NEWS BRIEF
Commentary: More Than Window Dressing Required
April 19, 2007
Christopher Bjorke, AFP

WTO actions may prompt China to take intellectual property rights seriously

A recent article in the New York Times focused on a campaign in Beijing to address some of its residents' embarrassing habits. Shoving through crowds is customary instead of forming orderly lines. "English" translations on signs and menus can be unintentionally hilarious. And then there is the spitting, a ubiquitous practice now punishable by fines of 50 yuan, or about $6.50.

The efforts are part of Beijing's preparations for the Olympic Games in 2008, which officials are treating as a kind of showcase for China's emergence as a modern country. But there is another common sight on the streets of Beijing-cheap knock-offs of foreign brands and illegal copies of films and music.

This particular local habit, however, has already been peeving foreigners for years, and in this case they are driving the effort to the end the practice. The United States lodged a complaint with the World Trade Organization against China on April 10 regarding China's enforcement of intellectual property rights, alleging that China was not living up to its WTO obligations to fight piracy and counterfeiting.

But will it produce progress or merely efforts to guard China's reputation?

Edward Haddad, vice president for intellectual property and licensed products with the New Balance shoe company, said that placing the problem in an international arena such as the WTO was the right move.

"Now they have to address it," Haddad said. Previously, foreign companies were the ones who were pushing the issue. Making it an issue between governments makes it more difficult for China to brush aside. Now the issue will be played out through the WTO dispute resolution process.

The United States may be seconded by the European Union on the issue. Commissioner for External Trade Peter Mandelson said the EU would not rule out backing the U.S. actions or lodging its own complaint if China did not appear to be taking the issue seriously.

Chinese officials took issue with the complaints, but also announced that it would amend its patent law.

"No other country has made more efforts and taken more measures to protect intellectual property rights than China," Yin Xintian, a spokesman for the Chinese State Intellectual Property Office, was quoted saying recently. Another official, with the National Copyright Administration, said that China is no more of a violator than Canada.

These assertions get back to China's sensitivities about how it is perceived by foreigners. Whether it involves manners during the Olympic games or fair play in the international trade arena, China wants to be seen as worthy of a place on the world stage. The question remains whether it will make cosmetic changes to save face or take genuine steps to rectify a legitimate concern of its trading partners.

According to Haddad, the street-level commerce of counterfeit goods and pirated products goes on as openly as ever and will likely just be pushed into harder-to-find locations during the Olympics, so he welcomes concrete action in the form of WTO complaints.

China has been serious about trademark protection in one area, though. It recently announced that it will enforce copyrights for the logo the 2008 Olympic Games.

China View is a bi-weekly column on recent business events.  Send comments to cbjorke@chinaforum.com

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