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IPR Infringers Face Lengthy Jail Terms and Hefty Fines

As expected, intellectual property rights (IPR) turned out the focal point in outgoing US Commerce Secretary Donald Evans' three-day China trip. 

"It is absolutely essential that we see demonstrated results from China on IPR protection and the other structural issues that are compromising the Chinese economy in order to establish greater balance in our relationship," Evans said when addressing a lunch party in Beijing Thursday.

 

The secretary's concern for China's protection of IPR is appreciated. China does need to listen to other voices in order to do better.

 

But it should not be taken for granted that the one most attentive to IPR protection in China is none other than China itself.

 

The Supreme People's Court and the Supreme People's Procuratorate jointly issued a judicial interpretation that substantially lowers the threshold of applying the criminal law's IPR infringement articles. The interpretation makes clear offenders selling more than 250,000 yuan (US$30,000) worth of fake trademarked goods could face up to seven years in jail, a penalty equivalent to that for negligent homicide.

 

Harsh penalties tell the world that China's punishment for IPR infringement is tough.

 

The dynamic of China's anti-piracy efforts is also evidenced by administrative measures. Every year, every province and autonomous region have unlicensed DVD lines shut down, illegal publications burned and pirated discs worth billions of yuan destroyed. The law entitles administrative departments concerned to act on their own initiative rather than at a third party's request.

 

Law enforcement officers in China's government and judicial departments have not done a bad job, considering it is only two decades or so since the country introduced legislation on trademark, patent and copyright.

 

Even countries with a mature regime against IPR infringement, such as the United States, are not free from IPR violations.

 

Realistically, there is little hope that IPR infringements will be extinct in China over night. The country is populous, the private purchasing power is low and the public's IPR awareness has yet to improve.

 

But it is hoped the number of vendors of pirated DVDs and fake name-brand goods will become fewer and fewer, as the legal system improves and the authorities put up a concerted fight against IPR violation.

 

From China's perspective, protecting IPR effectively is not only part of its obligation as a World Trade Organization member or to court more foreign capital, but also a prerequisite to the country's pursuit of constant technological progress and long-term economic prosperity.

 

After achieving a boom in trade and the smooth opening of the domestic market to foreign goods and services, China also needs to attain a favorable position on the IPR front.

 

Being open to opinions and suggestions of other countries is conducive to these goals.

 

There is great scope for communication on IPR issues between China and the United States, two of the world's major traders. Such interaction will be fruitful if both sides can discern the circumstance of each other and if possible, see it from the other's perspective.

 

(China Daily January 14, 2005)

China Talking Tough on IPR
Nation Enhancing IPR Protection: FM
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