US trade representatives have been focusing their attention on getting the Chinese government to adopt criminal and administrative sanctions for IP theft. What does this focus mean for patent infringement? And what should US companies do about it?
Related article: The Criminal Bias in U.S. Intellectual Property Diplomacy
More on Mark Cohen.
Speakers:
Mark Cohen (AsiaIP/BCLT), Wayne Stacy
Wayne Stacy 0:00 Welcome, everyone to the Berkeley Center for Law and technologies expert series podcast. I'm Wayne Stacy, the Executive Director for BCLT. And with me today is Mark Cohen, from the Berkeley School of Law. Mark is not only a lecturer, he is the director of the Asia IP Project, and a director at Berkeley Center for Law and Technology. So Mark is one of the leading experts in the world on Chinese IP law. And today, we're going to be talking about the role of criminal IP enforcement in China. Mark, thank you for joining us today.
Mark Cohen 0:38 Thank you, Wayne. It's a pleasure to be here.
Wayne Stacy 0:40 So Mark, you recently wrote an article and it talks about two types of IP enforcement it worldwide but in particular, in China. One is private enforcement, kind of what we would call civil enforcement, and the other is government enforcement, criminal and administrative rights. So my first question for you is why is a strong Chinese government enforcement enforcement option worrisome in the IP world?
Mark Cohen 1:07 Well, it's worrisome for a bunch of reasons. One is that from the WTO context, the obligation is to really have private remedies for all IP rights. So there's no obligation to have a criminal patent remedy in the US, except for marking requirements really has no criminal or public enforcement of the patent law. Nor is there an obligation to have a criminal trade secret remedy, the US has it China has many other countries have it. Moreover, the scope of criminal activities covered by the criminal law are limited, it doesn't capture non willful infringement, criminal law captures largely willful infringement, and according to the WTO on a commercial scale, so if you know criminal law is very important in addressing the need for society to respect IP, provide some measure of social deterrence, address criminality, but it may not work so well, when it comes to technology related issues, certainly not with patents. And even some difficulties on trade secrets, plant varieties. So it has it has its limits in terms of how the system functions. More importantly, perhaps you go back to the preamble, the TRIPS agreement, and it says IP is a private property, right, a private right. Now, if it's a private, right, does that mean the government is the principal agency to enforce it? Or does that mean, it's the individual that has to enforce it. And I think the TRIPS agreement, consistent with other aspects of the WTO, the global trading system was really looking at private actors protecting private rights. And that means robust civil remedies, and everything that goes along with it, not public remedies. And in China, we have, by the way, not just criminal remedies, of which China has roughly 12,000 cases a year, a lot more than the United States. But we're also talking about a vast administrative system, including for patents where you're fined. kind of think of it as if the PTO had a police force, you get fined for infringement after determination by the administrative agency. And that applies to patents, trademarks, copyrights, trade secrets, plant varieties, a whole bunch of a whole bunch of things, as well as product quality and related issues. So that