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Although intellectual property rights have existed in China for centuries, they were
not given considerable legal consideration until the mid-1980s. On paper, the People's
Republic of China (PRC) is very similar to the West, with a complex and
comprehensive bureaucracy dedicated to protecting both foreign and domestic
intellectual property. Yet intellectual property crimes are nonetheless common and, in
many respects, normalized in China. One out of every three North American
corporations claims that Chinese-based companies have stolen their intellectual
property in the last decade, and one out of every five claims that it has occurred in the
last year. According to recent estimates from the Organization for Economic
Cooperation and Development (OECD) and the European Union Intellectual Property
Office (EUIPO), China accounts for over 90% of all seized counterfeit goods.
As an intangible asset, intellectual property refers to inventions, artistic works,
symbols, designs and other creations of the mind. Similar to any other property right,
these protections allow for creators to benefit from their works. Depending on how it
is expressed, intellectual property is generally divided into one of four categories,
including patents, trademarks, copyrights and trade secrets. Patents protect an
invention and generally last for 20 years, though when that timeline legally begins is
dependent on the country for which the patent is granted. Trademarks protect a brand,
ensuring that a good is produced by the correct manufacturer. Excluding unique
circumstances, trademarks will continue to last for as long as the fees are
paid. Copyrights protect artistic creations, such as music, literature, art, and most
noteworthy, computer code. Finally, trade secrets encompass confidential information
that make one firm more competitive than another. While each country maintains its
own laws and policies regarding intellectual property, the international community
abides by a series of conventions administered by the World Intellectual Property
Organization. These include the Paris Convention for the Protection of Industrial
Property (Paris Convention), the Berne Convention for the Protection of Literary and
Artistic Works (Berne Convention), and the Agreement on Trade-Related Aspects of
Intellectual Property Rights (TRIPS).
Intellectual property rights are essential for protecting and promoting innovation.
From an individual perspective, intellectual property rights ensure that creators, or
those that invest in the creation of a good, earn their deserved credit and remuneration.
From a societal perspective, these rights promote innovation and growth. Guaranteed
protection and uniform law provide greater incentive to develop new products, which
in turn contributes to a more advanced economy. Intellectual property is the backbone
of state advancement.
Trademark counterfeiting is another violation of intellectual property, but one with
very different effects. In many circles, counterfeit products bring to mind the notion of
imitation luxury goods, such as purses, shoes and other accessories. As such, a
common misunderstanding is that the only victims in the cases of counterfeit goods
are multinational corporations. However, experts estimate that only 5% to 10% of all
counterfeits are of a luxury good, and only half of all counterfeit goods are of
clothing, accessories or shoes. The remaining counterfeit products include infant
formula, vaccines, prescription drugs, consumer goods, and aftermarket parts for
everything from automobiles to aircraft carriers, to name just a few. The dangers of
such counterfeits are just as varied as the products themselves, with notable examples
being lethal amounts of melamine in infant formula, faulty aftermarket airbags and
even counterfeit N95 masks during the COVID-19 pandemic. Disastrous
consequences are not only present from a public health standpoint, but financially as
well. Additionally, because the trafficking of counterfeit goods is so profitable, with
estimated values higher than $500 billion in worldwide trade, money from counterfeit
goods have been found to finance corrupt governments, organized crime and even
terrorism. Though it is true that brands do suffer from counterfeit goods, more
importantly, the counterfeiting enterprise poses a stark danger to the public welfare.
Conclusion-
The People’s Republic of China, in less than half a century, has created an intellectual
property system allowing it to maintain global operations. China has demonstrated a
continued interest in its intellectual property system, revising policies at least once a
decade, their enforcement falls short of international expectations China has become
the global hub for counterfeit products, and numerous allegations exist of Chinese
companies stealing technology from US firms. While frustrating for US policymakers
and brand owners, understanding the problem from a perspective of actor analysis can
provide greater insight into what motivates effective enforcement. While national
officials need to balance long-term and short-term economic stability, local officials
seek consistent economic success and measured development—facets of a region that
intellectual property enforcement could hamper. Finally, the perspective of the
Chinese population provides greater insight into the general tolerance for counterfeit
products.
Intellectual property rights focus on intangible assets, providing worth to creativity
and innovation. Though China has taken measured steps to develop its policies, it is
far from a perfect system. By continuing to utilize international institutions and
economic statecraft, however, the international community can continue to hold China
accountable for protecting intellectual property. These tactics, however, need to be
supplemented by relationship building, public education and mutual understanding.
Only with these key aspects will China’s perspective on intellectual property change,
moving to one where companies both foreign and domestic can operate without the
fear of theft or imitation.
BIBLIOGRAPHY-
www.dailypioneer.com/2022/columnists/china---s-ip-theft--boon-or-bane
www.csis.org/analysis/chinas-ally-stealing-western-ip-united-states
www.aei.org/articles/the-rising-risk-of-chinas-intellectual-property-theft