Domestic OEM enterprises should avoid infringement risk

2011/03/24

Shanghai Customs recently seized 6,610 hand-held drills and angle grinders manufactured by a Hangzhou enterprise commissioned by a foreign company. The foreign company required to label "BOSCH" logo on these drills and angle grinders and provided the pattern of package and label. After receiving the order, the Hangzhou enterprise produced in full accordance with the requirements but the products were seized by customs during export declaration. The owner of BOSCH trademark confirmed that the products infringed its trademark.

According to statistics of Shanghai Customs, since the special action of combating violations of intellectual property rights and making and selling counterfeit and shoddy goods started last October, Shanghai Customs had seized a total of 225 IPR infringement cases by the end of this February. The cases involved 2.13 million commodities worth more than 15 million yuan. A considerable portion of the infringing goods were manufactured by domestic OEM enterprises in accordance with the orders of foreign enterprises.

Shanghai Customs suggested that domestic processing enterprises should ask the foreign commissioners for the power of attorney of IP license before taking the orders. Domestic enterprises should also check whether the involved trademark has been registered in State Administration of Industry and Commerce, whether the registrant is consistent with the licensor and whether the trademark is recorded at General Administration of Customs. Enterprises could also contact with the right holder that make recordation at Customs to further identify the authenticity of the authorization, so as to avoid traps of infringements and unnecessary losses. Domestic enterprises should also add guarantee terms to contract and let the commissioner bear the responsibility of intellectual property.

(IP Channel of People's Daily Online)