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