Originally posted 2014-11-06 11:00:06.

By Diana Chan | amdlawgroup.com

China IPChina is taking strides to establish specialized courts to handle intellectual property cases. Over the next two weeks, China plans to set up its first specialized court in Beijing, and by the end of the year, intellectual property courts will be set up in Shanghai and Southern Guangzhou. China has been criticized for its lack of enforcement of intellectual property rights, but in recent years, it has made several developments to its intellectual property laws.

Foreign firms often complain about not being able to protect their brand in China. Kering SA’s Luxury division, comprising of brands like Yves Saint Laurent, Bottega Veneta, and Balenciaga, previously filed a lawsuit against Alibaba Group Holding Ltd. in the U.S., arguing that counterfeits thrive on the e-commerce platform, which is popular in China. Later the suit was withdrawn after the companies agreed to cooperate on developing IP protection.

Not only are luxury brand products being counterfeited and sold, but the amount of counterfeit pharmaceuticals has also multiplied, posing a potential danger to consumers’ health.  The creation of these courts certainly shows that China is making efforts to establish a system that enforces intellectual property rights.  Going forward, the U.S. will likely observe whether or not this specialized court is effective in enforcing rights.

With this recent development, China is showing its dedication to maintaining intellectual property rights. As foreign companies move into and exist in China, protection of intellectual property is essential to ensuring protection of the brand especially in a country that thrives on exporting goods globally.

Resources: http://www.bloomberg.com/news/2014-11-03/china-opens-intellectual-property-courts-to-improve-image.html

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