aafa – knock it off! paula jill krasny paula.j.krasny@bakernet.com (312) 861-2822 baker &...

AAFA – Knock It Off!

Paula Jill KrasnyPaula.J.Krasny@Bakernet.com(312) 861-2822Baker & McKenzie International is a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a “partner” means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an “office” means an office of any such law firm.

Protecting Your Brand on aGlobal Scale

Protecting Your Brand on a Global Scale

©2007 Baker & McKenzie 2

Trademark Registrations

• Property Rights– Territorial– First to File– First to Use

• Where to file– Where products are sold– Where products will be sold– High risk counterfeiting territories

Protecting Your Brand on a Global Scale

©2007 Baker & McKenzie 3

Trademark Registrations

• Not vulnerable to cancellation / enforceable– Non-use

– Declarations of use

– Renewals

– Licenses not recorded

Protecting Your Brand on a Global Scale

©2007 Baker & McKenzie 4

Use of Registrations in Policing & Enforcement

• Watch services

• Registering trademarks with Customs

• Cease and desist letters

• Proving fame or well-known status

Protecting Your Brand on a Global Scale

©2007 Baker & McKenzie 5

Trouble Spots

• Asia

• Eastern Europe

• Latin America

• PRC

• Russia

• Paraguay

Protecting Your Brand on a Global Scale

©2007 Baker & McKenzie 6

2007 Watch List Countries

Belarus Guatemala PeruBelize Hungary PolandBolivia Indonesia RomaniaBrazil Italy Saudi ArabiaCanada Jamaica TaiwanColombia Lithuania TurkmenistanCosta Rica Malaysia UzbekistanDominican Republic Mexico VietnamEcuador Pakistan

Protecting Your Brand on a Global Scale

©2007 Baker & McKenzie 7

Unfortunate & Expensive Consequences

• Indonesia – DIESEL– DAVIDOFF

• Russia– ANNE KLEIN– ALDO

• Romania– STARBUCKS

• Colombia– CARTIER

Protecting Your Brand on a Global Scale

©2007 Baker & McKenzie 8

Welcome to China!

Protecting Your Brand on a Global Scale

©2007 Baker & McKenzie 9

Protecting Your Brand on a Global Scale

©2007 Baker & McKenzie 10

Protecting Your Brand on a Global Scale

©2007 Baker & McKenzie 11

Protecting Your Brand on a Global Scale

©2007 Baker & McKenzie 12

Landlord Liability - China

• Relatively new strategy, globally– Goal to convert landlords into partners

• China program started 2004– Burberry, Chanel, Gucci, Louis Vuitton, Prada

– April 2006 decision against Silk Market

– Recognized as national precedent by Supreme Court

• 23-brand coalition established early 2006– Building on case precedent, expanding to four cities

Protecting Your Brand on a Global Scale

©2007 Baker & McKenzie 13

Protecting Your Brand on a Global Scale

©2007 Baker & McKenzie 14

Landlord Liability – Goals of the Coalition

• Adoption of standard leases– Achieved in Guangzhou, Shanghai and Shenzhen

• Government support – Some landlords fined– Pressing landlords to negotiate with brand owners

• Two-Strike rule for ejection of tenants– Provided under leases– Local governments also forcing ejections

• Targeting repeat offenders– Put all penalty decisions on-line– Future: criminal cases against three-time offenders

Protecting Your Brand on a Global Scale

©2007 Baker & McKenzie 15

Recommendations - Building Your Global Trademark Portfolio

• Secure trademark registrations– Countries where you are selling product

– Where your product is counterfeited/knocked-off

– Where you intend on doing business

– BEFORE you commence discussions with a potential distributor or licensee

Protecting Your Brand on a Global Scale

©2007 Baker & McKenzie 16

Recommendations - Building Your Global Trademark Portfolio

• Customs– Registering your trademarks

– Training programs

• Contracts– Leases

– Distribution and license agreements

– Local review