China vows to lower threshold for IP infringement
China has committed to further increasing penalties for IP infringement, as the government aims to finalise a trade deal with the US.
US concerns over alleged Chinese state-sponsored IP theft and poor IP rights protections in the Asian country have been cited as an obstacle in the ongoing trade negotiations.
China has long denied US allegations of IP theft and has unveiled a host of new measures over the past year aimed at improving the country’s reputation on IP protection.
Earlier this month, China enacted a new law aimed at curbing the registration of bad faith trademarks.
China has also previously pledged to impose new, harsher penalties on infringers.
The latest announcement, issued by the State Council and the central committee of the ruling Communist Party, promises harsher punishments still.
While light on detail, the government statement identified drug patents and e-commerce as sectors targeted for improvement.
The government will also look to “speed up” the implementation of previously announced punitive damages for patent and copyright infringement.
According to the policy statement, China will also study how it can lower the threshold for a finding of IP infringement.
In the announcement, the government urged local and regional departments to invest in IP protection, and for more advanced centres to lead by example by improving their own practices.
The announcement comes as a trade deal between the US and China remains elusive. The US has insisted throughout the process that China’s IP protection regime is inadequate.
China has hit back at the US claims, in particular allegations that it has enabled a practice known as ‘forced technology transfer’.
The US government has accused China of allowing its companies to take advantage of foreign companies looking to enter the Chinese market, by requiring them to hand over confidential information or trade secrets.
China has strenuously denied the practice exists, but nonetheless formally outlawed it earlier this year.
Speaking to WIPR earlier this year, lawyers experienced in the Chinese market said that reports of forced technology transfer were often exaggerated.
“A few US companies were undoubtedly caught in poor negotiating positions and so may have suffered exploitative treatment,” said Tim Smith, principal at Rouse Consultancy, at the time.
“The Trump administration has then extrapolated from this a claim of a systemic, government-orchestrated campaign,” he added.
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