Exported technology and knowledge from Europe may become victims of intellectual property rights violations

Europe exports technology, knowledge, and skills, but if they are not protected, EU companies may become victims of various intellectual property rights violations. Protection and enforcement of intellectual property rights are a significant challenge for companies in the EU that wish to expand into new markets.

Therefore, IP Key China, a long-standing project co-financed by the European Commission and implemented by the European Union Intellectual Property Office (EUIPO), has provided substantial support for cooperation in the field of intellectual property and in the political dialogue between the EU and China, including the creation of equal conditions for rights holders in the EU and support for the dialogue mechanism between the EU and China.

In 2021, with exports amounting to 88.8 million euros, Croatia traded mainly in raw materials for 43.4 million euros (49 percent of exports to China), machinery and transport equipment for 21.1 million euros (24 percent of exports to China), and various finished products for 8.7 million euros (10 percent of exports to China), according to a statement from the European Union Intellectual Property Office.

As of January 1, 2020, there were 1.6 million registrations of European Union trademarks (EUTM), which include more than 4.4 million related classes of products and services, with an average annual growth rate of 5.6 percent (2010 – 2019). The majority of European Union trademark applications still come from the EU, with an average share of 68.3 percent of total applications. Germany led as the country with the most applications in the EU and the world, followed by other major EU economies such as Italy, Spain, and France.

– Over the past five years, the IP Key China project has been on the side of entrepreneurs, small and medium-sized enterprises, researchers, and creative thinkers to protect the intellectual property that secures the future of their business in China. We look forward to continuing to play an important role in strengthening the intellectual property dialogue mechanism, a key aspect for better transparency and predictability of the intellectual property system – said Christian Archambeau, Executive Director of EUIPO.

The project complemented the EU and China Intellectual Property Dialogue and Working Group, coordinated by the EU and China. Accordingly, these activities effectively promoted the interests of EU companies, enhancing knowledge exchange with China on how to address specific challenges related to intellectual property rights.

– The EU and China are key trading partners, and we must continue our dialogue to ensure greater convergence of China towards European and international standards in the protection of intellectual property rights – emphasized Valdis Dombrovskis, Executive Vice-President of the European Commission and Commissioner for Trade.

Exports to China

Continental China is one of the key trading partners of the EU, and intellectual property rights are a decisive factor for EU companies in promoting that trade.

In 2021, China was the third-largest partner for EU product exports (10.2 percent), with EU companies exporting 223.4 billion euros to China, mainly trading in machinery and vehicles (52 percent of exports to China), other finished products (20 percent), and chemicals (15 percent).

The three largest exporters to China in the EU were Germany (104.655 million euros), France (24.028 million euros), and the Netherlands (15.906 million euros).

Insufficient effectiveness

Although significant progress has been made in recent years in the field of legislation – largely due to the extensive network of stakeholders and dialogue mechanisms established by the IP Key China project – the protection and enforcement of intellectual property rights in many areas are still not sufficiently effective, and challenges such as lack of transparency and poor enforcement of intellectual property rights remain present.

There is significant concern particularly regarding the interpretation of patentability requirements, lack of adequate legal protection for trademark applications filed in bad faith, and inadequate protection of trade secrets. A recently emerged concern is ensuring fair and non-discriminatory treatment in cases related to violations of competition rules brought against foreign rights holders.