Well-known Trademark Protection In Foreign Mergers And Acquisitions

After we joined in WTO, the entrance of foreign investment becomes easier. M&A by foreign capital becomes more and more frequent in China. M&A by foreign capital is a double-edged sword. M&A by foreign capital can bring capital, technology and management experience to domestic enterprises and help to optimize and upgrade the industrial structure. But we also have to see the negative effects of M&A by foreign capital. The well-known trademark crisis because of M&A by foreign capital has triggered comprehensive thinking and anxiety of Chinese people. The well-known trademarks of domestic enterprises usually have great value, but sometimes in the activities of M&A by foreign capital the value is greatly underestimated and even completely ignored. Some well-known trademarks gradually become weak and vanished after M&A. This thesis starts from this point, analyses the crisis of Chinese well-known trademarks in M&A by foreign capital and puts forward some corresponding suggestions in the end.This thesis is composed of four parts. Chapter one introduces the relevant conception of M&A by foreign capital, defines the boundary of M&A by foreign capital mentioned in this thesis. M&A is the abbreviation of merger and acquisition. Merger includes consolidation merger and merger by incorporation. Acquisition includes asset acquisition and stock acquisition. Chapter two introduces the conception and the value of well-known trademarks and the definition and special protection of well-known trademarks in international treaties and Chinese laws. The emphasis of this thesis is Chapter three and Chapter four. Chapter three analyses the crisis of well-known trademarks in M&A by foreign capital. The ownership of some well-known trademarks transfers to foreign invested enterprises and becomes weak and vanished after being controlled by foreign capital. Some times the value of well-known trademarks is greatly underestimated and even be completely ignored. On the basis of analyzing the above trademark crisis in M&A by foreign capital, Chapter four puts forward some corresponding suggestions. The domestic enterprises should strengthen trademark protection awareness, improve trademark protection strategies, have correct understanding of foreign capital and put an end to the trademark crisis. The government should improve the examination and approval system of M&A by foreign capital regarding well-known trademarks; strengthen the value evaluation of well-known trademarks by improving the legislation on value evaluation of trademark and other intangible assets, regulating the intangible assets value evaluation agencies and adopting correct value evaluation methods. It is also suggested that the hearing system should be improved to make use of the public protective function of well-known trademarks. The domestic enterprises should try for the control right of the foreign investment enterprises, carefully set the trademark clauses in the contract in order to protect their own well-known trademarks.