U.S. Embassy Events

Welcome Remarks by Clark T. Randt, Jr.
Ambassador of the United States to China
Seventh Annual Ambassador’s Roundtable Discussion on
Intellectual Property Rights in China
Grand Hyatt Hotel, Beijing, China
November 7, 2008

Assistant Minister of Commerce Chong Quan, United States Deputy Commissioner for Trademark Operations Deborah Cohn, United States Coordinator for International Intellectual Property Enforcement Wayne Paugh, Assistant United States Trade Representative Stan McCoy, distinguished United States Government officials and colleagues from Washington, industry representatives,  intellectual property experts, honored guests, and United States China Mission colleagues,

Welcome to the Seventh Annual Ambassador’s Intellectual Property Rights Roundtable.

I was pleased to see some of you at last night’s reception and am grateful to see so many of you here at today’s event.  I especially appreciate those of you who have traveled a long way to join us in Beijing here today.

People often remark that the rate at which China changes is astounding.  This year has been no exception.  We saw China host a truly memorable Olympic Games.  2008 has also been a year of progress for IPR rights holders and innovators in China.  In June, we saw the publication of China’s long-awaited national IP strategy.  In August, the State Council completed its draft revisions to China’s patent law, revisions for which are now under review by the National People’s Congress.  We also saw the implementation of China’s anti-monopoly law.  And, finally, China’s trademark and copyright laws are both being reviewed for possible revisions.

Accordingly, “New Strategies and Legislation: The Changing Environment for Rights Holders in China” is the theme of this year’s roundtable.  Our program this year intends to explore the significance of these numerous developments and examine the questions they raise. The changes promise to affect how all of us operate here. 

These annual roundtable discussions serve as a forum for industry and government to examine changes, share best practices, and to set priorities for the year ahead.  Today, we are honored to have the Assistant Minister of Commerce responsible for all legal matters, including intellectual property regulations, Chong Quan, with us to present the keynote speech describing these recent developments from his point of view.

Today, as in years past, we look forward to our expert panelists and moderators sharing with us their experiences -- both good and bad – operating in China.  By understanding what may lie ahead for rights holders and innovators, we seek to explore not only how the assets of the United States China Mission and Government can best be utilized to improve IPR protection, but also how to prioritize our efforts in coming years.

As always, it will be especially useful to me and my team to hear your frank and practical suggestions on how we can help you to make progress on these important issues.  We value your thoughts on what changes the new patent law amendments and antimonopoly law bring, the implications of indigenous innovation, the effect of internet technologies on protecting IPR and other emerging issues.  These developments clearly represent both new challenges and opportunities.

We are pleased with the degree of transparency with which China has recently undertaken to revise its patent and anti-monopoly laws, and we greatly appreciate the opportunity for the foreign community, including the United States government, to provide comments on drafts of the revisions in advance of promulgation.

We hope that this open and transparent approach to legal reform will serve as a precedent for collaboration as revisions to other key pieces of IP legislation and other laws are considered.

We are also pleased that the bilateral IPR working group, under the Joint Commission on Commerce and Trade, re-started with United States Under Secretary of Commerce and Director of the United States Patent and Trademark Office Jon Dudas’ visit last month, which resulted in two memoranda of understanding that will increase regular information exchanges, joint training and cooperation with respect to best practices in the areas of trademarks and copyrights.   We recognize and appreciate these very positive developments.

At the same time, however, we believe that some key improvements for the effective protection of intellectual property rights in China are still needed.  Uneven enforcement of laws continues to undermine the legislative progress being made.  Widespread counterfeiting, piracy and other forms of infringement have not been deterred. 

Today, we will also hear presentations from United States Government and industry representatives about other significant IPR problems that persist, including innovation policies that discriminate against foreign IP rights holders, compulsory licensing of public health patents, liability issues relating to China’s knock-off markets, and continuing market access concerns, especially as it relates to motion pictures, music and publications.

Today, we are also especially fortunate to have representatives from the Chinese Government who are IPR experts and, in keeping with this year’s theme, will share their expertise on China’s national IP strategy, transparency and IP legislation and proposed revisions to the trademark and copyright laws.

While change is a constant in today’s China, three days ago, Americans elected a new President.  Despite this change, you can be certain that protecting intellectual property rights and the interests of United States businesses in China will remain a top priority of the United States Government at home and abroad. 

Our government recognizes that inadequate IPR protection and uneven enforcement of existing intellectual property laws and regulations in China are a serious impediment to the ability of American companies to compete fairly and a challenge to the health and safety of consumers.  They are also a challenge to Chinese domestic brands, innovators and artists.

We should all be encouraged by the explosive growth in the number of Chinese firms and innovators who have a stake in China’s IPR regime and who are beginning to emerge as vocal advocates for stronger IP protection and enforcement.  Because, ultimately, if China is to truly encourage creativity, indigenous innovation and entrepreneurship, it must ensure that its emerging IPR policy and legislative framework creates a culture of support, respect and enforcement for foreign and Chinese rights holders alike.

I want to thank all of you, especially repeat attendees, again for your participation this morning.  I look forward to the discussions today and to working with you and our Chinese friends and partners to strengthen China’s intellectual property environment for the benefit of all.

Thank you very much.

# # #