China and the US have signed the first phase of a deal aimed at bringing an end to a trade war fuelled partly by concerns over IP theft and technology transfer.
In particular, the deal focuses on the importance of technology transfers between US and Chinese businesses being “voluntary”.
US officials claim that foreign companies have been forced to hand over technical information and proprietary IP as part of deals to gain access to the Chinese market.
China has consistently denied US allegations of ‘forced technology transfer’, but nonetheless took steps to formally outlaw any such practices with the Foreign Investment Law, which came into effect on January 1 this year.
Gang Bai, founding partner at Wanhuida Intellectual Property in Beijing, said the trade deal would “give impetus for high-quality IP protection in China”.
“The agreement contains concrete provisions for enhancing IP protection, consistent with China’s national goal toward an innovative economy,” he said.
Bai said the deal builds on China’s steps over the past year to bolster its own IP enforcement.
“China has stepped up effort in cracking down bad faith trademark registration and counterfeiting, while the 2019 draft patent law added a provision on term extension,” he added.
Source: World IP Review
