China and Intellectual Property Rights

China & IP

My research topic is intellectual property rights in China. My thesis is that China needs to strengthen its protection of intellectual property rights in order to improve its integration with the global economic system. I will argue this point on the basis that China's current level of intellectual property rights protection is inadequate.

I have chosen this topic because it a highly topical within the business world. China is one of the largest economies in the world, one of the world's most important manufacturing centers and one of the world's most important consumer markets. Yet to most observers, China lags in its protection of intellectual property rights. These rights are fundamental to the functioning of the modern economic system, where individuals and companies are compensated for their output. An analysis of Chinese intellectual property rights as they stand de jure and de facto, in light of its status within the global trading system is important for understanding how China can better integrate with the world economy.

There is a wealth of sources on this topic. Both books and journals cover the topic well, and from a number of different perspectives. Keupp, Beckenbauer and Gassmann (2009) discuss the different strategies that managers must undertake to protect intellectual property rights in China, since the laws are inadequate. These steps are onerous to business, and the process of protecting IP would function better with a stronger legal framework. Awokuse and Yin (2010) study the relationship between the degree of intellectual property rights protections in China and foreign direct investment. This linkage forms a key part of the argument. There are many other studies that can be cited, and it is well worth stepping outside the library to gather primary source data as well.

There are three main points of argument that I expect to develop. The first is the premise that intellectual property rights form an integral part of the framework of global commerce. The second point is that China's intellectual property rights protections are below the standards of other major trading nations. The third point is that these substandard protections are having an adverse effect on China's economy. A variety of economic statistics can be used to support this line of logic.