China had signed the Memorandum of Understanding, agreeing to strengthen and improve IP laws. For instance, China is required to comply with Berne Convention and treat software as literary work. In relation to software piracy issues, the current target is on manufacturers and vendors of counterfeit products.


Rules and Regulations

Computer software is protected under article 3 of the Law of Copyright in China. Under the Regulations on Punishment of Crimes against the Law of Copyright, any illegal profits, materials and tools are to be taken away. A person convicted of manufacturing or distributing infringing copies for commercial purposes are liable to fine and imprisonment for a maximum of 7 years. Criminal liability is established if a sales of counterfeit products over $6000 is proved. National Copyright Administration is delegated with the power to cease any infringing activities and pay compensation of losses.


Current problems

Although there are existing laws in China to deal with software piracy issues, however, the provisions contain problems and uncertainties, making piracy issues difficult to combat.

One example is that foreigners have higher level of protection than local Chinese. Moreover, the provision of the Law of Copyright has liberal terms in allowing unauthorised use of local works: state organs have the right to use unauthorised copyrighted materials to fulfill official duties, provided there should be no prejudice without reason on the rights of the owners. In addition, market access to many foreign products is still difficult, making the demand for piracy products increases. For example, Measures for the Registration of Copyright in Computer Software allows foreign copyright owners to choose whether to register their copyrighted work or not. However, they must provide key proprietary data to the Ministry of Electronics Industry for registration if they want to seek administrative procedures or enforce their rights.