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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