China: National Campaign to "Crack Down" on Intellectual Property Rights ("IPRs") Violations: Economic Development through Improved IPR Enforcement

Last Updated: 21 December 2010
Article by Richard Wigley

Background on the Campaign

High rates of intellectual property rights ("IPRs") infringement in China have in recent years been of increasing concern to foreign and domestic rights holders alike. Though, as China is a developing country, such high rates of infringement are, arguably, to some extent an economic structural issue, these infringements are seen as an impediment to China's economic growth prospects. Furthermore, China has an obligation as a signatory of TRIPs (Agreement on Trade-related Aspects of Intellectual Property Rights) to maintain an effective regime for the protection of IPRs.

With these issues and others to consider the P.R.C. government recently announced a national campaign (herein referred to as the "Campaign") whereby it will "crack down" on infringers of intellectual property rights1. The focus of the Campaign, which will last the six months from October 2010 to March 2011, will encompass a broad range of infringing activities, including production/distribution of counterfeit goods, "pirating" of various forms of audio-visual media, the import/export of infringing goods, and the Campaign will have a special focus on infringements carried out over the Internet.2 Furthermore, the Campaign will have a specific focus on P.R.C. governmental agencies, with a mandate to ensure that all agencies purchase legitimate business software in their operations.3

The Campaign will be conducted in three phases, including a "Mobilization period (October 2010)", "Implementation period (November 2010 to February 2011)" and an "Acceptance inspection period (March 2011)", where the latter period will be for reviewing the results of the Campaign and reporting the results to the relevant governmental authorities.5 The Campaign is very comprehensive in scope and, in essence, claims to address virtually every aspect of IPR enforcement. Major classifications of actions to be taken include "Increasing source control of production", "Enhancing market expansion and administration", "Intensifying IP protection in import and export and on the Internet", "Intensifying criminal and judicial crackdown", "Urging governmental bodies nationwide to use genuine software", and "Enforcing promulgation on IP protection". Key aspects emphasized in the Campaign are the responsibility and accountability of the relevant governmental leaders, the cooperation amongst agencies needed for the Campaign's success, the nationwide scope of the Campaign, the requirement of not only national-level, but also provincial- and local-level participation, and the active and welcome participation in the Campaign by the general public.66The Campaign is a comprehensive effort and will require a significant investment on the part of the P.R.C. government.

There is little doubt that this Campaign is positive news for intellectual property rights owners, both foreign and domestic, but is this "crackdown" and others like it really a key driver in improving IPR enforcement in China? Or are other factors, such as technological change, growing economic power, and changes in societal norms in today's China actually creating a new landscape which requires all rights owners to reevaluate how they protect, manage, and monetize their IPRs? A recent report by MOFCOM (Ministry of Commerce of the People's Republic of China) laid out what it viewed as the driving force behind the Campaign as follows:

"[t]he 5th Plenary Session of the 17th National Congress of the CPC has made clear that the 12th Five –Year Program will focus on scientific development and accelerating the transformation of the economic development pattern. Scientific and technological progress and innovation will be regarded as an important tool for accelerating the transformation of economic development pattern. In order to better adapt to new situations and tasks and further strengthen IPR protection, the State Council has decided to carry out this Special campaign.7"

As such, the Campaign is not about merely responding to complaints from foreign governments/foreign companies regarding China's record in protecting IPRs, but rather is seen as part of an economic development initiative for the next phase of China's development. It is still, as such, incumbent upon rights owners to craft their own specific IPR protection strategy for today's rapidly-emerging China, though the Campaign will likely provide a welcome assist.


In some areas, the Campaign will yield positive, tangible results (such as in government procurement of legitimate business software), while other results will be less easy to quantify, though still likely positive. As noted by Jack Chang, Senior IP counsel of GE, "I think this six-month enforcement operation is a very important move to strengthen foreign investors' confidence in China's efforts to improve the so-called soft investment environment8". Mr. Chang went further to say that "...I am confident that the domestic IP environment will continue to improve through the government's efforts9...." Is the Campaign going to stop all IP infringement in China? No, but it will likely have a very significant and positive impact. The Campaign is based upon the premise that China's economic development is tied to intellectual property protection and, on that point, foreign and domestic IPR holders should all agree and benefit.

1. Xinhua, "China to start new campaign against IPR violations", Oct., 19, 2010, found here.

2. Ibid.

3. Ibid.

4. IPR in China, "Program for Special Campaign on Combating IPR Infringement and Manufacture and Sales of Counterfeiting and Shoddy Commodities", Nov. 11, 2010, found here.

5. Ministry of Commerce of the People's Republic of China, "Overview of the Special Campaign against IPR Infringement and Counterfeits", Dec. 6, 2010, found here.

6. China Daily, "IP enforcement operation welcomed", Dec. 14, 2010, pg. 17.

7. Ibid.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions