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Thesis: The Chinese economy is best served by a gradual increase in intellectual property right (IPR) protection that corresponds to the growth of its economy. This gradual increase will allow China to become technologically and culturally self-sufficient because contrary to what large American corporations would argue, foreign investment and involvement in the Chinese intellectual property (IP) economy would still be sufficient and China's domestic development would not be unduly restricted.
tagged China Development IPR by rogerlm ...on 31-JUL-06
"Defending Intellectual Property Rights in the BRIC Economies." American business law journal [0002-7766] 43.2 (2006). 317-.
 
    This article discusses the issue of protecting US intellectual copyrights in the countries of Brazil, Russia, India and China (BRIC).  It begins by explaining that these four countries, if all predictions go as planned, will soon have four of the largest economies in the world.  Therefore, a detailed look at the United States IP relationship with these nations is necessary.  The next section of the article gives a brief history of international intellectual property rights followed by a more focused look at the history of US relationships with these four countries and the antagonisms that have resulted.
    After giving this overview, which shows how often the United States has tried to influence the IPR regimes of the four BRIC countries, the article delves into a section entitled, “Coercion as an Ineffective Strategy in Promoting Intellectual Property Protection in the BRIC Countries.”  This section is long and detailed with many examples of statistics showing how the United States has not achieved its goals through means of coercion.  The article explicitly gives statistics for each country.  The culmination of this large number of statistics is to show that not only does coercion not necessarily work, it can often be detrimental to the original goal.  Examples of poor results are given for China and India.
    The final section of this article argues that unilateral initiatives are an understudied method of strengthening IPR regimes in the BRIC countries.  Unilateral initiatives are defined as “a voluntary conciliatory action presented by one party to the benefit of the other.”  Examples of unilateral initiatives that have been successful are then given.
    This article is plainly written with an obvious objective: to endorse unilateral initiatives as opposed to coercion as a way of reforming IPR in the BRIC countries.  This method of change is supportive of a gradual change in the IPR regime in China as it does not expect immediate results and therefore, presents an effective means of carrying through with the project's thesis, which is always an important consideration when proposing an argument.
tagged Brazil China IPR Russia US Piracy India by rogerlm ...on 31-JUL-06
Yang,D . "intellectual property abuses: how should multinationals respond?" Long range planning [0024-6301] 37.5 (2004). 459-475.
 
    This article presents a decidedly pro-business approach to the problem of piracy in China.  From the start, the article takes for granted that weak IPR is a bad thing that recalcitrant countries are loathe to enforce.  Furthermore, the article continues by providing statistics that show that China is one of the worst infringers in the world of intellectual property rights.  An example of this decidedly one-sided look at piracy and IP infringement appears on page 5.  “Piracy is not a victimless game as so many people think, but an unscrupulous practice requiring continuous surveillance and resolution.  Host countries, multinationals, and consumers are all victims of piracy.”
    The article then, instead of suggesting that businesses should fight for stronger legal means of IPR protection, assumes that businesses still want to enter the Chinese market and, hence, explains ways for businesses to combat piracy through their own means.  Ten strategies are listed including the Budweiser strategy (technical solutions), the partnership strategy (contractual surveillance), the Coca-Cola strategy (narrowing price gaps), the Microsoft strategy (monitoring and private-eye), the commercial settlement strategy, the acquiring strategy, the DuPont strategy (reapplication), the MU strategy (communicating with aggrieved firms), the government hand strategy, and consumer campaigns.
    Although this article presents an extremely biased look at intellectual property rights and does little to provide insight into causes or reasons for strong or weak IPR’s, it presents a very important statement just by its existence.  This important point is that large multinational corporations have both the incentive and the means to enter the Chinese market despite a relatively weak IPR regime.  This indicates that a weak IPR regime is not necessarily detrimental to foreign investment and therefore a gradual implementation of international IPR standards is feasible.
tagged China IP Multinationals by rogerlm ...on 31-JUL-06
Xiaobai,S . "A dilemma for developing countries in intellectual property strategy? Lessons from a case study of software piracy and Microsoft in China" Science & public policy [0302-3427] 32.3 (2005). 187-198.
 
    This article poses two important questions; Will businesses and countries invest in the economies of developing countries if these developing countries do not enforce intellectual property rights on the same standards of developed countries?  And, if the current situation of increasing the strength of intellectual property rights in developing countries continues, will these developing countries be able to compete in a world of IPR harmonization?
    The article poses an initial answer to these questions by citing empirical studies that suggest developing countries develop best with weak IPR regimes and that only as these countries become more developed should they enforce stricter regimes.  Examples of countries that have enacted stronger IPR regimes as their economies developed are East Asian counties including Korea, Japan, and Taiwan, and notably the United States.  Yet, what the empirical evidence lacks, according to this article, is a timetable for deciding when a country is developed enough to implement a strong IPR regime.  To understand the situation further, the article turns to a study of Microsoft software in China.
    In this study, the article first gives an overview explaining how prevalent piracy is in China.  The article then shows that despite this piracy, Microsoft has entered the Chinese market with great difficulties.  Piracy of Microsoft products subsequently increased and contrary to logic, this led Microsoft to further invest in China in an attempt to promote legal usage of Microsoft products.  This further investment was presumably because Microsoft sees China as the largest potential market in the world.
    This study then shows that, contrary to some scholars’ beliefs, a weak IPR regime can lead to an increased investment in developing countries.  However, this is counterbalanced by the belief that an investment of high-tech products does not allow the developing country to discover its own technologies/products/ideas.
    This article, although slightly redundant with other sources, is crucial to backing the project's thesis that developing countries and especially China are best advised to take a gradual approach to implementing strong IPR regimes.  The article also fully supports the argument that China is best suited to a gradual increase in its IPR protection in that the article presents a case study showing that foreign investment in China will still occur despite its weaker IPR protection than developed nations.
tagged China IP Microsoft Piracy by rogerlm ...on 31-JUL-06
Chow,D . "Enforcement Against Counterfeiting in the People's Republic of China" Northwestern journal of international law & business [0196-3228] 20.3 447-.
 
    This article is written in a clear and precise manner.  The subject matter is extremely valuable to any study of intellectual property rights in China, as it deals specifically with current methods of enforcement for counterfeiting.  Unlike many articles, this paper does not present theoretical reasons for China’s inability to police its IPR problems but gives specific reasons and examples of how Chinese law enforcement works.
    Daniel Chow chose to focus exclusively on counterfeiting, which is a subset of IPR violations.  Counterfeiting can infringe on both copyrighted material and patented material but necessarily violates trademark law.  Therefore, counterfeiting is an extremely important subject matter for IPR studies.  In his article, Chow leads the reader through the different stages of enforcement for counterfeit goods.  He starts with the process of seizing and confiscating goods and paraphernalia and proceeds to describe the process and result of fines against offenders.  He then poses reasons for why these fines are inadequate; for example, monetary values are based on the price of the counterfeit goods, not the price of the brand products.
    Next, Chow explains how criminal liability is enacted in Chinese law, and discusses the problems, such as the burden of proof lying upon the prosecutors and not the counterfeiter.  For example, to prove criminal liability the prosecutor must show that the counterfeiter made profits of at least $6000.  This is extremely difficult because illegal businesses don’t keep legitimate records, and therefore criminal liability would be nearly impossible to prove.  Chow follows by exploring whether manufacturers, distributors, or landlords of retailers are prosecuted most and who should be targeted more.  Chow then discusses how civil action works in China.  Finally, he presents some problems for future enforcement against counterfeiting.
    This article contains a large amount of useful information and is presented in a very methodical and simple manner.  The information is useful because it demonstrates from an empirical and not theoretical perspective how IPR enforcement works in China.  This becomes important for the project's thesis when one considers the practical nature of taking any approach other than a gradual increase in IPR protection.
tagged China Enforcement IPR Counterfeiting by rogerlm ...on 31-JUL-06
Linek,E . "International Efforts Are Achieving Credible IP Enforcement Even Amid Chronic Abuse" Intellectual property & technology law journal [1534-3618] 18.3 (2006). 4-7.
 
   This article is short and poses little insight into the situation of intellectual property rights in China, yet it does provide valuable statistics about the levels of piracy in China. The statistics present an optimistic view of the situation by stating the increased number of criminal prosecutions for IPR violations; however, the statistics leave out the pessimistic view that the number of violations are possibly rising and that could explain the increase in prosecutions.
    Yet, despite the lack of in-depth analysis provided, this article hints at some of the basic themes of more insightful works. Examples of these are that China has historical traditions that impede its compliance with international standards of intellectual copyright protection and that China has too many administrative bureaucracies to effectively enforce IPR. The article also presents an interesting view that unfortunately has no support: an assertion that because China has joined the WTO, its institutions will adapt in a positive manner.
    The statistics in this article include the numbers of criminal prosecutions in China for IPR infringement and estimates of the amount of money lost by US businesses because of piracy. Also, there is a comparison over time of changes in these statistics. These numbers, although vague, can be used to present a case with nearly any goal in mind and, therefore, are valuable in research about IPR in China.
    The last important aspect of this article is that it places China in the context of the larger developing world. It points out that China represents the single largest market (in numbers of people) in the world, and because it is considered to have a developing economy, China plays a large role in determining the stance of other developing economies. This is an important message and illuminates the significance of understanding the IPR situation in China and, therefore, the significance of China taking a gradual approach to strengthening its IPRs in a broader, global sense.
tagged China Enforcement IP by rogerlm ...on 31-JUL-06
Kong, Qingjiang. . WTO, internationalization and the intellectual property rights regime in China / Kong Qingjiang. [981210416X ] Singapore : Marshall Cavendish Academic, 2005.
Call#: Van Pelt Library KNQ1155 .K659 2005


   This book, a collection of essays by the scholar, Kong Qingjiang, is among the most comprehensive and up-to-date sources available on IPR in China. In this book, Qingjiang takes his work over past years and compiles it into an organized fashion. Because of the nature of this compilation, there is some overlap among the essays in concepts, facts, and ideas. Nevertheless, the book provides more information about IPRs in China than most other books written to this date.
   Because this book is a collection of essays written over a period of time, there is no single unifying thesis to the work. However, it can be said that Qingjiang is very optimistic about China’s IPR future in regards to meeting international standards. On a very basic level, all of the essays suggest that China is making a great deal of progress and that strengthening its IPR regime is a good thing, although it should be undertaken in a gradual manner.
   Specific topics that Qingjiang’s essays focus on are a brief history of recent developments in Chinese IPR regime; an overview of China’s current stance on IPRs, domestically and foreign; judicial enforcement of IPRs; problems in China’s IPR regime posed by the digital era; a discussion of how China is handling the balancing of competition policies and IPRs; China’s strategy for the future of its IPRs; China’s place in the WTO; China’s role in TRIPS and the Doha Agenda; whether China is or can enforce international standards of intellectual property protection; how China’s IPR regime effects Sino-US relations; and lastly, how China’s IPR regime effect Sino-Japanese relations.
    The bulk of these essays use case studies to exemplify their individual assertions although some essays use more statistics than case-studies. As a result of the numerous essays, this book provides more information specific to China than any other book. The book is important for any assessment of IPRs in China and helps to accentuate the argument that China is best suited by a gradual change toward meeting international standards of IPR. This thesis is supported by Qingjiang in different essays throughout, and so is a useful tool in providing a scholarly grounding to the thesis of this project.
tagged China IPR WTO Internationalization by rogerlm ...on 31-JUL-06
Intellectual property rights in emerging markets / Clarisa Long, editor. [0844741256 (cloth : alk. paper) ] Washington, D.C. : AEI Press, 2000.
Call#: Van Pelt Library K1401 .I568 2000
 
  This book is a compilation of three different case studies in essay form. The relevant chapters for my topic are the introduction and the first chapter, entitled, “The Political Economy of Intellectual Property Rights Protection in the People’s Republic of China. The introduction provides a clear and distinct overview of the current status of international intellectual property rights and more specifically, Trade Related Aspects of Intellectual Property Rights (TRIPs). The introduction also summarizes the subsequent essays.
   The essay on IPRs in China is simply written and easy to understand. The author, Mark Groombridge, begins with a discussion of the history of intellectual property rights (IPRs) in China and the prevailing attitudes toward IPRs in China. Groombridge attempts to describe reasons why the Confuciust and Communist past of China leads to the current situation of less than rigorous IPRs in China. This historical introduction is largely based on anecdotal evidence taken from quotes in Chinese historical texts and other scholars’ works. The next part of the essay gives a brief overview of the current state of IPRs in China with an emphasis on “Legal Barriers to Strengthening IPR Protection in the PRC.”
   Groombridge presents these barriers in a clear manner and does a good job making the concepts understandable. The evidence discussing legal barriers uses numerous statistics although these are mostly anecdotal. The essay finishes with a few suggestions for strengthening IPR protection in China.
   Overall this is a short easily read essay. The author argues that China has a history of bad IPR protection but is making considerable progress, and through methods he suggests, China may approach Western nations in the strength of their IPR regimes. The relevance to the project's thesis is apparent in that these essays suggest China is already undertaking a gradual increase in their IPR protection and there has been a subsequent growth in the Chinese economy.


tagged China Development IPR by rogerlm ...on 31-JUL-06
Intellectual property and development : lessons from recent economic research / edited by Carsten Fink and Keith E. Maskus. [0821357727 (pbk.) ] Washington, DC : A copublication of the World Bank and Oxford University Press, New York, c2005.
Call#: Van Pelt Library K1401 .I5528 2005
 
   This book, which is a compilation of essays, constitutes an in depth economic analysis of how intellectual property rights effect development within an economy. The final essay focuses on China and is entitled “Intellectual Property Rights and Economic Development in China.” The essay is well written, and the economic concepts are simply described.
   The essay discusses the growth of China’s economy through an economic analysis of intellectual property rights and how they affect business and investment. The first half of the essay presents the standard economic theory for strengthening intellectual property rights in developing economies and reviews the benefits derived from strict enforcement of intellectual property rights. However, this review is balanced by a discussion of reasons why the government of a developing economy would not want to enact strict enforcement of IPRs.
   The second half of the essay deals specifically with China. The authors, Maskus, Dougherty, and Mertha use three sections to prove that China is making significant progress in strengthening IPR enforcement, but the point out that China also has a number of problems that must be addressed before it can reach an acceptable state of IPR protection. The first of these sections is a discussion of interviews held with lawyers, scholars, businessmen, and policy makers in China. The next section evaluates statistics on trademarks and patents in China. The final section looks at “data on technology development and inputs, along with some estimated effects on Chinese industrial productivity.” The authors conclude that

"Overall, our analysis suggests that the IPR situation for invention and innovation is improving in China but that there are still significant problems associated with inadequate enforcement, regional income differences, insufficient incentives for commercialization of the results of R&D, and relatively low levels of research effort."

This essay is extremely helpful in determining the state of IPRs in China through the lens of economics although it presents the material in a way that is biased toward the assumption that all developing economies should have strong IPRs. Therefore, this book comprises an important opposition to the thesis of gradual improvement in China's IPRs but provides valuable reasons why a developing country would want a weaker IPR regime, which hence supports the assertion for China’s gradual development.


tagged China Development IP Economics by rogerlm ...on 31-JUL-06
Mertha, Andrew, 1965- . Politics of piracy : intellectual property in contemporary China / Andrew Mertha. [0801443644 (cloth : alk. paper) ] Ithaca, N.Y. : Cornell University Press, c2005.
Call#: Van Pelt Library KNQ1155 .M47 2005

   This book is essential for any study of intellectual property rights or copyright in modern China. Because it is one of few books devoted entirely to this subject, The Politics of Piracy provides the reader with an indispensable source of information and a unique thesis on the problem of piracy in the People’s Republic of China. The book’s thesis is as follows: “The direction of external pressure and the characteristics of the institutions it is designed to change are crucial to understanding the effects of foreign pressure on policy enforcement outcomes.”
   As can be seen by this sentence, which merely states Mertha’s hypothesis, the book can, at times, be difficult to read. The writing does not flow as smoothly as it could but this reflects some of the harder concepts that Mertha tries to tackle. To defend his thesis, Mertha mainly uses empirical case studies as opposed to broad statistical evidence, presumably because statistical evidence on piracy in China is fraught with a great deal of unreliability.
   One of the best aspects of this book is that it devotes an entire chapter to each type of intellectual property: patents, copyrights, and trademarks. Because most books on IPRs deal with multiple developing economies, they tend to lump all IPRs together. This book treats each IPR as its own entity and explores their problems and possible solutions with the attention they require.
    It must be stated that this book treats IPRs in China from an obvious etic perspective and argues that most reform in China’s IPR protection comes from foreign, usually United States, pressure. Mertha believes that this is a good and effective method for bringing China’s IPR standards into compliance with Western standards. However, one of the strengths of Mertha’s book, the penultimate chapter, discusses problems with his thesis and his approach to the subject. As a consequence, this book is very valuable to the topic of intellectual property rights in China despite its sometimes difficult prose.
   The value of this book in relation to my thesis is that the book illustrates one aspect of the relationship between China and the US. This book shows that by pressuring China, the United States has achieved higher standards of IPR protection. To my thesis, this suggests that as China has become more important economically, it has also become more important regarding IPR. This importance proves a correlation between the strength of the economy and the strength of IPRs that goes well toward advancing the argument for China's gradual improvement of IPRs.
tagged China Copyright Piracy IPR by rogerlm ...on 31-JUL-06
Global intellectual property rights : knowledge, access, and development / edited by Peter Drahos and Ruth Mayne.
[0333990277 (hardback) ] Houndmills, Basingstoke, Hampshire ; New York : Palgrave Macmillan : Oxfam, 2002.
Call#: Van Pelt Library K1401 .G58 2002

This book is a collection of essays.  It is very interesting and important for my topic of strengthening IPRs in China because it presents a point of view that is contrary to many of the other books written on IPRs for developing economies.  This book contests that developing economies should not adopt IPR regulations similar to well-developed countries.  More succinctly, “the chapters in Part II suggest that global intellectual property rules may well be an obstacle to development.”
    The essays are generally written in an easy style and all present compelling arguments.  Most essays are written by scholars although some are written by administrators and businessmen with experience in international intellectual property.  The book is broken down into four segments with each segment representing a different aspect of the overall argument.
    The first segment, entitled, “Innovation and Diffusion of Technology” suggests that international IPRs make it difficult for poor countries to receive advanced technology and education, which is in a contradiction to many economists view of IPRs.  The next section, “Development and Access to Technology: Genetics, Health, Agriculture, Education and Information Technology” discusses the current situation in many developing nations and how they use the economic principle of free-riding to their advantage.  It also discusses the fact that developing nations have the capacity to understand and enact versions of IPR laws that are beneficial to them and don’t need assistance in determining their own laws.  The third segment, entitled, “Knowledge and Access: Who Makes the Rules?” argues that international IPR agreements are really just bully tactics enacted by developed nations to coerce weaker countries into adopting the formers’ standards of IPR.  The final part, “Ownership of Knowledge: Changing the Rules” discusses how developing countries have effected TRIPs, the WTO, international IPRs, and their relation to larger countries.
    This book is very valuable for filling out a complete view of IPRs in developing economies.  It presents an alternative view to most economic arguments and, therefore, shows how my thesis would be beneficial at the initial stages of Chinese economic development.  Because the book only discusses developing nations, its thesis falls apart when expanded to nations that have outgrown the “developing nation” status.  This lack of discussion implies that a country that is neither developing nor developed needs an intermediate level of IPR protection, and therefore a gradual increase of IPR protection is necessary.
tagged China Development IPR by rogerlm ...on 31-JUL-06