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Wednesday, April 14, 2021

Evolution of Intellectual Property Enforcement at China’s Canton Fair Amidst the COVID-19 Pandemic

A detailed review of the Canton Fair’s IP protection mechanisms from inception through pandemic-driven changes highlights strategic enforcement and evidence-gathering opportunitie…

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Evolution of Intellectual Property Enforcement at China’s Canton Fair Amidst the COVID-19 Pandemic

The China Import and Export Fair, commonly known as the Canton Fair, was established in 1957 and is co-hosted by the Ministry of Commerce of China and the Guangdong Provincial Government. Organized by the China Foreign Trade Center, it convenes biannually every April and October, serving as one of China’s most prominent international trade platforms with a vast array of exhibitors and buyers. The Fair is notable for its significant business turnover, ranking among the highest globally.

Intellectual property (IP) protection has been a critical concern at the Canton Fair for decades. The first formal IP protection efforts began at the 71st Canton Fair in 1992, when the Ministry of Foreign Economics and Trade reported handling over 200 trademark infringement cases involving exhibitors. As foreign trade expanded, so did incidents of trademark, copyright, and patent infringements by exhibitors.

In response, the 81st Canton Fair in 1997 saw the establishment of a “Special IP Group” tasked with managing IP infringement complaints and implementing new guidelines. This group was among the earliest specialized IP protection bodies for trade fairs in China, marking a significant step forward in institutionalizing IP enforcement at the event.

Following China’s accession to the World Trade Organization (WTO) in 2001, the development of a robust IP protection system at the Canton Fair became a priority. In 2007, the China Foreign Trade Center issued the “Implementation Details for the Complaints about and Settlement Provisions for Infringement of Intellectual Property Rights,” which formalized complaint procedures, evidence requirements, and penalties for IP violations at the Fair. This regulation governed IP protection across all Chinese exhibitions until it was superseded by the current “Complaint and Settlement Provisions for Suspected Intellectual Property Infringement in the Canton Fair,” amended in 2017.

Under these Provisions, the Canton Fair organizer establishes a Complaint Station dedicated to IP rights and trade disputes. This station invites administrative law enforcement officials and experts to assist with investigations and settlements on site. IP holders can submit complaints encompassing multiple IP rights simultaneously. Trade delegations and Chambers of Commerce are encouraged to proactively inspect exhibits and promotional materials before and during the Fair and cooperate with the Complaint Station to educate and address suspected infringements. Exhibitors are required to prepare IP or authorization documents in advance for potential verification requests.

Given the Fair’s structure—divided into three five-day phases—the Complaint Station focuses on trademark, copyright, and design patent disputes that are not legally complex. When preliminary infringement is established, exhibitors must remove infringing products and promotional materials from display. Serious or repeat offenders risk disqualification from future Fairs, and their affiliated trade delegations may face reductions in exhibition booth allocations.

At the 126th Canton Fair in October 2019, the Complaint Station received 440 IP infringement complaints against 580 companies, with 241 preliminarily identified as infringers. Across the two 2019 sessions, a total of 1,151 complaints were filed, including 640 patent, 232 trademark, and 58 copyright infringement cases.

The COVID-19 pandemic dramatically altered the Fair’s format in 2020. The 127th and 128th sessions were conducted entirely online amid global trade disruptions. Despite this, the Guangzhou administrative enforcement authority supported the Complaint Station both online and offline, handling 262 patent infringement complaints and 155 trademark infringement cases involving IP holders from over ten countries, including the United States, Japan, and France.

The Canton Fair remains a valuable venue for IP owners to monitor emerging infringement trends within their industries and to gather evidence through on-site surveys. Unlike many online platforms where infringing sellers are often small traders, exhibitors at the Fair are typically manufacturers or export trading companies sourcing directly from domestic producers. This proximity allows IP holders to conduct booth visits and business discussions that can identify enforcement targets and establish contacts for future factory inspections, potentially uncovering product stock, tooling, and other assets related to infringement.

As infringers employ increasingly sophisticated methods, identifying violations through online purchases alone has become challenging. In China, notarized evidence, including “trap purchases,” is required by enforcement and judicial authorities. The physical display of products at the Canton Fair facilitates on-site notarization, providing strong evidentiary support. For design patent infringements, clear photographs of exhibited products are particularly useful, as some exhibitors offer samples for sale.

Notarization at the Fair also helps establish Guangzhou as the venue for litigation, leveraging the city’s specialized IP courts. To prevent exhibitors from promoting infringing products, IP holders may file complaints with the Complaint Center or deliver warning letters directly to booths, seeking negotiated settlements.

Prior to the pandemic, the Canton Fair’s 15-day duration was divided into three sessions, each lasting five days. IP rights holders needed to prepare in advance for surveys and enforcement actions. Approximately two weeks before the Fair’s opening, representatives applied online for a special intermediary agency license by submitting scanned documents such as powers of attorney and IP registration certificates. Without this license, the Complaint Station would reject complaints.

Evidence gathering typically commenced on the first day to identify potential infringers. Having legal counsel on standby from the outset enabled IP holders to act swiftly to remove infringing products. Upon identifying infringement, on-site lawyers could immediately file complaints with the Complaint Station and submit Letters of Complaint, facilitating prompt enforcement.

The Canton Fair’s evolving IP enforcement framework, combined with its unique trade environment, continues to offer IP owners strategic advantages in combating infringement and protecting their rights, even as the event adapts to post-pandemic realities.

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Evolution of Intellectual Property Enforcement at China’s Canton Fair Amidst the COVID-19 Pandemic Since its establishment in 1957, the Canton Fair has become a pivotal platform for international trade and IP enforcement in China. This article traces the development of IP protection measures at the Fair, including th... Read the full IIPLA article: https://iipla.org/news/evolution-of-intellectual-property-enforcement-at-china-s-canton-fair-amidst-the-covid-19-pandemic

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