The Foreign Companies operating in China must also do their part in understanding the Chinese regulations and file for Intellectual Protection. Companies filing for IP globally may or may not have China protections. Patent Cooperation Treaties with some 152 countries make it easier to protect in more places than one, sort of like a master patent filing application. But China is not a signatory for all patents. Inventors need to single them out some times. Society will benefit from the greater good derived from these disputes. They will drive internationally new policies, laws, regulations and standards that would address the issues noted earlier. The Trade Agreement the Trump Administration is driving though political in some respects, have shown some economic success and would bring fairer business practices. Other large economies are also watching and will certainly leverage the Trump Trade strategy to their advantage. However, the US cannot be the lone voice but will need the cooperation of all nations to enforce trade policies, laws, regulations and sanctions. The US should require every nation that it does business with to ensure their trading partners are in compliance with the US and International Intellectual Property Policies and Trade Secret Policies. Every country will have to police unfortunately if they want to do business and receive aid from the United States. Response Two (Luis Paltan) The charges of the United States Department of Justice against Huawei is a compelling case because of the way it can influence future trials and the labeling of businesses as criminal enterprises. The origins of the United States disdain of Huawei go back to the late 1980s when Huawei was accused of blatantly violating Western copyright law. Huawei was accused of reverse engineering a clone of Cisco’s popular network router and re-introducing it into the Chinese market. Cisco wasn’t the only business to claim that companies like Huawei in China have stolen their intellectual property. According to a CNBC survey, one in five North American-based corporations have had their intellectual property stolen by Chinese companies within the last year. If this is true, more lawsuits are sure to come. How does the U.S. lawsuit against China affect intellectual property rights from a global perspective? One way to view the effects of this lawsuit from a global perspective is to observe how Chinese courts today uphold and respect Western laws. In a similar case against the theft of intellectual property in China, Jaguar-Land Rover recently won a lawsuit against Jiangling Motor Corporation’s Landwind X7, which Land Rover claimed was a copycat of their popular Evoque model. The three-year-long case ended when a Beijing court ordered the production of the Landwind, which cost £14,000 compared to the £40,000 Evoque, to stop immediately and pay compensation to the U.K.’s largest car manufacturer. This ruling is significant in the effects it can have on future cases against Chinese companies because it signals the upholding of Western laws in Chinese courts. This adds confidence to international markets that view China as an essential avenue for conducting business. Despite the success of this ruling, the Huawei lawsuit is a little more complicated, namely, because it involves the United States. How do disputes like these affect international policy? The Huawei dispute affects international policy, specifically in the United States, because it blurs the line between economic retaliation and national security. In May 2019, President Trump signed an executive order that gave the government the power to block U.S. companies from doing business with suppliers that could pose a threat to national security. This executive action elevated the long-standing dispute between the United States and Huawei because it meant that they would be added to the “trade blacklist.” This was an unprecedented move because it marked a turning point in Chinese-US relations. This move blocked any attempt from Huawei being able to build 5G networks, thereby growing their technological share in the United States. Some suspect their 5G network could collaborate with the Chinese state due to a 2017 national intelligence law passed in China that requires organizations to “supply and co-operate with and in national intelligence work.” A step like this is significant because a company like Huawei would be required to comply with Chinese government requests to spy on customers or manipulate networks. In matters of national security, the Trump administration has been quick to indict Huawei of 16 counts, including money laundering, obstruction of justice, and sanction violations. These charges are warranted based on evidentiary findings that demonstrate that Huawei purposely misappropriated confidential information agreements with intellectual property owners and then violated the terms of those agreements for their own use. In response, the Chinese foreign ministry urged the United States to stop the unreasonable crackdown on Chinese companies and that the use of power by the United States was pure economic bullying. Huawei has been quick to levy its own lawsuit against the United States for the seizure of telecommunications equipment in Alaska back in 2017. Huawei later dropped the charges but maintained that the United States arbitrarily and unlawfully seized and detained their equipment. It is interesting to note that despite the outright ban on Huawei products marketed and sold in the U.S., the company was allowed to attend the 2020 Consumer Electronics Show in Las Vegas to showcase their latest products.
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