EU Wants China To Act Tough On Intellectual Property Rights

New Delhi, Nov 16: | Updated: Nov 17 2003, 05:30am hrs
The European Union (EU) has asked the Chinese government to take tougher measures to protect the intellectual property rights (IPRs) in line with its international commitments.

In a communication to the World Trade Organisation (WTO) secretariat last week in the context of transitional review mechanism of China, the EU warned that high rates of counterfeiting and piracy not only destroyed the creative initiative of Chinese inventors and creators, it also hurt the bilateral relations with many trading partners, including the European Union.

The communication pointed out that although China had significantly strengthened the legal framework of intellectual property protection since the previous year, the situation had not substantially improved in the field of enforcement of intellectual property rights.

The EU said that China should establish a forward looking enforcement strategy for intellectual property which would suit both the domestic and international markets. It said that it would like to cooperate with China in order to achieve a sustainable intellectual property protection system.

Making an offer, the EU said that not only would it like to continue to monitor the situation in China and to ensure that its economic interests are appropriately safeguarded, it will also work together with the Chinese government to improve the situation.

The EU recommend that China should create a high level coordination working office that could promote further development of the intellectual property protection system of the country, strengthen the enforcement of intellectual property rights, and give directions to fulfill international obligations.

In its communication, the EU pointed out that the lack of an effective and deterrent system for combating infringement of intellectual property rights was still a major source of contention between China and foreign investors. Chinas share of the worlds trade of counterfeit and pirated goods continued to increase annually, it said, adding that there was an urgent need to curb it.

This situation is detrimental to investment and development and leads to the loss of revenue for both Chinese and foreign right holders, the EU said.