Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: RealMuLan who wrote (62028)	4/15/2005 1:48:15 PM
From: energyplay	Read Replies (2) of 74559

China has signed up for the WTO. Eventually, the central government will find that excessive piracy threatens China's own IP producers (See damage done to HK film industry as an example) and thus future development. The difficult part will managing the transistion, protecting nascent IP producers in the coastal areas while there is still extensive inland rural poverty. One way is to maintain a dual standard - enforce IP rules for China developed IP, and favored strategic industry joint ventures, especially where there is local added intellectual value. Ignore or give nominal enforcement to other IP rights where there is no significant Chinese ownership. (Getting nominal enforcement should depend on maintain appropriate relations with local authorities.) The bad news for China is apparently enforcement of rights for China developed IP is very weak and inconsistent. So China needs to develop a dual standard, which requires lots of hypocrisy. Unfortunately, there's a worldwide hypocrisy shortage, so this is one more item China will need to import.

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