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A New Approach to U.S. Copyright Policy against Piracy in China
Unformatted Document Text:  5 that would facilitate economic growth and establish the basic standards of intellectual property protection contemplated by the 1979 Agreement. In response to both internal economic pressures and its obligations under the agreement, China joined the World Intellectual Property Organization (WIPO) in 1980, the Paris Convention for the Protection of industrial property in 1984 and enacted the 1982 Trademark Law, the 1984 Patent Law, and the 1990 Copyright Law (Information Office State Council of the People’s Republic of China, 1994 June). However, the problem of piracy of U.S. intellectual property in China already came to the forefront of U.S. trade policy concerns in the early 1980s as soon as China began to emerge from its economic and political isolation in the 1980s and the U.S. entered into trade negotiation with China (Bettig, 1996; Alford, 1995). At that time, not only in China, worldwide piracy of U.S. intellectual property rights gained the attention of major copyright-related industries and policymakers. In 1989, the U.S. Trade Representative (USTR) intended to designate China a priority foreign country under Section 301. As a result, a Memorandum of Understanding (MOU) between China and the U.S. was reached on May 1989, so that the U.S. would not designate China as a priority foreign country and gave China more time to comply with the American Trade Act provisions (Oksenberg, 1996). From the U.S. point of viewpoint, although China took measures to improve copyright protection, Chinese copyright law had not yet been enacted and proposed patent legislation had not covered important sectors. As a result, in 1991 the U.S. decided to identify China as a priority foreign country again under the Special 301 1 provision of the Trade Act for its failure to protect U.S. copyrighted products (USTR, 1995). To avoid a trade war, both countries entered into the second Memorandum of Understanding on the Protection of Intellectual Property Rights in January 1992. In the MOU, China agreed to extend patent protection to pharmaceutical and chemical products. The 1992 MOU was intended to provide effective procedures and remedies to prevent or stop, internally and at their borders, infringements of intellectual property rights (USTR, 1995). 1 The Trade Act of 1974 includes a provision, Special Section 301 which authorizes sanctions against foreign countries in violation of trade agreements or even, absent such violations, when they unfairly restrict foreign trade.

Authors: Mun, Seung-Hwan.
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5
that would facilitate economic growth and establish the basic standards of intellectual
property protection contemplated by the 1979 Agreement. In response to both internal
economic pressures and its obligations under the agreement, China joined the World
Intellectual Property Organization (WIPO) in 1980, the Paris Convention for the
Protection of industrial property in 1984 and enacted the 1982 Trademark Law, the 1984
Patent Law, and the 1990 Copyright Law (Information Office State Council of the
People’s Republic of China, 1994 June).
However, the problem of piracy of U.S. intellectual property in China already
came to the forefront of U.S. trade policy concerns in the early 1980s as soon as China
began to emerge from its economic and political isolation in the 1980s and the U.S.
entered into trade negotiation with China (Bettig, 1996; Alford, 1995). At that time, not
only in China, worldwide piracy of U.S. intellectual property rights gained the attention
of major copyright-related industries and policymakers. In 1989, the U.S. Trade
Representative (USTR) intended to designate China a priority foreign country under
Section 301. As a result, a Memorandum of Understanding (MOU) between China and
the U.S. was reached on May 1989, so that the U.S. would not designate China as a
priority foreign country and gave China more time to comply with the American Trade
Act provisions (Oksenberg, 1996). From the U.S. point of viewpoint, although China
took measures to improve copyright protection, Chinese copyright law had not yet been
enacted and proposed patent legislation had not covered important sectors. As a result, in
1991 the U.S. decided to identify China as a priority foreign country again under the
Special 301
1
provision of the Trade Act for its failure to protect U.S. copyrighted
products (USTR, 1995). To avoid a trade war, both countries entered into the second
Memorandum of Understanding on the Protection of Intellectual Property Rights in
January 1992. In the MOU, China agreed to extend patent protection to pharmaceutical
and chemical products. The 1992 MOU was intended to provide effective procedures and
remedies to prevent or stop, internally and at their borders, infringements of intellectual
property rights (USTR, 1995).
1
The Trade Act of 1974 includes a provision, Special Section 301 which authorizes sanctions against
foreign countries in violation of trade agreements or even, absent such violations, when they unfairly
restrict foreign trade.


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