Posts Tagged ‘China’

Is China serious about cutting down internet piracy?

July 24th, 2010 Alexander No comments

This year, China announced its goal of combating Internet piracy and designated a task force, code named “Sword Net Action,” to battle cyber pirates through October 2010. Sword Net Action targets the source of piracy to reduce Internet infringement activities.  Internet and digital copyright industries are expected to provide solid copyright protection and development environments.

China’s National Copyright Administration, Ministry of Public Security, and Ministry of Industry and Information Technology announced today that “Sword Net Action” will be divided into four stages. Sword Net Action targets the types of works,( i.e, audio and video, literature, games, animation, software, etc.), types of sites (i.e, online sales platform) and provides search, online storage, and other technical services. Phone media networks will also be focused upon.

Mainland officials state that “Sword Net Action” will achieve five goals, including the establishment of (1) “first authorized after the dissemination of” spread the work order, (2) creation of a network industry (an important foundation for sustainable development and copyright newspapers), (3) termination of piracy websites relating to the rapid spread of Internet infringement and piracy activities, (4) promotion of human rights, and (5) use of balanced development and healthy activities.

Mainland officials also seek to establish a copyright enforcement system which promotes the drafting of “network copyright enforcement guidance” and raises the standard for Internet copyright enforcement, science, and effectiveness.

Is China serious about cutting down internet piracy? I will update you all as results come in!

Yes, you can now sue for emotional distress in China!

July 13th, 2010 Alexander No comments

Here is another bit of news that shows that intellectual property and non-tangible rights are getting more and more protection in China.

While infringement liability has always been the focus of the Civil Code of the West, it has always been lacking in China. Many people have had to rummage from a wide range of different laws and regulations to deal with infringement claim compensation. However, beginning July 1 2010, this situation has changed.

The “Tort Liability Act” is the official introduction of the new law tort liability legal system in China.

People can now resolve infringement disputes under this act.

Specifically, “Tort Liability Act” in Article 2 includes the right to life, health, name, reputation, honor, image rights, privacy, marriage and ownership, custody, ownership, usufruct, security interest, copyright, patent, trademark, rights of discovery, ownership, inheritance and other personal and property rights. In summary, the new law not only includes the traditional scope of property rights, but also includes advanced intellectual property rights, including reputation and privacy. In addition to the non-property damage, one can also request compensation for emotional distress and other protected individual rights.

Let’s punish the Chinese for dumping!

July 10th, 2010 Alexander No comments

Speaking of redistribution of global economic power,  look at this next piece of news about recent investigation into wire mesh dumping in China.  In Dalian, EastFound Material Handling Products co. Ltd’s general manager, Song Binbing, said that China has won its first iron and steel products exports dumping case against the US. The company spent a total of RMB 3 million (about US $500,000) and the victory will save the company 300 million yuan (about $5 million  US).

U.S. International Trade Commission (ITC) has announced the final results of an investigation into industrial wire mesh tray countervailing and anti-dumping, determining that the products of Chinese origin have not caused the U.S. industry material injury or threat of material injury. ITC has said that the U.S. Department of Commerce (DOC) may not impose anti-dumping and countervailing duties against the Chinese companies.

Song Binbing stated that the hard-earned win is a victory for the whole industry.

This wire mesh case mainly involves three companies in China, including Dalian EastFound Material Handling Products co. Ltd’s and its subsidiary, EastFound Material Handling Storage Products Co., Ltd. The two companies make up 2/3 of the  total export volume of wire mesh products from China to the U.S. Since the United States initiated an investigation last year in May, EastFound Material Handling Products co. Ltd has spent about RMB 3 million on legal fees. According to U.S. law, if the dumping margin is below 2%, it will implicate an anti-dumping tax rate of 0%. This means that DOC (department of commerce) has no right to impose any anti dumping duties against EastFound Material Handling Products co. Ltd.

It seems that the Chinese have won this round.  Maybe they will win the next time, as well. But one thing is certain: redistribution of global economic power is already taking place right underneath our noses.

The future of IP in the land of Piracy

July 9th, 2010 Alexander No comments

Shifting gears from news of China’s domestic growth, I would like to comment about another trend in the Greater China region: The rise of IP in the land of piracy.

Ownership of patents demonstrates the might of corporations and symbolizes the extension of national power. Yesterday, Chi Mei Innolux launched simultaneous lawsuits against Sony in China and the U.S.

Chi Mei Innolux and Sony’s patent lawsuits against each started when Sony first launched their attack against Chi Mei earlier this year. Chi Mei was unwilling to take a passive stance and counterattacked Sony. Anyone knowledgeable about patent infringement knows that Chi Mei’s tactic forces Sony to settle for a cross-licensing result.

The lawsuit signifies the OEM LCD panel industry’s evolution from simple assemblers to establishments of IP.  Recently, LG Display (LGD) of Korea sued AUO of Taiwan for patent infringement. AUO counter sued LGD and prevailed against LGD.  This precedential victory vindicates Taiwan’s OEM LCD panel industry from its historically lax attitude towards IP.

I have been in the IP business long enough to warn those who still believe IP is meaningless in Asia or that Asian corporations do not care about IP that things are rapidly changing.  The rise of IP in Asia, as I have personal experienced, and increasing numbers of Asian companies seeking IP protection will play a huge part in the redistribution of global economic power.

Service Sector needs continue to surge in China!

June 16th, 2010 Alexander No comments

So I heard recently that China’s largest integrated private enterprise class Fosun International (0656 HK) has successfully acquired the French company operating the Mediterranean Resorts Resort (Club Med)’s 7.1% stake. In the process, it not only becomes its largest strategic investment partner, it also is the first direct equity participation of Chinese enterprises in listed companies in France.

Based on what I know, Fosun International owned medicine, real estate development, steel, mining, retail, business services and strategic investment last year. Its revenues reached 34.86 billion yuan, with a net profit reached 4.65 billion yuan. Guo Guangchang, chairman of the Fosun International, is one of the richest man in China. It is reported that the acquisition was worth around 233.8 million euros (about 915 million yuan NT).

Obviously Club Med’s leisure and entertainment services will attract a lot of affluent Chinese. Apparently Club Med plans to construct five Club Med resorts on the mainland, making China the company’s No.2 largest market.

So here is a little information about Club Med. It was founded in France in 1950 as the founder of the concept of tourism resorts. It is listed in Paris in 1966. Club Med currently is in 40 countries and has 80 resorts, with an annual income of more than 13 million euros (about 50 billion yuan NT).

Club Med plans to established the first ski resort in Harbin, China and it is expected to be put into operation at the end of this year. In addition, Club Med will be able to attract 5% to 10% of mainland Chinese tourists to its four-star and five-star resort, and is expected to attract more than 200,000 customers.

I can see how service sector is going to continue to expand in China as the wealth of the Chinese grows. While the rest of the world continues to suffer from slow economy, the demand for high value services in China keeps rising. People, this is not the old China that only exports anymore. Service sector within China is the next wave!

Read more about Fosun International.