| For at least five years, Hunan Magic Power Industrial | | | | official in charge of Intellectual Property Rights |
| Corporation in China illegally sold its industrial adhesives | | | | protection acknowledges the government faces a |
| under the label of the U.S. company, ABRO Industries. | | | | long-term challenge. "Many Chinese companies believe |
| The cheap knock offs cost ABRO millions of dollars in | | | | it's a crime to steal things from others but it's not a |
| sales -- and job losses for its suppliers. The case is | | | | crime to steal the brands and innovations of others. |
| one example of the serious consequences of piracy | | | | We must educate them and tell them that it is as |
| and the openness with which Chinese counterfeiters | | | | much of a crime to steal objects as it is to violate |
| are working. In this third of a series of reports, Luis | | | | intellectual property rights by copying them." |
| Ramirez reports from Beijing that there are efforts | | | | That may be easier said than done. Piracy is a big |
| within the national leadership to stop product piracy. | | | | industry here, and even the highly regulated Olympic |
| It is a scene that has become a cliché in China. | | | | trademark is illegally copied and sold openly on the |
| The Beijing government shows off its anti-piracy | | | | streets of Beijing. |
| efforts to foreign reporters. | | | | State-owned stores are not setting any examples. |
| In the ABRO piracy case, those efforts may have | | | | One sells copies of Hollywood's latest releases for |
| worked. Under pressure, the Hunan Magic Power | | | | about $2. U.S. officials estimate 95 percent of all CD's |
| Industrial Company in China's Hunan province says it | | | | and DVD's produced in China are counterfeit. |
| has stopped making fake ABRO products. | | | | A crackdown would hurt businesses that peddle fake |
| The company declined interview requests but a | | | | U.S. designer clothing. Analysts say enforcement is |
| company source told VOA off-camera that authorities | | | | likely to remain uneven at best. |
| forced the firm in April to obey Chinese trademark | | | | Aside from economic considerations, Huang says |
| laws and stop using the ABRO name. | | | | officials have issues like poor coordination and |
| However, using Magic Power's own brand has hurt | | | | corruption to contend with. But, he also says China is |
| sales. The source says most buyers want a brand | | | | being unfairly criticized. "Intellectual property rights |
| they can recognize. | | | | infringement does exist in Chinese companies. This |
| This is why ABRO president Peter Baranay remains | | | | situation does not only exist in China, but also in other |
| skeptical that Hunan Magic Power will stop | | | | countries around the world." |
| counterfeiting ABRO products. "I doubt they will do it. | | | | China is indeed not alone in pirating American designer |
| It's been too good of a deal for them. They've had too | | | | shirts and other products. Russia, Argentina, Egypt, |
| good of a run. They're not going to stop it now." | | | | Lebanon, Thailand, and Venezuela are among the top |
| Even if Magic Power does stop, there is no guarantee | | | | 10 of a list of copyright violators that U.S. officials are |
| others will not start copying ABRO's products again | | | | keeping an eye on. But with 68 percent of all |
| the moment the spotlight is turned away. | | | | counterfeit products seized at U.S. ports coming from |
| At China's Ministry of Commerce, Huang Hai, the | | | | China, Beijing is the number one offender. |