AAFA – Knock It Off!
Paula Jill [email protected](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