Originally from:
Doing Buisness in China - Loose-leaf
Doing Buisness in China - Electronic
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§ 10.1.01 Introduction
[1] Traditional Culture and Technology
China’s rich historical tradition of visual and decorative arts is well
known in the West. Its long history of technological innovation is also
becoming familiar to most Westerners. It is now recognized that paper,
gunpowder, the compass, and movable type were first developed in
China. Nevertheless, many in the West regard Chinese culture as
uncreative, imitative, and the perfect environment for passive copying
and mass-scale manufacturing.
The tradition of imitation in honor of respected masters has been
frequently cited as one reason for the eagerness of Chinese factories to
turn out imitative and counterfeit products. Artists and creators of the
past were rewarded by local reputation. Perhaps they were flattered by
imitation, particularly where they received credit and enhanced
reputation as the original source. However, the reputation of Chinese
culture as antithetical to intellectual property is overstated. Even
absent a cultural propensity, the profitability of counterfeiting and
infringement ensure that factory owners with manufacturing capacity
seeking to meet consumer demand, will be drawn to infringement and
counterfeiting.
Historical records show that Chinese businesses used trademarks as
early as the Sung Dynasty (AD 960-1279) to distinguish their goods
from those of others. Artists and craftsmen found ways to make
distinctions and improvements to their works or products. However, a
wide scale regime to promote innovation and creation was not part of
government’s role. The legal framework to create incentives for
invention and innovation has come to China from abroad.
An intellectual property regime seemed essential to attract foreign
investment to China. It was perceived as a key component in attracting
foreign investment to other Asian economies. In order to attract
foreign investors, China began promulgating patent and trademark
laws in the early 1980’s. It followed with copyright, unfair
competition, and other intellectual property laws.1
