CUSTOM

It is possible and advisable to have the IP rights (trademark, invention
patent, utility model patent, design patent, and copyright) recorded at
China customs for seeking proactive protection, either importing to China
from abroad or exporting from China.

Customs will immediately notify owner or authorized agent once suspect
infringing or counterfeiting goods are detained. The owner must submit
an application within 3 days in order to verify whether the detained goods
are authorized or counterfeiting and provide deposit to customs.

After Customs have detained the suspected goods, whether or not
the detention is confirmed, the IPR owner is entitled to initiate a lawsuit
with the appropriate court, and applys for property preservation and
pre-trial injunction. Initiating the litigation is not mandatory, the custom
detention could be already final and satisfactory for the IPR owner.

Customs may release the detained goods under any of the following
circumstances: owner failed in providing court’s order within 20 days after
applying customs to detain, or within 50 days after customs detention and
elimination of infringement suspicion after investigation; suspected patent
infringer provides equivalence deposit; customs deem it insufficient to
prove infringement or counterfeit.

Customs shall handle confiscated goods according to following provisions
upon different circumstances: goods infringing copyrights shall be
destroyed; goods infringing trademark shall be destroyed if the mark cannot
be taken away, in case the mark can be removed and goods still usable,
the goods shall be used for public service or sold at public auction for
cpersonal use other than the infringer, after the infringing mark destroyed.

2011-8-19