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A New Approach to U.S. Copyright Policy against Piracy in China
Unformatted Document Text:  6 In early 1995, as the USTR listed China as a priority foreign country, Special 301 investigations were resumed. China once again averted a trade war with the U.S. by agreeing to a new bilateral accord called the 1995 Enforcement Agreement, designed to eliminate the rampant piracy of intellectual property (USTR, 1996). However, right after the Agreement, the U.S. began to doubt the ability of China to implement the 1995 MOU and to question China’s apparent reluctance to punish pirates, and in May 1996, the USTR again declared China a priority foreign country, threatening to impose $ 2 billion in trade sanctions for failure to comply with the 1995 MOU. China averted these sanctions by conciliatory actions aimed at establishing the structural changes envisioned by the agreement (USTR, 1997). In addition, in August 1996, China issued Regulations on the Certification and Protection of Famous Trademarks to attempt to bring its trademark regulations up to par with WTO member countries. Piracy in China Notwithstanding the coercive copyright protection policy, the U.S. government failed to create any sustainable and continuous protection for American products. Intellectual property piracy still remains rampant in China. Currently, piracy remains at over 90% within the vast Chinese market and losses to U.S. and Chinese companies continue at high levels (IIPA, 2002). According to a recent IIPA report, the Chinese authorities conducted over 20,000 raids against optical media pirates in 2001 and seized over 51 million VCDs, CDs and CD-ROMs and 4.9 million DVDs. By the end of 2001, the Chinese enforcement authorities had seized a cumulative total of 133 replication lines since 1995. Given that these statistics are a small fraction of the pirate product circulating in China, they show the massive levels of optical media piracy in China (IIPA, 2002). Piracy of motion pictures in digital format continues to damage U.S. companies given the vast global growth in optical media format for serving the home video market. There are already close to 900 Motion Picture Association (MPA) product titles released in pirate form in China, which threatens further investment by U.S. motion picture companies in the DVD business in China (IIPA, 2002). As the following table indicates,

Authors: Mun, Seung-Hwan.
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6
In early 1995, as the USTR listed China as a priority foreign country, Special 301
investigations were resumed. China once again averted a trade war with the U.S. by
agreeing to a new bilateral accord called the 1995 Enforcement Agreement, designed to
eliminate the rampant piracy of intellectual property (USTR, 1996). However, right after
the Agreement, the U.S. began to doubt the ability of China to implement the 1995 MOU
and to question China’s apparent reluctance to punish pirates, and in May 1996, the
USTR again declared China a priority foreign country, threatening to impose $ 2 billion
in trade sanctions for failure to comply with the 1995 MOU. China averted these
sanctions by conciliatory actions aimed at establishing the structural changes envisioned
by the agreement (USTR, 1997). In addition, in August 1996, China issued Regulations
on the Certification and Protection of Famous Trademarks to attempt to bring its
trademark regulations up to par with WTO member countries.
Piracy in China
Notwithstanding the coercive copyright protection policy, the U.S. government failed to
create any sustainable and continuous protection for American products. Intellectual
property piracy still remains rampant in China. Currently, piracy remains at over 90%
within the vast Chinese market and losses to U.S. and Chinese companies continue at
high levels (IIPA, 2002). According to a recent IIPA report, the Chinese authorities
conducted over 20,000 raids against optical media pirates in 2001 and seized over 51
million VCDs, CDs and CD-ROMs and 4.9 million DVDs. By the end of 2001, the
Chinese enforcement authorities had seized a cumulative total of 133 replication lines
since 1995. Given that these statistics are a small fraction of the pirate product circulating
in China, they show the massive levels of optical media piracy in China (IIPA, 2002).
Piracy of motion pictures in digital format continues to damage U.S. companies
given the vast global growth in optical media format for serving the home video market.
There are already close to 900 Motion Picture Association (MPA) product titles released
in pirate form in China, which threatens further investment by U.S. motion picture
companies in the DVD business in China (IIPA, 2002). As the following table indicates,


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