Shanghai Rules in Favor for Adidas

Shanghai No 2 Intermediate People’s Court issued verdicts for two IP infringement cases at one time.

In the case of Adidas vs Zhonglian and Bailuchi, the latter was charged 20,000 yuan and 100,000 yuan compensation, respectively, and were required to stop infringements and publish declarations approved by the court in future editions of the Xinmin Evening Paper.

Adidas registered the "three bars" trademark for its sneakers with the State Administration for Industry and Commerce on March 17, 2000. After realizing two companies called Bailuchi and Zhonglian had infringed its trademark rights, Adidas went to Shanghai No 2 Intermediate Court, and asked for compensation and an apology.

After a hearing, Shanghai No 2 Intermediate Court sided with Adidas. The other companies that were sued had used three bars similar to those used in the Adidas trademark for their sneakers, the court ruled.

In another case of trademark infringement, the court ruled that Zhu Jingjing sold counterfeit Gucci, Dior and other famous brand goods on Taobao, China’s online commerce site. Zhu was sentenced to 10 years in prison and fined 5,000 yuan. -China Daily

Intensifying Research, Development and Commercialization

This is an excerpt of 2010 budget speech which concern patent, trademark and research:

Currently, expenditure on R&D activities is at 0.6% of GDP, well below the United States at 3%, South Korea 3.5% and Taiwan 2.4%. To shift towards a high income economy, we need a strong foundation in research, development and commercialisation (R&D&C) activities. Therefore, to strengthen R&D&C activities, the Government will undertake the following measures:

First: Rationalizing all research funds and grants to be more effective to achieve set targets;

Second: Establishing a National Innovation Centre supported by a network of innovation excellence centres under the Ministry of Science, Technology and Innovation and in collaboration with the Ministry of Higher Education;

Third: Integrating R&D activities with patents, copyrights and trademarks registration to ensure R&D&C processes are implemented more effectively. The cooperation between patent and research agencies will expedite the commercialization of research findings; and

Fourth: Providing small and medium enterprises with tax deduction on expenses incurred in the registration of patents and trademarks in the country.

Tax Deduction for Registration of Patents and Trademarks

Under the Income Tax Act 1967 (as amended), expenses incurred on the registration of patents and trademarks in the country are deemed to be capital expenditure and not allowed as a deduction for tax purposes.

However, as the government's objective is to promote innovation and intellectual property developments among the small and medium industries (SMEs), it is now proposed that expenses incurred in the registration of patents and trademarks in Malaysia be allowed a tax deduction for the purposes of computing the chargeable income of the SME.

The registration expenses would include fees or payment made to the patent and trademark agents registered under the Patents Act of 1983 and the Trade Marks Act of 1976.

SMEs are defined as companies resident in Malaysia which has a paid up capital in respect of ordinary shares of RM2.5 million and less at the beginning of the basis period for a year of assessment (provided that fifty percent of the paid capital in respect of ordinary shares of the company is not directly or indirectly held by a holding or a subsidiary company or a related company that has a paid up capital of more than RM2.5 million).

SME in the manufacturing and manufacturing related service industries and agro based industries would include enterprise with full time employees not exceeding 150 persons or annual sales turnover not exceeding RM 25 million; and in the service industries, primary agriculture and information and communication TECHNOLOGY [] industries, enterprises with full time employees not exceeding 50 persons, or with annual sales turnover not exceeding RM 5 million.

However, the time frame for this deduction is limited to only 5 years i.e. from the year of assessment 2010 to the year of assessment 2014. - Seah Siew Yun, Thornton, The Edge

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