Intellectual Property Protection & Issues in China

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Brief overview of China's intellectual property.

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  • Garrett, L. K., 2011 Skills for nursing and healthcare students. Harlow: Pearson Education *Berrell, M. & Wrathall, J. (2011) Changing Attitudes to Intellectual Property Rights in China: The Nexus Between Chinese Culture and Rule of Law. Annual Conference of the Association for Chinese Economic Studies Australia.
  • *Berrell, M. & Wrathall, J. (2011) Changing Attitudes to Intellectual Property Rights in China: The Nexus Between Chinese Culture and Rule of Law. Annual Conference of the Association for Chinese Economic Studies Australia.
  • *Image from: Cultural Assessment: Strategic Advantage in the Global Marketplace www.genderwork.com/services/culturalassessment.html
  • Intellectual Property Protection & Issues in China

    1. 1. Intellectual Property Protection & Issues in China University of San Francisco – School of Management MBA 6797 – Global Immersion in China Alfred Dang
    2. 2. IP and China’s Open Door1979 - People’s Republic of China begins its Open Doorpolicy in an attempt to increase international trading andmodernize its economyTo facilitate trade The People’s Republic of China officiallyrecognizes and protects intellectual property rights
    3. 3. International IP Milestones1980 – Membership into World IntellectualProperty Office1984 - Paris Convention for the Protection ofIndustrial Property Rights1989 - Madrid Agreement for the InternationalRegistration of TrademarksTreaty on Intellectual Property in Respect ofIntegrated Circuits1992 - Universal Copyright Convention1993 - Geneva Phonograms Convention1994 - Patent Cooperation Treaty2001 – Membership to WTO
    4. 4. Internal IP Milestones1982 - The Trademark Law of the Peoples Republic of China1985 - The Patent Law of the Peoples Republic of China1987 - The General Principles of the Civil Law of the PeoplesRepublic of China1990 -The Copyright Law of the Peoples Republic of China1993 - The Law of the Peoples Republic of China on CombatingUnfair Competition
    5. 5. United States vs. China IP Law
    6. 6. “Ingenuity should receive aliberal encouragement” Thomas Jefferson, 1807
    7. 7. Substantive ComparisonUnited States - Constitution foundation - Goals set throughout government - Section 25 prioritizationChina - Recent history - Unitary strategic goals - Numerical goals - Utility patent model
    8. 8. Patent Filing and Prosecution ComparisonUnited States - Section 101 topics for patents - Patent examination - Appeals process - Litigation allows infringement and invalidity - Statute of limitations 6 years - Discovery processChina - Article 25 subject limitations - Patents not always examined - Litigation between infringement and invalidity - Statute of limitation 2 years - No discovery process
    9. 9. Cultural Influence on IP in China
    10. 10. Social SharingIn China it is the knowledgeitself, which is revered and notthe ownership of the knowledge‘Replication may be a positivecontribution towards establishingand reinforcing the author’smaster status’Adapting Western technologiesto suit Chinese needs hasproven to be a very successfulbusiness model
    11. 11. Confucians Confucian teachings predominant since the Han Dynasty (206 BC-220 AD) Confucians argue against importance of rule of law in society, place more importance on: ‘morality, importance of family, use of education and persuasion to encourage appropriate behavior’ Teachings still influence attitudes to legislation such as IP law today
    12. 12. High ContextGreat level importance placed on history & traditionRely on close-knit groups to support each otherSharing information within this group may be expectedDecisions are based on whether you are an insider oran outsider, not on if you have Intellectual PropertyRights
    13. 13. Multinationals with IP issues in China
    14. 14. Apple Inc.The most coveted product in ChinaHave had limited success in curtailing counterfeitproductsLast summer an incredible discovery wasmade in the interior…
    15. 15. Fake Apple 22 Fake Apple stores found in KunmingApple responded: - Built a global security force lead by former Pfizer executives - Raided fake retail stores Chinese Government: - Passive cooperation - Emphasis on local jobs - Higher priority on fake pharmaceuticals
    16. 16. The most counterfeited brand in the countryOne of the most popular and oldest brands in ChinaPutian, China – Ground zero for counterfeit-sneakermaking
    17. 17. 1 fake Nike for every 2 authentic ones
    18. 18. It’s not just American companies having IP issues in China though…
    19. 19. Chinese pirates built an entire parallel NEC corporation-- 18 warehouse, ties to more than 50 electronic manufactures-- Developed their own products through a fake NEC R&D lab-- Established a fake headquarters complete with NEC signage andemployee business cards
    20. 20. Penalties-- Case was still under investigation. pirates wereclaiming a license to manufacture NEC products-- If convicted with fake products worth LESS than$6,200, there would be a fine for the pirates-- If convicted with fake products worth MORE than$6,200, the pirates could get up to 3 years in jail
    21. 21. Thank You

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