2. Chinas WTO Accession: Intellectual Property A Story The date is fall of the year 2000 The setting is a Moscow street corner A vendor is selling his goods Tony Jones Karla Lawson Kate Linton Roger Panetta

3. Chinas WTO Accession: Intellectual Property October 21, 2002 Group Members Tony Jones Karla Lawson Kate Linton Roger Panetta Tony Jones Karla Lawson Kate Linton Roger Panetta

4. Chinas WTO Accession: Intellectual Property Agenda China and the WTO Accession Process IP: Agreements, Monitoring & Enforcement Intellectual Property and China Problems Public Policy Proposals Conclusion, Questions and Answers Tony Jones Karla Lawson Kate Linton Roger Panetta

5. Chinas WTO Accession: Intellectual Property Why China Matters in Trade Tony Jones Karla Lawson Kate Linton Roger Panetta

6. Chinas WTO Accession: Intellectual Property Why China Matters in Trade Tony Jones Karla Lawson Kate Linton Roger Panetta

7. Chinas WTO Accession: Intellectual Property China and the WTO Accession Process Tony Jones Karla Lawson Kate Linton Roger Panetta 1986: China applies for GATT admission 1987: Working Party formed 3 Aspects of WTO Accession 15 years of negotiations 2001: WTO Membership in December Agreement covers 8 broad areas

8. Chinas WTO Accession: Intellectual Property China and the WTO Accession Process Tony Jones Karla Lawson Kate Linton Roger Panetta Chinas WTO agreement (source: GAO)

9. Chinas WTO Accession: Intellectual Property IP: Agreements, Monitoring & Enforcement TRIPS and the WTO TRIPS Council Special 301 and the USTR Section 306 and the USTR Section 337 and the ITC WIPO Tony Jones Karla Lawson Kate Linton Roger Panetta

10. Chinas WTO Accession: Intellectual Property Some of Chinas WTO IP Rights Commitments Tony Jones Karla Lawson Kate Linton Roger Panetta

11. Chinas WTO Accession: Intellectual Property Why IP Matters Tony Jones Karla Lawson Kate Linton Roger Panetta Single largest sector of the U.S. economy Copyright industries create jobs at 3 times the normal rate Threatens trading environment (Bilateral and Multilateral)

12. Chinas WTO Accession: Intellectual Property IP Violations in China: The Scope of the Problem Counterfeiting and Piracy Loss of Business Product Pricing Product Production Hazards Tony Jones Karla Lawson Kate Linton Roger Panetta

13. Chinas WTO Accession: Intellectual Property The Financial Cost of Software Piracy Tony Jones Karla Lawson Kate Linton Roger Panetta Source: 2002 BSA Global Piracy Software Study

14. Chinas WTO Accession: Intellectual Property The Financial Cost of Software Piracy Tony Jones Karla Lawson Kate Linton Roger Panetta Source: 2002 BSA Global Piracy Software Study

15. Chinas WTO Accession: Intellectual Property Software Piracy Offenders Tony Jones Karla Lawson Kate Linton Roger Panetta Source: 2002 BSA Global Piracy Software Study

16. Chinas WTO Accession: Intellectual Property China, Asia and Piracy Tony Jones Karla Lawson Kate Linton Roger Panetta Source: 2002 BSA Global Piracy Software Study

17. Chinas WTO Accession: Intellectual Property State Participation in Piracy: Adding Insult to Injury State is substantial participant in computer software, videos, CDs, clothes, watches, chemicals and drug based pirates (Largest consumer of pirated business software are government offices) Chemical Abstracts Journal & subscriptions Chinese crackdown met with skepticism Tony Jones Karla Lawson Kate Linton Roger Panetta

18. Chinas WTO Accession: Intellectual Property Why does the problem persist? Local Protectionism Elimination of millions of needed jobs Brand name competition Need for stricter enforcement Tony Jones Karla Lawson Kate Linton Roger Panetta

19. Chinas WTO Accession: Intellectual Property China: Positive Developments in IP Enforcement What is being done to remedy the problem Amended patent, trademark and copyright laws in 2001 Promotion of Domestic Growth Focus on IP Enforcement Coalitions Tony Jones Karla Lawson Kate Linton Roger Panetta

20. Chinas WTO Accession: Intellectual Property Public Policy Proposals Review Mechanisms DSU Procedures TRIPs Exemptions for Developing Countries Other Trade Law Challenges Tony Jones Karla Lawson Kate Linton Roger Panetta

21. Chinas WTO Accession: Intellectual Property Uneasy Compromise: IP Violations Outweighed by Promise of the Market Microsoft: Chinese legal system inefficient Microsoft shares IP: competitive reasons Multinationals sharing: Matsushita, Intel, Siemens and Alcatel Huawei Technologies: products look & work like Cisco – Cisco is not complaining With total cost of a engineer about $15,000 & Chinese companies creating low cost knockoffs of high-tech products, the compromise is an uneasy one Tony Jones Karla Lawson Kate Linton Roger Panetta

22. Chinas WTO Accession: Intellectual Property Conclusion and a Question for the Class How do you balance the uneasy compromise: IP Protections vs. the Promise of the Market? Questions and Answers Tony Jones Karla Lawson Kate Linton Roger Panetta

23. Chinas WTO Accession: Intellectual Property Appendix I USTRs CHINA'S ACCESSION TO THE WTO (Prof Malawer's webpage) http://www.ustr.gov/regions/china-hk-mongolia-taiwan/accession.shtml http://www.ustr.gov/regions/china-hk-mongolia-taiwan/accession.shtml USTRs Intellectual Property (Prof Malawer's webpage) http://www.ustr.gov/sectors/intellectual.shtml http://www.ustr.gov/sectors/intellectual.shtml China's accession to WTO (University of Washington Prof) http://faculty.washington.edu/karyiu/WTO/links.htm http://faculty.washington.edu/karyiu/WTO/links.htm Chinas WTO Accession Package? http://www.mac.doc.gov/China/WTOAccessionPackage.htm http://www.mac.doc.gov/China/WTOAccessionPackage.htm Intellectual Property Issues and China http://internationalecon.com/currentissues/china/china-ipr.html http://internationalecon.com/currentissues/china/china-ipr.html China Intellectual Property Laws & Rights http://www.china-laws-online.com/intellectual-property-rights/index.htm http://www.china-laws-online.com/intellectual-property-rights/index.htm Tony Jones Karla Lawson Kate Linton Roger Panetta

24. Chinas WTO Accession: Intellectual Property Appendix II Report on WTO's China Accession http://www.cibertele.com/nuevo/omc/Report%20on%20WTO%20China%20accession.pdf China enters WTO an overview of the changes http://www.freshfields.com/places/asia/publications/pdfs/2744.pdf WTO China May 2002 http://www.deloitte.ca/en/pubs/ExpressChina/WTO_09.pdf Brookings Institute Issues: WTO's China Accession http://www.brook.edu/views/testimony/lardy/20010509.htm USTR Special Report 2002 http://www.ustr.gov/reports/2002/special301-306.htm Tony Jones Karla Lawson Kate Linton Roger Panetta

25. Chinas WTO Accession: Intellectual Property Appendix III Chinas WTO Accession – On the Fast Track: Financial Services http://www.tdctrade.com/econforum/tdc/020301.htm http://www.tdctrade.com/econforum/tdc/020301.htm China: Intellectual Property Rights http://www.users.qwest.net/~ryanandkari/IPR.htm http://www.users.qwest.net/~ryanandkari/IPR.htm China: Intellectual Property Rights http://www.tradeport.org/ts/countries/china/mrr/mark0307.html http://www.tradeport.org/ts/countries/china/mrr/mark0307.html Laws revised to meet promises http://www1.chinadaily.com.cn/cndy/2002-09-19/86860.html http://www1.chinadaily.com.cn/cndy/2002-09-19/86860.html China has joined the WTO – Are you prepared? Do you have an ntellectual property strategy in China? http://www.dorseylaw.com/updates/IP/IPVol2Num1.asp http://www.dorseylaw.com/updates/IP/IPVol2Num1.asp U.S. Sees Rising Intellectual Property Theft in China http://www.uspolicy.be/Issues/WTO/rogan.042302.htm http://www.uspolicy.be/Issues/WTO/rogan.042302.htm Tony Jones Karla Lawson Kate Linton Roger Panetta

26. Chinas WTO Accession: Intellectual Property Appendix IV M. Simensky, L. Bryer, N. Wilkof, Intellectual Property in the Global Marketplace, (1999) Business Week, High Tech in China (October 28, 2002) Washington Post, Piracy Still Runs Rampant in China (March 27, 1998) Washington Post, Piracy in China, No Mickey Mouse Issue (February 15, 1996) World Federation of the Sporting Goods Industry, China and Japan to Tackle Product Piracy, www.wfsgi.org. www.wfsgi.org Business Software Alliance, Seventh Annual BSA Global Software Piracy Study (June 2002), http://www.bsa.org/sweeps USTR, 2002 National Trade Estimate Report on Foreign Trade Barriers – China, www.ustr.gov/reports/nte/2002/index.htm www.ustr.gov/reports/nte/2002/index.htm Tony Jones Karla Lawson Kate Linton Roger Panetta

27. Chinas WTO Accession: Intellectual Property Appendix: GAO Reports World Trade Organization: Selected U.S. Company Views about China's Membership. GAO-02-1056, September 23, 2002 http://www.gao.gov/new.items/d021056.pdf http://www.gao.gov/new.items/d021056.pdf World Trade Organization: Analysis of China's Commitments to Other Members. GAO-03-4, October 3, 2002 http://www.gao.gov/new.items/ http://www.gao.gov/new.items/ World Trade Organization: Observations on China's Rule of Law Reforms. GAO-02-812T, June 6, 2002 http://www.gao.gov/new.items/d02812t.pdf http://www.gao.gov/new.items/d02812t.pdf China Trade: WTO Membership and Most-Favored-Nation Status. T-NSIAD-98-209, June 17, 1998 http://www.gao.gov/archive/1998/ns98209t.pdfhttp://www.gao.gov/archive/1998/ns98209t.pdf Tony Jones Karla Lawson Kate Linton Roger Panetta