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EUCCC’s Position Paper 2008/2009: IPR Remains a Focus of Concern

September 15, 2008
On September 9, the European Union Chamber of Commerce in China (EUCCC) released its Business in China Position Paper 2008/2009, the eighth of its kind published annually since the establishment of the EUCCC in 2000. The Paper expounded on and analyzed 29 topics including energy, intellectual property rights (IPR), banking, and securities, and offered various recommendations. These issues are of common concern to European businesses in China, and IPR has remained a focus of concern since last year.

Since the release of its previous Position Paper, said Joerg Wuttke, President of the EUCCC, the Chinese government has done a lot to protect IPR and made progress, including the adoption of China’s National Intellectual Property Strategy, which was published in June 2008, and the Patent Law (draft), which is currently under review. More IPR disputes have been solved through judicial procedures, including some cases of positive significance that have received EUCCC’s recognition. Nevertheless, IPR remains the second largest barrier to European businesses in China.

Mr. Joerg Wuttke believes that law enforcement could have been stronger, and that not enough attention has been paid to the impact of fake, shoddy goods on society and the environment. The Trademark Office is under-staffed and applications are piling up. There are also loopholes in the protection of trade secrets. The government has displayed a trend of stricter administration of domestic technologies, he claimed, and this will stifle technological innovation, the spread of special knowledge, and technology transfer.

“European businesses could contribute more to China’s economy if our companies shared a level plane with their Chinese counterparts,” Mr. Joerg Wuttke commented. “When we call for further improvements in market access, transparency, and IPR protection in this Position Paper, we are not just asking for better opportunities for our companies. We also see these improvements as vital for improving EU-China trade relations and for stimulating innovation in the Chinese economy.”

The Position Paper offered 18 recommendations related to IPR, including strict restrictions in law-making regarding the leaking of technological information and coping of product designs, reducing demands for notary/certification in administrative process, and expanding the duties of customs police.

The Position Paper 2008/2009 will be presented to government and regulatory agencies in China, to the European Commission and EU Member State Governments, and to a wide range of business organizations and companies in both China and Europe.

 

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