This makes it even more important to file early in China. If not, during the crucial period when your product is launched your mark may still not be registered and enforcing your IP rights becomes much harder.

Another common mistake that stems from a lack of familiarity with the system is not keeping your registrations at the CTMO up to date. For example, trade mark assignments need to be sent to the CTMO for approval. "It's not a recordal. It's an application process," says Simone. Licensing agreements also need to be recorded.

If the CTMO does not approve an assignment then enforcement of the mark becomes impossible. Danone's high-profile dispute with Wahaha is the most well-known example of this. In this case, the government did not approve the change of ownership of the trade mark from Wahaha to a joint venture set up by both companies. Danone tried to fudge the issue but, when the relationship broke down, the foreign company found itself in a very weak position. Although the CTMO usually grants approval, where the transaction involves a state-owned enterprise this cannot be taken for granted.

High-profile examples such as Danone's are rare but mistake number 7 creates two common problems for brand owners: delays in collecting revenue from licensing agreements and problems trying to enforce a trade mark that is still owned by the head office, not the local company.

8) Using the trade mark inconsistently and not as registered

This final mistake covers a multitude of small, but potentially serious, sins. While it may seem that it is one made by trade mark owners everywhere, it has particularly serious consequences in China, where officials are very strict about ensuring that marks should be used as registered. "In China, from a trade mark examiner's perspective, an English mark in capitalised format as opposed to lowercase may look quite different, depending on the font" says Meyer-Rochow. Assuming that registering a mark in capital letters on a black and white background will be sufficient can make your mark very difficult to enforce. "You have to register exactly the way you are going to use it, except for colour. You will get in big trouble if you don't follow this," says Tai.

Companies have even been fined by a local Administration of Industry and Commerce in China for using the ® symbol next to a trade mark that either hasn't been registered or has been registered, but in a different form. Using slightly different marks for your company name, domain name (make sure you register a .cn domain for your trade mark) and on your business card are also common errors that can weaken attempts to enforce your mark. "Having a consistent brand is the only way you can satisfy the requirements for being well known," says Mark Cohen, of counsel for Jones Day in Beijing.

Apple is not the first company to be held to ransom in China for its trade mark and it will not be the last. IP owners moving into China or launching new brands in the country should be mindful of the mistakes outlined above and avoid falling into the same trade mark traps as companies that have gone before them. Although the eight mistakes are China-specific, they could also be condensed into five basic principles that apply when a brand owner is moving into any new market: do not assume that the law in that country is the same as the law in your home country; do not underestimate potential linguistic and cultural problems; make sure communication within your company is good; use lawyers that you trust and remember that spending more money upfront can save a lot of money in the long term.

PHAM & ASSOCIATES LAW FIRM