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With the large number of intellectual property infringement litigation publicity in the news media, more and more enterprises realize the risk of infringement is present throughout the whole process of business activities, which needs to pay more attention.

Potential Intellectual Property Risks

Intellectual property risks in enterprise can be decomposed into risks in R&D activities, risks in production activities and risks in trade activities.

1. Risks in R&D activities. Risks in R&D activities include: before a research and development project is launched, no detailed prior art search is conducted, resulting in the risk that the research is duplicated and self-development outcomes cannot be used; after completion of research and development, no intellectual property right is claimed, leading to the results that the outcome of the research and development is copied by others and the enterprise itself cannot use the outcome; during cooperation with other parties, no contract is introduced to define the belonging of intellectual property obtained in the cooperation, the risk of intellectual property disputes of the cooperative parties appears.

2. Risks in production activities. The risk in production activities mainly is present in the process when procurement chain of suppliers provide products and technology, no evaluation is made to the intellectual property involved in the products and technology to be provided and intellectual property infringement on third party may result; during the commissioned the production of R&D, ownership of the resulting intellectual property rights, use and confidentiality are not clearly defined, intellectual property disputes might be caused thereby; for upstream or downstream cooperative partners, duty of confidentiality and intellectual property rights attribution are not clearly defined, risk of loss of corporate intellectual property may be resulted.

3. Risks in sales activities. During the sales activities related to the product, trademarks, slogans, and marketing program may lead to the risk of infringement of intellectual property rights.

For the above risks and intellectual property infringement disputes, it is clear that the main causes are the lack of effective management of intellectual property, the lack of effective early warning system and the lack of the infringement prevention mechanisms.

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