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IP protection is required for overseas investment

Recently, National Development and Reform Commission officially released the Norm on Overseas Investment and Operation of Private Enterprises (hereinafter the norm). According to the norm, the protection of intellectual property is required in foreign investment.

The norm stresses that private enterprises should strengthen intellectual property protection overseas. Branches of private enterprises overseas should create, apply, manage and protect their intellectual property, in accordance with laws and regulations of the host country. Based on the needs of overseas business development, patent application, trademark registration and copyright registration should be handled in a timely manner, and the protection scope, liability and confidential measures shall be clearly defined. In the overseas business activities, branches of private enterprises overseas should respect the intellectual property rights of other local entities or individuals, and obtain the license for using other party’s technology or trademark according to the local laws.

The norm also suggests that private enterprises should focus on improving their innovation capability, core competitiveness and international operation capability, as well as enhancing cooperation with universities, research institutes and enterprises in the host country, so as to jointly promote the exchange of industrial technologies between China and the host country.

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