Foreign governments and companies should strengthen cooperation and actively provide solutions to combat piracy and protect intellectual property rights (IPR) in China, participants said during a panel discussion focused on China’s intellectual property issues.

IPR protection was one of the China-related topics discussed at the 2005 Fortune Global Forum in Beijing, which concludes this afternoon. According to David Frazee, a shareholder of Greenberg Traurig, industries such as film, entertainment, trademark and pharmaceuticals are victims of piracy in China.

Wang Jingchuan, commissioner of State Intellectual Property Office, reiterated the country’s determination to combat piracy and develop IPR protection systems.

Although China’s IPR system was only established some 20-odd years ago, it has already seen great progress, Wang said.

For example, China’s General Principles of the Civil Law and Criminal Law have provisions for the protection of IPR. Further, IPR violators can face up to seven years in prison.

"As I know, it is the most severe penalty in the world," Wang said.

In May 2004, the National IPR Protection Team, headed by Vice Premier Wu Yi, was set up. Its purpose is to coordinate law enforcement in the different regions and departments. Last September, a special campaign was launched targeting IPR violations in the areas of patents, trademarks and copyrights.

In order to deal with IPR issues more effectively, Wang says that his team keeps abreast of developments around the world by exchanging opinions with multinational companies and foreign enterprises in China.

"China is not the only country that has fallen victim to IPR infringements,” Wang added.

Protecting IPR in a reasonable and effective way is a global issue, and he urged for greater international cooperation.

Dan Glickman, president and CEO of Motion Picture Association of America, Inc., also spoke highly of the progress that China has made in IPR protection.

Using films as an example, Glickman suggested focusing on market entry to combat piracy.

Chinese people can buy thousands of pirated DVDs on the streets, but only 20 or so foreign films are distributed to Chinese cinemas each year, he said.

Zhang Yao, CEO of Phillips Electronic China, said that the company appreciates the Chinese government's efforts in the fight against piracy, and encouraged more experts and the public to join the battle against IPR violation.

He set forth a principle of technology and knowledge sharing.

Phillips Electronics has to date cooperated with several Chinese universities to set up three intellectual property schools.

“We hope to train more IPR professionals, and accordingly help IPR protection in China.”

The company’s efforts have begun to reap rewards. Last week, the company won a case against a man who produced fake copies of its lights. The violator was sentenced to 4-5 years in prison.

Jeffrey B. Kindler, vice chairman of Pfizer Inc., was also positive about the Chinese government’s efforts, saying that the situation is encouraging.

“Compared with the United States and European Union, China has not been fighting the IPR issues for very long and it has had to start from scratch, but it has already made progress,” Kindler said.

Kindler regards fake medicine as a big threat to the industry, urging more law enforcement against producers of fake goods.

(China.org.cn by staff reporter Tang Fuchun, May 18, 2005)