China and Japan Sign Second IP Agreement - International Law Office

In June 2009 the Japanese Ministry of Trade, Economy and Industry signed a first memorandum of understanding with China's Ministry of Commerce whereby the parties agreed to cooperate on the protection of IP rights in an effort to strengthen economic stability in the region. On August 24 2009 the Japanese Ministry of Trade, Economy and Industry and China's State Administration for Industry and Commerce signed the Memorandum of Understanding for Intellectual Property Protection Exchanges and Cooperation.

According to Chen Deming, the Chinese minister of commerce, the June agreement aims to create a legal framework to enforce crackdowns on IP rights violations. Chen also commented that China and Japan will use a working group mechanism to solve problems in respect of IP rights protection. The working group will focus on sharing information on IP laws and regulations, as well as exchanging experiences in law enforcement.

Following the signing of the June agreement, the Japanese government decided that it needed to bolster communications with the China trademark administrator due to the high number of counterfeit Japanese products manufactured in China and the related infringement of Japanese enterprises' trademarks in China. In order to address this concern, the Japanese Ministry of Trade, Economy and Industry and the Chinese State Administration for Industry and Commerce signed the August memorandum to further protect IP rights in both countries. The memorandum is intended to foster bilateral communication and cooperation in areas such as trademark registration systems, the policing of counterfeit products and the prevention of unfair competition. Among other things, Japan and China will cooperate on:

• trademark registration, examination, opposition, re-examination and management;
• crackdowns on counterfeiting operations;
• prevention of unfair competition in relation to IP rights;
• IP rights protection, especially on the Internet; and
• raising awareness of IP rights among consumers and trademark users.

Such activities will be carried out within a framework for bilateral cooperation which the authorities will use to drive relevant efforts in their respective jurisdictions. The memorandum also defines a mechanism for communication and the deployment of the working group structure. The working group will:

• formulate an annual work plan in each field of cooperation;
• hold meetings, conduct consultations and joint research on cases involving trademark infringement and respond to inquiries about related matters; and
• convene a conference on trademark protection and clamping down on counterfeit goods.

Japan and China expect the environment for IP rights protection to improve as a result of the cooperation between their respective authorities.

For further information on this topic please contact Connie Carnabuci at Freshfields Bruckhaus Deringer's Hong Kong office by telephone (+852 2846 3400), fax (+852 2810 6192) or email (connie.carnabuci@freshfields.com).