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Experts are warning that international automotive giants have begun gathering evidence of intellectual property (IP) violations by local companies, signaling a potential "patent war" ahead.
Reporter Liu Hong and Correspondent Sui Zhixuan reported: "Some products carry a patent number, but also claim to have a patent certificate?" The reporter joined the Guangzhou IPR enforcement team in inspecting an auto parts market and found numerous cases of unclear or false IP claims. Experts warn that foreign car manufacturers have filed numerous patents in China, aiming to collect evidence of infringement by domestic firms. If local companies don’t improve their IP awareness, they may face legal challenges when the time comes.
The auto parts sector is plagued with patent confusion. Over two days, officials from the Guangzhou Intellectual Property Office, along with teams from various districts, conducted inspections at 21 auto parts markets. On the previous day alone, nearly 200,000 items across 1,800 stalls in 16 markets were checked.
At Yiyun Square, a major auto parts hub, inspectors found many issues. Some products claimed to be patented but lacked real patent numbers. Others had no valid patent certificates, while some displayed "patent applied in the U.S." — a misleading statement, as U.S. patents do not protect against infringement in China.
According to national regulations, all products must be labeled in Chinese, including imported goods. However, many auto parts were marked only in English, making it hard to verify their authenticity. One stall owner argued that the factory was in Huadu and the products were mainly exported, but officers reminded them of the need for proper labeling.
Many stall owners showed little understanding of IP rights, and some even discarded promotional materials. Law enforcement officers distributed educational cards, but some were thrown into trash bins.
Why focus on auto parts? Officials explained that the industry is a mix of legitimate and counterfeit operations, and foreign automakers are preparing for potential IP disputes. These companies have filed numerous patents in China and are now collecting evidence of infringement. If domestic firms fail to act, they could soon face lawsuits.
Automotive manufacturing has become a key industry in Guangzhou, with Honda, Nissan, and Toyota all having a presence. This has spurred growth in the auto parts sector, with over 200 companies involved and 27 professional markets generating nearly 10 billion yuan annually. Without stronger IP protection, many businesses risk legal action from foreign competitors.
In response, the city has launched multiple campaigns since September to combat counterfeiting and protect intellectual property. The second phase of these efforts officially began yesterday, focusing on identifying and removing infringing products from the market.
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