Auto parts industry faces "patent warfare" expert: raise awareness of intellectual property (Figure)
Experts have issued a warning that international automotive giants are actively gathering evidence of intellectual property violations by local companies, preparing for potential legal battles. Reporter Liu Hong and Correspondent Sui Zhixuan reported: “Some products bear patent numbers, but do they actually hold valid patents?†Yesterday, the reporter visited an auto parts market in Guangzhou with the local IPR enforcement team and discovered numerous cases of unclear or misleading intellectual property claims among vendors. Experts warned that foreign automakers have filed a large number of patents in China, aiming to collect evidence against domestic firms. If local companies fail to strengthen their IP awareness, they may find themselves at a disadvantage when facing a full-scale "patent war." A chaotic landscape of auto part patents was evident during inspections. Over two days, officials from the Guangzhou Intellectual Property Office, along with city and district teams, conducted checks across 21 auto parts markets. On one day alone, over 200,000 items were inspected in 1,800 stalls across 16 locations. At Yiyun Square, a major auto parts market, inspectors found multiple issues. Some products claimed to be patented but lacked proper patent numbers. Others had no real patent documentation to back up their claims. Some even falsely stated that a patent had been applied for in the U.S., while inspectors clarified that such applications are not recognized in China. According to national regulations, all products must be labeled in Chinese, including imported goods. However, many auto parts were labeled entirely in English, making it hard to verify their authenticity. When questioned, some stall owners said their factories were located in Huadu and that most products were exported. Law enforcement officers corrected them, emphasizing that labeling in Chinese is required for sale within China. Many stall owners showed little understanding of intellectual property rights, with some even discarding promotional materials provided by inspectors. To raise awareness, law enforcement officers distributed informational cards, but some were thrown into trash bins. Why focus on auto parts? Officials explained that the domestic auto parts industry is highly fragmented, with both counterfeit products and growing threats from multinational companies' patent strategies. Foreign automakers have already filed numerous patents in China and are now collecting evidence of infringement, waiting for the right moment to take action. With major automakers like Honda, Nissan, and Toyota established in Guangzhou, the automotive industry has become a key sector. The city now hosts over 200 auto parts manufacturers, with 27 specialized markets and annual turnover reaching nearly 10 billion yuan. Without timely IP protection, many companies could face costly litigation from foreign competitors. In response, authorities launched a special campaign in September to crack down on counterfeits, brand infringements, and patent violations in the auto parts industry. The first phase yielded results, and yesterday’s inspection marked the start of the second phase of IPR protection efforts.
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