One of the questions I'm often asked about is China patents, or when conducting business in China, how well is intellectual property protected.
The answer is that when you setup a company in China it is possible to protect your patents, trademarks, and copyrights as long as you are proactive and careful. It is true that intellectual property protection in China is not as good as in many more developed countries, though not as bad as people may think.
A key thing to keep in mind is that China, despite being the second largest economy in the world is still a developing country. The majority of the Chinese population is still living in poverty. Historically, most all developing country go through certain phases of development, including an industrialization phase where pollution and environmental damage is high as well as a period of taking the technological knowledge of the more developed countries.
It might be interesting to know that it wasn't until the 1800 that the United States started developing robust intellectual property laws. Before that time the United States also tended to borrow whatever technology they could find.
Of course, if your product is a digital product, such as movies on DVDs or even famous trademarks like name brand watches, purses, and clothes, than your situation is pretty bad in China. If on the other hand you have a technological process or patent that is used in your business, you stand a good chance of being able to protect it.
When you register a business in China, be sure to hire a good attorney and make sure you tell them about all of the intellectual property you want to protect and insure they advise you how to proceed.
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