Written by the China IP SME Helpdesk and EU IP Project in China teams.
Happy World IP Day! This year’s theme is IP and Sports: Ready, Set, Innovate.[1]
Sports today are no longer just about competition on the field. The industry now sits at the intersection of fashion, media, entertainment, technology and consumer products. For European SMEs, this shift opens significant business opportunities – especially in China, one of the fastest-growing and most dynamic sports markets in the world.
The sport’s industry in China has grown rapidly over the past decade, driven by rising incomes, urbanisation, and strong government backing for fitness and consumption-led growth. In 2024, the total output of China’s sports industry reached approximately €480 billion[2], accounting for 1.19% of the country’s GDP, with the industry expected to double in value by 2030.[3] The sector is growing exponentially and has shown particularly strong momentum in recent years, growing at an average annual rate of over 11% between 2021 and 2023, reflecting policy prioritisation and increasing consumer demand for sports, fitness, and related services.[4] Chinese authorities have explicitly positioned the sports and fitness industry as a strategic driver of domestic consumption, supported by initiatives to expand participation, develop infrastructure, and stimulate innovation in areas such as digital fitness, events, and sports services.[5]
In addition to equipment and apparel, EU SMEs may find opportunities in data-driven services, coaching content, and rehabilitation services and injury prevention tools. However, succeeding in China’s highly competitive market requires more than just a good product, it also requires a clear and proactive IP strategy.
Brand value: the commercial power of names, logos and reputation
At the heart of any sports business lies its brand. Trademarks are what transform a name or a logo into a commercial asset that can be licensed, monetised, and scaled.
Trademarks enable merchandising, which represents a substantial revenue stream within the sports sector. From apparel to accessories, fans purchase products to align themselves with an athlete’s or team’s identity. A registered trademark reassures consumers and partners of a product’s authenticity, while also deterring copycats in a market where counterfeiting remains a significant and growing concern.
For SMEs operating across Europe and China, consistency is critical. IP rights are territorial, meaning that registering a trademark in the EU does not provide protection in China. Without local registration, businesses have no enforceable rights in the Chinese market. It is therefore important for SMEs to consult IP professionals to devise a unified global trademark strategy, which simplifies enforcement and reduces the risks of cross-jurisdictional counterfeiting.
It is essential that EU businesses develop and secure branding adapted to the local market, to be used alongside their original branding. Chinese consumers often engage more easily with localized brand names, and a well-chosen trademark in Chinese characters can significantly improve market acceptance. Additionally, registering a Chinese version of your brand prevents third parties from appropriating the brand. The risks are not theoretical: cases where foreign brands were forced into costly legal disputes or rebranding because local entities registered their names first are extremely common. Notably, the case of New Balance in China is often cited as a textbook example of the risks of not securing your Chinese branding early. The company lost a major lawsuit in 2015 and was ordered to pay nearly RMB 98 million (approx. €12 million) because a local party had already registered its Chinese name “Xin Bailun,” meaning that New Balance was found to be infringing someone else’s trademark in China.[6]
Common pitfalls include bad-faith filings, where a local entity registers a foreign brand to block its market entry, as well as widespread counterfeiting across online and offline channels. Companies that solely rely on reputation without formal registration often find themselves with limited legal recourse. Often, failing to register a Chinese trademark can expose a company to infringement claims from the very entity that appropriated its brand.
Design value: when look-and-feel is part of the product
In the sports industry, design and function often go hand-in-hand. The appearance of footwear, apparel, and equipment can be a major driver of consumer appeal and brand differentiation.
Design protection is therefore a key commercial tool. In China, sports products such as sneakers, fitness accessories, and distinctive equipment can be protected through design patents. These rights safeguard the visual aspects of a product and can be critical in preventing imitation.
Registering 3D trademarks for product shapes, such as the design of a sports shoe, is particularly challenging in China. Unlike the EU, China rarely grants 3D trademark protection for sports shoe designs. Alternatively, registering the design as a design patent can guarantee 15 years of protection in China.
Disputes in the sports footwear sector frequently involve a combination of design and trademark rights. Companies should act early, filing design applications before any public disclosure of the product. An important difference from the EU is that China does not provide protection for unregistered designs and insists on absolute novelty, so prompt registration and treating the sketches of your design as trade secrets are crucial. At the same time, businesses should build a complementary trademark portfolio to protect logos and distinctive elements. This layered approach strengthens enforcement and maximizes commercial leverage.
Innovation value: performance tech, wearables and know-how
Innovation is often the main source of competitive advantage for European SMEs engaged in sports technology, materials, wearables, analytics platforms, or training software. Effectively protecting and capturing innovation is keyto long-term success in China.
For sports SMEs operating in areas such as sports tech, advanced materials, sensors and wearables, analytics platforms, and training software, innovation is often the core of their competitive edge. In China, where the market is highly dynamic and fast-moving, that edge can disappear quickly if it is not properly protected and managed.
China has become a major hub for both manufacturing and digital innovation. Demand is growing not only for physical products, but also for performance-enhancing technologies ranging from smart fabrics and biomechanical sensors to AI-driven training platforms and athlete monitoring systems. This creates clear commercial opportunities for European SMEs but also increases exposure to imitation, theft of software and other forms of IP infringement.
A key first step is deciding how to protect different types of innovation. Patents are particularly valuable when a product or technology can be easily reverse-engineered and copied once it reaches the market. This is often the case for hardware-based innovations such as wearable devices, embedded sensors, or new material compositions. Registering a patent in China gives the owner exclusive rights to use and commercialise the invention, and it provides a strong legal basis for enforcement against infringers. Just as importantly, filing early is critical, China operates on a first-to-file system, meaning that delays can result in losing rights entirely to a competitor or even a bad-faith filer.
It is relatively easier to obtain software-related patents in China than in the EU, especially when the software is tied to a technical solution (for example, data processing methods that improve device performance or training outcomes). SMEs developing analytics platforms or performance-tracking tools may find this useful. Consult IP professionals to discuss the feasibility of filing software-related patents and whether the scope of protection will match the needs of your business.
Many sports innovations are improvements to existing equipment rather than radical breakthroughs. Examples include helmet vent shapes that reduce drag for cyclists, racket frames and handles that minimise vibration, or ball shapes that improve flight stability, etc. While not qualifying for invention patent protection, these innovative steps could be protected by utility models. In fact, utility models are the most underused type of IP by EU SMEs in China, while Chinese businesses rely heavily on utility models to protect incremental innovation.
That said, not all innovation should be patented. In many cases, trade secrets are the more strategic option. This is particularly true for elements that are difficult to reverse-engineer, such as proprietary algorithms, data models, training methodologies, or manufacturing processes. For example, an athlete performance algorithm or a predictive injury model may derive its value from continuous refinement and data accumulation, making secrecy more valuable than disclosure through a patent.
The trade-off is clear: patents require publication, while trade secrets depend on confidentiality. Once disclosed, patented information becomes publicly accessible, even if protected. Trade secrets, on the other hand, can theoretically last indefinitely, but only if they are actively safeguarded.
This is where many European SMEs underestimate the challenge. Protecting know-how in China is not just about legal registration; it also requires operational discipline. Contracts play a central role. Employment agreements should clearly state ownership of IP and include confidentiality obligations that survive termination. Non-disclosure agreements (NDAs) with partners, suppliers, and contractors are essential, particularly in a market where collaboration with local manufacturers or tech partners is often necessary.
Beyond contracts, practical internal measures are just as important. Limiting access to sensitive information, separating critical components of technology across teams or partners, and using digital monitoring systems to track data access can significantly reduce the risk of leakage. In other words, trade secrets are only as strong as the systems used to protect them.
Ultimately, the most effective approach for sports SMEs is rarely a choice between patents and trade secrets; rather, it lies in combining the two strategically. Core technologies that can be reverse-engineered should be patented early, while complementary know-how and data-driven insights should remain confidential. When aligned with a broader IP strategy, this dual approach allows companies not only to protect innovation, but also to leverage it, whether through licensing, partnerships, or market expansion.
Media value: content, livestreaming and fan engagement
Content has become one of the most valuable assets in the sports ecosystem. For many SMEs, copyright can rival or even exceed the value of physical products.
Sports-related content includes coaching videos, event footage, platform-based content, photography, and fan engagement tools like apps. A single viral video can generate significant revenue through licensing, sponsorship, and increased merchandise sales.
To fully capture this value, companies need to address key IP considerations. First, ownership must be clearly defined. Granting a platform the right to stream content is not the same as transferring copyright. Without clear agreements, SMEs risk losing control of their own assets.
Second, businesses should understand the duration of protection. In China, copyright generally lasts for 50 years after the author’s death, which differs from the longer terms in some other jurisdictions.
Finally, enforcement in the digital space is becoming increasingly practical. Major Chinese platforms like Douyin, WeChat, Bilibili, and Rednote provide notice-and-takedown systems that allow registered copyright holders to act quickly against infringing content. Chinese courts have also developed experience in handling disputes related to sports livestreaming, reinforcing the idea that digital content should be treated as a core business asset rather than an afterthought.
Conclusion
Intellectual property is not just a legal safeguard, it is a business tool. For European sports SMEs entering China, IP is what enables licensing, supports scaling, enhances company valuation, and strengthens negotiating power with partners and investors.
A well-structured IP strategy allows businesses to move from simply delivering performance to capturing commercial value. It ensures that innovation, design, brand, and content are not only protected but actively monetised.
For European sports companies looking to enter or expand into the Chinese market, initiatives such as the China IP SME Helpdesk and the EU IP Project can help. These two projects provide IP assistance in different ways, namely:
The China IP SME Helpdesk is a first-line IP assistance service for European SMEs that operate or intend to access the China market (including Mainland China, Taiwan, Macao, and Hong Kong) and that aim to improve their global competitiveness. The services take the form of jargon-free, first-line, confidential advice and resources on intellectual property and related issues. For personalised help, SMEs can send their enquiries to the helpline (question
china-iprhelpdesk [dot] eu (question[at]china-iprhelpdesk[dot]eu)) and book 1:1 consultation sessions with an IP Business Advisor. On the website, visitors have access to various trainings, materials and tools.
The EU IP Project creates a more reliable environment for EU companies in which to turn creative assets into business opportunities. By promoting the fair and transparent implementation of IP protection and enforcement, the project improves the business climate for EU right holders in China, contributing to a more level playing field. Through technical exchanges with Chinese authorities, monitoring of IP-related risks and close engagement with industry stakeholders, the project supports European sports companies in understanding the system better, anticipating challenges such as counterfeiting, bad-faith trademark filings and unauthorised use of content, and strengthening their ability to protect and commercialise their brands, designs and media rights in the Chinese market.
[1] https://www.wipo.int/en/web/ipday/2026/index
[2] RMB 3.84 trillion
[3] https://english.www.gov.cn/archive/statistics/202512/31/content_WS69551…
[4] https://www.stats.gov.cn/english/PressRelease/202601/t20260108_1962260…
[5] https://www.globaltimes.cn/page/202509/1342700.shtml
[6] https://www.chinadaily.com.cn/business/2015-05/06/content_20633286.htm
- Publication date
- 30 April 2026
- Author
- European Innovation Council and SMEs Executive Agency