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[DRVJA]

CHONGQING, China (Reuters) - China is the biggest loser from intellectual property violations and needs to stamp out piracy to build global corporate champions, U.S. Commerce Secretary Carlos Gutierrez said on Monday.

Gutierrez was speaking in the southwestern city of Chongqing at the start of a visit to China to prepare for high-level U.S.-Chinese meetings in Washington next month.

In a speech to students and businessmen, Gutierrez said widespread counterfeiting was not only harming U.S. companies but also posing a threat to China's own long-term development.

"Ironically, it is China that is most affected by violations of intellectual property rights," he said.

A Chinese official conceded the country had rampant copyright piracy but said the problem could not be eliminated overnight.

"We still have a serious problem of piracy. We need to study more forceful and effective measures to curb it," Yan Xiaohong, deputy chief of the National Copyright Administration, told a news conference in Beijing.

Gutierrez welcomed Chinese efforts to crack down on counterfeiting -- Xinhua news agency reported that 14 compact disk operations had been punished for illegal copying -- and praised Vice-Premier Wu Yi for taking the lead in tackling what he said was clearly a complex issue.

"We need to see results, but we should also recognize the tremendous effort that's being made. That's a very positive development," Gutierrez told Reuters after his speech.

NO SPECIAL FAVOURS

U.S. music, movie, software and other copyright industry groups estimate they suffered some $2.4 billion in lost sales in China last year because of piracy.

American manufacturers also say they lose billions of dollars a year because of counterfeiting and patent violations in China.

But Gutierrez said China was also bleeding tax revenue as a result of software piracy.

Failure to curb piracy could thwart the country's efforts to create firms able to strike out on to the world stage, he added.

"Without effective intellectual property protection, China's intellectual property and inventions would be the target of illicit enterprises," he said.

Gutierrez also said China needed to do more to improve access for foreign firms to its booming markets and to address U.S. concerns that the yuan is being held down at unfairly cheap levels.

"We're not asking for special favors, we're not asking for special considerations, we're not asking for an artificially developed goal or number. We just want a level playing field and the ability to compete," he told Reuters.

Gutierrez stressed the importance of open and fair trade to support economic growth and said the large U.S. trade deficit needed to be reined in to keep protectionist sentiment at bay.

"We don't want it to become so big that what happens is that people who want to isolate the United States, who want to be protectionist, may find a welcoming ear in the American people because of the trade deficit," he said in his speech.

Several U.S. law-makers are preparing legislation that would punish China unless it takes concrete steps to reduce its trade surplus with the United States, which hit $202 billion in 2005.

U.S. officials hope an April 11 meeting of Gutierrez, U.S. Trade Representative Rob Portman and Chinese Vice Premier Wu will set the stage for successful talks when President George W. Bush hosts President Hu Jintao at the White House on April 20.

"This is a relationship that is evolving, it's maturing, and ... we both have the opportunity to show just how much it has evolved and how much it has matured," Gutierrez said.

©2005 Reuters Limited.

[jimmytim]

Hey, you want cheap labour, ripping poor people off, that's what you get, so **** off and stop whinging (excuse me...I'm getting tired).

I am sure the Chinese government is also involved, and may also own serveral factories themselves anyway, so it ain't stopping.

[dcrooz]

For the time being they are going to focus on items that if they weren't counterfeited, people would buy the originals. This is cd's, dvd's computer games, software etc... If the counterfeits could be stopped people would buy these so it is easy to calculate the losses. For something like watches it is much more difficult. Pretty much everyone on this forum has bought a replica watch, the original of which is worth more than $5k. However, if the replica hadn't been around, how many would have bought the gen? No idea. I'm not suggesting that people here can't afford gens, I know they can, I'm suggesting that the rep market doesn't really eat away at the gen market share or revenue.

[dcrooz]

Hey, you want cheap labour, ripping poor people off, that's what you get, so **** off and stop whinging (excuse me...I'm getting tired).

I am sure the Chinese government is also involved, and may also own serveral factories themselves anyway, so it ain't stopping.

Steady on mate, it was a news article....

[Chronus]

For the time being they are going to focus on items that if they weren't counterfeited, people would buy the originals. This is cd's, dvd's computer games, software etc... If the counterfeits could be stopped people would buy these so it is easy to calculate the losses. For something like watches it is much more difficult. Pretty much everyone on this forum has bought a replica watch, the original of which is worth more than $5k. However, if the replica hadn't been around, how many would have bought the gen? No idea. I'm not suggesting that people here can't afford gens, I know they can, I'm suggesting that the rep market doesn't really eat away at the gen market share or revenue.

Brand new, no... and Panerais are mostly overpriced for what they are. A Rolex I cannot afford. A used Omega or Breitling, possibly and I would get certain models that are not replicated easily or well.

[narikaa]

Just more of the USA's posturing and financially blackmailing to get it's way.

Its worked a treat so far on the avaricious Prime Minister 'Toxin' of Thailand who has driven much of the counterfeit trade away, clamped down on its licencing laws for bars etc much to the serious financial detriment of his people (but of course all his kick backs derived from the reciprocal USA fundings being much to his benefit). So much so that hitherto unheard of levels of drug related crime, murders, muggings etc within tourist areas exist as ousted 'entrepreneurs' seek earnings elsewhere!!

It'll be interesting to see how long it takes China to buckle under

[BONDEN]

For the time being they are going to focus on items that if they weren't counterfeited, people would buy the originals. This is cd's, dvd's computer games, software etc... If the counterfeits could be stopped people would buy these so it is easy to calculate the losses. For something like watches it is much more difficult. Pretty much everyone on this forum has bought a replica watch, the original of which is worth more than $5k. However, if the replica hadn't been around, how many would have bought the gen? No idea. I'm not suggesting that people here can't afford gens, I know they can, I'm suggesting that the rep market doesn't really eat away at the gen market share or revenue.

I agree with that

Maybe some of us can afort to bye a gen but not 10 or 20 gens like the colection of reps we are making

[Dani]

always the US gov thats try to stop cool stuff arghhh

[Pugwash]

always the US gov thats try to stop cool stuff arghhh

That's because the US is under the thumb of lobbyists that can afford to convince politicians that their interests are valid national interests. It's the price of freedom and capitalism, allegedly.

[dcrooz]

always the US gov thats try to stop cool stuff arghhh

Ever since they took the coke out of coke it's been one thing after another!

[rah]

I can not feature anyone owning 10 of this brand and 10 of that brand and another 2 of this and 3 of that in originals but many here have that many reps or more. The reps are not the problem. Millions of dollars in software and music is much more of a concern and will raise more eyebrows.

[jkerouac]

The Tom Friedman book The World is Flat has a good slant on this question. He concedes that China has gained tremendously from its status as manufacturer to the world. And he also acknowledges that counterfeits hurt western businesses.

But in the long run he argues that the biggest loser may be China itself, by relegating itself to the low end of the world economy, and by reducing the incentive for its native inventors and innovators. Why innovate, his argument goes, if the Chinese economic system provides no protection to my work or ideas? As long as the West provides stronger protection for creativity and innovation, Friedman's argument goes, China can never step up to first tier or economic powers.

[Pugwash]

Ever since they took the coke out of coke it's been one thing after another!

That wasn't the government.

Cokelore.

Coca leaves were taken out of Coca-Cola because of a public backlash towards the drug Cocaine. Trace amounts were kept in to preserve the trademark, but eventually even that was removed.

[dcrooz]

That wasn't the government.

Cokelore.

Coca leaves were taken out of Coca-Cola because of a public backlash towards the drug Cocaine. Trace amounts were kept in to preserve the trademark, but eventually even that was removed.

I bow to your superior knowledge, and promise to research future flippent commments further (try saying that quickly after a few beers).

[Richard Tracy]

Well whatever happens, I'm stocking up on the latest greatest while the going is good.

then deal with what weather occurs at that time, though I feel that there will always be a way

as long as there is a wallet,...I mean will.

Prices could go up however as risks rise.

[Klink]

tempest in a teapot IMO simply because

the gangsters and illigitimate product seeksers

will find a way..

the expense of an effective and complete crackdown

in money and time

not there yet... if ever..

the rep manufacturers and dealers have got

a great stake in eluding any and all efforts to

eliminate the trade.. and they are very very sharp..

the lazy, greedy or ignorant ones? well, we do not wish to deal

with them anyway.. think Abay

Life is Good!

Klink

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[trustywatchguy]

Oh well... I can only laugh at the report... ever since 15 years ago.... there were already Rolex replicas around in Chinatown streets going for a song. I still kept a 15 year old Rolex replica watch in my little musuem of replicas.

It was a poorly made Rolex replica plated with "I DONT KNOW WHAT" kind of gold and on ... QUARTZ movement and it's a DATEJUST... HAAHAA

Replicas are here to stay but like what the rest say.. enjoy while you can.... It's going to be more and more exclusive next time..

Regards!

[JosePR]

its easy, just stop making the geniune brands soo expensive

[Lollipop]

Oh well... I can only laugh at the report... ever since 15 years ago.... there were already Rolex replicas around in Chinatown streets going for a song. I still kept a 15 year old Rolex replica watch in my little musuem of replicas.

It was a poorly made Rolex replica plated with "I DONT KNOW WHAT" kind of gold and on ... QUARTZ movement and it's a DATEJUST... HAAHAA

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