China is called the counterfeit capital of the world for no lame reason. 85 per cent of all fake goods seized in Europe last year originated from China while the Arlington, VA based National Intellectual Property Rights Co-ordination Centre says that 80 per cent of all counterfeit products confiscated in the US over the last five years came from China.
With some economists saying that the sales of counterfeit goods, from software to designer clothing account to 8 per cent of China’s GDP, experts estimate that Chinese fake products are costing foreign firms a whooping $20 billion a year in lost profits.
The Chinese government’s tolerance of infringement of intellectual property rights and production of fake goods are evident from the number of fake Apple Stores that are cropping up in China as reported by Reuters last month. These stores unabashedly featured Apple logos, products (iPods, iPads, and MacBook Pros), and a layout that matches Apple’s real retail outlets.
While consumers in China are already using the “HiPhone 5”; a cheat of Apple’s much anticipated smartphone, iPhone 5, the Chinese state media reported last month that government officials in its “latest move to show the country’s determination to combat piracy” confiscated “20,000 fake Tibetan language text books”.
“In one case, Zhang Xinfeng was found to sell more than 30,000 copies of textbooks, including more than 20,000 Tibetan books, to 25 schools in 19 Tibetan cities and counties between September 2009 to September 2010,” the report said.
Speaking to Phayul, a Reuters reporter based in Hong Kong expressed surprise at the confiscation of Tibetan text books when the markets are flooded with fake medicines and copies of high-end designer labels.
“I tried to contact Chinese officials on the confiscation of Tibetan text books but they refused to give further information,” the Hong Kong based reporter told Phayul.
“This indeed is very mysterious,” he added.
China became a member of the World Intellectual Property Organisation in 1980 and has since acceded to all major agreements that regulate intellectual property rights and trademark registrations.
Following continued pressure from western governments and a complaint by the US at the World Trade Organisation, the Chinese government last year launched a new crackdown on product piracy.
But months into its launch, China observers are still sceptical of Beijing’s earnestness in implementing infringement laws more stringently.
US Department of Commerce General Counsel Cameron Kerry, on a visit to Beijing last month told reporters that piracy remained an area of concern.
Kerry pointed out that software companies who have done business in China for years “haven’t yet seen an uptick in software sales,” even though China has claimed that all central government agencies are using legally purchased software.
Charles Scholz, Asia director for the security consulting firm, Kroll Associates explains the official reluctance to clamp down stronger on piracy.
“But counterfeiting is now so big, officials are reluctant to shut it down completely, since it provides millions of badly needed jobs.”
