Chinas WTO Accession: Intellectual Property A Story The date is fall of the year 2000 The setting is...

China’s WTO Accession: Intellectual PropertyA Story

The date is fall of the year 2000

The setting is a Moscow street corner

A vendor is selling his goods

• Tony Jones • Karla Lawson • Kate Linton • Roger Panetta •

China’s WTO Accession: Intellectual PropertyOctober 21, 2002Group Members

Tony Jones

Karla Lawson

Kate Linton

Roger Panetta


China’s WTO Accession: Intellectual PropertyAgenda

China and the WTO Accession ProcessIP: Agreements, Monitoring & EnforcementIntellectual Property and ChinaProblemsPublic Policy ProposalsConclusion, Questions and Answers


China’s WTO Accession: Intellectual PropertyWhy China Matters in Trade


China’s WTO Accession: Intellectual PropertyChina and the WTO Accession Process


1986: China applies for GATT admission 1987: Working Party formed3 Aspects of WTO Accession15 years of negotiations2001: WTO Membership in December Agreement covers 8 broad areas

China’s WTO Accession: Intellectual PropertyChina and the WTO Accession Process


China’s WTO agreement (source: GAO)

China’s WTO Accession: Intellectual PropertyIP: Agreements, Monitoring & Enforcement

TRIPS and the WTOTRIPS CouncilSpecial 301 and the USTRSection 306 and the USTRSection 337 and the ITCWIPO


China’s WTO Accession: Intellectual PropertySome of China’s WTO IP Rights Commitments


China’s WTO Accession: Intellectual PropertyWhy IP Matters


Single largest sector of the U.S. economyCopyright industries create jobs at 3 times the normal rateThreatens trading environment(Bilateral and Multilateral)

China’s WTO Accession: Intellectual PropertyIP Violations in China: The Scope of the Problem

Counterfeiting and PiracyLoss of BusinessProduct PricingProduct Production Hazards


China’s WTO Accession: Intellectual PropertyThe Financial Cost of Software Piracy


Source: 2002 BSA Global Piracy Software Study

China’s WTO Accession: Intellectual PropertySoftware Piracy Offenders



China’s WTO Accession: Intellectual PropertyChina, Asia and Piracy



China’s WTO Accession: Intellectual PropertyState Participation in Piracy:

Adding Insult to Injury

State is substantial participant in computer software, videos, CDs, clothes, watches, chemicals and drug based pirates

(Largest consumer of pirated business software are government offices)

Chemical Abstracts Journal & subscriptionsChinese crackdown met with skepticism


China’s WTO Accession: Intellectual PropertyWhy does the problem persist?

Local ProtectionismElimination of millions of needed jobsBrand name competitionNeed for stricter enforcement


China’s WTO Accession: Intellectual PropertyChina: Positive Developments in IP Enforcement

What is being done to remedy the problem

Amended patent, trademark and copyright laws in 2001Promotion of Domestic GrowthFocus on IP EnforcementCoalitions


China’s WTO Accession: Intellectual PropertyPublic Policy Proposals

Review MechanismsDSU ProceduresTRIPs Exemptions for Developing CountriesOther Trade Law Challenges


China’s WTO Accession: Intellectual PropertyUneasy Compromise: IP Violations Outweighed

by Promise of the MarketMicrosoft: Chinese legal system inefficientMicrosoft shares IP: competitive reasonsMultinationals sharing: Matsushita, Intel, Siemens and AlcatelHuawei Technologies: products look & work like Cisco – Cisco is not complainingWith total cost of a engineer about $15,000 & Chinese companies creating low cost knockoffs of high-tech products, the compromise is an uneasy one


China’s WTO Accession: Intellectual PropertyConclusion and a Question for the Class

How do you balance the uneasy compromise: IP Protections vs. the Promise of the Market?Questions and Answers


China’s WTO Accession: Intellectual PropertyAppendix I

USTR’s CHINA'S ACCESSION TO THE WTO (Prof Malawer's webpage)http://www.ustr.gov/regions/china-hk-mongolia-taiwan/accession.shtml

USTR’s Intellectual Property (Prof Malawer's webpage)http://www.ustr.gov/sectors/intellectual.shtml

China's accession to WTO (University of Washington Prof)http://faculty.washington.edu/karyiu/WTO/links.htm

China’s WTO Accession Package? http://www.mac.doc.gov/China/WTOAccessionPackage.htm

Intellectual Property Issues and Chinahttp://internationalecon.com/currentissues/china/china-ipr.html

China Intellectual Property Laws & Rightshttp://www.china-laws-online.com/intellectual-property-rights/index.htm


China’s WTO Accession: Intellectual PropertyAppendix II

Report on WTO's China Accessionhttp://www.cibertele.com/nuevo/omc/Report%20on%20WTO%20China%20accession.pdf

China enters WTO an overview of the changeshttp://www.freshfields.com/places/asia/publications/pdfs/2744.pdf

WTO China May 2002http://www.deloitte.ca/en/pubs/ExpressChina/WTO_09.pdf

Brookings Institute Issues: WTO's China Accessionhttp://www.brook.edu/views/testimony/lardy/20010509.htm

USTR Special Report 2002http://www.ustr.gov/reports/2002/special301-306.htm


China’s WTO Accession: Intellectual PropertyAppendix III

China’s WTO Accession – On the Fast Track: Financial Serviceshttp://www.tdctrade.com/econforum/tdc/020301.htm

China: Intellectual Property Rightshttp://www.users.qwest.net/~ryanandkari/IPR.htm

China: Intellectual Property Rightshttp://www.tradeport.org/ts/countries/china/mrr/mark0307.html

Laws revised to meet promiseshttp://www1.chinadaily.com.cn/cndy/2002-09-19/86860.html

China has joined the WTO – Are you prepared? Do you have an ntellectual property strategy in China?http://www.dorseylaw.com/updates/IP/IPVol2Num1.asp

U.S. Sees Rising Intellectual Property Theft in Chinahttp://www.uspolicy.be/Issues/WTO/rogan.042302.htm


China’s WTO Accession: Intellectual PropertyAppendix IV

M. Simensky, L. Bryer, N. Wilkof, Intellectual Property in the Global Marketplace, (1999)

Business Week, High Tech in China (October 28, 2002)

Washington Post, Piracy Still Runs Rampant in China (March 27, 1998)

Washington Post, Piracy in China, No Mickey Mouse Issue (February 15, 1996)

World Federation of the Sporting Goods Industry, China and Japan to Tackle Product Piracy, www.wfsgi.org.

Business Software Alliance, Seventh Annual BSA Global Software Piracy Study (June 2002), http://www.bsa.org/sweeps

USTR, 2002 National Trade Estimate Report on Foreign Trade Barriers – China, www.ustr.gov/reports/nte/2002/index.htm


China’s WTO Accession: Intellectual PropertyAppendix: GAO Reports

World Trade Organization: Selected U.S. Company Views about China's Membership. GAO-02-1056, September 23, 2002 http://www.gao.gov/new.items/d021056.pdf

World Trade Organization: Analysis of China's Commitments to Other Members. GAO-03-4, October 3, 2002http://www.gao.gov/new.items/

World Trade Organization: Observations on China's Rule of Law Reforms. GAO-02-812T, June 6, 2002 http://www.gao.gov/new.items/d02812t.pdf

China Trade: WTO Membership and Most-Favored-Nation Status. T-NSIAD-98-209, June 17, 1998 http://www.gao.gov/archive/1998/ns98209t.pdf


Chinas WTO Accession: Intellectual Property A Story The date is fall of the year 2000 The setting is...

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