The need to protect intellectual property rights (IPR) lies hand-in-hand with global ambitions. As the globalisation of domestic countries expands IP practitioners worldwide have been kept busy, servicing the legal needs of these clients across a wide range of industries and technologies. “Domestic companies are increasingly interested in learning about global IP strategies. They are keen on knowing how to commercialise, manage and protect their IP rights such as patents, especially when they venture overseas. This is where we come in,” said CCPIT Patent and Trademark Law Office partner Long Chuanhong.

Albeit known for its strength in advising international clients on their IP matters in China, the firm has shifted more resources to provide legal advice for domestic clients, particularly those companies that are rapidly developing international business. And while a considerable and growing amount of IP work has already been generated from the increasing awareness of these rights among domestic clients, lawyers widely expect that more education still needs to be done.

However, according to Li Yong, an IP partner at King & Wood, an abundance of domestic enterprises, particularly small to medium-sized companies, are yet to develop their IP strategies. Two years ago, King & Wood established IP Legal, a team of approximately 20 IP experts from the firm’s Beijing, Shanghai and Shenzhen office.

IP Legal operates under the firm’s IP department dedicated to providing commercial and corporate IP advice and consulting. “The increase in the demand for commercial advice including licensing, due diligence, portfolio management and strategy development is the driving force for IP Legal,” said Li.

With many companies looking to launch an IPO and list their shares at home and abroad, or planning to make business sales and acquisitions, IP related issues form a key part of legal work. “An effective and properly protected IP portfolio is now essential in any IPO and can significantly increase the value of the business. It’s critical for companies to conduct a thorough due diligence regarding their IP assets and develop sound strategies before a transaction,” said Li.

Beijing-based Chang Tsi & Partners also provides legal advice for similar IP enquiries. The firm reports a growing clientele who is interested in learning about the bigger picture - the way to conduct, protect and enforce their IP rights worldwide. “We have many local clients who are now contemplating how to enter a foreign market, how to obtain worldwide IP rights and how to commercialise their existing portfolio in other markets,” said Spring Chang, a partner at Chang Tsi & Partners. 

International firms are also frequently instructed by major domestic companies for global IP legal advice and enjoy certain advantages in this field. Jones Day, for example, has been engaged by conglomerates like Huawei, Lenovo, Foxcom and Founder since the beginning of the year for their new filings and prosecutions. “When it comes to patent filings for Chinese companies, we are talking about global filings, not just in mainland China. If a particular IP right is created in China, clients are concerned about how they can go about protecting it globally,” said Benjamin Bai, an IP partner at Jones Day.

According to Bai, IPR in China is no longer a territorial issue - even though it appears this way to a certain extent. With the increasing amount of IP work seen on a global level, large international firms with multi-level IP departments, like Baker & McKenzie and Bird & Bird, stand to gain from their extensive international networks. Some firms have established affiliations with local agencies to gain a competitive edge. For instance, Rouse & Co is affiliated with Beijing Lusheng and Bird & Bird is in association with Beijing Xiang Kun.

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