The Relationship between Trade and Intellectual Property Rights in China
Counterfeiting and piracy are contentious issues that frequently come up in the context of intellectual property protection in developing countries. In 2007, the Organization of Economic Co-operation and Development published a notable report indicating that the world market share of counterfeit goods, at two to four percent, was considerably lower than the five to seven percent figure that had been assumed up until that point (Dryden, 2007). This raises the question of whether the numerous scientific articles and media publications on the problem of intellectual property right infringement reflect reality. China is often accused by Western countries of violating foreign IPRs, such as patents and trademarks. According to these OECD figures, almost one third of all global counterfeit seizures and two thirds of all infringement imports in the United States originate from China (Bender, 2006). Industrialized states often refer to these figures and complain about welfare losses related to Chinese counterfeits that dampen the incentives of MNEs to invest in R&D.
KeywordsPatent Applicant Gravity Model Trade Flow North American Free Trade Agreement International Patent Classification
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