China Theft of Skincare Brand Avado Alerts Tasmanian Business Owners
Cybelle Go | | Dec 27, 2015 10:19 PM EST |
(Photo : Getty Images) China is Tasmania’s largest export market, which is worth $610 million dollars.
The Tasmanian owner of organic skincare product Avado is fighting to get back her brand after it was registered in China under the name of one of her former distributors.
Tammy Fenner, proprietor of Natraganics, the company that owns Avado, struck a deal with a business partner in China and immediately sent a consignment of the Avado Organic Skincare product to China in 2010.
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Fenner's objective was to let the Avado Organic Skincare products penetrate the Chinese market, and it did become a success in Hong Kong since 2012, prompting the shipment of more products.
However, when Fenner's second business partner tried to register Avado, they discovered that the previous distributor in China had already registered tried to register the product but was not approved.
"The fact that the original distributor registered our brand and trademarked our brand name in China meant that we could not trade with that particular brand in China," said Fenner.
Fenner added that since someone already made the registration, they can no longer trade with that specific product name. Fenner had no choice but to purchase back her own products in order to maintain the business in China.
Fenner spent approximately 100,000 dollars in an attempt to recall the Avado brand.
Fenner's new partner hired a Chinese lawyer for legal representation and initiate negotiation with the previous distributor.
Both parties have settled for a payment of percentage sales until the agreed price can be reached. After this is done, the trademark for the Avado product can be returned.
Sally Chandler, a trade specialist of Tasmanian Chamber of Commerce, advised entrepreneurs to pre-register their brands if they decide to export them to China.
However, the process of registration may take up to a year. Under China's Law, the registration of each product comes at a 'first-file rule'.
Chandler stated that the best move is to withhold the release of goods until there is 'payment upfront'.
China is Tasmania's largest export market, currently valued at $610 million dollars.
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