Several organisations in the US such as the American Bar Council, Trade organisations, can help the SME’s in the Chinese region by helping them to enforce the IP issues and further provide them about consultation of the Chinese market. An advisory program can be formed which can provide free consultations of any issues regarding the Chinese investment (ITA, 2005). The US still feels that the Chinese Government have not done much to protect the IP. The US suggests certain guidelines in this regard: – 1. Ensuring that China are able to protect the various IP issues in the agricultural sector such as patents, trademarks, plant varieties, etc.
The US is one of the largest trade partners of China when it comes to agricultural (U. S. Department of State, 2007). 2. The Chinese semiconductor chips are protected in the US market and the US semiconductor Chips are protected in the Chinese markets. The integrated circuit designs are protected for a period of 10 years from 2 years after registration. The design should be able to be exploitable commercially (U. S. Department of State, 2007). 3. Several automobile spare parts are being manufactured in the Chinese industries which are counterfeited and are infringing upon other people trademarks issues.
Several of the US organisations that manufacture spare parts in China should be able to do so only after sorting out any IPR issues (U. S. Department of State, 2007). 4. The Chinese need to modify the copyright law to suit any changes that would be made during any electronic publications. Earlier, it was very difficult for the courts to consider implementation of IP on the internet. However, with time, the Court slowly began to provide copyright status to websites. An unauthorised dissemination of data over the internet is now being considered as an infringement by the Chinese Courts (U. S.
Department of State, 2007). 5. Several barriers that exist in the market and also piracy issues have acted as an obstruction to the development of the American movie industry in china. Up to 95 % of all the films dealt within the Chinese markets are counterfeited. Only the government can import the film into China (U. S. Department of State, 2007). 6. The Music Copyright Service of China (MCSC) ensures any issue regarding music copyright are dealt with effectively. This organization would ensure that fees are collected in public places where the music is being played (U. S. Department of State, 2007).
Patents are provided in the pharmaceutical sector for China only recently. The Chinese government is considering criminalizing any activity that would infringe with the patent of a pharmaceutical product as it could be a major health hazard to the public. As the Chinese companies would be getting patents after the drug has been discovered and not after the product has been tested, there are chances that the life of the drug may be lost. Hence, efforts are being made to extent the life of the patent to compensate for the clinical trials periods (U. S. Department of State, 2007).
In China, certain guidelines are being followed regarding the registration of copyrights with respect to software. Throughout the national copyright administration several rules are coming up in China. It would be necessary to specifically register a software copyright. All exclusive licenses have to be registered. Besides, all copyrights transfers have to be compulsorily documented. Frequently, the registration of the software would ensure that a greater level of protection is being enabled. However, many companies in China may not want to register as they would be dishing out confidential information.
An appropriate remedy for this would be to cover some pages of the source code (U. S. Department of State, 2007). 9. The Chinese Government would not be patenting any software per se. However, if the software makes a portion of the hardware to work better or faster, it could be patented under the Chinese patent statues (U. S. Department of State, 2007). 10. China has to also develop measures to protect their IPR at the trade fairs and exhibitions. Any infringement of the trade fair IPR would be dealt with as per the laws.
The trade fair statues of China are known as Canton, 2006 (U. S. Department of State, 2007). As the US has recorded a lot of WTO cases against China, it has placed the country under ‘priority watch list’. In the year 2005, the US said that even though China had made a lot of efforts to put an end to IP infringement, counterfeiting and piracy, the incidences of these offences were unacceptable high. Several other countries such as India, Pakistan, Russia, etc, also feature in the priority watch list. In 2005, the US gave a lot of importance to China as it was their major trade partner.
Every form of IPR is being violated to an extent more than 90 %. The US would be frequently asking China to provide for documentation regarding appropriate practices. The Joint Commission on Commerce and Trade (JCCT) would ensure that China and the US jointly address the IPR issues that would be cropping up from time to time. The TRIPS agreement has enabled the US Government to consider China under the priority watch list. Previously, China was considered as a priority foreign country (in 1994). The US has been able to remove China from this list only after constant monitoring.
In 2005, a surprise review of the IPR status in China was conducted and it was decided to place it under priority watch list. The US still feels that China is not able to adhere to the guidelines set forth in TRIPS. China needs to be more TRIPS compliant. Several processes regarding IPR in China need to be more transparent. Currently, the main thought for China would be to lower the infringement cases that may be occurring in the country by stringent enforcement of the IPR laws (USINFO, 2005).
China (2007), US Complaints against China Not conducive to Solving Problems, Retrieved on June 22, 2007, from China. org. cn Web site: https://www.stopfakes.gov