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Article #261: Chinese Authorities Crack Down on Product Piracy

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






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