Last week, the White House announced a 100% Section 232 tariff on large drones and critical components, citing their dual-use applications. The duties are set to take effect on September 3.
Trademark squatting is a form of intellectual property rights (IPR) infringement that is especially rampant in China. US firms are typically more vulnerable to trademark squatting in China because unlike the US, China follows the ‘first to file’ system rather than the ‘first to use’. US firms are often under the wrong assumption that merely by registering their trademarks in the US, they will be recognized in China as well. However, the Chinese system does not recognize trademarks registered in other jurisdictions and will grant protection only to those who file first in China, regardless of the use or intent to use.
On January 17, 2017, the State Council issued a circular on a new foreign direct investment policy to open up China’s economic system. At first glance, it would appear that this policy is a reaction to the slowdown in China’s economy. However, in actuality, this recent initiative is connected to a longer-term effort, formulated in 2012, which aims to gradually open up Chinese markets to foreign direct investment (FDI) and to more closely conform with international standards. Understanding the historical background of this policy is important, as it can shed light on the Chinese Government’s long-term objectives and the potential ramifications of the recent legislation.
