1. What is the Canton Fair?

The China Import and Export Fair, also known as the Canton Fair, was established in 1957. This biannual event is co-hosted by the Ministry of Commerce of China and the Guangdong Provincial Government, and organized by the China Foreign Trade Center. It takes place every April and October and is considered the most renowned international trade platform in China. The Canton Trade Fair boasts a diverse range of exhibitors and buyers, making it one of the top trade shows in China and potentially worldwide in terms of business turnover.

IP protection first began at the 71st Canton Fair in 1992 when the Ministry of Foreign Economics and Trade issued a notice reporting that more than 200 trademark infringement cases had been handled by the organizer of the Canton Fair and other administrative enforcement authorities. With the increase in foreign trade, IP infringement of trademarks, copyrights, and patents by the annual exhibitors was also on the increase. At the 81st Canton Fair in 1997, the organizers set up a “Special IP Group” to be in charge of handling IP infringement complaints and implementing new guidelines. The Special IP Group drove the development of IP protection at the Canton Fair and was one of the earliest specialized IP protection agencies for trade fairs in China.

After China joined the WTO in 2001, the formation of an IP protection system at the Canton Fair became a major issue. In 2007, The China Foreign Trade Center issued the “Implementation Details for the Complaints about and Settlement Provisions for Infringement of Intellectual Property Rights”. This was to regulate the complaint process, evidence requirements, and punishments for IP infringement at the Canton Fair. This regulation applied to IP protection in all exhibitions in China until it was replaced by the current “Complaint and Settlement Provisions for Suspected Intellectual Property Infringement in the Canton Fair” (amended in 2017) (“the Provisions”).

During the Canton Fair, there will be a Complaint Station set up for IP rights and trade disputes. The organizer will invite administrative law enforcement officials and experts to assist in investigations and settlements of IP infringement complaints. IP holders can file complaints at the Complaint Station, and one complaint can include multiple IP rights. Trade delegations and Chambers of Commerce are requested to check their exhibits and promotional materials proactively before and during the Canton Fair. They should cooperate with the Complaint Center to deal with exhibitors suspected of IP infringement. All exhibitors are requested to prepare their IP or authorization documents in advance in case of requests by the Complaint Station.

During each Canton Fair session, which is divided into three five-day phases, the Complaint Station only accepts disputes related to trademark, copyright, and design patent. However, the disputes should not be legally complex. If the exhibitor is found to be infringing upon the IP rights preliminarily, they will be required to remove the infringing products and promotional materials from the display. Any serious or repeat offenders can face disqualification from attending the Canton Fair, and the affiliated trade delegation may have their exhibition booths reduced for future sessions.

2. What is its importance to China's IP sector?

More than just a bustling marketplace, the Canton Fair pulsates with the lifeblood of China's intellectual property (IP) sector. It's where cutting-edge inventions, meticulously protected by patents, take center stage, drawing in a global audience eager to collaborate and license. This international exposure not only bolsters China's commitment to safeguarding IP but also injects valuable foreign know-how into the domestic ecosystem. Deals struck within the fair's sprawling halls see technologies finding new homes and brands gaining international recognition, all fuelled by the robust IP framework showcased.

However, like any vibrant marketplace, challenges lurk beneath the surface. Counterfeiting, though vigorously combated, raises concerns, demanding constant vigilance and a commitment to making the fair accessible to all players, from tech giants to budding innovators. Despite these hurdles, the Canton Fair's impact on China's IP landscape is undeniable, paving the way for a future where Chinese creativity thrives under the strong shield of intellectual property.

3. Before the COVID

The Canton Fair implements a multi-pronged approach to protecting intellectual property rights within the event:

Pre-Event Measures:

Application Review: Exhibitors applying to participate in the fair must declare any intellectual property they intend to showcase. Organizers screen these applications to identify potential infringements and prevent their participation.
IP Awareness Campaigns: The Canton Fair organizers partner with Chinese IP authorities to conduct educational campaigns for both exhibitors and visitors. These campaigns raise awareness about IP regulations, enforcement procedures, and the importance of respecting intellectual property rights.
Collaboration with Customs: Close collaboration with Chinese customs officials ensures that counterfeit goods are not brought into the fairgrounds. This helps prevent infringing products from reaching potential buyers.

During the Fair:

On-site Patrols: Dedicated teams of IP inspectors patrol the exhibition halls throughout the fair. They actively search for suspicious activity and potential infringements, such as the display of counterfeit goods or unauthorized use of trademarks.
Complaints Mechanism: A mechanism is in place for exhibitors and visitors to report suspected infringements. The organizers take prompt action to investigate complaints and address any violations.
Dispute Resolution: The Canton Fair provides a platform for resolving IP disputes that may arise during the event. This helps ensure swift and fair resolution of any concerns regarding IP infringement.

Post-Event

Monitoring and Enforcement: The Canton Fair organizers continue to monitor infringing activities even after the event ends. They collaborate with relevant authorities to take legal action against violators and deter future infringements.
Data Analysis and Improvement: The organizers collect data on infringements detected during the fair and use it to improve their IP protection mechanisms for future events. This continuous improvement process helps ensure the effectiveness of the system in safeguarding intellectual property rights.

Additional Measures:

Technology Adoption: The Canton Fair is increasingly adopting technology to enhance IP protection. For example, they may use image recognition software to identify counterfeit products or blockchain technology to track the provenance of goods.
International Cooperation: The organizers collaborate with international IP organizations and law enforcement agencies to share best practices and coordinate efforts to combat counterfeiting and piracy.

While the Canton Fair's IP protection mechanisms are robust, it's important to acknowledge that challenges remain. Counterfeiting and infringement still occur, necessitating constant vigilance and improvement efforts. However, the fair's commitment to protecting intellectual property rights is commendable and plays a crucial role in fostering a thriving and innovative IP ecosystem in China.

4. The impact of the COVID Pandemic on the Canton Fair

The COVID-19 pandemic necessitated a shift in the Canton Fair's traditional format, forcing its migration to the digital realm. However, the protection of intellectual property rights remained paramount. Recognizing this, the China Foreign Trade Centre established the "Complaint and Settlement Provisions for Suspected Intellectual Property Infringement in the Online Canton Fair" on June 14, 2020. This landmark document outlined a comprehensive online dispute resolution framework, ensuring that intellectual property wouldn't be compromised in the virtual marketplace.

Under these provisions, all IP disputes are handled swiftly and exclusively through digital channels. Overseas buyers can conveniently file complaints with the online Complaint Station (OCS) hosted on the Canton Fair's official website. Upon receiving a complaint, the OCS, acting as the Overseas Buyers' Complaints Office, immediately contacts the accused exhibitor via email, requesting a response within 24 hours. This prompt action minimizes potential harm and expedites resolution.

The ensuing process hinges on the exhibitor's response. If they promptly remove the allegedly infringing product within the 24-hour window, the OCS considers the matter settled. However, if the exhibitor presents evidence refuting the infringement claim, the OCS takes a more active role. They meticulously review the case, analyzing both sides' arguments and evidence before delivering a well-informed decision. This ensures fairness and avoids hasty judgment.

Should the OCS determine an infringement has occurred, they take strong action. The offending product is swiftly removed from the online exhibition platform, preventing further dissemination and protecting the buyer's interests. Moreover, if the exhibitor fails to respond within the allotted timeframe, the OCS assumes the product infringing and enacts the same removal strategy. This zero-tolerance approach discourages infringement and reinforces the fair's commitment to IP protection.

However, the OCS's effectiveness in certain cases depends on the type of infringement. While they can readily handle disputes involving trademarks and copyrights through image analysis, patent infringements present a unique challenge. Due to the absence of physical products for comparison, the OCS struggles to investigate complaints regarding utility and invention patents. Design patents, however, can be addressed if clear and comprehensive photos are provided. Recognizing this limitation, the new provisions mandate that exhibitors upload at least seven clear photos of each product, offering various angles as stipulated in the design patent certificate. These enhanced visuals equip the OCS with crucial evidence for effective investigation and dispute resolution.

Despite the positive progress, this new requirement also poses potential challenges. Some exhibitors, particularly those unfamiliar with patent intricacies or lacking technical expertise, might struggle to meet this photo requirement. This could inadvertently hinder investigations and leave genuine infringements undetected. Therefore, ongoing efforts to educate exhibitors and refine the procedure remain crucial to ensure the seamless implementation of the provisions and robust protection of intellectual property rights within the online Canton Fair.

5. Conclusion

Whether the Canton Fair's importance will change because of the COVID-19 pandemic is a complex question with no definitive answer. It's likely to see both changes and continuities in its significance, and the full impact might take some time to fully understand. However, no doubt that COVID in itself has created a great shift in how goods are being moved around the world, and as such, how IP infringement must adapt to follow the change.

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