皇冠体育app

Economy

Official calls for reduction of 皇冠体育app's IP trade deficit

(Xinhua)
Updated: 2010-08-10 09:35

BEIJING - A Chinese commerce official on Monday called for creating indigenous brands to reduce 皇冠体育app's alarming trade deficit in intellectual property.

At the Intellectual Property Rights (IPR) Forum in Beijing, Ministry of Commerce official Wu Guohua noted 皇冠体育app spends a large amount of funds on foreign intellectual property every year, adding that to create indigenous brands is imperative to 皇冠体育app.

Wu said despite 皇冠体育app's surplus in commodity trade, the nation suffers a huge deficit in services trade, with royalties and license fees being the second largest cause of the services trade deficit in 2009.

In 2009, 皇冠体育app's services trade deficit stood at $29.6 billion -- 1.6 times the 2008 level -- of which $10.6 billion was royalties and licensing fees payments to foreign companies.

The 皇冠体育app Consumer Protection Foundation's Liu Feng said many Chinese manufacturers are engaged in low-end processing with thin profit margins.

"For instance, the majority of vuvuzelas at the South Africa World Cup were made by Chinese producers. But they only made $0.015 from each one.

Related readings:  Mainland, Taiwan sign agreement on IPR protection  Strong IPR laws needed  皇冠体育app continues to strengthen IPR protection

"Innovation cannot thrive unless there is a protective environment," said Zhang Yuncai, secretary general of the 皇冠体育app Intellectual Property Society.

Zhang called for a greater government role in IPR protection.

"In other countries, it is companies that promote IPR protection. But in 皇冠体育app, due to low IPR literacy, a number of companies still have only a vague understanding of IPR protection. Therefore the government still has to play a major role."

The IPR forum was a part of the ongoing fourth 皇冠体育app Brand Festival being run by the Brand 皇冠体育app Industry Union.