Intellectual Property Rights Review and Recommendations 2013

Executive Summary

• China has made considerable progress in recent years in its efforts to boost innovation and intellectual property (IP), with an improved legal and regulatory framework, stronger efforts to enforce intellectual property rights (IPR), an expanding body of registered IP, and the growth of corporate research and development (R&D) activities.

• While domestic and foreign stakeholders recognize the value of these achievements, both remain concerned about their ability to protect their IPR. Many companies view IPR protection as an important priority for their operations in China.

• Stronger IPR enforcement could have a significant positive impact on the Chinese economy, and would boost domestic industry development, spur innovation, strengthen Chinese companies, and promote the interests of Chinese consumers.

• Based on regular communication with its members, the US-China Business Council (USCBC) has compiled a list of priority areas and suggestions to further strengthen Chinese government efforts to improve IPR protection.

• USCBC’s top concern remains that penalties imposed during IPR enforcement proceedings do not provide a sufficient deterrent to IPR infringement, and that existing value-based criminal thresholds effectively limit the number of criminal cases.

• Other priorities include further expanding the work of the State Council Leading Group on Combating IPR Infringement and Sales of Counterfeit Goods, increasing enforcement resources, ensuring equal treatment for foreign and domestic firms, addressing uneven enforcement of IPR, increasing enforcement of Internet-related IPR, and boosting trade secret protection.