One of the biggest reasons behind the US-China trade war is due to China’s involvement in the practice of unfair trading practices and IP theft to make counterfeit and cheap goods. The biggest hints of counterfeit items are that their prices are too good to be true. The total value of counterfeit items had a value of $1.2 billion.
The enforcement of IP laws is done by US Customs and Border Protection and US Immigration and Customs Enforcement. Homeland Security’s investigations branch is involved in bringing down the financial and welfare risks caused due to imports of such illicit products. Let’s have a look at the product seizures that violated US trademarks and copyrights across the world.
- China: 48%
- Hong Kong: 39%
- Turkey: 2%
- Canada: 2%
- Taiwan: 2%
- All others: 8%
In the 1980s, China became a member of the World Intellectual Property Organization and began to strengthen its intellectual property framework and enact related laws. China stated in recent trade talks that its intellectual property royalties paid to the U.S. surged from $3.46 billion in 2011 to $7.2 billion in 2018.
What’s getting counterfeited?
The seizures of ripped-off intellectual property in the U.S. is only a fraction of all that is sold worldwide. The total seizures of counterfeit goods in the fiscal year 2017, with a retail value of $1.2 billion, down from the fiscal year 2016 seizures that totalled $1.38 billion.
According to the World Intellectual Property Organization, the U.S. and China file the most international patents under the Patent Cooperation Treaty.