The Patent Blindness Of Chinese Copyright Policy

Intellectual property laws in China are used (or simply ignored) for the short-term interests of Chinese companies. But that must change if the nation wants to compete globally.

In this file photo, pirated DVDs in China are set to be destroyed.
In this file photo, pirated DVDs in China are set to be destroyed.
Tao Jingzhou*


BEIJING — Recently Xiaomi, China's largest smartphone distributor, made its debut in India. It was immediately sued by Ericsson for violating the Swedish company's patents. Only a few days later, the air purifier made by Xiaomi was also questioned by Balmuda, a Japanese brand, for copying its appearance.

As the Chinese saying goes: it takes more than one cold day before a deep river freezes. There are many reasons why Chinese enterprises are so often entangled in court cases involving copyright issues. Among the most significant causes are China's incomplete legal protection for patents, and the government's role in maneuvering so that intellectual property protection works to benefit homegrown Chinese industries.

That China doesn't make enough effort in protecting intellectual property rights has long been criticized by the international community. The costs are relatively low to infringe intellectual property rights in China, while it is expensive, in both time and money, to safeguard them.

As a rising industrial nation with large gaps in technologies compared to advanced countries, China relies mainly on importing core technologies. Thus Chinese authorities are inclined to see the issue through the objective of fostering immediate opportunities for the country's public and private enterprises, and eventually avoiding the jeopardizing of China's entire economic interests.

Putting aside whether such reasoning is right, it is undeniable that the Chinese government has used anti-monopoly measures to protect its national companies by suppressing the value of foreign patents in China.
In the case of Microsoft's acquisition of Nokia, the European Union and the United States antitrust authorities approved the acquisition unconditionally, whereas the Chinese Ministry of Commerce gave approval but with restrictive conditions, including a clause requiring Microsoft not to raise its patent costs.

When China's National Development and Reform Commission undertook an antitrust investigation of IDC, a U.S. wireless firm, IDC wound up eventually having to agree to a number of conditions, including reducing its licensing fee. Also, according to informed sources, in the Qualcomm antitrust case, the final penalties included a significant reduction of royalties.

Trying to gain time

Though pressuring patent holders via administrative measures favors Chinese domestic enterprises in the short term, it definitely isn’t a beneficial move in pushing China toward becoming a "creator nation."

Xiaomi has the look. Photo: jtgeek

In the era of globalization, patent protection is territorial while multinationals have a strategic view of their patent protection. This is why it's easy to understand Ericsson's decision not to sue Xiaomi directly in China, but instead sat back and waited in India for three years. Ericsson had reasoned that filing proceedings against a Chinese company in China would encounter local and national protectionism. This is also why foreign companies rarely bother to file lawsuits in China, even though many Chinese firms do not pay them royalties.

The original intention of the China's weak protection of intellectual property rights was so that Chinese brands could gain time to conduct their own R&D and improve their global positioning in their sector. But this has simply resulted in Chinese companies being reliant on just such protection. Since they obtain core technologies at relatively low cost, they are not motivated to invest their time, energy and money to augment their innovative ability. This can easily be confirmed by looking at how many patents Xiaomi actually possesses.

But we are now beginning to see that if Chinese firms don't increase their investment in developing independent technologies, nor pay for using those of others, it's certain that litigation, such as Xiami has experienced, will happen once their businesses go overseas.

How this deep patent crisis is tackled will largely help determine whether China can transform itself from "Made in China" to "Created in China," with some of China's most interesting emerging companies at stake.

New industries must on one hand increase investment in innovative capability, and on the other learn to protect themselves with legal tools if necessary, knowing how to handle intellectual property right lawsuits properly.

Even for highly innovative enterprises, relying on patents is inevitable in an emerging industry, as patents often must be purchased from other companies to enhance a product's competitiveness. It is even said that Qualcomm, a company that designs and sells wireless telecommunication technologies, hires more lawyers than engineers.

Chinese companies, in particular those in the emerging technology-intensive industries, lack a basic awareness of intellectual property protection. It's unsustainable that they depend solely on the Chinese government, and will prevent them from expanding abroad.

China's top companies need to attach greater importance to protecting their patented technologies, the ones they developed themselves, and at the same time be able to weigh the legal risks when they make their debut abroad.

Foreign companies such as Qualcomm and Ericsson have struggled to be properly compensated for their patents in China. But be rest assured that they will sharpen their legal weapons in counter-attacking Chinese companies outside of China.

Thus Chinese firms really only have two choices: either give up on overseas markets or pay the royalties. Either way the winner will always be the one holding the patent.

*Tao Jingzhou is an expert in international merger & acquisition and arbitration law.

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food / travel

The True Horrors Behind 7 Haunted Locations Around The World

With Halloween arriving, we have dug up the would-be ghosts of documented evil and bloodshed from the past.

Inside Poveglia Island's abandoned asylum

Laure Gautherin and Carl-Johan Karlsson

When Hallows Eve was first introduced as a Celtic festival some 2,000 years ago, bonfires and costumes were seen as a legitimate way to ward off ghosts and evil spirits. Today of course, with science and logic being real ghostbusters, spine-chilling tales of haunted forests, abandoned asylums and deserted graveyards have rather become a way to add some mystery and suspense to our lives.

And yet there are still spooky places around the world that have something more than legend attached to them. From Spain to Uzbekistan and Australia, these locations prove that haunting lore is sometimes rooted in very real, and often terrible events.

Shahr-e Gholghola, City of Screams - Afghanistan

photo of  ruins of Shahr-e Gholghola,

The ruins of Shahr-e Gholghola, the City of Screams, in Afghanistan

Dai He/Xinhua via ZUMA Wire

According to locals, ghosts from this ancient royal citadel located in the Valley of Bamyan, 150 miles northwest of Kabul, have been screaming for 800 years. You can hear them from miles away, at twilight, when they relive their massacre.

In the spring 1221, the fortress built by Buddhist Ghorids in the 6th century became the theater of the final battle between Jalal ad-Din Mingburnu, last ruler of the Khwarezmian Empire, and the Mongol Horde led by Genghis Khan. It is said that Khan's beloved grandson, Mutakhan, had been killed on his mission to sack Bamyan. To avenge him, the Mongol leader went himself and ordered to kill every living creature in the city, children included.

The ruins today bear the name of Shahr-e Gholghola, meaning City of Screams or City of Sorrows. The archeological site, rich in Afghan history, is open to the public and though its remaining walls stay quiet during the day, locals say that the night brings the echoes of fear and agony. Others claim the place comes back to life eight centuries ago, and one can hear the bustle of the city and people calling each other.

Gettysburg, Civil War battlefield - U.S.

photo of rocks and trees in Gettysburg

View of the battlefields from Little Round Top, Gettysburg, PA, USA


Even ghosts non-believers agree there is something eerie about Gettysbury. The city in the state of Pennsylvania is now one of the most popular destinations in the U.S. for spirits and paranormal activities sight-seeing; and many visitors report they witness exactly what they came for: sounds of drums and gunshots, spooky encounters and camera malfunctions in one specific spot… just to name a few!

The Battle of Gettysburg, for which President Abraham Lincoln wrote his best known public address, is considered a turning point in the Civil War that led to the Union's victory. It lasted three days, from July 1st to July 3rd, 1863, but it accounts for the worst casualties of the entire conflict, with 23,000 on the Union side (3,100 men killed) and 28,000 for the Confederates (including 3,900 deaths). Thousands of soldiers were buried on the battlefield in mass graves - without proper rites, legend says - before being relocated to the National Military Park Cemetery for the Unionists.

Since then, legend has it, their restless souls wander, unaware the war has ended. You can find them everywhere, on the battlefield or in the town's preserved Inns and hotels turned into field hospitals back then.

Belchite, Civil War massacre - Spain

photo of sunset of old Belchite

Old Belchite, Spain

Belchite Town Council

Shy lost souls wandering and briefly appearing in front of visitors, unexplainable forces attracting some to specific places of the town, recorded noises of planes, gunshots and bombs, like forever echoes of a drama which left an open wound in Spanish history…

That wound, still unhealed, is the Spanish Civil War; and at its height in 1937, Belchite village, located in the Zaragoza Province in the northeast of Spain, represented a strategic objective of the Republican forces to take over the nearby capital city of Zaragoza.

Instead of being a simple step in their operation, it became the field of an intense battle opposing the loyalist army and that of General Francisco Franco's. Between August 24 and September 6, more than 5,000 people were killed, including half of Belchite's population. The town was left in rubble. As a way to illustrate the Republicans' violence, Franco decided to leave the old town in ruins and build a new Belchite nearby. All the survivors were relocated there, but they had to wait 15 years for it to be complete.

If nothing particular happens in new Belchite, home to around 1,500 residents, the remains of old Belchite offer their share of chilling ghost stories. Some visitors say they felt a presence, someone watching them, sudden change of temperatures and strange sounds. The ruins of the old village have been used as a film set for Terry Gilliam's The Adventures of Baron Munchausen - with the crew reporting the apparition of two women dressed in period costumes - and Guillermo del Toro's Pan's Labyrinth. And in October 1986, members of the television program "Cuarta Dimensión" (the 4th dimension) spent a night in Belchite and came back with some spooky recordings of war sounds.

Gur Emir, a conquerer’s mausoleum - Uzbekistan

photo of Gur Emir (Tomb of Timur) i

Gur Emir (Tomb of Timur) in Samarkand, Uzbekistan

Chris Bradley/Design Pics via ZUMA Wire

The news echoed through the streets and bazaars of Samarkand: "The Russian expedition will open the tomb of Tamerlane the Great. It will be our curse!" It was June 1941, and a small team of Soviet researchers began excavations in the Gur-Emir mausoleum in southeastern Uzbekistan.

The aim was to prove that the remains in the tomb did in fact belong to Tamerlane — the infamous 14th-century conqueror and first ruler of the Timurid dynasty who some historians say massacred 1% of the world's population in 1360.

Still, on June 20, despite protests from local residents and Muslim clergy, Tamerlame's tomb was cracked open — marked with the inscription: "When I Rise From the Dead, The World Shall Tremble."

Only two days later, Nazi Germany invaded the Soviet Union, with the people of Samarkand linking it to the disturbing of Tamerlane's peace. Amid local protests, the excavation was immediately wrapped up and the remains of the Turkish/Mongol conqueror were sent to Moscow. The turning point in the war came with the victory in the Battle of Stalingrad — only a month after a superstitious Stalin ordered the return of Tamerlane's remains to Samarkand where the former emperor was re-buried with full honors.

Gamla Stan, a royal massacre - Sweden

a photo of The red house of Gamla Stan, Stockholm, Sweden

The red house of Gamla Stan, Stockholm, Sweden


After Danish King Kristian II successfully invaded Sweden and was anointed King in November 1520, the new ruler called Swedish leaders to join for festivities at the royal palace in Stockholm. At dusk, after three days of wine, beer and spectacles, Danish soldiers carrying lanterns and torches entered the great hall and imprisoned the gathered nobles who were considered potential opponents of the Danish king. In the days that followed, 92 people were swiftly sentenced to death, and either hanged or beheaded on Stortorget, the main square in Gamla Stan (Old Town).

Until this day, the Stockholm Bloodbath is considered one of the most brutal events in Scandinavian history, and some people have reported visions of blood flowing across the cobblestoned square in early November. A little over a century later, a red house on the square was rebuilt as a monument for the executed — fitted with 92 white stones for each slain man. Legend has it that should one of the stones be removed, the ghost of the represented will rise from the dead and haunt the streets of Stockholm for all eternity.

Port Arthur, gruesome prison - Australia

a photo of ort Arthur Prison Settlement, Tasmania, Australia

Port Arthur Prison Settlement, Tasmania, Australia

Flickr/Eli Duke

During its 47-year history as a penal settlement, Port Arthur in southern Tasmania earned a reputation as one of the most notorious prisons in the British Empire. The institution — known for a brutal slavery system and punishment of the most hardened criminals sent from the motherland— claimed the lives of more than 1,000 inmates until its closure in 1877.

Since then, documented stories have spanned the paranormal gamut: poltergeist prisoners terrorizing visitors, weeping children roaming the port and tourists running into a weeping 'lady in blue' (apparently the spirit of a woman who died in childbirth). The museum even has an 'incidence form' ready for anyone wanting to report an otherworldly event.

Poveglia Island, plague victims - Italy

a photo of Poveglia Island, Italy

Poveglia Island, Italy

Mirco Toniolo/ROPI via ZUMA Press

Located off the coast of Venice and Lido, Poveglia sadly reunites all the classical elements of a horror movie: plagues, mass burial ground and mental institute (from the 1920's).

During the bubonic plague and other subsequent pandemics, the island served as a quarantine station for the sick and anyone showing any signs of what could be Black Death contamination. Some 160,000 victims are thought to have died there and the seven acres of land became a mass burial ground so full that it is said that human ash makes up more than 50% of Poveglia's soil.

In 1922 a retirement home for the elderly — used as a clandestine mental institution— opened on the island and with it a fair amount of rumors involving torture of patients. The hospital and consequently the whole island was closed in 1968, leaving all the dead trapped off-land.

Poveglia's terrifying past earned it the nickname of 'Island of Ghosts'. Despite being strictly off-limits to visitors, the site has been attracting paranormal activity hunters looking for the apparition of lost and angry souls. The island would be so evil that some locals say that when an evil person dies, he wakes up in Poveglia, another kind of hell.

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