China to crack down on IP offenders
China announced plans to impose stricter punishments for IP infringement in a statement yesterday, December 4.
The document was signed by a host of Chinese state authorities, including the National Intellectual Property Administration, and called for “joint disciplinary action” against offenders.
According to Bloomberg, China outlined 38 punishments for breaches of IP law which are to be implemented this month.
The punishments include a ban on IP offenders issuing bonds, trading property and land, registering a company, accessing state financial aid and participating in foreign trade, Bloomberg reported.
Those found to have breached IP regulations will be named publicly on a state website. Chinese banks and financial institutions will also refer to an internal list when offering credit and foreign exchange services.
Holly White, a consultant at law firm Rouse with a focus on China, said that these measures to strengthen punishments for IP infringement further demonstrate the Chinese government’s commitment to developing a world class IP legal system.
“The new reforms should give further reassurance to international companies that they can successfully register, use and protect their rights in China,” she said.
US President Donald Trump and Chinese President Xi Jinping met at the G20 summit in Buenos Aires earlier this month. Among the topics reportedly discussed are alleged Chinese espionage and state-backed IP theft.
Alleged breaches of IP, including acts of espionage, by Chinese operatives and companies have been a significant source of tension between the US and Chinese governments in recent months.
Last month, the Office of the US Trade Representative (USTR) released an update on China’s alleged “global espionage campaign” aimed at stealing technology and IP. In a lengthy report published on November 20, the USTR outlined alleged Chinese efforts to steal commercial aerospace and semiconductor technology.
The Chinese government has rejected the claims.
Earlier this year, WIPR reported that US authorities had brought charges against an operative of the Chinese Ministry for State Security. The case related to economic espionage and the theft of trade secrets from US aviation companies.
That news followed the sentencing of a Chinese national in January for the theft of trade secrets. The US Department of Justice claimed the theft was “with the intent to benefit” China’s National Health and Family Planning Commission.
As the American and Chinese governments attempt to de-escalate tensions and trade sanctions in the wake of the G20 summit, political commentators have indicated that IP infringement is likely to dominate talks in the coming months.
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