Trademark Squatters Costing Companies Looking To Expand In China

Individuals in China are registering trademarks for popular foreign brands and holding out for big payoffs –or lengthy legal battles – when the foreign company tried to enter the Chinese market. China’s first-to-file trademark system favors these “squatters,” but firms may try to prove the individual deliberately claimed ownership with the intent of blackmailing a foreign brand, or attempt to show the brand was already well known before the trademark was registered. CNN discusses the battle Australian winemaker Penfolds is waging in China, as well as other prominent recent cases.