Några av riskerna och fallgroparna när du väljer produktionsland

 In China, E-commerce, Intellectual Property, Trademark

This is the first of three parts in our new series of articles on e-commerce and the problems that can arise from a trademark legal perspective. This series is for you who run an e-commerce company and want to make sure that you have protected your products in the right way against the market that you sell. This first part is about production and why it becomes important to keep track of local conditions you set it.

Part 1 – Production

China continues to be the largest production country, especially when it comes to retailers of, for example, watches, sunglasses, sportswear, household items, children’s products, toys and so on. What not everyone knows is that the Chinese market is also very sophisticated in terms of brand creations. At Otmore, we have seen examples of Swedish brands that have been hijacked in China, just days after their companies have been published and announced via the Swedish Companies Registration Office.

This means, for example, that when a Swedish company is registered for a company, the Chinese hijackers have a system for noting the registration. They look for what kind of company it is and register the brand before the Swedish company has time to do so. This means that, for example, a watch company that has placed its production in China, can either have their watches stopped by the Chinese customs as they do not own the brand in China, or that the watch company will have problems if they are to start selling to the Chinese market. The hijackers then offer to sell the brand back at a much higher price.

This type of sophisticated and organized crime did not exist 10 years ago, but since retail started online, there has been a real increase. In Europe, most cases are picked up in that country of production, Turkey.

 So, how do you do it?

The best way to protect yourself against this type of crime is to have complete protection before deciding where to put your production. A rule of thumb is the sooner the better and at Otmore we help with the whole process.

Next week we will dive into what you should think about before you start selling your goods in new markets.

 

Article written by Sergio Villamizar & Matti Aulaskari

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