Intellectual Property to Take Center Stage as Trump and Xi Meet; The New York Times, November 28, 2018

Alan Rappeport, The New York Times;

Intellectual Property to Take Center Stage as Trump and Xi Meet

"When President Trump and President Xi Jinping of China sit down to talk trade this week at the Group of 20 summit meeting, their negotiations are likely to be framed by a highly charged topic: the White House’s insistence that China routinely steals American technology and intellectual property."

The U.S. must take action to stop Chinese industrial espionage; The Washington Post, November 4, 2018

Editorial Board, The Washington Post; The U.S. must take action to stop Chinese industrial espionage

"In fact, China’s industrial espionage is not a passing fancy but the pillar of a long-term drive to become a global economic, military and political power, with ambitions to rival the United States. Sadly, the hopes of the past two decades, that Beijing would become a fair competitor playing by international rules, have been dashed.

It is a good first response to indict the perpetrators in the Micron case, and for Mr. Sessions to bolster resources and attention to the threat. Beyond that, however, the United States must see the Chinese espionage for what it truly represents: the pursuit of superpower might by stealing the labor and investment of others. The economies of the United States and China are inexorably entwined, which will make confronting the espionage threat even harder. But it must be done. In the end, China will respond only to compulsion."

U.S. charges Chinese spies and their recruited hackers in conspiracy to steal trade secrets; The Washington Post, October 30, 2018

Ellen Nakashima, The Washington Post; U.S. charges Chinese spies and their recruited hackers in conspiracy to steal trade secrets

[Kip Currier: Just lectured on Trade Secrets in my IP course yesterday. So it was timely to see this recent development after class.

The U.S. and E.U. have both beefed up trade secret protection and prosecution mechanisms in just the past two years: the U.S., with the Defend Trade Secrets Act of 2016, and the E.U., via its E.U. Trade Secrets Directive (EUTSD).]

"The Justice Department on Tuesday unsealed charges against 10 Chinese spies, hackers and others accused of conspiring to steal sensitive commercial airline and other secrets from U.S. and European companies.

The indictment marks the third time since September that the United States has brought charges against Chinese intelligence officers and their recruits for stealing American intellectual property.

“This is just the beginning,” Assistant Attorney General John Demers said. “Together with our federal partners, we will redouble our efforts to safeguard America’s ingenuity and investment.”"

China is stealing American intellectual property. Trump's tariffs are a chance to stop it; Los Angeles Times, September 17, 2018

Charlene L. Fu and Curtis S. Chin, Los Angeles Times; China is stealing American intellectual property. Trump's tariffs are a chance to stop it

"Whatever else one might think of President Trump’s actions, he is confronting China about its unfair trade practices and theft of American intellectual property when too many others shy away from the truth for fear of Chinese reprisal."

FBI Agent Points to Need for Protecting Intellectual Property From Theft; KTIC Radio, August 22, 2018

Chris Clayton DTN Ag Policy Editor, KTIC Radio; FBI Agent Points to Need for Protecting Intellectual Property From Theft

"HIGH-PROFILE AG THEFTS

Agriculture has seen its share of high-profile thefts, some coming out of labs, while others come right out of cornfields. Nichols pointed to the case of Mo Hailong, who was sentenced in 2016 to three years in federal prison for stealing biotech corn seeds from DuPont Pioneer and Monsanto in the Midwest.

As DTN has reported in the past, before Hailong was caught, FBI agents said he shipped over 340 pounds of corn seeds from Iowa to his home in Florida. Authorities aren’t certain where the seeds went from there, but it was easy to conclude the seeds were sent to China. The FBI also recorded some of Hailong’s phone calls back to China, in which he and a Chinese plant breeder talked about “using the foreigners’ technology to beat them.” Citing the need to boost biotechnology in China, one of Hailong’s co-conspirators said, “There is a serious need for a national hero.”"

Raytheon CEO: Why Your Own Employees Could Be Your Greatest Threat; Fortune, August 14, 2018

Thomas A. Kennedy, Fortune;

Raytheon CEO: Why Your Own Employees Could Be Your Greatest Threat

"Is there a bounty on your intellectual property?

It’s more likely than you think. Earlier this month, news broke that FBI agents investigating a case of corporate cyber theft seized a handbook revealing what China was willing to pay to “individuals or entities who can provide certain technologies.”

Nation-states have been using cyber hacking to actively target valuable intellectual property, or IP, for years. However, what may be startling to the public is that state-sponsored IP theft is so organized and methodical; criminal hackers receive catalogs of the most-wanted technologies, referred to as “collection requirements,” each with associated bounties.

For business, university, and research lab leaders, it begs a couple of questions: Do any of your employees have such handbooks? And if they were stockpiling and exporting sensitive data, would you know before it was too late?"

As Kit Kat, Starbucks and Posh Spice rulings show, intellectual property is big but bittersweet business; South China Morning Post, August 1, 2018

Stephen Vines, South China Morning Post; As Kit Kat, Starbucks and Posh Spice rulings show, intellectual property is big but bittersweet business

"Chinese trademark law is still very much in the process of evolution and the time it is taking to develop is causing much vexation among international branded goods companies. They are also still engaged in attempts to curb outright trademark and intellectual property theft, which is supposed to have been largely stamped out, but as anyone familiar with hawkers on streets of mainland cities knows, this battle is far from over.

Hong Kong has better established and less complex trademark laws and rules but the local regime is hardly exemplary, as applications for trademarks are known to drag on for a long time and there seems to be a rather quixotic approach to what are regarded as being generic names, as opposed to specific names that apply to individual brands...

The issue of trademarks is one of the biggest aspects of intellectual property protection, which is climbing the agenda of both global trade talks and the concerns of individual companies."

Former Apple employee charged with theft of autonomous-vehicle trade secrets; CNet, July 10, 2018

Kyle Hyatt, CNet;

Former Apple employee charged with theft of autonomous-vehicle trade secrets

 

"The US government has filed charges of theft of trade secrets against a former member of Apple's self-driving car team, according to MacRumors.

The former employee, Xiaolang Zhang, was arrested Saturday in San Jose, California, while attempting to fly to China and was questioned by the FBI regarding the alleged theft of Apple's intellectual property. According to a criminal complaint filed Monday in federal court, Zhang confessed to the theft. Zhang could face up to 10 years in prison and a $250,000 fine.

According to the court filing, Zhang was hired in 2015 to work on Apple's self-driving car project designing and testing circuit boards that would analyze sensor data."

Judge Orders Chinese Wind-Turbine Maker To Pay $59 Million For Stealing Trade Secrets; NPR, July 6, 2018

Jim Zarroli, NPR; Judge Orders Chinese Wind-Turbine Maker To Pay $59 Million For Stealing Trade Secrets

"A federal judge has ordered China's largest wind-turbine firm, Sinovel, to pay $59 million for stealing trade secrets from a Massachusetts-based technology company.

Last January, Sinovel was found guilty of stealing trade secrets in federal criminal court in Madison, Wis. The company paid an Austria-based employee of American Superconductor Corp. to steal its source code for software that powered wind turbines.

This kind of intellectual property theft has been highlighted by the Trump administration as a reason for levying 25 percent tariffs on $34 billion of Chinese goods entering the U.S., which began on Friday. China retaliated with tariffs on $34 billion worth of U.S. goods."

Nathan Myhrvold: ‘Nasa doesn’t want to admit it’s wrong about asteroids’; The Observer via The Guardian, June 24, 2018

Zoe Corbyn, The Observer via The Guardian; Nathan Myhrvold: ‘Nasa doesn’t want to admit it’s wrong about asteroids’

"In 2000, you left Microsoft and set up Intellectual Ventures, which primarily buys and licenses patents. The business is often vilified as one of the world’s biggest “patent trolls”. Why do you think people find it so loathsome? 

I fundamentally think what we do is good. It is hard for me to get too worked up about figuring out why it is bad. Any patent holder who enforces their rights gets called a patent troll. Silicon Valley feels very threatened by anything that could challenge its authority. If you are one of the big companies, like Google or Apple, almost no one can challenge you in the market that you’re in. But if somebody has a patent, they can ask for a bunch of money. The more you can get a return from an invention, the better off the world will be. It will lead to more inventions being funded and more inventing...

President Trump is going after China’s intellectual property theft. Given your experience, can he succeed in curbing it? 

The theft of intellectual property by Chinese companies is a very serious issue. It’s not just private companies in China or little companies. A large amount of it is state-owned enterprise. So, it really is the Chinese government doing it. Exactly how to solve that issue, I don’t know. You need the Chinese government to be very serious about it, but so far they haven’t been. In my experience in business, you mostly do better with negotiating in quiet diplomacy, not with brinksmanship. But I’ve never built luxury hotels and golf courses. Maybe it is different there."

Ivanka Trump Wins China Trademarks, Then Her Father Vows to Save ZTE; The New York Times, May 28, 2018

Sui-Lee Wee, The New York Times; Ivanka Trump Wins China Trademarks, Then Her Father Vows to Save ZTE

"China this month awarded Ivanka Trump seven new trademarks across a broad collection of businesses, including books, housewares and cushions.

At around the same time, President Trump vowed to find a way to prevent a major Chinese telecommunications company from going bust, even though the company has a history of violating American limits on doing business with countries like Iran and North Korea.

Coincidence? Well, probably.

Still, the remarkable timing is raising familiar questions about the Trump family’s businesses and its patriarch’s status as commander in chief."

Statement on Steps to Protect Domestic Technology and Intellectual Property from China’s Discriminatory and Burdensome Trade Practices; Press Release, The White House, May 29, 2018

Press Release, The White House; 

Statement on Steps to Protect Domestic Technology and Intellectual Property from China’s Discriminatory and Burdensome Trade Practices

"On March 22, 2018, the President signed a memorandum announcing that the United States would take multiple steps to protect domestic technology and intellectual property from certain discriminatory and burdensome trade practices by China.  These actions were announced following a report of the Office of the U.S. Trade Representative regarding China’s practices with respect to technology transfer, intellectual property, and innovation.  In accordance with the March 22 memorandum, the President has been updated on the progress of the announced actions as follows:

1. To protect our national security, the United States will implement specific investment restrictions and enhanced export controls for Chinese persons and entities related to the acquisition of industrially significant technology.  The proposed investment restrictions and enhanced export controls will be announced by June 30, 2018, and they will be implemented shortly thereafter.
2. The United States will continue to pursue litigation at the World Trade Organization for violations of the Agreement on Trade-Related Aspects of Intellectual Property Rights based on China’s discriminatory practices for licensing intellectual property.  The United States filed the case regarding these violations on March 23, 2018.
3. Under Section 301 of the Trade Act of 1974, the United States will impose a 25 percent tariff on $50 billion of goods imported from China containing industrially significant technology, including those related to the “Made in China 2025” program.  The final list of covered imports will be announced by June 15, 2018, and tariffs will be imposed on those imports shortly thereafter.

In addition, the United States will continue efforts to protect domestic technology and intellectual property, stop noneconomic transfers of industrially significant technology and intellectual property to China, and enhance access to the Chinese market.  Likewise, the United States will request that China remove all of its many trade barriers, including non-monetary trade barriers, which make it both difficult and unfair to do business there.  The United States will request that tariffs and taxes between the two countries be reciprocal in nature and value.  Discussions with China will continue on these topics, and the United States looks forward to resolving long-standing structural issues and expanding our exports by eliminating China’s severe import restrictions."

China And Intellectual Property; NPR, Weekend Edition Saturday, April 7, 2018

NPR, Weekend Edition Saturday; China And Intellectual Property

"NPR's Scott Detrow speaks about intellectual property theft and tariffs with Dan Eberhart, CEO of Canary, an oilfield services company. It manufactures precision valves in the U.S. and China."

What Stake China Has In American Intellectual Property; All Things Considered, NPR, March 23, 2018

All Things Considered, NPR; What Stake China Has In American Intellectual Property

"NPR's Audie Cornish speaks with Scott Kennedy, a specialist on China's economy at the Center for Strategic and International Studies about China's stake in American intellectual property."

What’s Intellectual Property and Does China Steal It?; Bloomberg, March 22, 2018

Grant Clark and Shelly Hagan, Bloomberg; What’s Intellectual Property and Does China Steal It?

"2. What did Trump do?

In his first trade action aimed directly at China, Trump ordered that tariffs be imposed on a broad range of goods, which could include everything from tennis shoes and baseball hats to lingerie and consumer electronics. The U.S. Trade Representative Robert Lighthizer has 15 days to propose a list of goods that will face higher tariffs. The levies would apply to about 10 percent of the value of China’s exports to the U.S., but aren’t restricted to products the U.S. says China made in violation of American IP. Trump is also directing officials to pursue a World Trade Organization complaint against China for discriminatory licensing practices and to propose new restrictions on Chinese investments within 60 days to safeguard strategic U.S. technology.

3. What’s the rationale for all this?

Lighthizer just completed a seven-month investigation into China and intellectual property at Trump’s direction. The $50 billion figure is based on U.S. estimates of the lost corporate earnings caused by China’s alleged IP theft or forced technology transfers. U.S. officials were said to find strong evidence that China uses foreign-ownership restrictions to compel American companies to switch technology to local firms and that China supports and conducts cyberattacks on U.S. companies to access trade secrets."

How much has the US lost from China's IP theft?; CNN, March 23, 2018

Sherisse Pham, CNN; How much has the US lost from China's IP theft?

"The United States has long said that intellectual property theft has cost the US economy billions of dollars in revenue and thousands of jobs.

So just how much damage has it done?

The United States Trade Representative, which led the seven-month investigation into China's intellectual property theft and made recommendations to the Trump administration, found that "Chinese theft of American IP currently costs between $225 billion and $600 billion annually."

Intellectual Property Enforcement and Litigation in China; American Bar Association (ABA) webinar, Thursday, March 8, 2018

American Bar Association (ABA) webinar; Intellectual Property Enforcement and Litigation in China

• 

1.50 CLE

Format:

Webinar

Date:

March 8, 2018

Time:

1:00 PM - 2:30 PM ET

Add to Calendar

Credits:

1.50 General CLE Credit Hours

Speaker(s):

Scott Palmer

Sponsor(s):

ABACLE

Section of Dispute Resolution

Section of Intellectual Property Law

Section of International Law

The need to protect intellectual property in China is a concern that all brand owners, innovators, content creators, and artists should take into consideration. Join IP attorney Scott Palmer as he advises companies and in-house attorneys on protecting and enforcing intellectual property, and taking advantage of recent developments in China.

Our distinguished panelist will discuss:

• Recent developments of note in the IPR space
• Establishing and perfecting your rights in China
• Selecting the best course of action—administrative, judicial, and/or criminal recourse
• Warning letters and negotiating with infringers
• Obtaining injunctions and claiming monetary damages through litigation
• Evidence issues, procedural peculiarities, and best practices for litigating IPRs in China
• Customs and border control protection

Forget tariffs, China's alleged intellectual property theft a bigger threat to market: Analyst; CNBC, March 2, 2018

Ingrid Angulo, CNBC; Forget tariffs, China's alleged intellectual property theft a bigger threat to market: Analyst

"Trump has said in the past that he's considering a big fine as part of the probe into China's alleged theft.

While Trump did not specify what he meant by a "fine" against China, the 1974 trade law that authorized an investigation into China's alleged theft of U.S. intellectual property allows him to impose retaliatory tariffs on Chinese goods or other trade sanctions until China changes its policies.

If the Chinese are found guilty, [chief investment strategist at ClearBridge Investments Jeffrey] Schulze fears that the nation will retaliate."

China has shot far ahead of the US on deep-learning patents; Quartz, March 2, 2018

Echo Huang, Quartz; China has shot far ahead of the US on deep-learning patents

"China is outdoing the US in some kinds of AI-related intellectual property, according to a report published in mid-February by US business research firm CB Insights. The number of patents with the words “artificial intelligence” and “deep learning” published in China has grown faster than those published in the US, particularly in 2017, the firm found. Publication is a step that comes after applications are filed but before a patent is granted. The firm looked at data from the European patent office.

When it comes to deep learning—an advanced subset of machine learning, which uses algorithms to identify complex patterns in large amounts of data—China has six times more patent publications than the US, noted the report (pdf, p.7)...

...[W]hen it comes to patents using the term “machine learning,” often conflated with the term AI, China still lags behind. Searching patents for “machine learning” found the US had 882 related patent publications while China had 77 in 2017."

Brain Power Pays Off With Japan’s Intellectual Property Exports; Bloomberg, January 15, 2018

Connor Cislo, Bloomberg; Brain Power Pays Off With Japan’s Intellectual Property Exports

"Given the importance of IP to their economies, Japan and other advanced nations such as the U.S. are trying to strengthen protections in this area.

Japan nearly saw its preferred IP protection regime realized in the Trans-Pacific Partnership, until President Donald Trump’s decision to pull the U.S. out of the agreement threw the pact's future into doubt.

The remaining 11 TPP members have suspended multiple IP-related provisions from the original agreement. Meanwhile, another large trade deal championed by China, the Regional Comprehensive Economic Partnership, doesn’t address IP to the satisfaction of Japanese businesses."