Chinese Foreign Trade Relations : Intellectual Property Enforcement Context

Global economics affects the decisions of firms, governments, and individuals in the United State in many different ways. The World Trade Organization manages the rules and trade between nations and has a significant impact on intellectual property rights. Intellectual property rights refer creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce (World Intellectual Property Organization, 2014). The purpose of this paper is to compare and contrast free trade and protectionist theories, analyze how the global environment functions on a micro and macro level within the context of the World Trade Organization, analyze the two-level game theory and how organizations make financial decisions in a globalized environment, and determine which parties benefit from either increasing or decreasing trade restriction.

Protection of intellectual property are investments based on acquired knowledge, thought and effort by one or multiple individuals on behalf of themselves, the business they work for when the property is created, and a financial investment. Each of these – acquired knowledge, thought, physical effort, financial investment – have a value that can be attached as it relates the usefulness or importance of the resulting product. That value will have a level of importance to the individual(s) creating the product and if applicable, the investor providing the funds in support of the creation.

An Introduction to the Law and Economics of Intellectual Property Author(s): Stanley M. Besen and Leo J. Raskind Reviewed work(s): Source: The Journal of Economic Perspectives, Vol. 5, No. 1 (Winter, 1991), pp. 3-27 Published by: American Economic Association Stable URL: http://www.jstor.org/stable/1942699 . Accessed: 24/11/2011 08:39

The Obama administration showed increasing worries in Washington over a rise in intellectual property theft from foreign competitors, such as China. The new rule threatens to shrink company-sponsored research, which has become widely popular for high-paying foreign students in recent years. Information regarding defense technology such as munitions, nuclear engineering and satellite technology would be affected by the rule, which is still in the proposal process.Some top U.S. schools do not grant research that restricts participation to foreign citizens because they feel it counters policies on academic freedom and non-discrimination. Universities claim that the rule would offset the balance between national security and academic freedom. In a FBI report they recorded just under a million foreign students at U.S. colleges in the 2014-2015 school year, 31 percent of whom were chinese. The FBI says China is the main culprit for attempted exporting of technology from the United States, including genetically modified corn seed and sensitive military information stored on Boeing computers. The Department of Justice said in a statement that “we know some foreign spies and criminals target students and faculty alike to steal valuable technology and intellectual property.” The Department is working with universities and laboratories to

An effective system of intellectual property is important in facilitating innovation as well as economic growth within a country and across all its borders (Davidson, Monoti, Wiseman, 2012). The current global economy is concentrating more in the invention of ideas that are original, other than in manufacturing of machines. To enhance and protect these ideas, there ought to be effective intellectual property laws. The government of Australia has prioritized the protection of original ideas from individuals through copyright, patent, and trademarks among other intelligent property laws, which give the inventor a temporary period to enjoy the financial benefits of his or her original idea. The major purposes of intellectual property laws can be contested; therefore, they create areas of interest for

Jain, S. C., & Bird, R. (2008). The Global Challenge of Intellectual Property Rights. Cheltenham, UK: Edward Elgar.

Each international company must study and comply with the laws of each country where they may want to manufacture, create, or sell products. Each country deals with trade secrets differently and in their own fashion.

According the case study article The information Economy, “enforcing property rights is costly, and this diminishes the incentive to create new products and new ideas.” Basically, once someone access to something, pirated videos, music, and computer games and software can be shared online. The US copyright Group go after IP addresses that do illegal downloads which brings no royalties to the inventors, producers, programmers or artists no wages to industry workers and does generate taxes to the government. And being prosecuted in the U.S. is different in other countries because of different viewpoints and laws.

The second form of intellectual property that must be implemented is Patent. We must protect

The World Intellectual Property Organization (n.d.) helps one understand the importance of protecting intellectual property. They have spelled out several reasons of this importance including inventing new works in technology and culture, which allows progress to be made that, can be utilized worldwide. In addition, the legal protection of intellectual property encourages the commitment of additional resources for further modernization. Finally, promoting and protecting intellectual property encourages economic growth. It creates new jobs and industries. Protecting intellectual property also enhances the quality and

With China emerging as a global power in business within the last decade, knowing about doing business in China has become more important than ever. There are both many advantanges and challenges with doing business in China in this modern era, and understanding both sides of this coin is the key to being successful in China. Some aspects to keep in mind include the cultural barrier, the price of the work force in China compared to the United States, and have the “made in China” brand be accepted back in the United States.

There is such a legal concept as "intellectual property". Intellectual property is defined as the creation of any intellectual innovation by an individual such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs. The law provides him exclusive rights to this innovation and is strictly against theft or plagiarism in any way. Innovators can safeguard their property by one or more of the following: copyright, trademarks, patents, industrial design rights and in some jurisdictions trade secrets.. Copyrights, patents, and trade secrets are each authored by different Offices. Each is based on the Laws of Commerce. (LII. Intellectual property). Cultural attitudes, in fact, esteem words and knowledge above that of certain other property, since knowledge is something that cannot be as easily duplicated as, for instance, an article of common furniture can. To illustrate the veneration that contemporary society accords intellectual invention, software is more expensive and valuable than hardware sink the

The depth of China’s involvement in intellectual property theft is far greater than I would have ever expected. Prior to taking the business law course, I never thought about what intellectual property theft was or the impacts that it has. The report of the Commission on the Theft of American Intellectual Property, states that “China is the world’s largest source of Intellectual Property theft” (pg 10 & 11) costing the American economy hundreds of billions of dollars per year, along with millions of jobs.

This site contains information on China's patent and copyright law. It goes on to discuss some ethical issues about China's lack of law enforcement on intellectual property protection.

However, if their Intellectual properties are not being safeguarded, it will result in them to lose their motivation, reputation and income.