A project co-funded by the European Union. Waiting for the Organiser The webinar will begin shortly! 1
A project co-funded by the European Union. Doing Business in Malaysia Setting Up Shop & Protecting Intellectual Property South-East Asia IPR SME Helpdesk EU-Malaysia Chamber of Commerce and Industry (EUMCCI) Dr. Krzysztof Grzybowski, Trade and Investment Expert, Managing Director of Symbiona Mr. Chris Hemingway, South-East Asia Helpdesk IP Expert 2
Welcome to the Webinar! Helika Jürgenson Project Officer South-East Asia IPR SME Helpdesk 3
Webinar Interaction Tools?!?!? Turn on full screen here Raise your hand here Send the IP expert a question here Webinar 24 hour technical support number: http://support.gotomeeting.com Contact Us section 4
Snapshot: Helpdesk Free Services Enquiry Helpline Website www.ipr-hub.eu Blog www.youripinsider.eu IP Guides & Newsletters E-learning & Business Tools Training Workshops & Live Webinars 5
Welcome to the Webinar! Lars Venslauskas Business Support Executive Project: SEBSEAM-M Support for European Business in South East Asia Markets Malaysia Lead Applicant: EUMCCI EU-Malaysia Chamber of Commerce and Industry 6
EUMCCI in Brief Business Support for EU Companies Know Your Market Meet Your Partner Enter Malaysia 146 Members 10 Committees 30 Events 1300 Network 90 Companies 1517 Participants 16 Countries 75 Meetings 880 On Conference Network Provider Industry Advocate Event Platform 7
SEBSEAM-M: Project Description Increase trade and investment flows between the European Union (EU) and Malaysia as a gateway to ASEAN, mainly focused on EU SME s Component 1: Attracting EU businesses into the region and supporting them in their market entry activities (Business Support) Today s Webinar Component 2: Increasing EU Business leverage towards ASEAN Governments (Advocacy) European businesses, in particular SMEs, with an interest in Malaysia and ASEAN markets Malaysian and ASEAN Businesses, as well as local and regional government authorities 8
EU-ASEAN Business Network 8 ASEAN countries involved (excluding Singapore & Brunei) Joint activities Business Seminars & Webinars Newsletters Events in EU and ASEAN European Association for Business and Commerce in Thailand 9
Business Support Service - Trade Mission F&B 11
POLL QUESTION #1 How experienced are you in relation to Malaysian business landscape? a) We do not have business interest in Malaysia yet b) We are still deciding on entering Malaysian market c) We plan on entering Malaysian market d) We are remotely evolved in Malaysian market e) We are actively engaged in the Malaysian market
I Speaker s bio Name: Dr. Krzysztof Grzybowski (Kristof) Firm: Symbiona Sdn Bhd Location: Kuala Lumpur, Malaysia Dr. Krzysztof Grzbowksi has a PhD in Sociology and started his international career in his home country, Poland. He obtained his vast EU-Asia experience through managing companies in Denmark, Singapore and Philippines prior to his role in 2007 as a Senior Analyst and later MD at Dynamic Business Information (Asia Pacific) in Malaysia. Kristof supports and engages in 4 company formations and was trade expert for the Trade and Investment section of the Polish Embassy during his 9 years in Malaysia. He is currently the Managing Director of Symbiona, an industrial water and waste solution provider active in Asia and Europe.
1. Presentation: Setting Up Shop Foreign Owned Business Dr. Krzysztof Grzybowski (Managing Director, Symbiona Sdn. Bhd.) 14
Types of Business What type of business can be owned by foreigners? Public Limited Bhd Private Limited Liability Sdn Bhd Foreign Company Branch, Representative Office What is important in MoA activities listing and why? 15
Industry Sectors What industries can foreign capital operate in? Unique concept No-to : - Education - Banking and Finance - Petroleum - Tourism - Oil and Gas - Construction - Agriculture WRT license (Wholesale, retail, trade) 16
Registration Requirements for Sdn Bhd 1. Name approval 2. Shareholders and resident directors 3. Professional secretaries 4. Registered (authorised and paid-up capital) 5. Appointment of auditors 6. Corporate tax 7. MSC Status eligibility and incentives 17
POLL QUESTION #2 What is your business? a) Non-Governmental-Organization, e.g. Business Association b) Business Consulting c) Manufacturing d) Trade (Import & Export) e) Other
Difficulties and Possible Traps Bank account dilemma No work permit no bank account No bank account no paid-up capital No capital no WRT license No capital and no WRT no work permit Can it be overcome and at what cost? Local director s powers 19
Working Permit Requirements 1. Paid-up capital required MR 500 000 or MR 1 mil.? 2. Office address and phone lines 3. WRT license if applicable What are the stages of you application, time frame and success rate? 20
Why is it Getting More Difficult or Can it be Done? 21
Thank You for Your Attention. 22
II Speaker s bio Name: Dr Chris Hemingway Firm: Marks & Clerk Location: Kuala Lumpur, Malaysia Email: chemingway@marks-clerk.com.my Chris is a director of the Malaysia office of the Marks & Clerk group, the largest firm of patent and trade mark attorneys in the world. He specialises in the drafting and prosecution of patent applications. Chris holds a PhD in Microbiology from the University of Warwick and is a Registered Malaysian Patent, Trade Mark and Design agent in addition to being a Chartered UK patent attorney and a European patent attorney. Chris is a member of the Executive Committees of the Malaysian Intellectual Property Association (MIPA) and The International Association for the Protection of Intellectual Property (AIPPI), has represented Malaysia on the Patent and Design Committees for the Asian Patent Attorneys Association (APAA), is a member of the International Federation of Intellectual Property Attorneys (FICPI) and the British- Malaysian Chamber of Commerce (BMCC), and has been named as an IP Star in the annual World IP Survey conducted by Managing Intellectual Property since it started in 2014. Chris joined the Helpdesk network in August 2013.
SECONDARY PRIMARY Main types of Intellectual Property Patents protect inventions and new innovations Trade marks protect brands Industrial designs protect the appearance of articles Copyright protects the expression of an idea e.g. literary, artistic, musical and dramatic works Common law e.g. protects a person s goods from being passed off as another s Contract law Know-how and trade secrets Confidentiality & non-disclosure agreements (NDAs) Competition law Anti-trust protects against abuse of dominant position
Co-existence of IP rights Patent for sliding mechanism Trade mark for Samsung brand Registered design for overall shape of handphone Copyright for text in manual
Malaysian Legal System Common law, based on UK (with Australian influence). Constitution also provides for Syariah (Islamic) law General compliance with most IP treaties some inconsistencies e.g. Trade mark and design right terms operate from priority date (if claimed) Fused legal profession, like US, but IP agents separate, like UK. Ministry of Domestic Trade enforcement officers empowered to raid premises and seize goods which infringe trade marks or copyright IP cases heard in dedicated High Court, typically within 12-18 months Appeal stages to Court of Appeal (three judges) and, with leave, to apex Federal Court (five judges) Adversarial system, no jury trials
Administration of Malaysian IP IP matters administered by Intellectual Property Corporation of Malaysia (MyIPO). Internal patent examination - examiners typically have technical background. Member of PCT since 2006 Expected to join Madrid Protocol soon General compliance with TPPA Unusually strong Utility Model type protection (known as Utility Innovation ) Voluntary Registration of Copyright Annual Filing Statistics About 8,000 patent applications (in top 25 of world) About 36,000 trademarks filed annually About 1,800 Registered Designs
IP Registration: Patents Protects invention solution to a specific problem in the field of technology Applications usually in English Patentability exclusions similar to UK e.g. Business methods, medical methods, but not software Published after 18 months, then examined In-house local examiner, often refer to examination reports in other jurisdictions Only 2 months to reply (can extend for extra fees) Several acceleration options (PPH (JPO), ASPEC, Expedited) Modified examination = alternative to Substantive examination Application granted on basis of granted patent in other jurisdiction, namely AU/EP/GB/JP/KR/US Inter-convertable with Utility Innovation application unusually strong as fully examined, novelty only, 20 year term Term = up to 20 years from filing date (if filed on/after 1st August 2001) if filed before 1st August 2001, the maximum term is the longer of (a) 20 years from filing date; or (b) 15 years from grant date renewal fees paid on anniversary of grant date not filing date
IP Registration: Trade Marks A mark (word, logo, graphic) capable of distinguishing goods/services of one proprietor from those of another Non-traditional marks not yet allowed Examined on absolute grounds and relative grounds Examiners appear to be quite pedantic at present, often raise objections Published for opposition registered if no objections after 2 months Application may be deemed abandoned if procedure not completed within 12 months
IP Registration: Industrial Designs Protection relates to shape, configuration, pattern or ornament applied to an article by any industrial process Require worldwide novelty for applications filed on or after 1st July 2013 Examined on formalities only (unless clearly lacks novelty) Examiners appear to be quite pedantic at present, often raise objections Relatively high official fees, dependent on number of views to be published Usually registered within 6-9 months Protection can be quite limited and specific
POLL QUESTION IP lessons learned - What can be registered as a trademark? a) New invention b) Confidential information c) Logo d) Software e) Music
When to apply for IP? Patent / Design critical to apply before invention is made public conference, publication, sales, etc Anything public before application date may be considered against registrability of application Exception patents in Malaysia allow 12-month grace period to self-disclosure Trade Mark can apply later, but consider clearance searches before brand is built up If it s worth stealing it s worth protecting Copyright n/a (automatic) Consider Non-disclosure agreements where appropriate Sometimes trade secret may be better? Seek professional advice early!
Case Study Danone Biscuits (M) S/B v. Hwa Tai Industries Bhd [2010] Malaysian law states that a trade mark is infringed by a person who uses an identical mark or one which so nearly resembles it as likely to deceive or cause confusion in the course of trade in relation to the registered goods or services Danone owned registered Malaysian trade mark 90007035 CHIPSMORE in respect of biscuits (class 30) and used brand on cookies since 1990 Hwa Tai sold cookies under ChipsPlus brand Danone sued Hwa Tai for trade mark infringement and passing off ChipsPlus held to be infringement of ChipsMore as similar marks for identical goods and likely to deceive or cause confusion Claim for passing off also successful
Q&A Session Please type in your questions using the question box on your screen. Indicate whether your question is addressed to: Dr. Krzysztof Grzybowski (Kristof), Trade and Investment Expert, Managing Director of Symbiona Mr. Chris Hemingway, South-East Asia Helpdesk IP Expert
Follow the South-East Asia IPR SME Helpdesk in Social Media for the latest News Training materials Events Projects Developments www.ipr-hub.eu www.youripinsider.eu Channel: Helpdesk TV @iprasean South-East Asia IPR SME Helpdesk South-East Asia IPR SME Helpdesk
Follow in Social Media Market Information News & Updates Events YouTube FB Video Interviews @eumcci @eumcci LinkedIn @eumcci Twitter @eumcci Next EUMCCI Webinar on 16-Feb : Azlan Ramli, Senior Vice President, i2m Ventures Malaysia as location for Global Business Services 37
KNOW BEFORE YOU GO. WE ARE HERE TO HELP YOU GROW. The South-East Asia IPR SME Helpdesk and EU-Malaysia Chamber of Commerce and Industry provide free, confidential, business-focused advice to European Small and Medium Enterprises (SMEs). For any IPR related issues: Contact question@southeastasiaiprhelpdesk.eu to learn about any aspect of intellectual property rights in Vietnam or elsewhere in South East Asia, including Local partners Due diligence IP audits Or to simply learn about the local landscape and adapt your IP plan accordingly something which can save you EUR in the long term For any business support: Drop an email to Lars@eumcci.com including your company profile and your specific question. Enquiry Helpdesk free-of-charge Gain first insights on business opportunities in Malaysia Complementary market reports Identify your potential in the Malaysian market Get first hand personalized service 38