Although intellectual property rights (IPR) historically have not received strong protection in the People’s Republic of China, external pressures and internal economic objectives are leading China closer to the IPR practices and standards found in Western nations. A growing economy, more sophisticated laws, and increased attention to enforcement have led to IPR infringement cases being brought before Chinese authorities in greater numbers.

However, IPR laws and policy that would strengthen the rights of IPR owners have yet to be fully implemented and enforced. In this article from Executive Counsel, NERA Senior Vice President Dr. Alan Cox and former Senior Consultant Kristina Sepetys suggest that full implementation of these laws and policies would likely provide a higher degree of deterrence to potential infringers. The authors argue that IPR violations may ultimately have negative effects on the broader Chinese economy by discouraging investment and imposing costs upon those companies attempting to offer goods and services. Dr. Cox and Ms. Sepetys note that because violations continue to be widespread, work remains to be done if China is to accord with other major economic powers in the area of IPR protection, particularly in the area of enforcement and damages.