Auto parts, watches, sporting goods, shampoo, footwear, designer apparel, medicine and medical devices, leather goods, toys, batteries, and other non-consumer products - the seemingly endless array of counterfeit products that are manufactured and distributed within China, or exported to other countries, continues to grow. China was the number one source of counterfeit products that were seized at the United States border last year.

Since joining the World Trade Organization, China has strengthened its legal framework and amended its IPR laws and regulations to comply with the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Despite stronger statutory protection, China continues to be a haven for counterfeiters and pirates. According to one copyright industry association, the piracy rate remains one of the highest in the world (over 90 percent) and U.S. companies lose over one billion dollars in legitimate business each year to piracy. On average, 20 percent of all consumer products in the Chinese market are counterfeit. If a product sells, it is likely to be illegally duplicated. U.S. companies are not alone, as pirates and counterfeiters target both foreign and domestic companies.

Though we have observed commitment on the part of many central government officials to tackle the problem, enforcement measures taken to date have not been sufficient to deter massive IPR infringements effectively. There are several factors that undermine enforcement measures, including China’s reliance on administrative instead of criminal measures to combat IPR infringements, corruption and local protectionism, limited resources and training available to enforcement officials, and lack of public education regarding the economic and social impact of counterfeiting and piracy.

Mark Cohen is the senior Intellectual Property Rights Attaché at the U.S. Embassy in Beijing, China.   While in New York City April 22-25 for a presentation at Columbia University, Mark will be available to consult with firms that are currently experiencing IPR issues in China.  Contact Anastasia.Xenias@N0SPAM.mail.doc.gov or 212-809-2675 for more information or register below.