By Bill H. Zhang

With the rapid development of the China’s economy within the last two decades, China has absorbed more and more foreign entities and individuals, particularly, multinational companies, to have filed and registered their trademarks and patents in China or get their intellectual property (“IP”) licensed to their Chinese partners in case of joint ventures. Nevertheless, more IP granted and IP transactions inevitably mean more disputes. Moreover, the global economy is currently slowing down, with no exception to the Chinese situation. Along with the former abundant applications, huge amount of IP being granted and the current slowing down of the global economy comes a sharp increase of various IP disputes between foreign IP owners and their Chinese partners. Three alternative methods are available for foreign IP owners to resolve their disputes in China: mediation, arbitration and litigation. Mediation is conducted among the concerning parties on a voluntary basis and has no legal binding effect. Arbitration, in most cases, is more favorable to and welcomed by foreign IP owners. However, compared with arbitration, litigation is much stronger to protect foreign IP owner’s interests though it is more complex, unpredictable and time-consuming. This article tries to address some important things which foreign IP owners shall know on effectively resolving their IP disputes, particularly, litigating in China.

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