China IP SME Helpdesk : guide to IP protection in China for the food & beverage industry

The food and beverage industry (F&B industry) includes the research and development, processing, production, wholesale and distribution and retailing (including branding) of a wide range of food products. Market research from the EU SME Centre shows that a large number of European SMEs have made significant international investments, such as new product development, pricing strategies and geographic expansion into new markets. Significant changes in the F&B industry are redefining how companies grow, operate, and manage risks in this sector and since these changes often involve intellectual property rights (IPR), the need to protect IPR in several countries is stronger than ever. The rapid economic growth of countries such as China has created more consumers with the purchasing power needed to enjoy imported food and beverage products. This has consequently expanded opportunities for EU SMEs. However, laws and regulations relating to this sector are rarely straightforward. The F&B industry is a highly regulated sector in China. Foreign companies need to apply for a food production license to ensure that they meet the requirements for manufacturing capabilities and environmental regulations. Foreign products need to conform to specific standards and protocols depending on the type of goods. Chinese labels need to be applied to the products to complete Customs clearance and enter the country. In addition, a separate food and beverage distribution license is required for engaging in sales in China. Such mandatory legal requirements for production in or importing to China do not, however, directly involve protecting IPR and companies need to ensure their rights are protected by taking proactive measures. Despite the improvements in China's IP legislation, counterfeiting and other IP infringements are still commonplace in this sector. There are several types of IP that are relevant to the F&B industry. This guide provides an overview of the relevant IP registration options and issues within the industry.