Intellectual property protection in China between USA Social Essay

Intellectual Property Protection in China between the USA
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Intellectual property in China between the USA
Introduction
Intellectual property relates logical creativeness of an inventor especially in the development of human intellectuals such as artistry, literature, designs, and images as well as ideas and concepts. Intellectual property is regarded as an incorporeal ability of an individual. Most scholars refer to it as a legitimate ideology that relates to developments of the mind for which absolute rights are acknowledged. These rights enable to prevent the exploitation of an individual’s intellectual property. They also confer a limited right to the inventor to use their innovations for a given period fully. Intellectual property plays a significant role in the current economy. Saha and Bhattacharya, (2011) illustrate that intellectual work related to new inventions should be provided due significance so that the civic community can derive from it. There has been an increase in the study and growth budgets with a correlated increase in savings needed for introducing an innovation in both the local and global economy. The risks of the innovators of new technology have increased and thus, the necessity to safeguard the knowledge from the illegal utilization of intellectual property. There has been an increase of unlawful use of intellectual property, and these rights would ensure that there is the full or partial retrieval of the research and development and other related costs and adequate revenue that would ensure there is a constant investment in research and development (Saha & Bhattacharya, 2011).
This paper will review the current challenges and resolution being utilized in safeguarding intellectual property in China. It will also analyze the relationships between various problems that intellectual property disputes between China and the USA. There have been current complains concerning intellectual property protection in China. Research has shown that there is lack of intellectual property talents and laws in China which has highly been influenced the America’s intellectual property system. This paper aims to reveal the current disputes and effect they have on international trade.
The Relationship between Intellectual Property Protection and International Trade
Intellectual property rights are incredibly significant to the competitiveness of developed economic nations. Lai, (1998) showcases that the achievement of trade-related intellectual property rights such as charters, trade secrets, trademarks, and copyrights have been acknowledged to form a platform where international trade applies rules and policies. The implementation and enforcement of these rights are critical to most international trades such as research-based pharmaceuticals, whose occupation and capability is to contribute to the development of innovations in international trade Mrad, (2017). There has been an increase in the awareness of the significance of safeguarding intellectual property rights in the global economy. Mrad (2017) showcases that the recognition has been validated by the development of a fundamental element of world trade organizations agreements, the correlated trade features of intellectual property rights. This right objects to correspond policies of intellectual property between major economy nations. To benefit from the benefits of free trade and to be part of the world trade organization, Mrad (2017) determines that significant national economies are only obliged to enforce intellectual property rights but also to make their intellectual property rights conform to certain policies that are functioning in developed national economies. This scheme influences developed economies to export their innovations, embedded in goods to emerging economies. Efforts to securing intellectual property verified the significance of federal organization collaboration and having an agreement structure among the commercial societies of the developed economies (Pratt, 1996). Experimental models evaluating the fiscal effects of firming up intellectual property rights protection in evolving nations have given various views on the effect of intellectual property rights protection on growth.
Positive effects
Gould and Gruben (1996) illustrate that intellectual property safeguarding fuels economic development mainly if a standard of trade liberalization accompanies it. Encouraging various initiatives to innovate, intellectual property safeguarding may impact the economic growth of an open economy. Some other positive effects of safeguarding intellectual property rights include; offering assurances concerning the quality and security of merchandises. Most counterfeit goods place individuals using them at risk for example where medicine, foodstuffs, and machinery is concerned. Park and Ginarte, (1997) explain that Safeguarding intellectual property rights ensures that the origin of products is known and guarantees users that they are genuine. This is also healthy for international trade, where a company will create a trademark and gain a certifying authority to sell its products globally. Protecting intellectual property enables in the dissemination of innovative information (Park & Ginarte et al. 1997). Copyrights are the most productive and available sources of innovative information. They often constitute applicable approaches to safeguard and describe proper procedures to transfer technologies. Open source mechanisms are frequently dependent on intellectual property. They have gained popularity in sectors like the general public licenses. They rely on intellectual property rights since they are generally patents and copyrights licenses. They, therefore, would become invalid if the intellectual property rights are not safeguarded (Park & Ginarte, 1997).
Negative effects.
Various studies have found the relationship between intellectual property and international trade to be vague. An evaluation by Maskus and Penurbarti (1997) on whether different global levels of copyrights are safeguarding influence trade flows. Their result shows that the import of copyright policies is unclear. On the other hand, Smith, (1999) evaluated the degree of American exports and their fragility to national variance in copyright privileges. The result revealed that fragile copyrights are a barrier to American exports especially nations that present resilient intimidation of mimicking such as China. Falvey and Foster (2006) illustrate that the affiliation between intellectual property rights protection and economic development is vague. The relation is reliant on the growth of a nation and the configuration of its economy. Xu and Chiang, (2005) demonstrate that intellectual property protection right affects the economic growth and structure of a nation’s economy indirectly by drawing in the configurations of universal proprietaries. Kazutaka, (2012) illustrates that there is a negative relationship between intellectual property protection and direct supply. Global corporations prefer direct supply in low intellectual property protection economies to sustain their innovations. Ivus (2011) illustrates that intellectual property protection induces new variety expansion. However, it declines the quantity and increases the value of general goods.
On the other hand, Kazutaka (2012) illustrates that intellectual property protection may encourage the new entry of small business and thus enable in the growth of diversity. However, the increase of diversity will reduce huge unavoidable companies from extending their market. They suffer from competition as well as intrusion threat for new businesses.
Current Problems and Countermeasures in Intellectual Property Protection in China
China has experienced exceptional economic development over the last three decades. Much of its achievements have been resulted from an export-based market, depending on foreign direct investments as well as federal administration sponsorships and low input and labor revenues. Their economic strategy has however earned an adverse reputation. The reputation has seen many economists criticize the high production of low-quality products without recognizing global intellectual property rights and standar...