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China faces pressure on IPR earlier than expected
www.chinanews.cn 2006-06-20 10:17:32
(Source: Xinhua)
June 20 - China has faced international pressure on its handling of
intellectual property rights (IPR) five to ten years earlier than
predicted, a senior Chinese IPR governor has said.
"More and more Chinese companies have come under pressure from IPR issues
with the rapid economic development in the country," Tian Lipu, director
of the State Intellectual Property Office (SIPO), said at a meeting on
IPR protection.
Among the 111 complaints the U.S. International Trade Commission (USITC)
had lodged under Section 337 of the Tariff Act of 1930, 42 were against
Chinese enterprises, said Tian.
Under Section 337, imported products that allegedly violate U.S. IPR can
be barred from entry into the United States. Complaints under Section 337
are made to the USITC and generally involve allegations of infringement
of patents, trademarks or copyrights.
Patent payment and the amount of compensation foreign companies have
claimed was increasing, Tian said. Chinese companies had paid three
billion yuan (375 million U.S. dollars) for DVD production.
A growing number of industries were involved in IPR disputes, from
lighter and pen manufacturing to bio-pharmacy and computer chip
production, he said. Patent suits lodged by foreign companies were
threatening the economic security of certain Chinese industries.
"Domestic companies must strengthen their IPR awareness, improve their
innovative capacities and be active in patent applications at home and
abroad," he warned. "When facing lawsuits, they should heed domestic and
international laws on IPR."
"Almost all medical instruments, semiconductors, integrated circuit and
optic fiber manufacturing equipment, 80 percent of petrochemical
equipment and 70 percent of car manufacturing, advanced textile
production and offset equipment in China are imported," a SIPO official
who declined to be named told Xinhua on Monday
A major television set and cellphone manufacturing country, China
depended on more than half of the key technologies of the two products
owned by multinational corporations.
"We must pay royalties for a personal computer, a DVD player and even a
mouse," the official said.
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