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China faces international pressure on IPR

(Xinhua)
Updated: 2006-06-20 09:14

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, said at a recent meeting on IPR protection.

Among the 111 complaints the U.S. International Trade Commission (USITC) has lodged under Section 337 of the Tariff Act of 1930, 42 have been against Chinese enterprises, according to 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 is increasing, Tian said. Chinese companies have paid 3 billion yuan (about 375 million U.S. dollars) for DVD production.

A growing number of industries are involved in IPR disputes, from lighter and pen manufacturing to bio-pharmacy and computer chip production, he said. Patent suits lodged by foreign companies are threatening the economic security of certain Chinese industries, he added.

"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."