Foreign brands are getting more popular in China. It is no surprise that foreign brands want to take advantage of it and tap into the vast Chinese market. Many of them participate in trade fairs in China, like SIAL in Shanghai, to increase brand awareness. Going to a trade show is a very good way to present your product and network. Not many of them know that without taking precautions, they may lose their assets, namely their logo and more. How to protect yourself from logo theft at a trade show in China?
What is logo theft?
Logos are a part of a brand’s identity that distinguishes a company’s products and services from its competitors. Logo theft is the unauthorized use, replication, or imitation of a company’s logo by another without permission. Since logos are typically protected under trademark law, logo theft is considered a violation of intellectual property rights.
Exporting to China and logo theft at trade shows in China
Preparing for a business trip to China as a trade show exhibitor is exciting. When planning to exhibit at a fair, you should also remember about additional issues.
Brands often think that they do not need to register a trademark in China before the trade show because they are just learning about the Chinese market and export possibilities. However, this is a huge mistake.
When to register your trademark in China?
If you plan to export goods to China, you should not wait to register until the last minute, for example, only after finding a business partner or just before shipping your products, because it may be too late.
You should apply for trademark registration as soon as possible, as the process is time-consuming, and you may be a victim of trademark squatting.
⚠️ You must register your trademark (logo) in China before starting any activities, including going to a trade show.
At the trade show booth, you present your product/service, brand, and logo. For this reason, trademark registration is absolutely essential. Neglecting trademark registration in China can cost you a lot, as in the case of Apple and Tesla.
Logo theft at a trade show in China
Unfortunately, logo theft at Chinese trade shows is a widespread practice. This is due to China’s trademark law’s “first to file” principle. In other words, a person who does not use a logo can submit an application to trademark it, and if they do so first, they will be granted the sole right to the logo. Fraudsters often take advantage of this law by registering foreign trademarks and then demanding large fees from the rightful owners to buy them back.
Unfortunately, we regularly encounter complaints from exporters who did not register their logos before going to China, and their trademarks were stolen after the trade show. At the trade fair, the Chinese have the opportunity to see various companies wanting to enter the Chinese market. Therefore, trademarks are commonly seized after trade fairs.
Risks of not registering trademarks in China
Logo theft in China is common because exporters can spend several thousand dollars/euros on a stand at a trade show; it will not be a problem for them to spend several thousand dollars/euros for a lost trademark. They know that without the trademark, they cannot export to China.
If you do not have the rights to the logo, the cargo will be detained at the border, and you will be accused of trademark infringement. Exporters, therefore, need to get their logo back to be able to ship their products to the Chinese market.
Read more on the consequences of not registering your trademark in China.
Why should you register a trademark in China before attending a trade fair?
Even if you are not currently exporting to China and are just thinking about going to a Chinese trade show and getting to know the Chinese market, we recommend registering your trademark in China now. Registering a trademark is one of the first things you should do when planning to export to China. Protect yourself from losing your core assets and money – think ahead and register your trademark now.
Register your logo beforehand if you are going to a trade fair in China as an exhibitor. ExamineChina offers a comprehensive trademark registration service in China.