Enforcement Of IP Rights In China – A Primer

The impact of fakes on global trade cannot be underestimated. Statistics from the OECD and the EU's Intellectual Property Office estimate that worldwide, trade in infringing and counterfeit goods accounts for a staggering 3.3% of global trade, up from 2.5% in 2013.¹ The vast majority of those fakes originate in the People's Republic of China (PRC), which is responsible for perhaps as many as 80% of the world's counterfeits.² Indeed, counterfeits and infringing products manufactured in China have long been a thorn in the side of companies around the world. In spite of incremental changes to the PRC's IP laws and practices to address fakes, as well as the continuing global outcry over the problem (such as the recent PRC/US "Trade War," based heavily on complaints about China's failure to address flaws in its IP enforcement system), the flow of Chinese manufactured counterfeits continues unabated.