Across China: Shanghai

IP financing

To speed up the capitalization and industrialization of science and technology achievements, Shanghai is being proactive when it comes to intellectual property (IP) pledge financing.

On Oct 11, the Shanghai Intellectual Property Trade Center, which is operated by the Shanghai United Assets and Equity Exchange, was formally opened.

The new center will offer evaluations, transfers and other platforms for IP pledge financing.

Meanwhile, an investment and financing service chain for science-related and technology-based small and medium-sized enterprises (SME) has been formed in the Shanghai equity market following several years of development.

The service chain will offer assistance with share pledges, financing guarantees and other services, and also provide the expertise and support of participating banks and investment institutions and funds.

IP trading is becoming more active in the Shanghai market. From 2008 to 2009, the volume of IP business exceeded 10 billion yuan in the Shanghai market.

For the first nine months of this year, the Shanghai United Assets and Equity Exchange reported a 10 percent increase in the volume of IP business, compared to the same period in 2008.

Meanwhile, at the recent 2009 Science & Technology and Finance Innovation Forum, many experts said they believe science and technology innovations need more financing support.

Adidas case

Shanghai No 2 Intermediate People's Court issued verdicts for two IP infringement cases at one time.

In the case of Adidas vs Zhonglian and Bailuchi, the latter was charged 20,000 yuan and 100,000 yuan compensation, respectively, and were required to stop infringements and publish declarations approved by the court in future editions of the Xinmin Evening Paper.

Adidas registered the "three bars" trademark for its sneakers with the State Administration for Industry and Commerce on March 17, 2000. After realizing two companies called Bailuchi and Zhonglian had infringed its trademark rights, Adidas went to Shanghai No 2 Intermediate Court, and asked for compensation and an apology.

After a hearing, Shanghai No 2 Intermediate Court sided with Adidas. The other companies that were sued had used three bars similar to those used in the Adidas trademark for their sneakers, the court ruled.

In another case of trademark infringement, the court ruled that Zhu Jingjing sold counterfeit Gucci, Dior and other famous brand goods on Taobao, China's online commerce site. Zhu was sentenced to 10 years in prison and fined 5,000 yuan.

(China Daily 10/19/2009 page9)