With all eyes on Dalian for the Summer Davos meeting early this month, the emergent service and technology outsourcing center has become a prime specimen of intellectual property rights (IPR) protection.

As a who's-who among the global business community gathes in the coastal city in Northeast China, they could witness how Dalian has become a window through which the seriousness of the country's attitude towards the creation and protection of IPs can be seen.

IPs have become a key factor in selecting the locations of services in the outsourcing business, so Dalian has become very conscientious about IP protection.

"IPR protection is not only for protecting foreign companies' rights but should also be helpful in encouraging domestic enterprises to innovate," says Dalian's mayor Xia Deren.

He says at the 33rd China Daily CEO Roundtable held in the city on September 8 that 33 Fortune Global 500 companies have set up service and outsourcing centers in the city.

Last year, software and outsourcing sales in the city increased by 45 percent to reach 14.5 billion yuan, while exports grew by 50 percent to $450 million.

The city's progress also won recognition from Premier Wen Jiabao during his visit to the city on September 7.

"What does the development of the software industry rely on? The first thing is brainpower; the second thing is the market; and the third thing is intellectual properties," Xinhua News Agency quoted Wen as saying during a visit to Dalian Hi-Think Computer Technology Corp, a leading software-outsourcing firm.

"The competition of the future world, after all, is the competition for IPR," he says.

During the blistering economic growth of the past decade, the country has kept in mind the importance of IPR. Today, officials stress IPR whenever the opportunity arises, while companies are starting to pour big money into research and development (R&D).

In a keynote speech of the Summer Davos meeting on September 6, Wen reiterated the country's determination to protect IPR before hundreds of heavyweights in the global business world.

"We will take the enhancing capacity of independent innovation as a key step to changing the pattern of economic growth, strengthening IPR protection and speeding up scientific and technological development, and improving industrial performance in an all-around manner," he says.

The latest assurance came amid mounting allegations against Chinese companies of IPR infringements and calls for tightened enforcement of IPR protection on local levels.

Hiroshi Tsukamoto, president of the Japan External Trade Organization, tells a seminar at the Davos meeting that one of the biggest concerns of Japanese companies in China is the IPR problem.

"There are two things that are worth mentioning regarding IPR protection in China," he says.

"One is that related regulations of IPR should be further improved, which means more and harsher punishments should be given for these kind of violations, and Chinese law should try to be in better compliance with international practices," he says.

"The second, and perhaps the most important, thing is the enforcement of the law. Without full implementation, the law would be meaningless."

Greg Shea, director of the United States Information Technology Office, says that China, the once-great innovator that has developed so many inventions throughout its history, is struggling hard to resurrect its former glory.

"China used to be a giant in inventions, like silk processing and paper-making," Shea says.

"Due to various reasons, China began to lag far behind in the past 100 years, because there is much change globally. But it is beginning to regain its original, leading position."

Shea says that the biggest challenge comes from the local governments, which often fail to implement national regulations and crack down on copycats.

"They (local governments) need tax and employment opportunities, which is a huge challenge," he says.

"The central government has indeed done a lot in improving the legal work, but the situation somehow remains unchecked at the local level."

However, some Chinese companies complained that while continuously blaming China for IPR infringements and representing it as home to the world's most notorious copycats, the Western media tends to turn a blind eye to China's significant strides in IPR protection.

Chairman of Beijing Huaqi Information Digital Technology Feng Jun says that an increasing number of Chinese companies have begun to notice the importance of IPR and have also begun working hard to get them.

Feng cites an experience of his company in which an Italian company, which accused his company of IPR infringement, ended up apologizing for being too quick to jump to conclusions.

"On one hand, we thanked the media for their supervision of the loopholes and violations," he says. "On the other hand, we hope they can notice our improvement and give a little encouragement for both the governments and companies in this field."

Feng says he believes the upcoming Beijing Olympic Games could change a lot in this dimension.

"It's not only the government that's getting tough with shoddy and fake-branded goods," he says. "More and more companies are aware of the importance of branding and quality."

Xiao Zhiguo, chief executive officer of the Luming Science & Technology Group Co, a Dalian-based lighting company, says that the ownership of an IPR is sometimes vital for the development of a company.

"Owning IPR can win for the company more business opportunities," he says.

"When you have it, you can engage in technical exchange with some first-class companies on an equal footing. For a new and fledging company, this could be vital for its fast growth and expansion."(By LI FANGCHAO)

 

(China Daily 09/17/2007 page9)

2013-07-17