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Seven major characteristics for IPR crimes in China
Date 2005-01-10
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As revealed from the forum on the protection of the intellectual property right against crimes held the other day by the Ministry of Public Security the violation of the intellectual property right in various places in China at present manifests the seven major characteristics as follows:

1.The total volume of infringement is on the rise with an increasing amount of money involved. From 2002 to the first half of 2004, the number of the criminal cases in violation of the intellectual property right is on the decrease as against the previous years yet the loss incurred by each single case has been becoming bigger and bigger.

2.Cases in violation of the patent right of trademarks became quite prominent. From 1998 to 2003, the public security offices nationwide made a filing of around 5000 suchlike cases, accounting for 80 percent of the total filed crimes in violation of the intellectual property right with an amount of more than RMB 1.2 billion yuan involved, and making up 64 percent of the total crimes in violation of the intellectual property right. Among them, to obtain an extravagant profit by way of faking famous trademarks has become a very distinctive feature.

3.It witnessed a quicker growth in the cases infringing business secrets. Some personnel in enterprises provide their new units with the business secrets they obtained from their original units and some enterprises even bought over the personnel concerned with high price, making others' business secrets for their own use. Some lawless elements even sneaked into unit by way of employment and when they succeeded in getting the business secret of the very unit they set up their own business with it. From 1998 to 2003, the public security offices nationwide filed a total of 500 cases pirating the business secret, accounting for 9 percent of the total filed cases in violation of the intellectual property right with an involvement of RMB 600 million yuan, making up 32 percent of the total crimes committed in violation of the intellectual property right.

4.Part of the areas witnesses relevantly serious criminal occurrences. A nationwide view tells that the situation is graver in the east coastal areas than in northwest region whereas to judge from a localized situation it sees a serious situation in the economically developed areas than in the underdeveloped ones.

5.The violation of the intellectual property right covers extensive walks of life, witnessing a distinctively professional and sci-tech tendency. The IPR violation has things to do with many aspects of life and is now by and by sneaking into the fields of telecommunication, technological market, talents market, e-business and other newly booming economic sectors. Now, there came to appear the violation via Internet of business secrets, encroachment on new-type sci-tech products, faked LCD screens, faked laser holographic marks, namely the criminal cases committed by a relatively higher intelligent, scientific and technological means. This indicates that the infringement of the intellectual property right is tending towards a distinctively professional pattern with high sci-tech content.

6.The criminal suspects commit crimes in more hidden and crafty ways. Very few cases were found committed in smaller workshops but with a very strict gradation and a clear division of work among them, forming a streamline work of ¢®¡Æproduction, product supply and distribution". In this way they break up the whole into separated ones by way of mobile production and direct the production by cybernation, featuring a strict organization with fine sets of equipment and a daily higher anti-detective alertness.

7.Cross-border crimes were committed quite outstandingly. Some illicit elements from the outside make goods order through lawless elements in the inside or they open up a factory inside to produce faked goods and then ship them outside for selling.

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