• Pirate Heaven is the Past… China Strengthens Intellectual Property Rights
    2019-04-25 hit 139

    Pirate Heaven is the Past China Strengthens Intellectual Property Rights


    - KITA analyzed ‘IPR Policy Trends in China’ need to be prepared for IPR disputes utilizing the related laws and regulations - 


    It has been pointed out that Korean companies doing business in China need to more actively work on the protection and disputes of intellectual property rights  (IPR) than before as China strengthens its regulations on intellectual property rights.


    According to a report titled 'The Trends and Implications of Intellectual Property Rights Policy in China' issued by the Korea International Trade Association (Chairman, Kim Young-joo) on April 26th, World Intellectual Property Day, recently, China has been strengthening its management and supervision of intellectual property rights and complementing the related laws and regulations.


    From this year, China runs the Intellectual Property Bureau under the Supreme People's Court in order to hear the cases that protest the lower court rulings on the IPR disputes. The Electronic Commerce Law, enacted in January, emphasizes the intellectual property rights of not only platform operators but also online trading products. ‘The Foreign Investment Law’, which will be enforced next year, has stipulated strict legal liability for infringement of intellectual property rights. As an administrative means, the law also has states that technology transfer of the foreign-invested companies can not be forced.


    With the stricter supervision over intellectual property management of the Chinese government, the number of foreign companies that are winning the intellectual property disputes is increasing. The Danish company Lego, which suffered from low-priced replicas in the Chinese market, won the case in the Chinese court in November last year, and the United States’ DreamWorks won the seven-year trademark dispute. In February, the UK’s Dyson had a favorable ruling in a patent infringement dispute with a Chinese company over a wireless vacuum cleaner design. 


    Since Chinese consumers are increasingly aware of paid content, the virtuous circle has been created in the industry as video streaming companies such as iQiyi are actively investing with a view to securing quality content. According to the International Federation of the Phonographic Industry (IFPI), the proportion of genuine music consumers among digital music buyers in China is 96 percent, significantly above the world average of 62 percent. 


    Kim Byung-yoo, head of Beijing branch of the Korea International Trade Association, said, Recently, China needs to protect its own intellectual property rights as the number of international patent applications of China has increased. He stressed, Korean companies need to actively utilize the related laws and regulations and when infringement cases of intellectual property rights occur in China.

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