Ruyan protects patents abroad

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By Wang Xiaotian and Ding Qingfen (China Daily)
Updated: 2009-08-24 08:02

Sixteen patents

Ruyan holds 16 patents on its e-cigarette.

The company is paying more attention to protecting its invention and utility patents abroad, since overseas markets account for half of the company's annual sales.

Ruyan has registered patents in more than 50 countries, regions and territories, including North America and the European Union. The company also is using local distribution agencies in those countries to help protect its patents.

In February 2008, the company signed a cooperative agreement with Nicocig Ltd of the United Kingdom.

"It is anticipated that legal action against parties suspected of infringement of the company's intellectual property rights in the United Kingdom is imminent," Ruyan's 2008 annual report stated.

While overseas legal cases can cost in escess of $1 million, Ruyan partners said the biggest barrier in Ruyan's IPR battle is not the money.

"The battle with traditional cigarette makers is the thorniest issue," said Liu Debin, president of China International Tendering Co and chairman of Genertec Consulting Co Ltd, an international promotions partner of Ruyan since 2005.

"Tobacco forces overseas are trying their best to suppress e-cigarettes by distributing rumors and urging governments -- the beneficiaries of tobacco taxes -- to establish high barriers to market entrance," Liu said.

Liu said that e-cigarette manufacturers should not regard the product as substitutes, but complements to traditional tobacco.

Domestic copycats

Another challenge is domestic copycat behavior, Miu of Ruyan said.

Ironically, most of the copycat brands abroad have their products manufactured in China.

"That often makes us embarrassed when we ask for more support from foreign governments to protect our Intellectual property rights," Miu said.

Liu of Genertec Consulting said the Chinese government understandably is focusing more on the economic slowdown.

"The Ministry of Commerce has made a lot of efforts in the past, but now they have a lot of more important things at hand, especially given that the e-cigarette industry has not fully formed," Liu said.

In 2008, Ruyan reported HK$277.90 million in revenues for its atomizing cigarettes, reflecting a year-on-year growth rate of 105 percent.

In addition to retail outlets in Canada and the United States, Ruyan opened a shop under the "Luk Fook" brand name in New York in December 2007.

Ruyan plans to open another US shop in Las Vegas in the near future.

(For more biz stories, please visit Industries)

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