This blog post was co-authored by Anna Mae Koo (Vivien Chan IP Services) and Erika Yawger (Apple Inc.).
On June 1, 2017, the recently passed Cyber Security Law (the “Law”) will come into effect in in China. The Law is widely applicable to all entities with Chinese operations, and in many ways simply codifies traditional government restrictions on Internet usage. In general, the new Law tends to reinforce the Chinese government’s determination to maintain Internet safety and national security, while protecting the domestic public’s interests through censorship and regulations. Several key portions of the new Law are summarized below.
Article 2 stipulates that the “construction, operation, maintenance and use of the network within China” shall be governed by the Law, essentially covering all networks that are being used in China. Article 75 further establishes that other than injunctive measures, the assets of foreign entities or individuals engaging in activities that endanger the critical information infrastructure may be frozen. While it remains uncertain as to how this will be enforced on foreign entities, network operators are subject to additional obligations, as described below.
Article 21 requires network operators to implement a “graded network security protection system” to monitor and record the status of network operations and preserve network logs for at least six months. Network operators are also required to identify the users’ real identity when signing service agreements (Article 24).
“Critical Information Infrastructure” Operators
Sectors that are considered “critical information infrastructure” have heightened monitoring requirements and are subject to other enhanced regulations under the Law. Article 31 provides a list of types of activities that could be considered “critical information infrastructure,” including public communications and information services, energy, transportation, water conservancy, finance, public services, and e-commerce governance. The services enumerated are not exhaustive, and the Law leaves open the possibility that any service that might endanger national security, welfare, popular livelihood, or public interest if destroyed or hacked could be subject to these heightened regulations.
The Law states that “critical information infrastructure” operators must store important data within China (Article 37), and that overseas disclosure of such information is allowed only after security assessments by the authorities. Companies will also be subject to additional monitoring and security checks.
There are new provisions that limit the type and amount of personally identifiable information that can be collected and transferred (Articles 41–43). In addition, the identities of informants of contraventions to the authorities will be kept confidential (Article 14), and use of end users’ data shall be limited and only used if it is in the course of protecting cybersecurity (Articles 30).
The Law imposes heavy fines and other penalties for noncompliance. Companies can face fines of up to US $150,000 for violations of the Law, and agencies have broad authority to revoke business licenses and shut down websites for serious violations (e.g., illegal storage of data abroad by Critical Information Infrastructure providers; assisting or engaging in activities that endanger cybersecurity; failing to request users’ real identity information, etc.).
The Cyber Security Law introduces serious penalties and sanctions, affecting all entities that use or control a network used in China. We are still awaiting clarification on the implementation and enforcement of these sanctions; however, an audit of one’s own network use in China is recommended to avoid potential contravention of the Law.
This year, INTA is once again an official supporting association of Raconteur’s (The Times) annual intellectual property special report, which was published in The Times on April 26.
Together, Raconteur and INTA have created an engaging 20-page report that illustrates the value of IP and educates the senior business community as to why IP strategy should be recognized as a core competence. Collating the thoughts of renowned academics, industry commentators, and some of the most high-profile thinkers in this field, the report investigates the rapidly changing terrain of IP and showcase IP’s most exciting developments and initiatives
With the Brexit negotiations looming, INTA CEO Etienne Sanz de Acedo contributed an op-ed article for the report, providing insight into how innovation, driven by brands in order to remain competitive, is not only beneficial for companies but for national economies and consumers too.
You can read and share all of the articles from the report online here, and download the full PDF version of the report here.
April 26 is celebrated as World Intellectual Property Day. The World Intellectual Property Organization (WIPO) uses this opportunity to increase the visibility of intellectual property rights (patents, trademarks, industrial designs, copyright) and their role in encouraging innovation and creativity. This is certainly a worthwhile effort in an era when our societies have yet to fully embrace the concept and benefits of IP protection, even as the means of best implementing such protection must continually evolve as the technological landscape rapidly changes.
This year, World IP Day directs its attention to exploring “how innovation is making our lives healthier, safer, and more comfortable, turning problems into progress.” (WIPO, http://www.wipo.int/ip-outreach/en/ipday/.) The intention is to look at “how the intellectual property system supports innovation by attracting investment, encouraging creators to develop their ideas, rewarding those creators, and ensuring that their new knowledge is freely available so that tomorrow’s innovators can build on today’s new technology.”
This goal largely overlaps with the aims of the International Trademark Association (INTA) and, specifically, with the objectives of INTA’s Brands and Innovation Committee (B&IC). Its mission is to examine the relationship between brands/trademarks and innovation, with a focus on how brands promote innovation and drive the economy, and how innovation impacts brands, brand owners, and trademark-related issues. The committee aims at producing policy recommendations and developing resources for INTA members to anticipate and respond to the impact of innovation on their brands, their companies, and their industries.
One of the committee’s first achievements is the development of working definitions of brand and innovation. Brand means the total identity of a product, service, organization, individual, or any item to which people relate and connect intellectually, psychologically, and emotionally. Brand is a complex, multi-layered promise by the owner of a consistent level of quality, and of what will be delivered and experienced. There can be no doubt that, in accordance with the definition, a brand will change as the social context in which it exists changes.
Regarding innovation, the proposed working definition is: a change that makes a difference in any particular societal context and that alters the manner in which markets or society interact or operate.
In order to be able to trace the societal changes influenced or triggered by innovation, B&IC coordinates its work with other INTA committees such as the Emerging Issues Committee and the Designs Committee. Issues being considered include new technologies such as three-dimensional (3D) printing, artificial intelligence, and robotic process automation as well as wearable computing. Additional topics will probably consist of brain-machine interfacing , virtual reality and IoT (Internet of Things). We may also need to reflect on the potential impacts of important breakthroughs in the nano field and CRISPR and gene modification technologies. It is, however, challenging to determine priorities, since these technologies are developing rapidly, constantly shifting in their prospects and possible impacts while simultaneously converging and morphing.
INTA and its members are excited about the potential of these technologies for our societies in terms of progress and change. However, we are also mindful of the need to use and introduce these technologies in responsible and sustainable ways and to ensure a high level of ethical consideration—even higher perhaps than with traditional technologies. In this sense, we should keep in mind that the force of the innovation is such that, when amplified through the power of the markets, disruption becomes a constant rather than the exception. Altogether, it is becoming abundantly clear that intellectual property is moving far out of the traditional confines of the Paris and Berne conventions and is entering into uncharted territories where ethical boundaries will become paramount.
Those of us who have trust in the potential of technology to bring positive change to our societies would not like to see innovation being perceived negatively, as is the case, for instance, for globalization. Although many of us were hopeful that globalization would be a process bringing individuals and societies closer and enabling increased interaction and collaboration, many of our fellow citizens are feeling that the consequences of the process are the opposite. It would be tragic if the power of innovation attracted and generated the same negative connotation. This is why we need to study the changes closely, understand them, and harness their dynamism so as to embrace them fluidly rather than clash against them.
Mladen Vukmir (Vukmir & Associates, LLC, Zagreb, Croatia) is the Brands and Innovations Committee, Vice-Chair at INTA.
INTA is busy this week celebrating World IP Day.
India │ INTA will be attending the National IPR Conference on the “Expanding IP Ecosystem in Industry,” followed by the National Intellectual Property Awards ceremony, in New Delhi tomorrow in celebration of World IP Day. This one-day event is held each year to recognize and reward the organizations and people that have contributed to harnessing the country’s intellectual capital and have helped to create an ecosystem that boosts creativity and innovation. This event takes place tomorrow, April 27.
Indonesia │ On April 25, INTA sponsored and participated in a World IP Day trademark examiner training program in Indonesia. The training focused on well-known and nontraditional trademarks. The event was coordinated in cooperation with the Indonesian Anti-Counterfeiting Society (MIAP) and contained a diverse set of topics on the enforcement of trademarks. Speakers from INTA, the Directorate General Intellectual Property Rights (DGIP), and MIAP participated in sharing best practices in prosecution and enforcement with the attendees.
Singapore │ In Singapore yesterday, the Unreal Campaign presented on the importance of trademarks to 240 students at Crescent Girls’ School. Our thanks to Low Pei Lin and Ms. Gloria Goh from Allen & Gledhill, and Alvin Lee, Director at Government and Public Affairs at LEGO Singapore Pte Ltd, for making this presentation.
Vietnam │ The Unreal Campaign is celebrating World IP Day all week long by educating young consumers on the importance of intellectual property and the dangers of counterfeit goods. Today in Hanoi, Vietnam, 2017 Unreal Campaign sponsor Tilleke & Gibbins is organizing an event for 100 students at Hanoi Law University (HLU).
United States │The Unreal Campaign is also in Anaheim, California, this week discussing the dangers of counterfeit goods with students from DECA—a not-for-profit student organization with more than 215,000 high school members interested in careers in marketing and entrepreneurship. The event this week in California has over 19,000 students in attendance!
And today, in Washington, D.C., the U.S. Patent and Trademark Office (USPTO) will be moderating a World IP Day panel. INTA President, Joseph Ferretti (PepsiCo, Inc.) will be sitting on that panel in collaboration with:
- John Sandage, Deputy Director, General World Intellectual Property Organization;
- Frank Cullen, Executive Director, U.S. Policy, Global Intellectual Property Center, U.S. Chamber of Commerce; and
- Lisa K. Jorgenson, Executive Director, American Intellectual Property Law Association (AIPLA).
There will also be keynote presentations by Mario Bollini, Co-founder and Chief Technology Officer at Global Research Innovation and Technology, Inc., and Tobie Hatfield, Senior Director of Athlete Innovations and Explorations at Nike, Inc.
For more information on INTA’s World IP Day activities, check out an upcoming issue of the INTA Bulletin.
This past March, the Unreal Campaign landed in Milan with an event hosted by ISS Bertarelli Ferraris, an academic institute established in 1965 that is now considered one of the most open transcultural academic institutes in Lombardy, a region in the north of Italy.
As the International Relations Manager of Martegani & Partners and a member of INTA’s Public and Media Relation Committee, I teamed up with Andrea Terragni, a lawyer representing Puma SE, and we met with the school’s representative, Professor Capristo. Professor Capristo helped arrange the Unreal Campaign event and made sure we had all the technical support required. On March 30, 2017, at 9:00 am, Andrea and I led the Unreal Campaign presentation in front of an audience of almost sixty 17- to 18-year-old students.
We started the Unreal presentation by introducing ourselves and giving a brief overview of INTA activities. We then posed a few questions to help us understand the students’ opinions on counterfeiting issues and on trademarks in general. The students then became deeply involved in the discussion and paid close attention throughout the PowerPoint presentation.
We played a quiz game, showing the students both genuine Puma products and fake products and asked them which they believed were fake and the reasons for their choices. This gave Andrea the opportunity to show them the differences in quality between the real and counterfeit products. She also gave the students some tips on how to discern genuine Puma shoes and jerseys.
To our surprise, many students were aware of counterfeiting issues and the consequences of counterfeiting for the community. The Unreal presentation substantially increased their understanding and knowledge of these counterfeit issues.
At the end of the nearly-two-hour presentation, we thanked everyone for their attention and expressed our appreciation for all that Professor Capristo and the other teachers did in support of the program. We invited all the attendees to visit the Unreal Campaign webpage and to keep following INTA activities.
To learn more about INTA’s Unreal Campaign, please visit the landing page here or contact Laura Heery (email@example.com), Senior Coordinator of the Campaign. Thank you to the 2017 Unreal Campaign sponsors for making these events possible:
On March 22 and 23, 2017, INTA hosted its Brands and Fashion Conference in New York City. With over 350 registrants from over 50 countries, it was a huge success! After the panel titled Advertising and Promotion in the 21st Century Global Marketplace, we asked attendees, “What was the most interesting piece of information you learned?”
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Then, after the panel titled Protecting Your Brand at the Border: A Close Look at Using Law Enforcement and Customs to Fight Counterfeit Goods, we asked registrants the same question again—“What was the most interesting piece of information you learned in this session?”
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For more INTA YouTube, click here.
As you plan your travel for the INTA Annual Meeting in Barcelona, make sure to add the Grand Finale to your schedule. Throw a festive outfit and dancing shoes into your luggage if you can! After several days of educational sessions, committee discussions, and business, you will want to join your colleagues and friends for the Grand Finale celebration. The Grand Finale provides a great opportunity to entertain your clients and network with all Annual Meeting attendees.
On Wednesday evening, May 24, 2017, plan to join 9,800+ of your intellectual property friends for a blockbuster celebration at Barceloneta Beach, with food from famous seaside Barcelona restaurants, festive cocktails, and music. The Grand Finale will include dinner and festivities at Barcelona’s trendiest spots, including Icebar, which is kept at a temperature of -5ºC (20ºF), and is the world’s first ice bar at a beach. Or stick with something more tropical and visit one of the the Barceloneta’s Mediterranean-themed venues. Gather with your friends and meet new ones, too, as you indulge in global cuisine and sweet treats while listening to music just steps from the sea. Whether you are a fan of percussion, classical music, or flamenco, you will have the opportunity to see and hear performers showcasing Spanish culture and global music.
We look forward to celebrating the 139th INTA Annual Meeting with you at the Grand Finale. During the day, charge your phone and then plan to take photos with your friends (old and new) throughout the evening. We also encourage you to follow the social media buzz (and add to it) using the hashtag #INTA17 and follow INTA on twitter at www.twitter.com/INTA.
We can’t wait to see you in Spain! Safe travels!
In March, the top policy-making bodies in China met for the annual “Two Sessions” or liang hui in Beijing.
In his Annual Government Work Report to the National People’s Congress, Premier Li Keqiang said the government will “…improve the system for creating, protecting, and applying intellectual property rights.” Premier Li placed a heavy emphasis on innovation and improved quality. The annual report signals the government’s policy priorities and strategic vision for the coming year.
At a press conference on the sidelines of the liang hui, State Administration of Industry and Commerce (SAIC) Minister Zhang Mao also called for stricter punishment of counterfeiting.
Weeks before, Alibaba’s founder, Jack Ma, made headlines when he stated that in cases against counterfeiters China’s government should enact criminal penalties as stringent as China’s drunk driving laws. Noting that China’s criminal code dates from the late 1990s, Mr. Ma recommended a sensible revision of the law.
Mr. Ma was not alone in his call for reform. Lenovo founder Liu Chuanzhi called for the Chinese government to “increase the cost of counterfeiting” through stricter laws.
Xiaomi founder Lei Jun also joined the chorus, calling fakes “a cancer” and saying that counterfeits seriously damage the image of the country.
Liu Yonghao, the chairman of New Hope, a major Chinese agribusiness firm, also called for resistance against counterfeits, mentioning that counterfeits negatively impact innovation.
Chinese Officials at INTA’s Annual Meeting
For several years, INTA has advocated for changes in China’s criminal code to improve anticounterfeiting efforts, including reducing criminal thresholds.
INTA is pleased to welcome representatives from China’s Supreme People’s Court, the SAIC, and National Leading Group on the Fight against IPR Infringement to this year’s Annual Meeting in Barcelona. We expect these policy makers to engage with our policy advocacy committees and deliver updates on the direction of these new efforts to confront counterfeiting.
We look forward to having these and other officials join INTA’s newly expanded anticounterfeiting programming, including the Anticounterfeiting Workshop for government and corporate attendees on Friday and Saturday, May 19–20, at the Annual Meeting.
The China-focused programming at this year’s Annual Meeting is expanding. A CTA-organized panel session will take place on Monday, May 22, from 3:30 pm to 5:30 pm, and CTA will co-host a China Reception that same day from 6:00 pm to 7:00 pm.
Currently, the more than 549 registrations from China are at record levels for an Annual Meeting outside Asia.
Learn more about INTA’s upcoming Annual Meeting here.
INTA is pleased to once again be contributing to The Times and Raconteur’s annual intellectual property (IP) report.
As an official partner for the report, INTA will gain access to The Times and Raconteur’s broad readership, which comprises C-Suite business executives, boardroom decision makers, and policymakers. This is a critical audience for our Association and for our goal of communicating broadly the value of trademarks and brands to economies, businesses, and consumers.
Last year, INTA CEO Etienne Sanz de Acedo penned an article for their 2016 report, describing how trademarks and intellectual property play a vital role in developing brands, promoting competition, driving economic growth, and protecting consumers. The full report and Mr. Sanz de Acedo’s op-ed can be accessed here.
The 2017 report will examine the key developments and meta-trends of IP, collating the thoughts of renowned academics, industry commentators, and some of the most high-profile thinkers in this field. The report will also investigate the rapidly changing terrain of IP as well as showcase IP’s most exciting developments and initiatives.
This special report will be published on World IP Day, April 26, 2017. We will be sure to notify everyone as soon as it is available. Watch this space!
On March 1, INTA’s CEO Etienne Sanz de Acedo travelled to Ottawa, Canada to present at the Canadian Senate during an open caucus focused on counterfeiting.
The purpose of this presentation was to discuss the challenges of combatting counterfeiting and the ways in which the Canadian government can work with stakeholders to find solutions to this ongoing threat.
Read more about this event in a previous INTA Blog post and watch Etienne’s full remarks below:
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You may also click here to view the full video on YouTube.