Multinational Companies In China's Ipr Protection Strategy

Multinational corporations(hereinafter "MNC") are pouting their capitals and products into China with the sharp development of the local economy.However,the intellectual property(hereinafter "IP") issues in China are no doubt big challenges for all these MNCs.Most of MNCs have already paid great attentions to the issues and taken IP protection actions with different results.Quality Brands Protection Committee,which has bridged MNCs and Chinese government,was founded by China Association of Enterprises with Foreign Investment in 2000 in order to absorb MNCs' individual efforts of IP protection into a resultant force.For reaching the ideal and stable effects of IP protection,it's extremely significant for MNCs to set up IP protection strategies,which are the instructions for MNCs' IP work and invariable in a long term,and also do determine the returns of the investment of IP protection.Differing from the domestic enterprises,when MNCs establish IP protection strategies they have to face the unique issues,such like the abundant brands and products,numerous IP rights,several IP holders in a corporation,the combination of the localization of IP protection strategies and the globalization of the corporation visions,the restrictions of the legal procedures of IP protection for foreign entities in China,and so on.There are four basic principles for MNCs establishing the strategies of IP protection.They are Combination of Localization & Globalization, Combination of Objective Realization & Subjective Judgment, Combination of Stability & Flexibility,and Combination of Systematization & Feasibility.Furthermore,MNCs should also consider the objective factors which may influence the establishment of IP protection strategies,including the legal system and environment in China, the brands,the enterprise culture,the marketing strategies,the market situations of genuine goods and counterfeits,the sales modes,the budgets and the useable resources.Following the scientific process and the phases of Due Diligence Research,Comprehensive Analysis,Proposal Raising, Proposal Integration,Cost Estimation,All-around Demonstration,Tracing & Monitoring,and Adjustment,MNCs can establish the entire,systematic and successful strategies of IP protection.MNC's IP protection strategy consists of the internal protection system and the external protection system.The internal protection system usually bases on the aspects of the product manufacturing,the production flow management,human resource management and administrative permission & IP reinforcement.For the external protection system,the basic modes of protection consist of Top-down Mode,Reverse Mode and Customs Protection.Many MNCs combine the domestic modes(Top-down Mode and Reverse Mode) with Customs Protection as they have been concerned about the IP issues in the international trade more than ever.Studying MNCs' IP protection strategies in China can not only help MNCs improve the strategy establishments,but also provide the related references to the domestic enterprises.Generally speaking,the domestic enterprises don't pay enough attention to IP protection,and have neither the protection strategy nor the systematic IP protection.The huge losses have occurred due to the lack of IP protection sense and strategy.The domestic enterprise can study MNCs' way of thinking and practices from the reinforcement of the sense of IP protection,the establishment of IP managing team and operation policies,and then try to establish their own IP protection strategies.