Trademark gaps in China may pose a threat to online business
China has strange rules for using the Internet. It is quite complex, and Chinese lawyers are always on the alert to explain things to their clients about Internet use in the country. Using the Internet, in particular, for gaming companies is even more difficult, and they usually hire lawyers to discuss the pros and cons. China’s Internet rules are absolutely different from Western countries and that’s hard for foreigners to understand. Having a clear idea about Chinese rules and regulations makes everything easier for foreign customers and companies.
Trademark registration in China
Trademark registration in China for the purpose of using the Internet is again complicated. It is not wise to confuse the process with that of the United States and Vietnam, since here the story is totally different. To begin with, you have to find out the class or category under which the trademark must be registered. Putting it in the correct class will avoid any kind of confusion and help in the registration process. The biggest legal loophole in the process and its intention is that the company that registers the trademark does not receive any type of protection against duplication. If the brand logo is used on a book or a t-shirt, the company has no power to do anything about it. In addition, the company applying for trademark registration will only be registered when it files the documents in Chinese.
In China, this is almost like an unwritten rule; all legal proceedings must be conducted in the Chinese language. Otherwise, there is a great possibility that it will not be completed and the purpose will fail. Also, one has to digest the fact that there is no copyright protection in China.
The special treatment for the gaming industry in China
China’s Internet gaming industry suffers from many shortcomings. The rules and regulations are numerous and are almost impossible to understand. To be precise, any kind of foreign content posted on Chinese websites is illegal. Foreign content on your own website is also illegal. However, this illegal business works in China, but some people have also been jailed for this. Sometimes few of the business or website owners earn a lot from this flawed system. This is a huge flaw in the Chinese legal system. Some people end up in soup because of this, while others take illegitimate advantage of flaws.
The most unfortunate part is that there is no consistency in the system that is harmonizing the entire Internet fraternity and supported industries. These confusing rules and the disparity within the system have created havoc and mistrust among businesses towards the government.
Monetary Expense for Registration
Registering a trademark in China is expensive. Setting up the Internet and also using it together costs a lot. This is another big disadvantage of using the in China. This is especially true for foreign companies. There is another option for business people to do everything cheaply. However, that could lead them in the wrong direction. Every cheap transaction cannot be of good quality. Business owners can definitely be brought down by people who help with the registration process. It is not safe to do this cheaply. You may have to pay at the end for that. Some of these people are scammers and thieves who may commit identity theft. This is obviously detrimental to the companies they practice.
Recovering a brand is a very difficult, convoluted and complex process. It takes a lot of money and time on the part of the business owner if their brand is stolen even once. People are advised to be careful not to face this terrible consequence due to ignorance. Consulting with a trained attorney versed in the Chinese system could help the foreign business owner with regards to internet theft and fraud in China. It is always advisable to work with an experienced attorney. Also, doing some research on your own might be helpful. One has to be extremely careful while setting up a business in China and also while using the Internet. Nothing is simple there and nothing should be taken at face value.