ITC finds IPR violations still rampant in China

ITC finds IPR violations still rampant in China    A U.S. International Trade Commission study found that although many U.S. companies have experienced broad success in China, intellectual property rights infringement still runs rampant in the country, undermining their competitiveness.
   In response to an ITC survey, many U.S. firms reported lost sales, profits, and license and royalty fees, as well as damaged brand names and product reputation, as a result of IPR infringement in China.
   The ITC report, the second of two reports on IPR infringement and indigenous innovation policies in China and their effects on the U.S. economy and employment, was released Wednesday. The independent, nonpartisan, fact-finding federal agency conducted the studies at the request of the U.S. Senate Finance Committee.
   Based on survey information, the ITC estimates U.S. intellectual property-intensive firms’ losses from IPR infringement in China were about $48 billion in 2009. The survey was sent to more than 5,000 U.S. firms. Effected U.S. firms also spent about $4.8 billion in 2009 to address possible Chinese IPR infringement.
   'These figures may be understated because they do not reflect losses incurred by firms in the rest of the economy,' ITC said.
   To view the 'China: Effects of Intellectual Property Infringement and Indigenous Innovation Policies on the U.S. Economy' (Investigation No. 332-519, Publication 4226, May 2011, 308 pages 2.22mb pdf) report, access the ITC's Web site.