Counterprogramming: IP cases

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First, obviously everyone is worried about COVID-19. That’s all I read about. A few updates:

  • Vietnam is at 47 patients tested positive. Case 17 really seems to be a center for a bunch of cases now.

  • The country has cancelled visas on arrival for Americans (so I heard). I can’t see this online, but I heard from a source.

  • Schools closed through April 5.

  • A Vietnam Airlines flight attendant tested positive for COVID-19.

Now, I want to talk about a story that caught my eye a few months ago and I didn’t get a chance to look into: Intellectual Property Protections.

Like most Westerners, I have a somewhat cynical view of intellectual property (IP) protections in Asia. China has a bad reputation for it, and it is one of the things that the US is pressing in its trade negotiations.

In this survey of US CEOs, more than 20% said Chinese companies have stolen their IP in the past year, and more than 30% in the past decade.

Vietnam is on the Watch list for IP theft in the last report by the US Trade Representative. At least it isn’t on the “Priority Watch” list.

Of course, looking historically, emerging markets have always stolen IP. The US did! A business doesn’t have the intellectual know-how; they need it ; they try to get it through all sorts of ways. This can include joint ventures, hiring experts, sending students to work and study abroad, and stealing it.

This article goes into the history of China’s IP theft, and I found this interesting:

For example, decades ago Japan, South Korea, and Taiwan were each perennial Section 301 violators until they reached a per capita GDP of about $20,000-$25,000.

The authors’ view is that China is making real progress on protecting IP, with lots of courts, where foreigners have actually fared pretty well. I am not sure I have the same view, but still, it definitely looks like progress is being made in China.

Vietnam is another matter. I expected that IP protection would be way down the list of priorities of the government, but it turns out I was wrong. This article actually talks about new enforcement of corporate criminal liability, including IP violations. On January 14, a Vietnamese company and its director were required to pay compensation to another Vietnamese company for unauthorized use of its branding.

The total fines were over $100,000, including a VND500m ($21,600) fine levied against the director.

I don’t want to be a pollyanna , but I see this as definite progress. Let’s see if foreign parties are also able to win in these courts, but this is a good step.