It has been said that China is the biggest offender of intellectual property (IP) theft against US entities and companies. A country that has historically been known for great inventions is now regarded by many as the land of knock-offs and counterfeit goods.
The US Intellectual Property Commission Report on the Theft of American Intellectual Property reported that IP theft is costing the US economy billions of dollars per year for two main reasons. Firstly, there has been a decline in the income and reward for inventors as well as those who license IP. Secondly, and even more importantly, the Commission report notes that "illegal theft of intellectual property is undermining both the means and the incentive for entrepreneurs to innovate, which will slow the development of new inventions and industries that can further expand the world economy and continue to raise the prosperity and quality of life for everyone."
According to Reuters, China is now high on a United States intellectual property watch list, despite the Chinese Government having indicated it will take action to prevent the success of copy-cats and knock off goods. The US Trade Representative concluded that China must improve its policies to overcome the issue. Sun Jiwen, a spokesman for Chinese Commerce Industry, has stated however that China "has taken many effective measures and the situation continues to improve. The results are apparent to all".
President Trump has previously stated that China are "killing" the US on trade. The US Department of Commerce reported in its 2016 report that Intellectual Property Industries contribute to a staggering $6.6. trillion dollars and 45.5 million jobs to the US economy. If Chinese organisations continue to steal US Intellectual Property then the millions of US jobs that depend on the industry are likely to be affected.
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