Case Study: Evaluating IP Protection for MNEs in China

This case study analyzes China's evolving intellectual property (IP) policies and their impact on multinational enterprises (MNEs) operating within the country. It begins by examining China's current stance on IP protection, highlighting recent legislative changes and challenges related to evidence gathering in infringement cases. The analysis then assesses the influence of these policies on MNEs, including potential biases and the effects of government campaigns. Furthermore, the study evaluates China's performance in IP protection compared to other countries, noting improvements in litigation outcomes for non-Chinese companies. Finally, it explores the legal environment in China and the changes driven by domestic political constraints, emphasizing the positive trends in nurturing domestic innovation and the implications for foreign firms. The study uses the provided references to support its analysis and findings, offering a comprehensive overview of the complex IP landscape in China.

Running head: CASE ANALYSIS
Case Analysis
Name of the Student
Name of the University
Author Note

1CASE ANALYSIS
1. Research China's current policies on IP protection. Discuss the impact of the current IP
policies to an MNE doing business in China.
The country of China has been accused of a huge number of defamation of the
Intellectual Property rights since there have not been many legislative rights decided on
infringing IP rights. However, in the recent times, there have been few alterations in the IP right
in China as well (Wyzycka & Hasmath, 2017). China has started developing their own
innovative ideas and so far has been demonstrating the serious resolution of the effective IPR
Regime. The following are the resolved policies of the IP policies in China:
Local Judicial Protectionism: The white paper of the Court of the Supreme People has
ensured a fair adjudication process in IP cases and does not acknowledge IP violation of
Intellectual Property Division so that the national cases can be overseen.
Challenges in Obtaining Evidence: IP holders need to obtain evidence to prove their
ownership rights in the intellectual properties and there has been nothing described in the laws
that IP infringers are bound to provide evidence, like accounting or sales documents that could
be utilized for showcasing any kind of infringement.
 Impact of the current IP policies to an MNE doing business in China :
Bias against Foreign Firms: When it comes to implement policies, China has achieved a
nationwide campaign in the time span of just four months. The campaign all across the nation
had implemented 12 coordinated government aided agencies that were organized for the
protection of IP rights of the foreign firms (Peng et al., 2017). It was expected that the campaign
would work in favor of improving the cooperation amongst the enforcement bodies protecting

2CASE ANALYSIS
the IP laws and would further create an environment that would be favorable for the foreign
investors in China and refrain the violation of the foreign IP.
2. How does China rate against other Countries in protecting IP of an MNE?
It has been reported that in spite of the allegations against China in being biased towards
the foreign companies, they also charge just as well in enforcing IP rights in trial as the
organizations that are owned by the Chinese firms. Amongst the The companies brought over 10
percent of patent infringement cases in China and won over 70 percent of those cases (Tan,
2018). Today, win rates average around 80 percent and injunction rates average around 98
percent. These reports prove that China has been gradually selective being the forum of choice
for non-Chinese companies to litigate IP disputes. Thus, against the countries that have been
protecting IP of an MNE, China has been very proper with their IP rights.
3. How is the legal environment in China dealing with protecting IP of an MNE?
The domestic political constraints in the environment of protecting IP of an MNE have
been under significant changes in the latest time. The IPR regime of China has been under
significant changes already and this has also reformed the laws that have been protecting IP of an
MNE. This has not just appeared as the demand of the foreign countries but also due to the firms
inside China. Since, China has started applying innovations its own business policies; there have
been reports of IP infringements of these organizations as well. While the system is far from
perfect, China has started developing their own innovative ideas and so far has been
demonstrating the serious resolution of the effective IPR Regime and thus the impact of these
reforms are not to be understated (Zhang & Bruun, 2017). These changes represent a positive

3CASE ANALYSIS
trend in China’s legal as well as the commercial environment and as the laws continue to nurture
domestic innovation, foreign firms ignore this progress at their own risk.

4CASE ANALYSIS
References
Peng, M. W., Ahlstrom, D., Carraher, S. M., & Shi, W. S. (2017). History and the debate over
intellectual property. Management and Organization Review, 13(1), 15-38.
Tan, R. Y. R. (2018). Patented in China: Examining the Influence of Government Intervention
on Innovation.
Wyzycka, N., & Hasmath, R. (2017). The impact of the European Union’s policy towards
China’s intellectual property regime. International Political Science Review, 38(5), 549-
562.
Zhang, L., & Bruun, N. (2017). Legal Transplantation of Intellectual Property Rights in China:
Resistance, Adaptation and Reconciliation. IIC-International Review of Intellectual
Property and Competition Law, 48(1), 4-41.