Counterfeiting Claims and Taming the Dragon!

Not Exactly short on trivia, but what is the national animal of China? Is it the dragon or the monkey or are they waiting to make a clone to appoint as one? If the economic culture is anything to go by then my answer would be’Monkey’ in the buzzer round!

Recall the parable of the hat maker and the monkey, who tricked the monkey into returning his stolen hats by getting the monkey to ‘copy his act’.

‘Copying’ and Couterfeiting culture of China taking on unsassuming proportions, the Dragon is under Fire’ from the Big A…C has well earned the dubious distinction of fondly nurturing its spurious market and the marketers with its lax IP enforcement laws. Quite an Alphabet soup…’A busts C’….not exactly a wholesome broth ! But its just not the goods from the big A, China has not spared the Nike, the Swiss knife or the Kanjeevaram Saree. An all pervasive sweep that’s spared none in its foray of piracy and counterfeit.

In the sharpest sign of a toughening U.S. stance on Chinese trade, the Bush administration lodged a pair of formal complaints with the World Trade Organization over the widespread availability in China of counterfeit American goods and barriers to sales there of U.S.-made copyrighted products.

“This is more than a handbag here or a logo item there; it is often theft on a grand scale,” said U.S. Trade Representative Susan Schwab.

A USTR report states

The Office of the U.S. Trade Representative announced that the United States has requested the World Trade Organization (WTO) to establish a dispute settlement panel, the next step in its WTO case challenging deficiencies in China’s legal regime for protecting and enforcing copyrights and trademarks on a wide range of products.

Under WTO rules, the WTO Dispute Settlement Body (DSB) will consider the U.S. request for establishment of a panel at its next meeting, which is scheduled for tomorrow.

Will India fall suit in action?….Recommended, in view of the fact that indigenous Indian crafts, goods and labour skilled in the crafts have been poached upon by the Chinese!!!!.

And supposedly in an attempt to do damage control and salvage its flagging reputation, Chinese has launched a four-month campaign (why four month I wonder? Is that a lucky number in Chinese astrology?) war on tainted food, drugs and exports to boost the image of ‘Made In China’ brands, state media reported on Friday. Little short of issuing orders at Tinamen, Chinese Vice Premier Wu Yi, called the campaign a stern political task- a reminder that officials’ career may be on line.

About time China abandoned its naqli (fake) garb and donned its asli (original) avatar!

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3 thoughts on “Counterfeiting Claims and Taming the Dragon!”

  1. Prof Ragavan writes:

    I do not understand Ms. Shaukat’s post in SpicyIP. So now, we want US to take China to the WTO DSU? Has anyone been to New York and seen the extent of pirated materials that is there. You might want to contact Professor Peter Yu at Drake – he will give a fuller picture of the issues involved.

    But this is the part of Ms. Shaukat’s post that baffles me – if we are happy that US is taking China to the DSU, then is India now all TRIPS happy? Then, why do we whine about pharmaceutical patents and patenting of plant varieties. Either we have a problem with the working of IP because it creates a privilege and marginalizes the poor (be it from mickey mouse or from Gleevec) or we don’t and we can become flag bearers of TRIPS. We surely cannot have it both ways.

    Srividhya Ragavan
    Associate Professor of Law
    University of Oklahoma College of Law
    Norman, OK – 73034
    Ph: 405-325-4790

  2. Hi:

    True, there appears to be a problem here. But, if one sat and thought it would become clear that one could do without Mickey but not so without Gleevac.

    Why would any country run a public health program and state health-care delivery systems and not manufacture toys and distribute them?. Plainly because health-care delivery and access to it has to be as broad based as possible.In the U.S itself, access to drugs and health-care delivery is not anywhere near ideal. Cross-border prescription filling goes on.

    I do accept that drug development is expensive, but there has to be some good will driving the business model rather than pure profit motive.I think it is the important duty of professionals to get this message understood and comprehended by the boards as much as they do their stock quotes and P/E ratios.I know I have touched a raw nerve here and would draw flak.

    I would only end by saying ” there is enough for everyone’s need but not for greed”.

    Cheers
    Ram

  3. Hello Sri and Dr.Ram,
    Thank you for your comments.
    My post refers to the rampant Counterfeiting and Piracy threat posed by China that has not been effectively curtailed.
    The grey market abounds everywhere…a walk through the streets of NYC,Shenzen or Burma Bazaar in Chennai amply demonstrates that.
    Designers rue over the fact that designer brands and products hit the gray market sometimes even before the formal launch
    Talk fakes and we are talking China…is rather quite the obvious.

    From an Indian perspective, the Traditional crafts sector has been on overdrive to protect the craft lines from the Chinese poach. Both the Kanjeevaram , the Benares and other such craft lines are being replicated in the sweat shops and this seems to be taking its toll on the craft societies as well. Although the G.I has been granted to many of the craft lines, they continue to reel under the China effect.Indian labor is being lured to China so as to train the Chinese workers

    We may have a gleevec, Mickey issue but there is as much cause for concern with the Chinese…both of which merit attention and redressal.

    On the TRIPS issuee,it no longer appears sustainable to adopt a stark polarized position and an issue based accept or trash appears more in line . India no longer believes TRIPS to be the bogey man…and is willing to accept that there are ‘inherent flexibilities’ that can be leveraged to its advantage.

    The U.S claims does appear justified and valid per se, without linking it with other dynamics.The estimated loss to the U.S economy hovers around 250 bill$..

    ‘Hope Middle Path prescriptives’ prevail

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