US FILES INTELLECTUAL PROPERTY CASE WITH THE WTO
April 02, 2007 | BY
clpstaff &clp articlesSeeking to combat what it calls an "unacceptably high" level of intellectual property piracy in China, the United States filed a case against China at…
Seeking to combat what it calls an "unacceptably high" level of intellectual property piracy in China, the United States filed a case against China at the World Trade Organization (WTO).
"Piracy and counterfeiting levels in China remain unacceptably high," US Trade Representative Susan C Schwab said in a prepared statement. "Inadequate protection of intellectual property rights in China costs US firms and workers billions of dollars each year."
The case, filed April 10 2007, seeks to eliminate structural barriers that give pirates and counterfeiters in China a safe harbour to avoid criminal liability, to reduce the volume of counterfeit goods crossing into China and to give copyright owners more tools to prevent unauthorized copies in China, according to Schwab's statement.
"This is something that has been boiling for a long time," says Jonathan Selvadoray, chief representative at CMS Bureau Francis Lefebvre in Shanghai. "Only the US could have done this. Other countries are also hurt by Chinese piracy, but for political reasons, only the US had the guts to go to the WTO."
Selvadoray, who was part of the Swiss delegation to the WTO and worked on China's accession to the organization, told China Law & Practice that much of the piracy problem stems from the lack of transparency in the Chinese legal system and the tendency of judges to base their decisions on equity rather than on the rule of law.
Schwab says the US appreciates the efforts China has made to curb piracy, but that they fall short of what is needed. "We acknowledge that China's leadership has made the protection of intellectual property rights a priority and has taken active steps to improve IPR protection and enforcement," she said. "However, we have not been able to agree on several important changes to China's legal regime that we believe are required by China's WTO commitments. Because bilateral dialogue has not resolved our concerns, we are taking the next step by requesting WTO consultations."
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now