Imagine your innovative product gaining tremendous popularity in overseas markets, only to face the devastating consequences of counterfeit versions flooding those same markets, eroding your brand reputation and market share. This challenging scenario represents the reality for many Chinese export companies. To address this critical issue, China Customs has launched the three-month "Dragon Protection" campaign, a robust initiative designed to combat intellectual property rights violations in import and export activities, safeguarding Chinese businesses in international markets.
"Dragon Protection": A Strong Shield for Exporters' IP Rights
The "Dragon Protection" campaign represents a nationwide customs operation focused on protecting the intellectual property of export-oriented enterprises with competitive advantages. Its primary objective is to concentrate enforcement resources on combating IPR violations in import/export activities, providing strong IP protection for Chinese companies expanding globally, and helping them gain competitive advantages in international markets.
Strategic Focus: Key Areas and Priorities
The campaign adopts a targeted approach rather than blanket enforcement, concentrating on specific high-risk areas to maximize effectiveness:
- Target Markets: Focuses primarily on export routes to Africa, the Middle East, Latin America, and countries along the Belt and Road initiative—regions known for high counterfeit activity that are simultaneously crucial expansion areas for Chinese businesses.
- Key Products: Prioritizes protection for China's traditional export strengths including small appliances, mobile electronics, construction machinery, daily necessities, seasonal products, and specialty goods—sectors particularly vulnerable to infringement.
Customs Enforcement: Comprehensive Measures Against Violations
To ensure the campaign's effectiveness, China Customs will implement multiple stringent measures:
- Enhanced Penalties: Significant increases in penalties for IP violations targeting "Dragon Protection" priority enterprises.
- Criminal Prosecution: Cases involving suspected IP-related crimes will be referred to public security authorities for criminal investigation and prosecution.
- Civil Litigation Support: Customs will assist priority enterprises in pursuing civil judicial remedies to protect their legitimate rights.
Nationwide Coordination: Regional Customs Implementation
The campaign represents a coordinated nationwide effort, with major customs districts implementing tailored enforcement plans:
- Ningbo Customs: Established dedicated liaison officers to coordinate with priority enterprises and facilitate joint enforcement with IP authorities. Since 2013, Ningbo has investigated 1,874 IP infringement cases involving goods valued at approximately 276 million yuan, seizing 68 million counterfeit items.
- Shanghai Customs: Reported 17 cases involving domestic IP rights holders in the first half of this year, seizing 10 million infringing items worth 6.6 million yuan. Four local enterprises were designated as "Dragon Protection" priority cases.
- Qingdao Customs: Enhanced IP protection through comprehensive customs recordal of enterprise IP rights and big data-driven risk analysis for targeted enforcement.
- Shenzhen Customs: Selected 10 local IP-intensive enterprises including Huawei, ZTE, and DJI for priority protection, having seized 9.23 million counterfeit goods worth 44.7 million yuan this year.
- Guangzhou Customs: Designated 13 priority enterprises, having investigated 404 infringement cases involving 1.05 million items worth 7.31 million yuan from January to July.
Quantifiable Results: Customs IP Protection Achievements
Customs statistics demonstrate significant IP protection outcomes: Since 2013, Chinese customs authorities have intercepted nearly 110,000 batches of infringing goods totaling 407 million items worth 1.55 billion yuan, protecting the rights of over 2,100 rights holders from 62 countries and regions. Currently, Chinese enterprises account for 55% of all IP rights recorded with Customs, with over 18,000 domestic IP filings.
Enterprise Participation: Active Cooperation in Protection Efforts
The success of "Dragon Protection" requires active enterprise participation. Exporters should:
- Enhance IP protection awareness and establish comprehensive management systems.
- Complete customs recordal of their intellectual property to facilitate enforcement.
- Proactively report infringement leads to assist customs investigations.
The "Dragon Protection" campaign represents China Customs' commitment to safeguarding domestic enterprises' intellectual property rights and supporting their global expansion. Through this coordinated enforcement effort and active enterprise participation, Chinese businesses stand to gain stronger protection in international markets.