US said to ignore China’s IPR progress

The result of a US investigation under Section 301 of the Trade Act of 1974 — targeting China’s intellectual property policies — has failed to recognize China’s progress in intellectual property protection, said a senior official on Tuesday.

Shen Changyu, director of the State Intellectual Property Office, made the remark at a State Council news conference.

Shen said the progress of China’s IPR environment and protection efforts has been recognized by international society.

Section 301 authorizes the US government to take action to eliminate “unfair trade practices”. The investigation targeted four areas, including what it called “pressure” on US companies to transfer technology and “theft” of trade secrets, according to the US Trade Representative.

Following the investigation, the US threatened additional, 25 percent tariffs on 1,300 industrial imports from China worth about $150 billion. China has vowed to fight back and proposed retaliatory measures.

“China has enhanced the protection of intellectual property and insisted on treating domestic and foreign companies equally, which has won approval from international society,” Shen said.

Last year, Beijing amended the Anti-Unfair Competition Law of China to improve the protection of business secrets.

China also pays royalties based on international norms, he said. Last year, China paid $28.6 billion in royalties.

“The development of China’s IPR law and regulations conform to international norms. China has joined international IPR treaties, such as the Berne Convention and the Paris Convention. China’s IPR legislation is in agreement with international rules. It is beyond controversy that China’s IPR has experienced great progress in the past 20 years,” said Wang Qian, professor at the Law School of East China University of Political Science and Law.

Now it is quite difficult to find unauthorized US cinematographic works online in China, he said. Companies, such as Youku and iQiyi, have spent a lot of money on royalties to guarantee authorized works on their websites, Wang said.

“It is unfair to only criticize China for failing to protect intellectual property,” Wang said.

It is correct for US patent owners to collect royalties from products based on advanced technology that are sold in developing countries such as China, Wang said. But if they abuse their market power through unfair patent licensing practices, it turns into an act of restraining technological development and harming consumers, he said.