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Continual concerns regarding IP theft in China

Trade disagreements between China and the U.S. seem to center on intellectual property issues. The U.S. and a number of European countries maintain theft of intellectual property at the hands of Chinese businesses and officials is continually occurring. For this reason, many companies are reluctant to do business there.

It is too early to tell if Chinese measures to correct such issues will resolve disagreements. So far, the war of words has not let up.

How intellectual property concerns arose

Intellectual property can concern a large variety of items including tradenames and inventions. Laws are in place to protect such things so that individuals can take the credit and receive the benefit for what they create.

As noted in a Bloomberg article, concerns about Chinese practices center around foreign-ownership restrictions their government puts in place. This includes requirements for sharing of technology. In addition to such restrictions, American officials also express concerns about Chinese cyberattacks to access intellectual property and trade secret information. In retaliation against such alleged practices, the White House has implemented a number of tariffs on Chinese imports.

It’s difficult for American companies to compete in such a climate. Companies lose out on sales because of counterfeited products in the market. Companies also have to spend large amounts of money trying to fight copyright and trademark infringements.

China at least seems aware of such concerns. Chinese officials have now put in 38 punishments concerning intellectual property infringements. Experts feel such measures could make a difference if actually implemented.

While trade war concerns will likely continue, protecting one’s intellectual property will need to be a priority for companies doing business in China. It is therefore important for companies to seek guidance regarding such protections. In many cases, it’s also necessary to find legal representation capable of representing you in court.

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