- 2 - Enforcement of Intellectual Property Rights in Developing Countries
Service seized more than $26 million in counterfeit and pirate products accounting for 38% of
the value of the goods.
7
Developing countries have a notorious reputation for being the most egregious violators
of IPR. The IACC reports that China was the leading source of seized shipments in 2000, 2001
and 2002. China accounted for 694 shipments and 33% of the total value of all seized goods.
8
In 2001, China’s share of counterfeit items increased to nearly 46% of the value of goods
seized.
9
According to the IACC report, the domestic value of goods seized from China was more
than $26 billion, while the total domestic value of all seized goods was in excess of $57 billion.
10
The purpose of this article is to explore whether there are cultural or socio-economic
forces that help explain the problems of enforcing IPR in developing countries, such as China.
11
Part I of this article explores the scope of piracy and counterfeiting as it affects businesses and
consumers, and fosters organized crime. Part II discusses the concept of IPR and the
international mechanisms that are in place to protect them. Part III of this article focuses on
developing countries and their unique attributes that contribute to their views on IPR. Part IV
examines China’s legal and administrative structure generally, and also as it relates specifically
to IPR. And finally, part V concludes that an emphasis on strengthening the economy and the
legal infrastructure of developing countries through training and educating more scientists,
engineers, lawyers and judges, while acknowledging the existential realities that frame the
setting, is a critical step to resolving the enforcement issue.
7
International AntiCounterfeiting Coalition, Customs Seizures over $26 million in Counterfeits during first half of
Fiscal Year 2002, at
http://www.iacc.org/
(last visited October 6, 2002). The total represents the seizure of nearly
2,800 shipments. Id.
8
International AntiCounterfeiting Coalition, Customs Seizes over $57 million in Counterfeits during Fiscal Year
2001, at
http://www.iacc.org/
(last visited October 6, 2002). Taiwan was the second leading source of counterfeit
products with 175 shipments that accounted for 14% of the total value of seized goods. Id.
9
Id.
10
Id.
11
Herein, "China" refers to mainland China, or the People’s Republic of China. For a discussion of the development
of formal sources of law in the China, including the current legal modernization, the important historical influences
that affect contemporary law making, and the way ideas concerning the proper organization of positive law have
been adapted to the political and administrative realities of China see Perry Keller, Sources of Order in Chinese
Law, 42 A
M
. J. C
OMP
. L. 711 (1994).
Convention