News Article
China encouraged to get tough on IP
The United States, Japan and Switzerland are putting pressure on China to bolster its intellectual property protection rules, amidst accusations of mass counterfeiting in the world’s most populous nation.
The United States, Japan and Switzerland are putting pressure on China to bolster its intellectual property protection rules, amidst accusations of mass counterfeiting in the world’s most populous nation.
Under the auspices of the World Trade Organisation’s Trade-Related Aspects of Intellectual Property (TRAOIP) agreement, the three countries are calling on China to provide more information about its intellectual protection measures.
The TRAOIP agreement requires that WTO signatory countries ensure that enforcement procedures of IP rights “are available under their law so as to permit effective action against any act of infringement of intellectual property rights".
China has long infuriated US and European countries by failing to crack down on companies that rip off ideas and designs patented elsewhere. This has been a particular concern for the semiconductor industry where some companies rely solely on intellectual property for their income.
According to Semiconductor Industry Association president George Scalise, “enforcement of IP protection laws [in China] has been widely recognised as falling short of what is needed to deter violations. In some cases, penalties for violation of IP rights are so light that they are considered to be a routine cost of doing business.”
However, there are signs that China is beginning to take IP protection more seriously, if only because it is beginning to develop some valuable IP of its own, particularly in the field of semiconductors.
“Since joining the World Trade Organization (WTO), China has recognised the importance to its own economic development of protecting intellectual property,” said Scalise.
“China has enacted a number of laws to protect intellectual property, including a law to protect semiconductor layout designs.
According to the Semiconductor Industry Association, China and its trading partners would both benefit from tougher Chinese laws on infringements of intellectual property.
“We have met with officials in China who believe that effective IP protection is essential to encouraging innovation and stimulating economic growth,” said Scalise. “We are hopeful that a systematic collection of the penalties meted out for IP violations will pressure those regions within China where the penalties are insufficient to deter counterfeiting.
“The best approach is always to deter violations before they occur, and this requires effective enforcement and sufficient sanctions that those who intentionally and consistently violate the IP of others cannot simply treat penalties as a routine cost of doing business.”
Under the auspices of the World Trade Organisation’s Trade-Related Aspects of Intellectual Property (TRAOIP) agreement, the three countries are calling on China to provide more information about its intellectual protection measures.
The TRAOIP agreement requires that WTO signatory countries ensure that enforcement procedures of IP rights “are available under their law so as to permit effective action against any act of infringement of intellectual property rights".
China has long infuriated US and European countries by failing to crack down on companies that rip off ideas and designs patented elsewhere. This has been a particular concern for the semiconductor industry where some companies rely solely on intellectual property for their income.
According to Semiconductor Industry Association president George Scalise, “enforcement of IP protection laws [in China] has been widely recognised as falling short of what is needed to deter violations. In some cases, penalties for violation of IP rights are so light that they are considered to be a routine cost of doing business.”
However, there are signs that China is beginning to take IP protection more seriously, if only because it is beginning to develop some valuable IP of its own, particularly in the field of semiconductors.
“Since joining the World Trade Organization (WTO), China has recognised the importance to its own economic development of protecting intellectual property,” said Scalise.
“China has enacted a number of laws to protect intellectual property, including a law to protect semiconductor layout designs.
According to the Semiconductor Industry Association, China and its trading partners would both benefit from tougher Chinese laws on infringements of intellectual property.
“We have met with officials in China who believe that effective IP protection is essential to encouraging innovation and stimulating economic growth,” said Scalise. “We are hopeful that a systematic collection of the penalties meted out for IP violations will pressure those regions within China where the penalties are insufficient to deter counterfeiting.
“The best approach is always to deter violations before they occur, and this requires effective enforcement and sufficient sanctions that those who intentionally and consistently violate the IP of others cannot simply treat penalties as a routine cost of doing business.”
