Published by ChinaMNC · Baoying
Jiangsu Approves New IP Projects: What Foreign Founders Should Know About Brand Protection in China
Gaoyou's two projects—a geographical indication for crabs and an industrial brand for an energy firm—highlight China's push for stronger IP protection. For foreign founders, this signals a more structured approach to trademark and brand registration, but also underscores the need to secure IP early when setting up a company in China.
Jiangsu Approves New IP Projects: What Foreign Founders Should Know About Brand Protection in China
Foreign entrepreneurs looking to establish a company in China often focus on entity registration, capital, and licenses—but intellectual property (IP) protection is equally critical. A recent announcement from Jiangsu Province’s IP office provides a useful window into how local governments are strengthening brand and geographical indication (GI) protection. For foreign founders, these developments signal both opportunities and compliance considerations when building a brand in China.
What Happened: Two Projects Approved in Gaoyou
According to the Gaoyou municipal government, the Jiangsu Provincial Intellectual Property Office recently released its list of approved provincial-level projects. Two applications from Gaoyou were selected: “Gaoyou Lake Hairy Crab” (a geographical indication) and Jiangsu Oulite Energy Technology Co., Ltd. (an industrial brand).
The hairy crab project falls under the provincial geographical indication brand cultivation and protection program, while Oulite’s project is classified as an industrial brand project. These approvals are part of Jiangsu’s broader effort to enhance IP creation, utilization, protection, management, and services across key industries and agricultural brands.
Why This Matters for Foreign Founders
For foreign founders, China’s IP system can seem complex, but recent reforms—including dedicated programs for GI and industrial brands—are making it more structured and accessible. Here’s what the Gaoyou projects tell us about the current IP landscape and what it means for your China company registration and operations.
1. Geographical Indications (GIs) Are Getting Stronger Protection
Gaoyou Lake Hairy Crab is a representative GI product for the region, and the new project will focus on:
- Standardized use of the GI label
- Brand promotion
- Traceability management
- Collaborative protection
- Improving the “GI + association + base + farmers” operating model
- Enhancing brand recognition
- Cracking down on counterfeiting and infringement
- Promoting value conversion of the GI
For foreign founders, this indicates that China is tightening enforcement around GI products. If you plan to import or market food or agricultural products with geographical indications (e.g., wines, cheeses, teas), ensure your product names and labels do not infringe on protected GIs. Even if your product is not a GI, using similar names could lead to disputes. Conducting a trademark and GI search before launching is advisable.
2. Industrial Brands Receive Support for Patent Strategy
Jiangsu Oulite Energy Technology is described as a leader in the energy storage sector and a national “little giant” enterprise (a designation for specialized, high-growth SMEs). Its approved project will focus on:
- Patent layout and mining for key energy storage technologies
- Risk warning and patent conversion/operation
- Building stable, highly protected patent portfolios
- Helping the company overcome technical barriers
- Supporting the city’s photovoltaic-storage-charging industry chain
This shows that local governments actively support industrial brands—especially in tech sectors—to develop strong patent portfolios. For foreign founders in technology or manufacturing, this means local policies may offer resources for patent filing and protection. When registering your company, consider how you will protect your core technology through patents and trade secrets. China’s patent system is accessible to foreign entities, but it requires careful planning and local expertise.
3. The Role of the Market Supervision Bureau
The article notes that the Gaoyou Market Supervision Bureau has been working to advance IP quality by:
- Supporting enterprise innovation and GI brand development
- Conducting project surveys and application coaching
- Facilitating resource connections
- Covering the entire IP chain: creation, utilization, protection, management, and services
For foreign founders, this suggests that local market supervision bureaus (which also handle company registration) can be a resource for IP-related guidance. When setting up your company, you may encounter these bureaus during the registration process—they are the same authorities responsible for business licenses and market regulation. Building a relationship early can help with both registration and ongoing compliance.
Practical Steps for Foreign Founders: IP and Company Registration
If you’re planning to establish a company in China, here are key IP considerations to integrate into your registration strategy:
- Conduct a trademark search early: Before finalizing your company name and brand, search the China Trademark Office database to avoid conflicts. China follows a first-to-file system, so filing early is crucial.
- Register your trademark in China: Foreign companies can file trademarks directly or via a local agent. Consider registering in both English and Chinese (if applicable) and in relevant classes.
- Secure your IP as part of the registration process: When setting up a wholly foreign-owned enterprise (WFOE) or joint venture, ensure that IP contributions (e.g., technology, trademarks) are properly documented and valued.
- Understand GI protections: If your products involve geographical indications, verify that you are not infringing on protected GIs. This is especially relevant for food and beverage imports.
- Leverage local support: Market supervision bureaus and IP offices offer guidance and sometimes funding for IP projects. Engage with them early.
- Plan for patent protection: If your business involves technology, file patents in China to protect your innovations. China’s patent law allows foreign entities to apply.
Entity Choice and Registration Considerations
The Gaoyou example also highlights how local governments prioritize certain industries (e.g., energy storage) and agricultural brands. For foreign founders, this means that choosing the right entity structure and location can affect access to incentives and IP support.
- WFOE vs. JV: A WFOE offers greater control over IP and operations, while a JV may be required in restricted sectors. For IP-intensive businesses, a WFOE is often preferred to safeguard technology and brand assets.
- Registered capital: China has moved to a subscription system for registered capital, but certain industries may have minimum requirements. Ensure your capital plan aligns with your IP strategy (e.g., if you plan to license IP).
- Licenses and permits: Depending on your business scope, you may need additional licenses (e.g., for food, energy). These often intersect with IP compliance (e.g., labeling, GI use).
- Tax and compliance: IP royalties and transfers have tax implications. Consult a tax advisor to structure IP ownership efficiently.
Conclusion: IP Protection Should Be Part of Your China Setup
The Jiangsu projects demonstrate that China is investing in IP protection at the provincial level, with a focus on both agricultural GIs and industrial patents. For foreign founders, this is a positive sign: a stronger IP environment reduces risks. However, it also means that authorities expect businesses to comply with IP laws. Integrating IP strategy into your company registration from the start can save time and costs later.
If you need assistance with registering a company in China and developing an IP protection strategy, ChinaMNC can help. Contact us on WhatsApp / WeChat at +86 153 1898 8535.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.