Copyright protection takes center stage

Protection of intellectual property rights (IPR) is high on the agenda of the 102nd session of the China Import and Export Fair, the largest trade fair in China, according to the organizer.

"Overseas exhibitors need not worry about encountering IPR violations at our fair since we've set up a comprehensive system to ensure copyright protection," said Mu Xinhai, deputy director of the China Foreign Trade Center, the organizer of the China Import and Export Fair, also known as the Canton Fair.

"Zhang Zhigang, vice-minister of commerce, will be deputy director of the leaders' committee of the Canton Fair, which shows the commitment of the Chinese government to protecting IPR at the fair," Mu said.

Zhang is a former director of the State Office of Intellectual Property Protection and an active advocate in the field.

Mu made the remarks recently when leading a team to Italy to attract foreign exhibitors to the fair, which will run from October 15 to 30, with a four-day interval from October 21 to 24, in Guangzhou, capital of South China's Guangdong Province.

Better protection

The Canton Fair was one of the first industry events in China to set up an IPR protection organization on-site to accept complaints, assess cases and mete out punishments.

The fair revised its regulation on IPR infringement complaints for its April session, toughening penalties and making it enforceable.

Every company is required to sign a letter of responsibility to the organizers vowing not to violate IPR.

Violations of patents or copyrights over two consecutive sessions or three cumulative sessions, or misuse of trademarks over two cumulative sessions will result in suspension from the fair for four sessions.

Growing awareness

Awareness of the issue is growing among local manufacturers, many of whom are making the transition from OEMs to brand builders after more than two decades of fast development.

The country tops the output of nearly 100 manufactured commodities worldwide. China's output of tractors accounts for nearly 83 percent of the world total, containers 83 percent, tableware ceramics 70 percent and motorbikes 50 percent, according to official figures.

But international trade disputes, narrowing markets, surging production costs, the appreciation of the renminbi and escalating environmental protection pressure are challenging an industry reliant on volume and low-cost production.

This situation has prompted manufacturers to focus more on quality and establishing their own brands.

Ningbo Beifa Group, a stationery maker based in East China's Zhejiang Province, has exported its Beifa branded pens to more than 150 countries and regions and achieved $100 million in export volume a year.

It's a result of the strategic shift of the company, which was founded in 1994 as an OEM factory, to concentrate its resources and efforts on technology innovation and market exploration, said Qiu Zhiming, president of Beifa.

The company is the largest pen maker in China and the third-largest pen maker in the world.

Incentive policies

Local manufacturers have been encouraged to export self-developed products through government policies such as tariffs.

Hi-tech product exports accounted for nearly 28 percent of China's total last year, compared with 17.5 percent five years ago, according to official figures.

More than 190 Chinese exporters have been given "famous brand" status and receive support from the Ministry of Commerce.

The ministry gives the companies priority in terms of IPR protection, image promotion, international market exploration, trade quotas, fair booth allocation and research and development.

(China Daily 10/15/2007 page16)