Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
US COVID-19 Death Toll Higher Than China’s Now. Will Gold Rally? - 4th Apr 20
Concerned That Asia Could Blow A Hole In Future Economic Recovery - 4th Apr 20
Bracing for Europe’s Coronavirus Contractionand Debt Crisis - 4th Apr 20
Stocks: When Grass Looks Greener on the Other Side of the ... Pond - 3rd Apr 20
How the C-Factor Could Decimate 2020 Global Gold and Silver Production - 3rd Apr 20
US Between Scylla and Charybdis Covid-19 - 3rd Apr 20
Covid19 What's Your Risk of Death Analysis by Age, Gender, Comorbidities and BMI - 3rd Apr 20
US Coronavirus Infections & Deaths Trend Trajectory - How Bad Will it Get? - 2nd Apr 20
Silver Looks Bearish Short to Medium Term - 2nd Apr 20
Mickey Fulp: 'Never Let a Good Crisis Go to Waste' - 2nd Apr 20
Stock Market Selloff Structure Explained – Fibonacci On Deck - 2nd Apr 20
COVID-19 FINANCIAL LOCKDOWN: Can PAYPAL Be Trusted to Handle US $1200 Stimulus Payments? - 2nd Apr 20
Day in the Life of Coronavirus LOCKDOWN - Sheffield, UK - 2nd Apr 20
UK Coronavirus Infections and Deaths Trend Trajectory - Deviation Against Forecast - 1st Apr 20
Huge Unemployment Is Coming. Will It Push Gold Prices Up? - 1st Apr 20
Gold Powerful 2008 Lessons That Apply Today - 1st Apr 20
US Coronavirus Infections and Deaths Projections Trend Forecast - Video - 1st Apr 20
From Global Virus Acceleration to Global Debt Explosion - 1st Apr 20
UK Supermarkets Coronavirus Panic Buying Before Lock Down - Tesco Empty Shelves - 1st Apr 20
Gold From a Failed Breakout to a Failed Breakdown - 1st Apr 20
P FOR PANDEMIC - 1st Apr 20
The Past Stock Market Week Was More Important Than You May Understand - 31st Mar 20
Coronavirus - No, You Do Not Hear the Fat Lady Warming Up - 31st Mar 20
Life, Religions, Business, Globalization & Information Technology In The Post-Corona Pandemics Age - 31st Mar 20
Three Charts Every Stock Market Trader and Investor Must See - 31st Mar 20
Coronavirus Stocks Bear Market Trend Forecast - Video - 31st Mar 20
Coronavirus Dow Stocks Bear Market Into End April 2020 Trend Forecast - 31st Mar 20
Is it better to have a loan or credit card debt when applying for a mortgage? - 31st Mar 20
US and UK Coronavirus Trend Trajectories vs Bear Market and AI Stocks Sector - 30th Mar 20
Are Gold and Silver Mirroring 1999 to 2011 Again? - 30th Mar 20
Stock Market Next Cycle Low 7th April - 30th Mar 20
United States Coronavirus Infections and Deaths Trend Forecasts Into End April 2020 - 29th Mar 20
Some Positives in a Virus Wracked World - 29th Mar 20
Expert Tips to Save on Your Business’s Office Supply Purchases - 29th Mar 20
An Investment in Life - 29th Mar 20
Sheffield Coronavirus Pandemic Infections and Deaths Forecast - 29th Mar 20
UK Coronavirus Infections and Deaths Projections Trend Forecast - Video - 28th Mar 20
The Great Coronavirus Depression - Things Are Going to Change. Here’s What We Should Do - 28th Mar 20
One of the Biggest Stock Market Short Covering Rallies in History May Be Imminent - 28th Mar 20
The Fed, the Coronavirus and Investing - 28th Mar 20
Women’s Fashion Trends in the UK this 2020 - 28th Mar 20
The Last Minsky Financial Snowflake Has Fallen – What Now? - 28th Mar 20
UK Coronavirus Infections and Deaths Projections Trend Forecast Into End April 2020 - 28th Mar 20
DJIA Coronavirus Stock Market Technical Trend Analysis - 27th Mar 20
US and UK Case Fatality Rate Forecast for End April 2020 - 27th Mar 20
US Stock Market Upswing Meets Employment Data - 27th Mar 20
Will the Fed Going Nuclear Help the Economy and Gold? - 27th Mar 20
What you need to know about the impact of inflation - 27th Mar 20
CoronaVirus Herd Immunity, Flattening the Curve and Case Fatality Rate Analysis - 27th Mar 20
NHS Hospitals Before Coronavirus Tsunami Hits (Sheffield), STAY INDOORS FINAL WARNING! - 27th Mar 20
CoronaVirus Curve, Stock Market Crash, and Mortgage Massacre - 27th Mar 20
Finding an Expert Car Accident Lawyer - 27th Mar 20
We Are Facing a Depression, Not a Recession - 26th Mar 20
US Housing Real Estate Market Concern - 26th Mar 20
Covid-19 Pandemic Affecting Bitcoin - 26th Mar 20
Italy Coronavirus Case Fataility Rate and Infections Trend Analysis - 26th Mar 20
Why Is Online Gambling Becoming More Popular? - 26th Mar 20
Dark Pools of Capital Profiting from Coronavirus Stock Markets CRASH! - 26th Mar 20
CoronaVirus Herd Immunity and Flattening the Curve - 25th Mar 20
Coronavirus Lesson #1 for Investors: Beware Predictions of Stock Market Bottoms - 25th Mar 20
CoronaVirus Stock Market Trend Implications - 25th Mar 20
Pandemonium in Precious Metals Market as Fear Gives Way to Command Economy - 25th Mar 20
Pandemics and Gold - 25th Mar 20
UK Coronavirus Hotspots - Cities with Highest Risks of Getting Infected - 25th Mar 20
WARNING US Coronavirus Infections and Deaths Going Ballistic! - 24th Mar 20
Coronavirus Crisis - Weeks Where Decades Happen - 24th Mar 20
Industry Trends: Online Casinos & Online Slots Game Market Analysis - 24th Mar 20
Five Amazingly High-Tech Products Just on the Market that You Should Check Out - 24th Mar 20
UK Coronavirus WARNING - Infections Trend Trajectory Worse than Italy - 24th Mar 20
Rick Rule: 'A Different Phrase for Stocks Bear Market Is Sale' - 24th Mar 20
Stock Market Minor Cycle Bounce - 24th Mar 20
Gold’s century - While stocks dominated headlines, gold quietly performed - 24th Mar 20
Big Tech Is Now On The Offensive Against The Coronavirus - 24th Mar 20
Socialism at Its Finest after Fed’s Bazooka Fails - 24th Mar 20
Dark Pools of Capital Profiting from Coronavirus Stock and Financial Markets CRASH! - 23rd Mar 20
Will Trump’s Free Cash Help the Economy and Gold Market? - 23rd Mar 20
Coronavirus Clarifies Priorities - 23rd Mar 20
Could the Coronavirus Cause the Next ‘Arab Spring’? - 23rd Mar 20
Concerned About The US Real Estate Market? Us Too! - 23rd Mar 20
Gold Stocks Peak Bleak? - 22nd Mar 20
UK Supermarkets Coronavirus Panic Buying, Empty Tesco Shelves, Stock Piling, Hoarding Preppers - 22nd Mar 20
US Coronavirus Infections and Deaths Going Ballistic as Government Start to Ramp Up Testing - 21st Mar 20
Your Investment Portfolio for the Next Decade—Fix It with the “Anti-Stock” - 21st Mar 20
CORONA HOAX: This Is Almost Completely Contrived and Here’s Proof - 21st Mar 20
Gold-Silver Ratio Tops 100; Silver Headed For Sub-$10 - 21st Mar 20
Coronavirus - Don’t Ask, Don’t Test - 21st Mar 20
Napag and Napag Trading Best Petroleum & Crude Oil Company - 21st Mar 20
UK Coronavirus Infections Trend Trajectory Worse than Italy - Government PANICs! Sterling Crashes! - 20th Mar 20
UK Critical Care Nurse Cries at Empty SuperMarket Shelves, Coronavirus Panic Buying Stockpiling - 20th Mar 20
Coronavirus Is Not an Emergency. It’s a War - 20th Mar 20
Why You Should Invest in the $5 Gold Coin - 20th Mar 20
Four Key Stock Market Questions To This Coronavirus Crisis Everyone is Asking - 20th Mar 20
Gold to Silver Ratio’s Breakout – Like a Hot Knife Through Butter - 20th Mar 20
The Coronavirus Contraction - Only Cooperation Can Defeat Impending Global Crisis - 20th Mar 20
Is This What Peak Market Fear Looks Like? - 20th Mar 20
Alessandro De Dorides - Business Consultant - 20th Mar 20
Why a Second Depression is Possible but Not Likely - 20th Mar 20

Market Oracle FREE Newsletter

Coronavirus-bear-market-2020-analysis

China Moves a Step Closer to Economic Superpower Status

Economics / China Economy Jun 04, 2009 - 04:10 AM GMT

By: Money_Morning

Economics

Best Financial Markets Analysis ArticleKeith Fitz-Gerald writes: When a Beijing court recently ordered three China automakers to pay more than $3 million in aggregate damages for allegedly selling a knockoff of an upscale German tour bus, it underscored that China is getting serious about intellectual property theft - one of the next major steps the Red Dragon needs to make as it evolves into a true global economic superpower.


Intellectual-property theft not only remains a major problem in the world markets - it actually seems to be escalating. And many of the worst offenders continue to operate in the Asia-Pacific Region.

Take software. Software piracy in this part of the world continued to worsen last year, fueled by the rapid growth in computer sales and the growing availability of bootleg programs online, concluded an annual survey of the Business Software Alliance (BSA) and industry research firm IDC. An estimated 61% of the software in use in the region in 2008 was unlicensed, up from 59% the year before. That cost software vendors $15.3 billion, up 8.3% from 2007.

On a worldwide basis, software piracy cost producers nearly $53 billion.

And that’s just software. It doesn’t include piracy of movies, music, or engineered products such as computer chips, machinery or even motor vehicles - including tour buses, the focus of the recent Beijing court case.

In this particular court case, the First Intermediate People’s Court of Beijing found that the A9 Coach made by the Zhongwei Passenger Coach Co. and the Zhongda Industrial Group Co. was virtually identical to the $292,000 Starliner made by Germany’s NeoPlan GmbH. The Chinese manufacturing companies have been ordered to stop producing the A9 and Beijing Zhongtong Xinghua Auto Sales Co. has been ordered to halt sales of the vehicles.

NeoPlan developed the Starliner back in 2005 and made sure it was well covered by patents. The high-end tour bus is produced both in Germany and in Southeast China’s Zhejiang Province by the Youngman Coach Co. A year after the Starliner debuted, the German company discovered that Zhongwei’s A9 was all but a carbon copy of its own Starliner. NeoPlan sued for patent infringement.

The defendants claimed the A9 coaches were developed independently, but the court ruled that apart from some slight differences, the two vehicles were essentially identical. The three Chinese automakers were ordered to pay German bus-maker NeoPlan an aggregate $2.92 million in direct compensation and $169,000 dollars in legal costs.

These particular numbers aren’t big.

But the impact of the court ruling could be.

Western firms - from the United States and Europe - want to capitalize on China’s vast business promise. And they want to make investments in, and create joint ventures with, China-based firms. But Western companies also want some assurances that the products, technologies, production processes, trade secrets and other intellectual properties that they’ve spent billions developing will enjoy some legal protections beyond their native borders.

When it comes to intellectual property rights, consumers and corporations here in the United States have long viewed Asia as untamed territory, with no rules - and with little hope for order in the future. But I knew differently. What critics failed to understand is that China really does “get it.” And that’s why I’ve spent years urging patience, even as I’ve urged continued investment.

 China understands the stakes better than Westerners think. Its leaders have long understood that there would be open, measured change that is directly proportionate to their country’s emergence on the world’s stage.

Now that China is clearly assuming that global mantle, its leaders are shrewdly speeding up both the timetable and, in an important vote of confidence for foreign investors, the penalties associated with intellectual property violations.

For instance, according to recently issued directive from the Supreme People’s Court, victims of copyright theft can now receive as much as $146,000 (up to 1 million yuan) in compensation for cases where intellectual property has been stolen.

That may not seem like much in the Western court system, where multimillion-dollar rewards are the norm, but it’s an important step forward in China. In fact, as I discovered during my recent investment trip to that country, the People’s Court directive contains three key elements that should make it easier than ever before for Western firms to protect intellectual property. Specifically, the directive:

  • Is much broader in both scope and intent than past efforts. Covering everything from Web-based domain squatting to CD and DVD piracy - and even covering designer-clothing knock-offs - the ruling is supposed to aid the clampdown on local piracy. It’s also intended to help Western companies become more confident that their property rights will be protected, an advancement that should encourage those firms to boost their investments in China.
  • Finally puts some real teeth in the potential penalties.
  • And no longer requires that foreign plaintiffs be physically be in the country at the time of the legal proceedings. Since U.S. companies will now be able to have local counsel acting on their behalf, it opens the door to more rigorous enforcement and an increasingly willing number of companies likely to challenge infringers.

The results are already visible.

The actual number of intellectual-property-rights claims in China’s courts rose by more than 30% last year. According to the China Daily newspaper, China’s courts concluded 27,876 property rights infringement cases last year, a jump of more than 32% from 2007.

I can’t wait to see what’s next with other well-known pirated brands we’ve highlighted to readers. In early January, we took you to the East Coast China city of Nanjing, where a new mall contains a McDonald’s Corp. (MCD) look-a-like burger bar called “McDnoald’s,” a Starbucks Corp. (SBUX) style coffee shop called “Bucksstar Coffee,” and a wannabe Pizza Hut called “Pizza Huh.”

While there is clearly a long way to go on this issue, the increasingly serious stance that Beijing is taking with regards to intellectual-property-rights protection is yet another important step in China’a modernization. As such, the chances are very good that it will not only encourage an  entirely new wave of Western investment, but a whole new level of product development and cooperation, too.

And that will be good for both the United States and China, especially as we work our respective ways out of the ongoing global financial crisis.

[Editor's Note: Thirteen trades. All profitable. Since launching his Geiger Index trading service late last year, Money Morning Investment Director Keith Fitz-Gerald is a perfect 13 for 13, meaning he's closed every single one of his trades at a profit. And he did this in the face of one of the most-volatile periods since the Great Depression. Fitz-Gerald says the ongoing financial crisis has changed the investing game forever, and has created a completely new set of rules that investors must understand to survive and profit in this new era. Check out our latest insights on these new rules, this new market environment, and this new service, the Geiger Index.]

Money Morning/The Money Map Report

©2009 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules