Brand Protection in China Ron Davis Senior Director, Brand Protection Qualcomm Incorporated April 30, 2013 Brand Protection in China 2 Engage in China – QBPC Networking – Learn from your peers Enforcement through cooperation with administrative agencies Multi-layer protection strategy WELL-BRANDED PRODUCTS ARE ALWAYS COUNTERFEITED 3 Quality Brands Protection Committee China Association of Enterprises with Foreign Investment 4 Engage in China - QBPC Beijing-based volunteer association under CAEFI/MOFCOM Established March 2000 210+ multinational member companies, most of which are companies headquartered in America, Europe and Asia Annual membership survey assessing status of our efforts Representing over US$ 80 billion in investment in China QBPC has a voice in China www.QBPC.org.cn Quality Brands Protection Committee China Association of Enterprises with Foreign Investment 5 3M Emerson ABB GE (China). RIM ABRO General Motors Samsung BMW Group Husqvarna AB Roche ALTECO Hewlett-Packard Siemens Bose IBM Rovio Amway Intel Sony Corporation Danfoss (Tianjin) L Mann-Hummel Takeda Apple Johnson & Johnson UL Deckers Mary Kay Texwood Beiersdorf AG Microsoft Unilever Bosch Nike Zippo Diageo Nokia Eastman Philips Epson Procter & Gamble QUALCOMM BP Imperial Tobacco Samsonite Burberry Infineon SanDisk Dell Mattel Tiffany & Co. Delphi McCormick Time Warner Inc. Callaway Irdeto B.V. SANOFI D-Link MCM Timken Calvin Klein Jaguar Land Rover SAP AG Disney Merck Toshiba Canon John Deere Schaeffler Caterpillar JT International S.A. Schneider Electric CHANEL Kao S.C. Johnson Cisco Systems Karsten Seb Développement DSM Michelin Toyota Dolby Laboratories, Micro-Pak TRW Automotive Dow Corning Moët Hennessy TE Connectivity Dupont Moncler Ubiquiti Eaton Monsanto Ubukata Universal Music Abbott Labs Fresenius Novozymes Cleveland Golf Kimberly-Clark Servier ELM Mosaic adidas Freudenberg NXP Semiconductors Coach Levi Strauss SGG Lisco LLC Eli Lilly Motolora Valeo Agilent Tech Gates Unitta OSRAM Coca-Cola Lee Kum Kee Saint-Gobain Energizer NBA Properties Inc VERSACE AkzoNobel General Mills Panasonic Codaa LG Electronics Shell Alcatel GHD Panduit Amer Sports Giga-Byte Technology ParexDavco ColgatePalmolive Life Technologies Shiseido Ansell GlaxoSmithKline Pentland CommScope Limited Brands SKF Anheuser-Busch Gucci Pernod Ricard Applied Materials Harley-Davidson PSAPeugeot Citroën Armstrong Harman Pfizer AstraZeneca HDMI Philip Morris Audi Heineken Bacardi Continental Logitech Sony Ericsson Corning China L’Oréal Spirits International Estée Lauder NEC Corp. Volkswagen AG Evonik Degussa Newell Rubbermaid Wacom ExxonMobil New Era Cap Wahl Federal-Mogul Corporation Nestle WD-40 Fendi NGK Spark Plug Wrigley Creative Tech Lutron GL Starwood Ford Motors Nissan Motor Zegna Power Balance Crocs LVMH Fashion Group STIHL Frey Wille Novartis ZF Hella Prada S.A. Cummins Mahle SWAROVS KI BASF Hermes PUMA Daimler Northeast Manchester Syngenta Bayer Hindustan Pencils Ralph Lauren 213 MNC Members Quality Brands Protection Committee China Association of Enterprises with Foreign Investment 6 Mission Statement “building the bridge” To work cooperatively with the Chinese Central and local governments, local industry, and organizations to make positive contributions to intellectual property protection in the People’s Republic of China. Quality Brands Protection Committee China Association of Enterprises with Foreign Investment 7 Chairman & 6 Vice Chairmen 7 Committees Best Practices / Enforcement Committee Communications Committee Customs Committee Government Cooperation Committee Legal Committee Membership Services Committee Patent & Innovation Committee Quality Brands Protection Committee China Association of Enterprises with Foreign Investment 8 22 Industry Working Groups Agricultural 2. Audio & Musical Instrument 3. Automotive 4. Battery 5. Construction & Integration 6. Creative 7. Electrical Distribution 8. Food & Beverage 9. Fast Moving Consumer Goods 10. Golf 11. Home Appliances 1. 12. Imaging Supplies 13. IT 14. Lighting 15. Luxury Goods 16. Personal Care 17. Pharmaceutical 18. Power Tools 19. Refrigeration & Air- Conditioning 20. Sporting Goods 21. Toys & Licensed Goods 22. Wireless & Integrated Circuit Quality Brands Protection Committee China Association of Enterprises with Foreign Investment 9 Engaging Government, Agencies & Courts Central Government Solicits Comments from QBPC/“Industry” 15- 20 opportunities annually - Draft Amendments, Rules, Case Transfer Procedures, New and Amended Laws (i.e. Draft Anti-Monopoly Law ) Chinese Government Participants at QBPC Events 2011-2012 - Director Generals (DG), Deputy DGs & Directors of General Administration of Customs (GAC); Ministry of Commerce (MOFCOM), Ministry of Public Security (PSB); State Intellectual Property Office (SIPO),State Administration for Industry & Commerce (SAIC); General Administration for Quality Supervision, Inspection & Quarantine (AQSIQ); Economic Crime Investigation Department (ECID). Judges of Supreme People’s Court (including IP Tribunal & Procuratorate) and People’s Court: High Courts, Intermediate Courts & Peoples Procuratorate. Quality Brands Protection Committee China Association of Enterprises with Foreign Investment 10 Top 20 Best Practices - Winners WANG Chao, Assistant Minister (now Vice Minister) of MOFCOM Presenting Awards Quality Brands Protection Committee China Association of Enterprises with Foreign Investment 11 5 Model Cases of Harmonizing Administrative & Judicial IP Enforcement New for 2013 Selection Criteria: Case needs to be prosecuted for IP crimes , because Amount involved satisfies relevant criminal thresholds for IP crime; or Seriousness of illegal facts may constitute IP crimes. Agencies notified the IP owner, and requested the PSB to intervene PSB has accepted the case Quality Brands Protection Committee China Association of Enterprises with Foreign Investment 12 Membership Multi-layer protection strategy Detection / Response / Prevention 13 Attack Supply and Demand Re-active: Case investigations Product testing Escalation to Management Preventative: Labeling Business Processes – scrap process Manufacturing and engineering changes CF Prevention Technology Training and education BP Pro-active: Raids and supply-chain investigations Legal proceedings Company policy changes Supplier initiatives Controlled buys Customs initiatives Practical Brand Protection 14 Thank You Ron Davis Senior Director, Brand Protection Qualcomm Incorporated