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IPR disputes between China and US escalating
Aug 17, 2007 03:38
  • FRANKENSTEIN
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Several days ago, US requested WTO to establish a panel to solve the IPR (Intellectual Property Rights) disputes between two parties. China regret for what US has done. Before, two sides have held several rounds of talks on this issue. However, they did not make any agreements. US said that China have deficiencies in IPR protection.

The pirate problem has been the big concern for two sides for a long time. Though China tried its best in fighting with piracy, the problem has not been solved properly. Actually, China has always been firm in protecting the IPR ans showed great sincerity in solving this problem through dialogue. However, both sides did not reach an agreement. It is said that WTO will consider US's request at the regualr meeting held on August 31th.

Will China face sanctions if US's request is approved by the panel? What do you think of the IPR disputes between China and US?
Aug 18, 2007 06:01
#1  
Protection of IPR is something people must believe in before it can be protected effectively within law. I think it will be difficult for people in China to see the value of IPR protection while the 'victims' are seen as rich Californian artists and studios, or big western corporations.

The fact is that to develop properly, China's own industries will require confidence in their IPR protection, as will artists, along with other potential 'victims' of unregulated 'copies'. In my view this argument must be won within China before it can become a subject of International agreement. It will be no bad thing if China decides what is good for the long term prosperity of China, and then decides how to come to terms with the US pressures.

Related to this whole debate, I worry at the bad example set by most western tourists, tempted by 'bootleg' materials, when they visit China, who simply re-inforce the impression that this type of 'piracy' is a 'no-loser' trade.
Aug 19, 2007 20:56
#2  
  • LEONARDO
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" Pirates"have a large market in China. For consumers, the pirate DVDs and disks are cheap, the quality,not bad.
Aug 20, 2007 03:28
#3  
  • JIMMYB
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Leonardo, that is why the pirate products are so popular.
Aug 21, 2007 17:55
#4  
  • GRIZ326
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Mike is on track. While it is correct that tourists buying pirated items sets a bad example; an even worse example are the importers flocking to buy pirated items to sell in their countries.
Aug 22, 2007 21:27
#5  
  • ZOEY
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To solve the problem of IPR infringement, the government should establish related laws and enforce them. Meanwhile, poeple's qualities also need to be improved.
Aug 27, 2007 06:46
#6  
  • ERENCIUS
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Actually mentalities have to evolve in coordination with the law. The problem is that law here has been imported from foreign countries and still now means not so many things to Chinese people. To understand the use of it, they need to produce something they need to protect, and the products in this situation are not so numerous in China. They need to inovate, to create something. The few inovations they invented are not popular among the people. So for now the protection is just necessary for foreigners and I don't see why Chinese people, whose standard of living is quite low, shall feel concerned about it, they simply cannot pay the price of it. They need to create something, if it is copied maybe they'll feel the need to protect it.
But what is quite surprising to me even is the ability and the tradition of making copies in China. During the Antiquity Chinese painter attributed the painting of their predecessors to themselves using some kind of stamps. The official exams to become a civil servant used to be reciting the masterpieces of Confucius or any other classic author. By now they copy foreign products but also Chinese ones.
The main problem doesn't come from the central government who tries is best to issue a lot of legal text about it. The problem comes mainly from the smaller administrative divisions of China: If you have to choose between economical growth and respecting the law protecting another country's product, the choice is obvious. The central government knows it of course but won't intervene, it is too profitable.
Actually IP law is not the only law that shall be implemented (I will elude the subject of Human Rights and Labor Law that can create some tension among Chinese people), competition law is really to be improved if not created. Who hasn't noticed yet in any market that all the retailers are selling the same products at the same price. Once I even saw one that disagreed on the price (wanted to sell at a cheaper price) he just got beaten by the others.
By now in Europe at least, the "made in China" is begining to threaten the consumer because of the many recent issues about the quality of these imported products :toothpaste containing antifreeze, toys poisonning kids, cacinogenic and highly flammable tissues and so on: mostly because of the cost of the raw material (dangerous material are cheaper because the demand for it is low). This problem is a problem of standard of living: people with higher incomes usually request better quality products. And copies quality is usually quite bad though it is improving.
So it is about time: more inovation and a better standard of living should be the key to solve the problem (unless copies quality matches with branded products).
Aug 28, 2007 22:40
#7  
  • JOHNNY512
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ERENCIUS, you made a very detailed and incisive analysis of IPR problem in China. I agree with you. Innovation is the key to solve this problem. Once I heard that China is the smartest nation which is good at copying. What a shame! Innovation ability is what China needs most.
Sep 1, 2007 07:57
#8  
  • DODGER
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Erencius,
very nicely said.
Perhaps the same as the Japanese market, as once they start to produce products that they have spent R&D $'s on they will want protection and then also follow the same line as most in the world.
But if we all stop buying off of a thief there will be no more stealing?
Dodger
Sep 2, 2007 09:54
#9  
  • ERENCIUS
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Quote:
"Once I heard that China is the smartest nation which is good at copying"
Yes to copy, it is the best nation in the world but the smartest... I don't think we can say there is a nation that is smarter than another. If we rely on the proportion of people with a university diploma, China is far behind. The same for illiteracy. There are more people which implies more brains working, which means more potential innovations (theorically). But we've got to wait to see if they plan to do like Korea and Japan (increasing R&D budget), or if they'll continue this way, then we'll know.

Quote:
"But if we all stop buying off of a thief there will be no more stealing?"
Maybe it would work if all the world does so at the same time. But even like this, Chinese needs are extremly important so it can nearly reach economic self-sufficiency. The only way, I think, for the foreigners to make them understand the dangers of copying (badly especially: http://www.aujourdhuilachine.com/article.asp?IdArticle=2872 (for those who can read French)), is to stop investing in China. But it would result in a major economic crisis that is not desirable for any country on Earth, particularly for many Chinese pepole that shall not be involved in this.
If you want later I can try to explain why.
Sep 2, 2007 22:00
#10  
  • JIMMYB
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ERENCIUS, of course China will increase its R&D products. These pirate products do harm to China's economy and make China embarrassed in the IPR dispute. China has tasted the bad consequences from these pirate products. More effective and severe methods should be adopted to solve this problem.

Personally, no foreign investors will stop investing in China. Since China's economy is developing fast and stably, they won't give up the chance to make money from it. Another reason is what you said. If they do, economic crisis might break. It not only do harm to Chinese people but also to any other nations in the world. What's more, China has strengthened its economic safety. Such problem is also taken into consideration.

ERENCIUS, you have very unique and shrewd opinions on this issue. Hope to hear more from you, not only on this issue but also on some other issues.
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