Innovation Asset Blog

China could transform its IP reputation

According to the National Law Review, 50 to 80 percent of all intellectual property theft currently originates in China. It's estimated that U.S. firms operating in China have lost $48.2 billion in sales, royalties and licensing fees as a result of  infringement within their host country. 

However, there are steps Chinese officials can take - and have taken - to remedy this costly issue. China recently committed to join talks to update the World Trade Organization's 1996 Information Technology in Geneva this week. Furthermore, China's State Intellectual Property Office's strategy for the year targets improved patent administration enforcement, more intellectual property cases handled in courts  and improvements in reporting.

Ambassador James K. Glassman, a former U.S. undersecretary of state and a visiting fellow at the American Enterprise Institute, wrote an article published in South China Morning Post on China's role in preventing intellectual property abuses. Glassman insists President Xi Jinping should seize the opportunity to lead the world in digital commerce regulation, helping other countries establish intellectual property regulations that prevent abuses. He points out that many patent assertion entities have operations in China and can be investigated by the Chinese government for the legitimacy of their claims. To do this would position China as a world leader not in intellectual property infringement, but protection.

Peter Ackerman

Peter Ackerman

Founder & CEO, Innovation Asset Group, Inc.