There has been a lot of hype around IPH's Chinese operations particularly Spruson & Ferguson China. However, since Spruson & Ferguson (China) is a wholly owned foreign enterprise (WOFE) based in Hong Kong, and is therefore regarded as a “foreign firm” in mainland China. In short, Spruson & Ferguson is not allowed to file patent applications directly with the State Intellectual Property Office (“SIPO”) and this situation has not changed even after Ella Cheong's acquisition. The only way Spruson & Ferguson is able to operate in China is by relying on Chinese firms to perform a “mailbox” service, who immediately forward any official notifications received from the SIPO to Spruson & Ferguson.I had not known about these arrangements until a Patent Attorney pointed out this fact.
It seems that all the IPH firms operating in Australia are using the chinese operations for any asian IP related work that originates in Australia. However, the volume of work originating in Australia is small compared to the growth opportunities originating in mainland China.
My expectations for growth based on the chinese operations have been lowered after I learnt about the situation. A firm that is not able to directly practice in mainland China is not likely to have a lot of potential for growth.
IPH Price at posting:
$4.50 Sentiment: Sell Disclosure: Not Held
(20min delay)
