Sunday 30 November 2008

Chinese Firms Plundering Japanese Sake Brand Names

Famous brands have been registered in China without the consent of the genuine brewers

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Guanyu said...

Chinese Firms Plundering Japanese Sake Brand Names

Famous brands have been registered in China without the consent of the genuine brewers

China Daily, ANN
30 November 2008

CHINA - Famous trademarks belonging to Japanese sake and shochu brewers have been registered or are in the process of being registered in China by Chinese firms and individuals without the consent of the genuine brewers, according to a survey by the Japan Sake Brewers Association.

Registration of the brand names by Chinese firms prevents the rightful Japanese owners of the names marketing their product under that brand in China.

The association suspects the Chinese individuals or organisations are registering the brand names so they can sell the naming rights to the genuine breweries in Japan at an inflated price.

An association spokesman said the news has come as a blow to the sake brewing industry, which is trying to expand its business overseas.

The industry has been suffering from sluggish sake sales, which have been declining after reaching a peak in 1975.

According to the association, of the 25 liquor trademarks used by Japanese firms, five already have been registered in China, and the rest are under examination. Among them, 18 are sake brand names, including Koshino Kanbai--a premium sake brand produced by a brewer in Niigata Prefecture--and the rest are shochu brand names.

According to sources, one Japanese sake brewer had to buy back its own brand name for 15 million yen (US$156,903) after it was registered in China by a Chinese firm. The brewer said it did so because it judged it would have taken too much time to contest the claim of ownership against the applicant with the patent office, sources said.

The sake brewers association has been receiving reports of moves by patent attorneys in China and Japan since last year.

The registration applications were conducted by four individuals and two organisations based in China. All except one individual applied for two or more brand names, the association said.

An individual in Fujian Province has applied to register 10 brand names, including Nanbu Bijin and Sakura Masamune--sake produced by brewers in Iwate and Hyogo prefectures, respectively.

The sake brewers association said it first noticed an increase in the registration of Japanese brand names in 2004.

“The period coincides with a move by (Japanese) sake brewers to start marketing their products in China,” association Director Hiromichi Ono said. “It’s as if the applicants knew the brewers’ intentions.”

The Chinese trademark law stipulates that applicants should not infringe the rights of other people by registering a brand name that is already used.

The brewer of Kamotsuru sake in Hiroshima Prefecture has petitioned the patent office in China to annul the registration of Kamotsuru. Other breweries also have lodged protests with the office, urging it not to register 10 brand names that are currently being examined.

However, most of the sake and shochu brand names that Chinese firms are trying to register are not sold in China or the export volume is very low.

“The brand names aren’t well known in China, so it’s quite likely the patent office there will approve the applications,” a sake brewers association spokesman said.