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Additionally, Hong Kong also is home to some of the largest trade shows in the world, including the Hong Kong Electronics Fair, the Hong Kong Optical Fair, and the Hong Kong Houseware Fair. As the exhibition of infringing goods can constitute a public use and/or offer for sale, companies can use Hong Kong patents to stop the exhibition of these products at some of the most important events of the year. In particular, a patent holder may file a complaint with a trade fair’s on-site legal counsel against exhibited products for patent infringement. Should the trade fair’s legal counsel agree with the infringement allegations, the trade fair organizer can request that the exhibitor remove the suspected infringing products from the exhibition. If the exhibitor refuses to cooperate, the Hong Kong Trade Development Council can enjoin the exhibitor from attending Hong Kong trade shows in the future. The Hong Kong patent can therefore be quite valuable in disrupting infringers’ ability to market their products directly to potential customers.
Furthermore, although Hong Kong patent rights do not extend into the PRC, it is possible to enforce Hong Kong arbitration awards and court judgments in Chinese courts against Hong Kong infringers. Additionally, Hong Kong courts, following the common law system, have a reputation for granting relatively large damage awards. Therefore, even though patent litigation in Hong Kong is fairly expensive, an infringement judgment can serve as a valuable weapon against companies with a sizeable Chinese presence.
To File or Not to File?
Given the above, there is no single strategy in deciding whether to obtain Hong Kong patents. For a company whose only major consumer market is the United States, it may not consider the Hong Kong patent to be worthwhile if it is willing to aggressively pursue and enforce its U.S. patent rights. Similarly, if a company performs its manufacturing domestically and believes that the manufacture of knockoff products in China is unlikely, it also may decide that a Hong Kong patent does not make financial sense.
On the other hand, companies with a worldwide focus clearly can benefit from a Hong Kong patent. Such companies can use Hong Kong patents to stop the shipping of products through Hong Kong, prevent the local sale of infringing goods, and prevent infringing products from being offered for sale at some of the world’s largest trade shows.
For smaller companies who are having products manufactured in China, Hong Kong patents also may be beneficial. Companies routinely have to deal with current and former suppliers producing knockoff goods, often using the same tooling used to make the company’s own products. In such cases, Hong Kong patents can be used to help stem the flow of these goods before they reach U.S. or other markets, particularly if used in conjunction with corresponding Chinese patent protection.
Therefore, although Hong Kong patents may not have a great deal of value for everyone, for many companies, they may be able to play a valuable role as part of a broader intellectual property protection strategy. << back to previous page