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People in Focus
Special> Sino-U.S. Economic & Trade Relations> People in Focus
UPDATED: May 10, 2007 NO.20 MAY 17, 2007
Unparalleled Commitment
Li Shunde shares his observations and thoughts on the IPR topic, especially in regard to IPR disputes between China and the United States
 
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Over the past two decades, IPR protection has gone beyond a legal issue or an intellectual property issue to have implications for international trade and economic development of the countries. Under the WTO mechanism, international trade and IPR are bonded together, a trend that have widespread repercussions across the world. This is true with the IPR disputes between China and the United States. The disputes bear on the two countries' economic, political and diplomatic interests. We should neither discuss IPR protection in isolation to other issues nor unreasonably relate it to too many other issues. What we should do is to seek a rational solution to the disputes within proper limits. China and the United States enjoy close trade relations, with each being the other's major trade partner. Most daily consumer goods in the U.S. market are made in China. U.S. airplanes, computer software, IT products and cultural products are commonplace in China. Given their interdependence, if the IPR disputes are not properly resolved, both countries will suffer.

Counterfeiting and piracy have always been two compelling problems in IPR protection. They affect every country and are not to be curbed by any single country. To tackle the problems at the source calls for concerted efforts of all countries. For example, pirated copies of some U.S. blockbuster movies are available in China as soon as they premiere in the United States. As they are not yet shown in China, it is obvious that the master copy was made in the United States. It is then duplicated and sold to China. Can the United States put the blame entirely on China? Isn't it guilty of producing the master copy of the pirated disks?

As a developing country, China has had in place an IPR system for only a short time. There is no denying that its IPR protection is beset by various problems. The problem of piracy is extremely severe. The Chinese Government and general public have committed great efforts to IPR protection, achieving remarkable results at enormous costs. However, the achievements are still not satisfactory. In this context, it is untimely to accuse the Chinese Government of inadequate IPR protection and exert pressure on it. Instead, the United States is expected to assist China in better protecting IPR.

Washington's filing of the WTO cases against China raised concerns in certain industries in the United States such as software and pharmaceuticals. Some U.S. industry insiders say that they have made progress in accessing the Chinese market and fighting piracy in China and do not want to see their progress disrupted. This shows China's efforts have won the recognition of some sections of U.S. society. What do you think China should do to make its efforts in IPR protection better understood in the United States?

The opinions on China's IPR protection vary in different industries in the United States. Even in the same industry, different companies may also have varying perspectives. It is a stark fact that while many Americans have acknowledged the achievements China has made in IPR protection, some others are still calling for pressure on China. We hope that more Americans can have an objective and balanced picture of China's efforts to protect IPR. They are also welcome to point out China's drawbacks in this regard and come up with good suggestions.

It should be admitted that China has a long way to go in its bid to put IPR under effective protection. What are your expectations on China's future IPR protection endeavor?

China started to deliberate on establishing an IPR system in the late 1970s when it set out to embrace the market economy with the introduction of reform and the opening-up policy. It adopted the Trademark Law, the Patent Law and the Copyright Law in 1982, 1984 and 1990, respectively. It is said that China completed what it took developed countries centuries in just over a decade. By the time it entered the WTO, its IPR legislation had reached the international standard. At present, China is considering revising its Patent Law and Trademark Law and adopting other relevant laws and regulations.

China has made notable progress in law enforcement. Its patent applications and grants and trademark registrations all rank high in the world. A large number of IPR-infringing cases have been investigated by different departments. Seven special campaigns were launched last year to crack down on IPR violations. Unlike developed countries, in which the judiciary, the customs and the police are responsible for protecting IPR, China charges a number of administrative departments such as the intellectual property offices, copyright administrations, administrations for industry and commerce and departments of culture with IPR protection in addition to those. These departments are found not only at the central level but also at local levels. So, the number of public servants involved in IPR protection may well surpass 1 million. The special campaigns can involve even more people as entire society is called upon to act. The human and material resources China has committed to IPR protection are unparalleled the world over.

Despite the progress, China is fully aware of the problems. China faces a series of problems, including problems in IPR protection, as it seeks development. We believe China's endeavor to protect IPR will have a bright future after many twists and turns.

Tian Lipu, Commissioner of the State Intellectual Property Office, recently said China protects IPR not because of the pressure from other countries but because of the intrinsic needs to achieve its own development. How do you interpret Tian's words?

China established the IPR system precisely to serve the needs of its own development. Had it not decided to pursue reform and opening up, it would have been unnecessary to foster an IPR system. Today, it is poised to improve the system primarily because it wants to boost its market economy and create better conditions for investment and economic development. I agree with Tian, and his is not a personal view but represents the view of the Chinese Government and is a consensus among IPR academics. China will fulfill its obligations to IPR protection enshrined in the international conventions it has signed. However, it is unrealistic to expect China to go so far as to reach the high standard of developed countries. China should determine the level of IPR protection in light of its own realities.

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