Opening Plenary debate IP Protec3on in China

Transcription

1 Opening Plenary debate IP Protec3on in China Andrew D. Hirsch General Manager & General Counsel Fuelcor LLC CO 2 TL h#p://

2 The Global Economy Func<ons Like the Human Body Each en<ty (company/university/individual) within a country is like a cell. Each country is like a body part comprised of interdependent cells. Together these form a global ecosystem with many subsystems with some systems and parts func<oning be#er than others. Enterprises, markets, and socie<es are now all connected and in a global economy provide the context for strategic analysis. PRC USA

3 Ways to Understand US- PRC Interconnec<vity - - Specific Focus on IP, Commerce, & Trade History Science Technology Energy Environment Economy People Legal Values/Culture

4 US and PRC can both be viewed from a Historical Context CHINESE HISTORICAL CONTEXT Example of history of Chinese science: In 1954, sinologist Joseph Needham along with an interna<onal team of collaborators ini<ated the project to study the science, technology, and civiliza<on of ancient China. He iden<fied Four Great Inven<ons: Paper Prin<ng Gunpowder Compass

5 HISTORICAL CONTEXT Needham's final organiza<on: Vol. I. Introductory Orienta/ons Vol. II. History of Scien/fic Thought Vol. III. Mathema/cs and the Sciences of the Heavens and Earth Vol. IV. Physics and Physical Technology Vol. V. Chemistry and Chemical Technology Vol. VI. Biology and Biological Technology Vol. VII. The Social Background Seven volumes now subdivided into twenty- seven books: see Needham Research Ins<tute: h#p://

6 Song Dynasty Souce: h#p://afe.easia.columbia.edu/song/index.html The Chinese of the Song Dynasty (A.D ) was a period of great economic prosperity and remarkable technological innova<on. During this period China gave the world inven<ons such as: prin<ng, paper money, porcelain, tea, restaurants, gunpowder, and the compass. See Newton North High School Learning Library at: h#p:// See also List of Chinese Discoveries and List of Chinese Inven<ons via Google

7 Weatherhead East Asian Ins<tute at Columbia University See in par<cular the following link comparing Chinese inven<on dates and the dates such technologies later showed up in the western world: h#p://afe.easia.columbia.edu/main_pop/related/<melines.htm Please support more university to university coopera3on between the PRC & US. More generally: See Newton North High School Learning Library at: h#p:// See also List of Chinese Discoveries and List of Chinese Inven<ons via Google or on wikipedia

8 European and American Industrializa<on: the Modern Era of Managerial Capitalism Industrial Revolu<on In Europe and USA (similar to Song period of inven<ve ac<vity, wealth crea<on) Began with Individual inventors and individual businessmen s 1900s inven<ve ac<vity driven by: Government Corpora<ons Universi<es (with government funding Bayh- Dole Act and Patents) Revolu3on in Transporta3on and Communica3on: Railroads & Telegraph = new legal en<ty (corpora<on/stock) & new managerial techniques <me/scheduling Revolu3on in Produc3on and Distribu3on: Ver<cal Integra<on, New centralized management structure ( managerial capitalism ), Machinery, Electrical Equipment, Industrial chemicals, metals, Scien<fic Management <me and mo<on studies and rise of labor unions Note: Branding Lanham Act during industrial era Result: the start of the managed produc<on chain and the start of the managed supply chain Modern Era: Mul<- na<onal, Mul<- divisional, global, internet, typified by new fields of technology (biotechnology, communica<ons, computers, satellites, etc.) and rapid increase in pace of ac<vity. Reading: Joseph Schumpeter (crea<ve destruc<on), Alfred Chandler (scale and scope, strategy and structure, coming of managerial capitalism), Michael Porter (

9 Industrializa<on Western Perspec<ve: Individual Inventors & Individual Businessmen Inside Britannica: March 2012

10 Industrializa<on Western Perspec<ve: Individual Inventors & Individual Businessmen

11 INVENTION & INNOVATION WESTERN PERSPECTIVE

12 US Department of Commerce: Causes for Concern

13 Shorter Time From Inven<on to Commercializa<on

14 Inven<ve Ac<vity Speeding Up Communica<ons Example

15 History of the Internet (US companies)

16 PRC Companies Ali Baba valua<on $66BB Market cap $29.9 Billion USD Ali Baba buys 18% of Weibo for $586MM this week $3BB $3.6BB

17 IBM

18 IBM and PRC Lenovo Success

19 Chicago Airport 5/1/13 Kimbell Piano Kimball is an old American Brand name used by a now defunct US piano manufacturer. The brand represented properly priced pianos (affordable) pianos for schools and homes. The Kimball brand was then sold to several US manufacturers who went out of business in the late 80's. Chinese manufactures got the rights to the name so they can sell to US.They are produced in China. The front of the Piano reads: Kimbell Chicago,

20 PRC is Number 1 in filings Implica<ons? China's patent office for the first <me became the world's largest last year, according to the World Intellectual Property Indicators 2012 report. Global patent filings last year swelled to a record 2.14 million China's State Intellectual Property Office (Sipo) received 526,412 patent applica<ons last year (a 35 percent increase from 2010), The United States received 503,582, and Japan received 342,610 for third- place. For the past 100 years, only three patent offices - Germany, Japan and the United States - had occupied the posi<on of largest office (Trilateral) Interes<ng Reading: Building the Ladder: Three Decades of Development of the Chinese Patent System by Peter K. Yu, Drake University, Legal Studies Research Paper Series, Research Paper No China's peaceful rise term used at speech given by the former Vice Principal of the Central Party School, Zheng Bijian, in 2003 during the Boao Forum for Asia. China s Peaceful Development Chinese president Hu Jintao used instead the phrase China's peaceful development at the 2004 session of the Boao Forum. See next page for commentary

21 Leading up to the current 5- Year Plan 2008 Chinese Na3onal Intellectual Property Strategy see: h#p://english.gov.cn/ /21/content_ htm The protec<on of IPRs will be significantly improved. Infringement of IPRs, such as piracy and counterfei3ng, should be significantly reduced, the expense of protec<ng intellectual property right will decrease a great deal and abuse of intellectual property should be effec<vely curbed. The awareness of the IPRs in society, especially among market en33es, will be greatly enhanced and a favorable intellectual property culture should be basically formed. Promo3on Plan for the Implementa3on of the Na3onal Intellectual Property Strategy in 2013 h#p://english.sipo.gov.cn/news/official/201303/t _ html Goals: Refining IP- related laws and regula<ons, improving the long- term mechanism of comba<ng IP infringement according to the law, implemen<ng the performance evalua<on of IP protec<on. Enhancing the effec<veness of judicial IPR protec<on and the capacity of administra<ve enforcement, implemen<ng the special protec<on opera<ons and assistance programs for key fields and industries, promo<ng the informa<on disclosure of IP cases subject to administra<ve penalty. Strengthening the protec<on of IP resources in the fields with tradi<onal advantages, enhancing the ability of dealing with interna<onal cases. THIS IS CAPACITY BUILDING with clear policy direc<on

22 NCRC press conference outlines China's 12th Five- Year Plan: The Minister for the "Na<onal Development and Reform Commission," Zhang Ping said in a press conference: In establishing the 12th Five- Year Plan we have conducted a lot of research into social imbalance, disharmony and unsustainability. We hope to resolve the problems in the process of development reform and opening up. These are the targets of the 12th Five- Year Plan... Over the past five years we gave priority to economic growth. This was important in terms of solving people s basic needs. But now our economy has improved significantly. On this basis we will shiw our priori<es toward improving people s lives. The 12th 5- year plan has clear targets on issues such as employment, public services, medical care, educa<on, and social security. Comments made on draw 5 year plan, Source: h#p:// china- trade- china- twelwh- five- year- plan

23 The Fourth Session of the 11th Na<onal People's Congress (NPC), Key Targets China's parliament, adopted a resolu<on to approve the 12th Five- Year Plan for Na<onal Economic and Social Development at the 1. Economic targets Great Hall of the People in Beijing, China, March 14, GDP to grow by 7 percent annually on average; More than 45 million jobs to be created in urban areas; Urban registered unemployment to be kept no higher than 5 percent; Prices to be kept generally stable. 2. Economic restructuring Rise in domes<c consump<on; Breakthrough in emerging strategic industries; Service sector value- added output to account for 47 percent of GDP, up 4 percentage points; Urbaniza<on rate to reach 51.5 percent, up 4 percentage points. 3. Innova3on Expenditure on research and development to account for 2.2 percent GDP; Every 10,000 people to have 3.3 patents. 4. Environment and clean energy Non- fossil fuel to account for 11.4 percent of primary energy consump<on; Water consump<on per unit of value- added industrial output to be cut by 30 percent; Energy consump<on per unit of GDP to be cut by 16 percent; Carbon dioxide emission per unit of GDP to be cut by 17 percent; Forest coverage rate to rise to percent and forest stock to increase by 600 million cubic meters; 5. Agriculture Annual grain produc<on capacity to be no less than 540 million tones; Farmland reserves to be no less than billion mu. 6. Livelihood Popula<on to be no larger than 1.39 billion; Life span per person to increase by one year; Pension schemes to cover all rural residents and 357 million urban residents; Construc<on and Renova<on of 36 million apartments for low- income families; Minimum wage standard to increase by no less than 13 percent on average each year; 7. Social management Improved public service for both urban and rural residents; Improved democracy and legal system; Be#er social management system for greater social harmony; More than 10 percent of all residents will be registered as community volunteers. 8. Reform Encourage qualified enterprises to get listed in stock markets; In- depth reform in monopoly industries for easier market entry and more compe<<on; Improved government efficiency and credibility.