Monday, August 28, 2006

Is IPR Protection in China Down Under?

Austrialian Manufacturing and China: Deepening Engagement is the title of the Australian Industry Group's 2006 China study, which is based on a survey of 700 Austrailian manufacturers with a total sales of 25.5 billion Australian dollars.

In chapter 6.2 Non-tariff on page 30, the relevant results can be found about the perception of the Australian manufacturers about intellectual property protection in China.

"It is clear from the 2006 China study that the concerns about intellectual property protection and other non-tariff barriers expressed in the 2004 China report have intensified over the intervening period."

The 2006 China study shows the following key issues Australian manufacturers are encountering, in descending order of frequency:
  • Lack of intellectual property protection;
  • Lack of transparency in legal and financial protection;Inconstistent enforcement of import duties;
  • Inconstistent interpretation of provincial laws;
  • Varying customs requirements;
  • Unique technical standards;
  • Restrictions on foreign invenstment; and
  • Quarantine controls.

Conclusions: "Australian manufacturers are encountering significant non-tariff barriers in trading with China - the key one being the lack of intellectual property (IP) protection (49%). Many companies see the enforcement of their IP rights as a futile endeavour. IP protection is not solely about trade in China, it is also an issue of significant importance on the domestic market. Nearly double the number of companies operating in China are concerned about IP abuse here in Australia from Chinese imports compared with their operations in China."

Read the report here (pdf)

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