Trump’s bizarre statement on China dishonors us all; The Washington Post, January 11, 2019

Dana Milbank, The Washington Post; Trump’s bizarre statement on China dishonors us all

"Asked an unrelated question on the White House South Lawn on Thursday, Trump volunteered a comparison between Speaker Nancy Pelosi (D-Calif.) and Senate Minority Leader Charles E. Schumer (D-N.Y.) — and the leaders of the People’s Republic of China.

“I find China, frankly, in many ways, to be far more honorable than Cryin’ Chuck and Nancy. I really do,” he said. “I think that China is actually much easier to deal with than the opposition party.”

China, honorable?

China, which is holding a million members of religious minorities in concentration camps for “reeducation” by force?

China, which, according to Trump’s own FBI director, is, by far, the leading perpetrator of technology theft and espionage against the United States and is “using illegal methods” to “replace the U.S. as the world’s leading superpower”?

China, whose state-sponsored hackers were indicted just three weeks ago and accused of a 12-year campaign of cyberattacks on this and other countries?

China, whose ruling Communist Party has caused the extermination of tens of millions of people since the end of World War II, through government-induced famine, the ideological purges of the Cultural Revolution, and in mowing down reformers in Tiananmen Square?

Trump has a strange sense of honor. In April, he bestowed the same adjective on the world’s most oppressive leader, North Korea’s nuclear-armed dictator: “Kim Jong Un, he really has been very open and I think very honorable from everything we’re seeing.”

Now, the president is declaring that China’s dictatorship, by far the world’s biggest international criminal and abuser of human rights and operator of its most extensive police state, is more honorable than his political opponents in the United States.

In Trump’s view, your opponents are your enemies — and your actual enemies are your friends. How can you negotiate with a man who thinks like this?"

It’s not a trade war with China. It’s a tech war.; The Washington Post, December 14, 2018

Michael Morell and David Kris, The Washington Post; It’s not a trade war with China. It’s a tech war.

"Michael Morell, a Post contributing columnist, is a former deputy director and twice acting director of the Central Intelligence Agency. David Kris is a former assistant attorney general for national security and co-founder of Culper Partners consulting firm.

The United States is in an escalating technological cold war with China. It’s not centered on tariffs and trade, which President Trump often cites; instead, it involves both China’s use of technology to steal information and the theft of technology itself."

What Is Intellectual Property, and Does China Steal It?; Bloomberg, December 4, 2018

Grant Clark, Bloomberg; What Is Intellectual Property, and Does China Steal It?

"7. Is this a new gripe by the U.S.?

It’s a longstanding issue. That 2011 report by the U.S. International Trade Commission estimated that U.S. IP-intensive firms lost $48 billion in 2009 because of Chinese infringements. A 2016 USTR’s report highlighted serious problems, especially concerning the theft of trade secrets. "Offenders in many cases continue to operate with impunity," the report said."

Why Trump tariffs on China not stopping theft of trade secrets; USA TODAY, November 28, 2018

Michael Collins, USA TODAY; Why Trump tariffs on China not stopping theft of trade secrets

[Kip Currier: Interesting to see a flurry of articles in wide-ranging media about IP--particularly IP theft--placed front and center by the U.S. at the G20 Summit in Argentina (see here and here).

Yesterday I listened to a free webinar, "Modernizing NAFTA into a 21st Century Trade Agreement: The New USMCA & IP", from the ABA IP Law Section on IP-related aspects of the U.S., Mexico, Canada Agreement (USCMA); what was previously informally referred to as NAFTA 2.0.

Ms. Kira Alvarez, Esq., provided an excellent overview of trade agreements like NAFTA and insightful comparative analysis of key IP-focused sections of the TRIPS agreement, Trans-Pacific Partnership (which Donald Trump, fulfilling his campaign promise, opted the U.S. out of as one of the first acts of his presidency in January 2017), and the USCMA. Time will tell if the beefed-up protections for Trade Secrets in the USMCA are successful in curbing IP theft.]

"The theft of U.S. intellectual property, mostly by the Chinese, costs the U.S. an estimated $225 billion to $600 billion a year and represents “an assault the likes of which the world has never seen,” analyst Richard Ellings said.

“You can’t find a company that hasn’t been assaulted, and half of them don’t even know it,” said Ellings, executive director of the Commission on the Theft of American Intellectual Property.

President Donald Trump cited China’s theft of intellectual property as one of his reasons for slapping $200 billion in tariffs on Chinese imports earlier this year. Tariffs, intellectual property theft and the forced transfer of intellectual property will be among the topics of discussion when Trump and Chinese President Xi Jinping meet over dinner Saturday during the G-20 summit in Argentina, White House officials said. 

"The rest of the world knows full well about the issues of IP theft and forced transfers of technology," Trump's top economic adviser Larry Kudlow said. "This idea that other countries are not with us is just not true. It's time for a change in their behavior.""

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."

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."

My terrifying deep dive into one of Russia's largest hacking forums; The Guardian, July 24, 2018

Dylan Curran, The Guardian; 

My terrifying deep dive into one of Russia's largest hacking forums

[Kip Currier: I had a similar reaction to the author of this article when I attended a truly eye-opening 4/20/18 American Bar Association (ABA) IP Law Conference presentation, "DarkNet: Enter at Your Own Risk. Inside the Digital Underworld". One of the presenters, Krista Valenzuela with the New Jersey Cybersecurity and Communications Integration Cell in West Trenton, New Jersey, did a live foray into the Dark Web. The scope of illicit activities and goods witnessed in just that brief demo was staggering and evoked a feeling that scenes of "black market" contraband and "bad actors" endemic to dystopian sci-fi fare like Blade Runner 2049 and Netflix's Altered Carbon are already part of the present-day real-world.]

"It’s fascinating to see how this community works together to take down “western” systems and derive chaos and profit from it. Typically, hackers in first-world countries are terrified to work together due to the multiplicative risk of a group being caught. In Russia, however, the authorities don’t seem to care that these hackers are wreaking havoc on the west. They are left to their own devices, and most users on this forum have been regular members for over six years.

A lot of the information on this forum is incredibly worrying, even if a lot of it is harmless 15-year-olds trying to be edgy and hack their friend’s phones. In any case, it’s important to know these communities exist. The dark underbelly of the internet isn’t going anywhere."

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."

Intellectual Property and China: Is China Stealing American IP?; Stanford Law School, April 10, 2018

Paul Goldstein, Q&A with Sharon Driscoll, Stanford Law School; Intellectual Property and China: Is China Stealing American IP?

"How do you think this challenge is best addressed? How can China and other countries be made to adhere to IP agreements?

Within the confines of trade, that’s a hard question. A friend who oversaw IP policy for the USTR several administrations ago once commented to me that people thought of the USTR as John Wayne rushing into dens of IP iniquity, six-shooters ablaze, when the reality was that he was Archie Bunker shooting off nothing more than his mouth. The US and other countries have achieved important successes under the World Trade Organization’s TRIPs Agreement [Trade-Related Aspects of Intellectual Property Rights] with a dispute resolution process that is far more deliberate than the 301 process. But, although many sober voices have argued for this as the preferable route, it’s far from clear that TRIPs will cover all of the forms of IP appropriation that are the object of the current 301 process, or that the current administration has the will or the patience to follow this avenue. And there are other trade alternatives, such as a bilateral investment treaty with China that could draw on the IP provisions of the so-called TRIPs-Plus free trade agreements with other countries.

Paul Goldstein is the Stella W. and Ira S. Lillick Professor of Law at Stanford Law School. A globally recognized expert on intellectual property law, Paul Goldstein is the author of an influential five-volume treatise on U.S. copyright law and a one-volume treatise on international copyright law."

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’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."

China says will tighten controls over intellectual property theft; Reuters, August 24, 2017

Reuters; China says will tighten controls over intellectual property theft

"China will tighten controls over intellectual property to provide better opportunities for foreign firms, the commerce ministry said on Friday.

The government’s crackdown on intellectual property violations will focus on trademark registration abuse and business secret theft, Wang Shouwen, a vice commerce minister told reporters at a press briefing in Beijing, adding that China’s IP protection was “not perfect” as a developing country.

U.S. President Donald Trump this month authorized an inquiry into China’s alleged theft of intellectual property -- the first direct trade measure by his administration against Beijing."

China’s Intellectual Property Theft Must Stop; New York Times, August 15, 2017

Dennis C. Blair and Keith Alexander, New York Times; China’s Intellectual Property Theft Must Stop

"Perhaps most concerning, China has targeted the American defense industrial base. Chinese spies have gone after private defense contractors and subcontractors, national laboratories, public research universities, think tanks and the American government itself. Chinese agents have gone after the United States’ most significant weapons, such as the F-35 Lightning, the Aegis Combat System and the Patriot missile system; illegally exported unmanned underwater vehicles and thermal-imaging cameras; and stolen documents related to the B-52 bomber, the Delta IV rocket, the F-15 fighter and even the Space Shuttle.

President Trump’s action on Monday acknowledges the broad scope of the challenge. Central to Chinese cybersecurity law is the “secure and controllable” standard, which, in the name of protecting software and data, forces companies operating in China to disclose critical intellectual property to the government and requires that they store data locally. Even before this Chinese legislation, some three-quarters of Chinese imported software was pirated. Now, despite the law, American companies may be even more vulnerable."

Victoria Espinel Confirmed as U.S. Copyright Czar; Media Week, 12/4/09

Georg Szalai, Media Week, Victoria Espinel Confirmed as U.S. Copyright Czar:

"Industry representatives on Friday hailed a Thursday evening Senate vote that confirmed Victoria Espinel as the nation's first Intellectual Property Enforcement Coordinator.

But they also called on Washington to help ensure her success in fighting intellectual property theft as President Obama's copyright czar.

"Intellectual property industries are an essential economic engine to the U.S. economy, and it is critical that the new IP Enforcement Coordinator now be given adequate resources to carry out her new responsibilities," said MPAA chairman and CEO Dan Glickman.

He lauded Espinel as "a capable and experienced advocate for the artists and creators." She is a former assistant U.S. trade representative for intellectual property and innovation who also previously worked with the chief U.S. trade negotiator on IP issues before the World Trade Organization.

In a U.S. Chamber of Commerce blog post Friday, Rick Cotton, executive vp and general counsel at NBC Universal, also expressed hopes that the new top government post will have a big impact.

"Let's hope that today represents the high-water mark of IP theft," he said. Espinel's confirmation as the first IPEC "should help to see the tide begin to recede under the pressure of the Obama administration's commitment to protecting IP, producing new jobs and new industries that will benefit the nation for decades to come.""

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