Intellectual property protection has been a major source of contention between China and foreign investors. China's piracy on video, CD, and software continues to increase annually. China is an especially big violator of software copyrights. In 1995, software piracy rate are at 98% totalling $527 million in losses to the copyright owners. In addition, there are already 30 CD ROM plants pirating software in China accoring to the Business Sofware Alliance's report.
Intellectual property right piracy (IPR) in China effectively destroys the creative initiative of Chinese inventors and scientists. It also hurt the bilateral relations with many countries, especially the U.S.. Therefore, since early 1960s, Chinese government has gradually made progress in IPR protection. Let's review what China has done in the past three decades:
| April 1963 | Trademark Control Act. Supplants PRC's Provisional Trade Mark Registration of 1950. The act was repealed in 1982. |
| July 1979 | US-China Agreement on Trade Relations. This agreement marked the beginning of current PRC intellectual property protection regime. Both sides stipulate that each will offer the other reciprocal protection of patents and copyrights. |
| June 1980 | China accedes to the World Intellectual Property Organization(WIPO) |
| August 1982 | Trademark Law of The People's Republic of China.(Detailed Implementing Regulations in 1983, 1988) Replaces the 1963 Act. Based on first-to-file system; registration is valid for 10 years after approval, with a 10-yea renewal option. 1988 revisions introduce protection for service marks. |
| March 1984 | Patent Law of The People's Republic of China. (Implementing Regulations issued in 1985) Mandates registration of consumer products and licensing contracts; infringement penalties can be twice the profit earned though violations based on first-to-file system. |
| March 1985 | China accedes to the Paris Convention for the Protection of Industrial Property |
| May 1989 | US-China Memorandum of Understanding (MOU) on Enactment and Scope of PRC Copyright Law. Stipulates that copyright legislation will include computer programs as a specific category; expands patent protection without specifying industries or time limits. |
| October 1989 | China accedes to the Madrid Agreement for International Registration of Trademarks. |
| June 1991 | Extends protection to computer software, and to literary, artistic, and scientific woks. |
| June 1991 |
Computer Software Protection Regulations. (Software Registration Procedures issued in 1992) Protects published software registered after the enactment date, leaving all existing software in China in the public domain. |
| January 1992 |
U.S.-China Memorandum of Understanding
(MOU) on Intellectual Property Rights. China pledges to extend copyright protection to foreign owners of software, books, firms, sound recordings, and other mediums previously unprotected. |
| September 1992 |
Regulations for the Implementation of
International Copyright Treaty Provisions.
Provides further amendments to the Copyright Law. Extends protection to "applied art" (jewelry, watches, toys, furniture, etc.), which are subject to registration requirements. |
| October 1992 | China accedes to the Berne Convention for the Protection of Literary and Artistic Works |
| October 1992 | China accedes to the Universal Copyright Convention |
| February 1993 | Supplementay Provisions Concerning The Punishment Of Crimes Of Counterfeiting Registered Trademarks |
| June 1993 | China accedes to the Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of their Phonograms (Geneva Convention) |
| December 1993 | Unfair Competition Law Protects unregistered trademarks, packaging, and trade dress; prohibits unfair competition by monopolies/cartels in controlling prices. |
| January 1994 | China accedes to the Patent Cooperation Treaty. |
| July 1994 | Copyright Implementing Regulations Makes copyright infringement a criminal offense; violators can be sentenced to prison for up to seven years or executed in severe cases. |
| Februay 1995 |
U.S.-China IPR Enforcement
In this agreement, China promised to markedly reduce piracy, to improve enforcement at the
border, and to open its markets for U.S. computer software, sound recordings and movies.
To see more detail, please click here and here and here |
Effective protection of intellectual property is essential if Beijing hopes to attract high level of foreign investment in China. However, if the Chinese government cannot guarantee that the investors will receive the full protection in intellectual property, it will not only jeopardize its good relations with foreign countries, but also its further economic development. Thus, Improving IPR enforcement is clearly correlated to China's modernization and reform programs in the future.
The Patent Office of The
People's
Republic of China
Copyrights Law of
Taiwan, Taiwan Ministry of Interior
Intellectual
Property
Department, Hong Kong (You can play a game and see cartoons here!)
Cyberspace
Law
Center
Intellectual
Property Resources
The Copyright
Website
World Wide
Web Issues
Internet and Electronic Rights
Issues
Fair Use
in the Electronic Age: Serving the Public Interest
University Copyright Policies
and other Intellectual Property
resources
Copyright & Intellectual Property
Resources
U.S. Copyright
Office via The Library of Congress
Remedies in
Domain Name Lawsuits : How is a domain name like a cow?
Copyright Clearance Center
Online
Copyright
Reform In Canada
Copyright Website
RightsBase
Copyright and intellectual property
Rights
U.S. House
Intellectual Property Library
U.S. House
Computers & The Law Library
Yahoo Intellectual
Property
Galaxy Intellectual
Property Law
Dialog
EINET - Intellectual
Property Law
Gao Lulin, "Taking a Stand" The China Business Review, November-Deccember 1994. The table text was compiled by Michael Hsu, p.9-12.
Reed Stanley and Borrus Amy, "China and the U.S. Turn a Tempet into a Tea Party" Business Week, July 15, 1996, p.53.
Sim David, "China agrees to fight copyright violations" IEEE Software , May 1995, p.88-89.
Zhou Xin, "China Strives to Meet International IPR Standards" Beijing Review, Septermber 2-8, 1996, p.16.
Any question, comment? Please E-mail to Cheng-China Huang:
