The lack of foreign companies in the fair was in big part due to the ongoing travel restrictions to China. While these restrictions saw some relief on 28th of September when holders of valid residence permit could return to China without additional visa (see below Update: Travel policy and resuming flights to and from China for more information).

For FBCB this past month has been another busy one again. World Winter Sport Expo 2020 (WWSE) was this year organized as part of the forementioned CIFTIS. FBCB participated with a booth to WWSE having a few of our member companies present. Beijing offline events continued a week later with The Zhongguangcun Forum where FBCB was supporter of China-Nordic Smart City Forum and Sino-Nordic Sustainable Development and Innovation Forum. Next up was the Sino-European Entrepreneur Summit in Qingdao, where FBCB together with five Finnish companies took part in the offline part of the event. (more information on these events and participants in the Past Events section). We finally had the chance to organize our traditional Autumn Kickoff last week in the Ambassador’s Residence. It was a perfect way to end the super busy autumn and get ready for the final Quarter with Sauna and swimming. In the midst of all these activities FBCB also welcomes five new members in September: Wärtsila, Nokia, InXso, Stay and Discovery Partners. You will surely learn about these new members after the Golden Week.

When looking into next month, 12th-13th of October the biannual Team Finland China meeting is organized in Beijing. In this meeting the Team Finland China actors (Embassy, Consulates in Shanghai and Hong Kong, Business Finland, FBCs and FinnCham HK) together with relevant Finland based organizations meet to plan for annual activities. Companies are welcomed to participate either online or offline (Details can be found in the Upcoming Events section). We encourage all Finnish companies to participate and let us know your wishes and needs regarding Team in China. Perhaps the most significant date of next month is 28th October. That will mark the 70th Anniversary of the Diplomatic Relations between China and Finland. The good relations have been very visible during last couple of years especially with winter sport collaboration. In accordance with the importance of the milestone, there will naturally be opportunities for companies to utilize this for their business. The official logo has already been published (See Embassy of Finland Informs later in this newsletter) and we will soon provide more information on the upcoming activities.

In addition to above, there are several provincial trips planned for the fourth quarter for example to Henan at the end of October. You can find information below in this newsletter and naturally we will send out detailed information with registration instructions later.

And finally, before we start the Golden Week Holiday, in this month’s guest writer section Kolster provides us with a quick checklist to make sure your company’s Intellectual Property issues are in good order.

On behalf of FBCB, wishing you a relaxing Golden Week Holiday

Juha Tuominen

Chairman

In view of the current COVID-19 situation and the need of epidemic prevention and control, adjustments are now made to the Announcement by the Ministry of Foreign Affairs and the National Immigration Administration on the Temporary Suspension of Entry by Foreign Nationals Holding Valid Chinese Visas or Residence Permits issued on 26 March 2020.

Effective from 0 a.m., 28 September 2020, foreign nationals holding valid Chinese residence permits for work, personal matters and reunion are allowed to enter China with no need for applying for new visas. If the above three categories of residence permits held by foreign nationals expired after 0 a.m., 28 March 2020, the holders may apply for relevant visas by presenting the expired residence permits and relevant materials to the Chinese embassies or consulates on the condition that the purpose of the holders’ visit to China remains unchanged. The above-mentioned personnel shall strictly abide by the Chinese regulations on epidemic prevention and control.

 

When we talk about IPR in general business or technology context, patents and trademarks are the assets that usually come to mind. They certainly are important forms of IPR in software business, but other forms can’t be bypassed. Copyrights and trade secrets are in many cases equally important or even in a dominant role when an IPR strategy of a software business is the matter under consideration.

Source code can be considered a literary work under copyright law as it is expressed in words, letters, numbers, or other symbols. Thus, copyright protection applies to computer programs if they are an original creative work of the programmer. However, algorithms as such are not copyright protected since copyright protects the expression, not the idea underlying the software. Practically any algorithm can be coded in many different ways, meaning that copyright protection can be circumvented by rewriting the code for the algorithm. Copyright also covers the compiled binary code that can be protected against unauthorized use and copying by various technical measures. For these reasons, in all proprietary software-based business, it is important to keep the source code, or at least key parts of it, as a strictly protected trade secret.

China has a software copyright registration system that is not compulsory but can offer some benefits to the IP owner. Copyright registration serves as proof of ownership. This greatly facilitates enforcement efforts in China, especially in administrative enforcement as well as in litigation. In Chinese courts, the copyright registration certificate can replace a large amount of weaker ownership evidence. It is also useful document in case of trading ownership of the code or whole business in China.

Software patents or, more accurately, patents for computer implemented inventions is a topic harboring a lot of misinformation and awakening strong emotions in certain circles of software industry and programmers. The fact remains that a computer program or an algorithm is not patentable as such but may be patentable if the software provides a “technical effect”. Naturally, the solution must be new and inventive, too.

In different jurisdictions there are some differences in the definition and interpretation of the said “technical effect”. It is quite safe to say that the risk of a patent application becoming rejected due to issues other than lack of novelty and inventive step are clearly higher for software patent applications than other types of patent applications. Unfortunately, the possible rejection is typically the result of long correspondence with the patent authority, and the patent application has become public prior to the final rejection. This means that you have invested time and money in filing and prosecution of a patent application, and as a result you don’t have patent protection for your published software solution. For these reasons, careful consideration of alternative IP protection means and consulting with a software patent expert is extremely important before filing a patent application and again before the application becomes public (18 months from the filing of a priority application). The benefits of a granted patent are clear, but the risk of rejection must be taken into account.

Furthermore, there are other aspects to be taken into account when balancing between filing a patent application and keeping the solution as a trade secret. Can an infringement be identified? Is it possible to keep a source code secret? Can competitors reverse engineer the solution easily? How broad geographical coverage is needed for patent protection? Do we need patents to attract investors or for appropriate valuation in case of exit, merger, or acquisition? The list goes on. Even though it is not easy, a strategic decision has to be made. Usually, the best solution is a systematically built and managed IPR portfolio comprising of patents, trade secrets, and copyrights as well as registered trademarks and perhaps registered designs, too.

Epilogue (or disclaimer): As a representative of a company providing IPR and legal services, I must say the following. I have brutally simplified many complex issues and I apologize for that. It should be noted that I didn’t try to cover this topic exhaustively, and in almost all issues the best approach depends on the case. In this field, there are no “one size fits all” solutions. Thus, it is highly recommendable to use the assistance of an IPR expert consultant when planning to enter markets with your proprietary software product or service.

Finnish Business Council Beijing is part of Team Finland in China, and an outstanding platform for all Finnish businesses in China. For those companies which need more visibility, we have launched a Premium Membership. It's an upgrade from normal membership, as you can see from the table below.

For those companies in Finland, who are planning to expand their businesses to China, or are in the early stage and don't have an office in China yet, we have a distant membership. It's called Proxy Membership. A very cost-effective way to make your company known to a large audience, and get essential contacts for your future.

See all membership options HERE

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