshfields.com/support/legalnotice. Any reference to a partner means a member, or a consultant or employee with<br />
equivalent stand<strong>in</strong>g and qualifications, of <strong>Freshfields</strong> Bruckhaus Der<strong>in</strong>ger llp or any of its affiliated firms or entities. This material is for general <strong>in</strong>formation only and is not <strong>in</strong>tended to<br />
provide legal advice.<br />
©<strong>Freshfields</strong> Bruckhaus Der<strong>in</strong>ger llp – April 2012, 33094