A report recently published by the U.S. International Trade Commission claimed that many U.S. businesses are losing profits, sales, royalties and brand reputation as a result of intellectual property infringements in China.
The study, entitled China: Effects of Intellectual Property Infringement and Indigenous Innovation Policies on the U.S. Economy, surveyed U.S. firms and offered estimates of the financial losses suffered as a result of infringement of intellectual property rights.
According to the report, U.S. companies whose businesses rely heavily on intellectual property experienced estimated total losses of approximately $48 billion in 2009 as a result of infringement.
The study also found that copyright infringements caused the most monetary damage, compared to other forms of intellectual property breaches. Nevertheless, trademark infringements were the most widespread form of breach, according to the study.
Approximately 5,000 firms were polled for the study, which also found that indigenous Chinese innovation policies are having an effect on U.S. profitability in the Chinese market. Nevertheless, intellectual property infringement is costing U.S. businesses more than local innovation, the study claimed.