With economic relations between Luxembourg and China now more developed than at any point in history, intellectual property legislation harmonisation between the Asian country and the European Union has paved the way for businesses wishing to expand in new markets.
The benefits of intellectual property legislation
Luxembourg exports to China in 2021 account for €224m or 8.3% of total extra EU exports, a term which signifies all transactions with countries outside of the EU. “This makes Luxembourg businesses particularly exposed to intellectual property (IP) infringement there, meaning that they need to ensure that their IP rights are correctly protected and enforced in China,” European Union Intellectual Property Office (EUIPO) spokesperson Julio Laporta told Delano.
IP Key China, the implementation of which is ensured by EUIPO, also facilitates keeping an open dialogue with China’s national intellectual property administration (CNIPA), the only intellectual property authority in China which has competence on patents, designs and trademarks.
IP crime appears to criminals as a relatively low-risk activity that is used to support other types of organised crime, including money laundering, document fraud, cybercrime, financial fraud, drug production and trafficking
A patent law adopted by the Chinese authorities in 2019 is regarded a step towards the country joining the Hague System for international registration of designs in February 2022. With the implementation of intellectual property law in the Middle Kingdom, the EU can expect the Chinese government to focus more on the quality of the system with more efficient enforcement and further specialisation of the administrations, Laporta reckons.
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Intellectual property infringement is no petty crime and according to EUIPO estimations the annual value of imports of counterfeit goods into the EU is €121bn, representing 6.8 % of the bloc’s imports from the rest of the world. In addition to economic losses, fake medicines or counterfeit children’s toys can cause environmental damage and or endanger the health and safety of consumers. “IP crime appears to criminals as a relatively low-risk activity that is used to support other types of organised crime, including money laundering, document fraud, cybercrime, financial fraud, drug production and trafficking,” says Laporta.