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China tightens counterfeiting laws

China tightens counterfeiting laws

Chinese authorities last week announced tougher enforcement for theft of intellectual property and copycat production.

   New anti-piracy rules approved by the Supreme People’s Court lower the threshold for offenses that warrant a jail sentence and increase the maximum penalty to seven years in jail, according to media reports.

   The rules are part of a wider crackdown on manufacturers and distributors of cheap, knock-off products in recent months. The United States and the European Union have complained that piracy is the primary impediment in trade relations with China because companies in those regions are losing billions of dollars in global sales to products that are made to resemble their brands at a fraction of the cost.

   The European Union applauded China for following through on its promise to strengthen rules against copyright, trademark and patent violations. Both the United States and the European Union had threatened to seek approval from the World Trade Organization to impose penalties on China if piracy is not curtailed.