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Show stealers cautioned

By WAN ZHIHONG (China Daily)
Updated: 2006-03-27 08:20

New products displayed at exhibitions are easy targets for intellectual property rights (IPR) infringements, but a new set of regulations issued earlier this month specifically targeted at exhibitions should change this situation.

"IPR protection is a pressing issue at exhibitions now," says Zhang Qiang, a top consultant on China's exhibition market.

"Some people attend these events simply to copy new industrial designs, but organizers have been reluctant to take action. Luckily we can now use the new regulations to cope with infringement cases."

The Chinese Ministry of Commerce, the State Administration for Industry and Commerce, National Copyright Administration of China, and State Intellectual Property Office jointly issued the regulations.

"Exhibition organizers now have to strengthen IPR protection at exhibitions," says Zhang.

Organizers are now required to establish an office to handle IPR infringement complaints if the event they are hosting is longer than three days. Any exhibition organizers and participants found infringing on IPR can be barred from holding or participating in exhibitions again.

"The new regulations have provided a guideline for the entire exhibition industry. Before, big exhibitions typically came up with their own methods for handling IPR disputes," says Zhang.

Last year more than 10 enterprises were expelled over IPR disputes from the Chinese Export Commodities Fair (Canton Fair), the most famous exhibition in the country. Under the event's own rules at the time, these companies were also banned from attending six upcoming export fairs scheduled for the next three years.

"The violations were mainly design infringements," says Zhang.

"Most IPR violations at last year's Canton Fair involved industrial, mechanical and electrical equipment."

Foreign companies have paid more attention to IPR protection at these events, however. A number of multinational enterprises use agencies to look into IPR violations at big exhibitions and report violations to fair organizers, says Zhang.

The China Hi-Tech Fair, a big annual trade conference in Shenzhen last year, has also set out its own IPR protection and management guidelines. These rules were based on experiences at different industrial exhibitions in Shenzhen over the past several years, says Zhang.

Exhibitors were selected for the fair according to the strict IPR guidelines the organizers had set. Each exhibitor was required to sign an IPR commitment letter before they could participate, in which they promised to respect the IPR of other exhibitors.

Disputes were resolved through mediation. Two IPR issues at last year's fair were dealt with in this manner, for example.

"In the past, exhibitors sometimes even argued in the hall. Disagreements are resolved much more efficiently now," says Zhang.

"The guidelines help keep the fair 'clean.'"

A growing number of exhibition organizers have begun to understand the importance of IPR protection. For example, legal issues are a top priority as Shanghai prepares to host World Expo 2010, say top Expo officials and legal experts.

"Hosting the World Expo and improving the legal environment should be two interactive processes," says Zhang.

"An event as big as this will undoubtedly lead to new legislation related to exhibitions."

The Shanghai Municipality has been working to strengthen IPR protection before the World Expo is held, and the Bureau of Shanghai World Expo Co-ordination has already issued documentation related to IPR issues. The notice states that organizations and individuals are forbidden from using World Expo logos and other marks without permission. The use of any graphics or slogans associated with the World Expo must be in strict accordance with the standard samples that have been provided, and any changes have been deemed unacceptable.

Any companies or individuals found in violation of another enterprise's IPR are required to stop immediately within 15 days. Parties that fail to follow these rules risk facing legal action.

The first such case has already been dealt with. Defendant Shanghai Honghui Real Estate Development Co Ltd was ordered to stop violating the exclusive rights of the World Expo bidding logo and several other related copyrights, including one belonging to the Bureau of Shanghai World Expo Co-ordination.

Zhang says the thousands of contracts to be signed for the World Expo will require a massive legal effort.

"We are now studying a proposal to set up a consultative body to answer questions on a number of legal issues concerning the Expo. This will be geared at countries and businesspeople participating in the Shanghai World Expo in 2010," says an official with the bureau.