Floor makers lose US case

By Jiang Wei (China Daily)
Updated: 2007-01-20 11:18

Chinese laminate floor manufacturers may soon have to pay high royalties or be banned from the US flooring market.

The US International Trade Commission recently ruled that Chinese exporters infringed upon patents in a locking system that is now used by 70 percent of China's laminate floor exports.

The ruling means Chinese products of this kind will be excluded from the US market unless they pay royalties to patent holders. The fee is 65 cents per square meter, which would amount to more than 10 percent of the current value of such flooring exported from China.

Challenging the ruling is not likely from most Chinese players, as the US government's primary rulings in 2006 have been upheld.

Some small exporters may just give up the US market, Yang Meixin, an official with the China timber distribution association, said on Friday.

Those who want to continue to do business with the US have various options, she said.

They could add the patent fee to their prices but "it will blunt their competitive edge and it is not sure whether the market can absorb the increases".
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