Research on Protection and Development of Intellectual Property in China From the Perspective of “The Belt and Road”

Research on Protection and Development of Intellectual Property in China From the Perspective of “The Belt and Road”

Ping Zhou (City University of Macau, China), Fuda Li (City University of Macau, China) and Linling Zhong (University of Nottingham Ningbo China, China)
DOI: 10.4018/978-1-5225-8440-7.ch005

Abstract

With the continuous upgrading of the economical industry structure and the gradual optimization of the excess capacity, China has begun to get rid of the name “world factory” of “processing with imported materials.” However, there are problems still existing, such as the contradiction between enterprises' poor independent innovation ability and consumers' increasing demands on product quality. Enterprises in China have the great opportunity to “go out” because of “The Belt and Road” strategy, but it is extremely complicated in legal system, customs, and social culture, which means how to use of intellectual property in China coexists risks and opportunities for enterprises. This chapter focuses on analyzing problems of intellectual property rights in China and the importance of the protection and development of intellectual property. In addition, this chapter studies strategies that can be provided for the protection and development of intellectual property in China from the perspective of “The Belt and Road.”
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Current Situation Of Protection And Development Of Intellectual Property In China From The Perspective Of “The Belt And Road”

The Change of Industrial Structure in China

In recent years, China's industrial structure is improving day by day, and the optimization of industrial structure has made some progress. Firstly, the primary industry’s share of GDP has become more stable. Then, the share of secondary industry has gradually declined, along with little fluctuation, and maintained its due stable share. Finally, the tertiary industry's share of GDP has soared. It can be seen from this data that the industrial structure has reached a relatively ideal situation in the traditional sense.

China's manufacturing industry was severely impacted after the global financial crisis in 2008. So the Chinese government was determined to transform and upgrade the economical industry structure in order to enhance China's ability to resist risks and to sustain economical growth in the future (Fei & Yan, 2007). In this process, there are two problems. Firstly, there is an intellectual property dispute between China and the original owner of the intellectual property when China introduced the technical knowledge. Secondly, China needs to protect the technological knowledge of its independent innovation while “going out”. This is the intangible asset, which represents the core competence of China and Chinese enterprises, will help China win a place in the world in the future.

Complex Internal Market in China

The movie Dying to Survive which was released in July 2018, reflects the problem in dealing with intellectual property under a certain circumstance in China. On the one hand, the public authority needs to maintain the dignity of the law,so the behavior of the infringement of intellectual property has to be punished. On the other hand, the normal Chinese patients have to face the contradiction between the desire of survival and the unaffordable medical bills. Pharmaceutical manufacturers invest a lot of money and manpower to develop drugs. In order to retrieve the costs, they can only choose to price the medicine to a very expensive level. The contradiction among the three parties is also reflected in other areas of intellectual property in China. On eighteen October, 2017, on the 19th National Congress of the Communist Party of China, the Chinese President Xi Jinping emphasizes that socialism with Chinese characteristics has crossed the threshold into a new era and the principal contradiction Chinese society has evolved—what we now face is the contradiction between unbalanced and inadequate development and the people’s ever-growing needs for a better life (State Intellectual Property Office, 2015, 2018). Human-being is born to be rational and draw on the advantages and avoid negative factors. People can be influenced by politics, economics and culture which are corresponding to power, capital and knowledge. Under the highly centralized and unified conditions, people need security most, and individual rationality is up to its potential. The survival of knowledge depends on the free public atmosphere, which is exactly the premise of cultivating public rationality, and it is also the expectation to reach a balance among power, capital and people. However, any public problem is essentially the result of the behavior of the elite class presented at the grassroots level. Without competition and supervision, the strong force is inevitably self-collapse, and there is no normal public sphere to buffer. Accumulated distrust endangers life. So from the perspective of consumers, government and enterprises, consumers need the cheaper medicine to survive, while enterprises need to retrieve costs and pursue profits in order to continue developing new medicine, and the government needs a balance between order and development to maintain its own rules.

Intellectual property in China now is facing a dilemma. The government needs the development of enterprises to promote economic growth and consumers need cheap and fine products and their demand for quality is higher than before. But the reality is that on the one hand, the products based on enterprises’ independent research are difficult to meet the requirements, on the other hand, the independent innovation products are susceptible to plagiarize and the development costs are unbearable. Thus, enterprises were forced to plagiarize the intellectual property of other companies in order to achieve profit quickly.

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