Cases, arrests, value of seized goods have increased fivefold

Police across the nation investigated 30,000 intellectual property (IP) infringements and arrested 15,800 suspects during the first 10 months of this year, Che Yaohua, head of economic crime investigations at the Ministry of Public Security, said at a symposium in Shenzhen on Dec 9.

Officials from a range of administrations and representatives of more than 100 Fortune 500 firms heard the latest information on IP protection from Che Yaohua, head of economic crime investigations at the Ministry of Public Security.[Photo/China Daily]

Illegal goods worth 18.02 billion yuan ($2.84 billion) in potential retail value were seized during the crackdown, Che said.

Each of the figures is about five times what it was in the same period last year, she added.

While food, medicine and agricultural materials like seeds, farm chemicals and equipment were key areas of investigation, counterfeiting of well-known brands was also a priority, she noted.

The potential value of counterfeit goods in those sectors surpassed 5 billion yuan.

Police in Liaoning province and the metropolis of Chongqing even set up special task forces to fight fake medicines and food, Che said.

Focus areas also included makeup, construction materials, machinery, electronics and auto parts, said He Hua, vice-commissioner of the State Intellectual Property Office (SIPO).

The ministry plans to mount at least one additional operation to fight counterfeits in each quarter of next year, Che said.

Since China joined the World Trade Organization 10 years ago, it has "actively fulfilled its promises" to increase IP protection in legislation, jurisdiction, enforcement, education and international cooperation, He said at the meeting.

"We have established an IP protection system in line with international practices that at the same time factors in China's economic development level," he said.

During an intensive campaign to fight counterfeiters that lasted from October, 2010 to June this year, SIPO coordinated 665 multi-department investigations and nearly 1,100 cross-regional enforcement operations.

Prosecutors charged 3,100 suspects - a 36.3 percent increase - in 1,700 IP criminal cases during the period.

He said unbalanced development in varied regions and industries results in IP awareness and needs that also vary.

In developed coastal areas like Guangdong, Zhejiang and Jiangsu provinces - with technologies and brands developed through rapid industrial transformation and extensive foreign trade - local governments, companies and the public have a higher awareness of IP, but are in urgent need of protecting rights.

Central regions in China have just begun industrial modernization, so IP awareness, protection and management is weak, He said.

In some poor inland areas where production remains low-tech, IP protection is a more thorny issue, he added.

"It is not easy to satisfy different needs for development," he said.

He cited the United States, Japan and South Korea as examples that illustrate the importance of joint operations from different departments to enforce IP protection.

A multi-department group led by the State Council has been founded, but "it still needs time" to begin full operations, he said.

Officials from other IP-related administrations - industry and commerce, copyright and customs, the Ministry of Commerce, the Supreme Court and prosecutor's office - also attended the meeting hosted by SIPO to discuss IP issues with business representatives from more than 100 Fortune 500 firms as well as 10 domestic companies.