It is estimated that American businesses lose $225,000,000,000 to $600,000,000,000 to China’s Intellectual Property theft.
Yes… That’s the correct amount of zeros.
Wow, right!
Intellectual Property (“IP”) refers to creations of the mind – such as inventions; literary and artistic works; designs; and symbols, logos, names, and images used in commerce.
It includes your business name, logo, slogan, the unique color you created to distinguish your business, the images you capture or create, a process, and much more.
Protection of your IP is how you secure intangible assets and start to harness the value of your creative currency. Our government offers rights to the people who create and express themselves in unique ways by allowing individuals and businesses to protect their original works.
Basically, in order to incentivize citizens of the U.S. to innovate, the U.S. government provides opportunities to monetize IP.
Trademarks are used to protect source identifiers. Trademarks can be your business name, logo, slogan, color, and more. Federal trademark registrations are a cost effective way to secure and monetize your brand rights. A federal trademark registration means you own your brand in your industry. You can only get a trademark registration if you are using your brand in commerce (across state lines).
Copyright law gives the creator of an original work exclusive rights to print, publish, perform, film, or record literary, artistic, or musical material. Legal remedies to stop content theft are significantly limited without a copyright registration. If you would like to recover the \$150,000 of statutory damages for copyright infringement, you need a federal copyright registration.
A patent is a right granted to an inventor by the federal government that permits the inventor to exclude others from making, selling, or using the invention for a period of time.
Trade secrets protect information that makes a business unique. It is the business’ responsibility to protect its trade secret and there must be an effort by the business to keep its trade secret a secret.
This type of piracy and counterfeiting is still a major issue with China that costs American businesses millions!
But it gets worse…
Now there are three new forms of IP theft China has started:
Since the pandemic started, there has been an exponential rise in the number of U.S. trademark applications being filed with the United States Patent and Trademark Office (USPTO). While The Great Resignation and the rise of the Creator Economy accounts for a portion of this increase, China also has a role.
It is suspected that, as part of the trade war against the U.S., the Chinese government is incentivizing Chinese citizens and China-based companies to file U.S. trademarks, regardless of the legitimacy of the Chinese brand.
And now the number of Chinese trademark applicants who are filing fraudulent trademark applications has dramatically increased – to the point where it’s slowing down the U.S. government.
The USPTO cannot keep up with the mass influx of applications originating from China.
The trademark application processing is taking months longer than it was before the pandemic.
This delay in the trademark process is incredibly harmful for U.S. businesses, brands, start ups, and influencers who need to make decisions about how to invest into their brand.
The delays caused by these fraudulent Chinese trademarks serve to delay progression that America businesses need to make with their IP.
Trade secret theft involves the extraordinarily valuable trade secrets of American business owners. Trade secrets are often stolen by Chinese cyber theft! With the rise of Artificial Intelligence, China has access to (and has automated!!) the theft of domains, vendor lists, and more!
There are also lots of Chinese nationals residing in the U.S. giving away our IP to China.
Forced technology transfers happen when American businesses need to do business or get their products manufactured in China. In return, China often steals the technology, designs, and more from American businesses.
The trade war with China is a complex and layered problem – with IP theft being at it’s core.
The U.S. government has struggled to come up with any legitimate solutions to stop China.
In Web3, as we move towards decentralizing more of our world, everything will be IP.
There will not be any tangible goods to fall back on.
Businesses will be created and reliant on a virtual-only world that is written into the blockchain.
There is no safety net.
I have no doubt that China will take advantage of small creators and businesses and rip them off in Web3.
The U.S. government has failed to protect American businesses from China’s IP theft in the real world, and the government is not going to catch up in the Metaverse.
The best thing American business owners can do is secure their intellectual property before publicly launching anything.
You should file trademarks, obtain domain names, register copyrights, etc., before announcing your ideas to the world.
The process involved in IP protection, such as trademark registration, can take many months.
It’s important to keep everyone in your business/personal circle on a need-to-know basis until your IP attorney has given you the go ahead to announce.
Once federal trademark registrations are obtained, it’s important to register your brand with Customs & Border Patrol and to properly use the ® symbol.
American businesses also need to work with a pragmatic IP attorney to come up with a cost effective monitoring and enforcement strategy.
Failing to secure your IP leaves you at risk of becoming another statistic in this trade war with China.
Skipping trademark and copyright protection will make you even more vulnerable to theft in Web3.
You’re also missing opportunities to monetize your IP! And remember, the opportunity to monetize your IP in Web3 is limitless right now.
Also make sure you are working with an IP lawyer that effectively monitors social media and emerging Web3 platforms for infringement (in addition to the normal monitoring that needs to happen).
This exclusive offer is only available for a limited time so make sure to act quickly!
Email us at info@analaw.com if you have any questions.
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As you look for opportunities to expand and grow your business and revenue, Ana Law is here to help every step of the way. We provide actionable legal & business advice to protect your ideas, products, brands, and revenue.
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