SEMA eNews Vol. 13, No. 24, June 17, 2010

U.S. Government Investigates Chinese Intellectual Property Rights Infringement

The U.S. International Trade Commission (ITC) has initiated an investigation into the effects of Chinese intellectual property rights (IPR) infringement on U.S. jobs and the economy, along with China's so-called “indigenous innovation policies.” The latter refers to a Chinese initiative, which encourages domestic companies to develop their own technology and brands instead of simply manufacturing foreign products.

The United States and many other foreign governments are concerned that regulations implementing the policy discriminate against foreign products and encourage the purchase of domestic goods by the Chinese government. The government procurement market is estimated to be USD$82 billion.

With respect to IPR infringement, the ITC is seeking to report on the following:

  • describe the size and scope of reported IPR infringement in China;
  • perform a quantitative analysis of the effects of Chinese IPR infringement on the U.S. economy and jobs; and
  • discuss actual, potential and reported effects of China's indigenous innovation policies on the U.S. economy and U.S. jobs and quantify those effects to the extent possible.

The ITC will submit its findings to the U.S. Senate Finance Committee by May 2011.

For more information or to submit information about IPR infringement to the ITC, contact Linda Spencer at lindas@sema.org.