Recent proposals for a change in Chinese trade law have U.S. and European businesses feeling cautiously optimistic this week. Current law in China allows regulators to force foreign companies into giving up the rights to their technology in exchange for entry into the Chinese market. However, new legislation may put an end to the practice – if regulators enforce it.
Whether the new tech you have created is software or an impressive new gadget, it can be exciting to watch your hard work pay off once it begins to sell. As you build your business and your brand, you may start to consider licensing what you have created to foreign markets.
Despite intellectual property protection improvements, American businesses remain cautious about doing business in China. IP is at the center of their concerns.
The number of intellectual property cases heard in China continue to increase. There has been a 41.8 percent increase in cases over the past year.
Intellectual property concerns patents, trademarks and trade secrets, copyrights and copyrighted works. Because it is so valuable to companies, legislators design laws concerning intellectual property in order to protect inventors, authors, musicians and authors. Yet concerns of intellectual property theft in China continue.
We've written in the past about efforts Chinese officials have made in curbing intellectual property violations. Yet preventing trade secret theft has proven to be no easy task.
As of January 1, 2019, China’s supreme court will handle intellectual property cases. This development came about as the ongoing trade war between the United States and China continues.
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.
There’s been a great deal of talk concerning cybersecurity rules recently issued by Chinese officials. These rules greatly concern American businesses who wish to avoid the surrendering of trade secret information and other confidential materials.
Even after completion of the current trade deal with China, concern over intellectual property will continue. Because of the complexities of this issue, the current trade deal will not end potential IP theft.