M

To: From: Date: Re:

Secretary of State Hillary Clinton Jason W. Cowling Carnegie Mellon University February 28th, 2010 China Intellectual Property & Human Rights

ABSTRACT:

The confluence of Global Human Rights & Intellectual Property is only recently explored1. The role of public policy with regard to balancing these often conflicting & complicated subjects is crucial to the entirety of U.S. China Relations. This brief intends to portray the role of intellectual property in light of the economic and social welfare of both nations. Also, the role of international organizations who are concerned with and advocate for intellectual property & social welfare will be presented. And lastly, U.S. policy recommendations are presented with the intention of balancing the relations of the two often disparate subjects and nations.2
ISSUE SUMMARY:

From the U.S. perspective China does not have basic human rights with regard to access to information. As is frequently noted, China restricts website access, blogging, and searches. This issue gained public focus during the 2008 Olympics when members of the press experienced censorship3. Censorship is not a secret enterprise in China, and doesnt face large-scale public resistance.

Congress - Subcommittee on Courts, the Internet, and Intellectual Property Cong., 17 (2007) (testimony of Eric H. Smith). Print. 2 For a broad understanding of U.S. China relations, see: Dumbaugh, Kerry. "China-U.S. Relations: Current Issues & Implications for U.S. Policy." Congressional Research Service. 14 July 2006. Web. 27 Feb. 2010. <http://www.fas.org/sgp/crs/row/RL32804.pdf>. 3 "Olympics Committee Admits Internet Censorship Deal With China." Breaking News and Opinion on The Huffington Post. 30 July 2008. Web. 01 Mar. 2010. <http://www.huffingtonpost.com/2008/07/30/olympics-committee-admits_n_115796.html>.

International Piracy: The Challenges of Protecting Intellectual Property in the 21st Century , 110th

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On the one hand, denying access to information is a dictatorial notion, on the other it stabilizes a rapidly-growing and fragile nation. So while it is easy to decry against the hegemonic aspect of the PRCs policy of censorship, it can also be seen as necessary to hold together a country of over 3 billion citizens. Along with the denying of access to information the PRC also engages in state-sponsored intellectual property theft, causing losses reasonably quantified at $1,000,000,000.00 per annum to the U.S. economy, where approximately two-thirds of company value derives from intangible assets.4 This drain on the U.S. economy was most recently illustrated when Google China revealed that it had been hacked by individuals within Chinese Universities with ties to the Chinese government.5 Google has threatened to discontinue its Chinese business unit however has also continued to acquiesce to the PRC censorship requirements, outstripping its recent overture.6 The statement of Google resulted in a Congressional response in support of the company as well.7 Googles response is indicative of the fissure between freedom of information and nationalisteconomic actualities that characterize the dual fronts of U.S. China Relations as well as Intellectual Property Rights & Human Rights including the following:8
4

"Epoch Times - Data Thefts Cost Every Firm $2 Million Per Year: Study." Epoch Times - National, World, China, Sports, Entertainment News. 24 Feb. 2010. Web. 27 Feb. 2010. <http://www.theepochtimes.com/n2/content/view/30318/>. 5 McMillan, Robert. "More Than 100 Companies Targeted by Google Hackers - PCWorld Business Center." Reviews and News on Tech Products, Software and Downloads - PCWorld. 26 Feb. 2010. Web. 27 Feb. 2010. <http://www.pcworld.com/businesscenter/article/190346/more_than_100_companies_targeted_ by_google_hackers.html>. 6 China denies Googles Claim, see: Guanjin, Cheng. "China says google hacking claims "groundless"" China Daily Website - Connecting China Connecting the World. 24 Feb. 2010. Web. 27 Feb. 2010. <http://www.chinadaily.com.cn/world/2010-02/24/content_9492764.htm>. For a further discussion of Chinas specific codified law with regard to Intellectual Property see: Bai, Benjamin. "Benjamin Bai: Yes, China Does Protect Intellectual Property - WSJ.com." Business News & Financial News - The Wall Street Journal - WSJ.com. 11 Feb. 2010. Web. 27 Feb. 2010. <http://online.wsj.com/article/SB10001424052748704259304575044150656353806.html?mod=g ooglenews_wsj>. 7 "Whereas Google announced on January 12, 2010, the mid-December 2009 discovery that it had been victimized by a highly sophisticated and targeted cyber attack on its corporate infrastructure... (Agreed to by Senate)." THOMAS (Library of Congress). 2 Feb. 2010. Web. 27 Feb. 2010. <http://thomas.loc.gov/cgi-bin/query/z?c111:S.RES.405:>. 8 For an excellent discussion of the relationship between IP & Human Rights, see: Helfer, Laurence R. "Human Rights and Intellectual Property: Conflict or Coexistence." Minnesota: Intellectual Property Review 5.1 (2003): 1-16. Print.

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If Google leaves China, it suffers economically, as do U.S. China Relations. Chinese citizens left without an alternative to the state-sponsored search engine, BAMU. Google isnt as competitive without Google China. Google can advocate from within China for freedom of internet.
Chinese citizens cannot benefit from increased access to information Google China provides.

China as a whole cannot benefit from the socio-economic benefits of technology jobs.

Recommendations: U.S. policy toward China, Intellectual Property, and Human Rights must account for the socioeconomic interests of both countries. Intellectual Property underpins the U.S. economy, and must be protected. Freedom of access to information is a basic human right and must be pursued. However, Chinas self-interests are also socio-economic, and it faces a potential destabilizing of the socio-economic fabric if it haphazardly adopts sweeping social reform. For these reasons the following recommendations are couched in international NGOs that can balance between laissez-faire economic principles and social advocacy: Support H.R. 275 The Global Online Freedom Act of 20079 Support The U.S. Chamber of Commerce 2010 Intellectual Property Agenda10 Support Internet Rights Protection Initiative of Human Rights Watch11 Support recommendations of WIPO World Intellectual Property Organization12 Support recommendations of GNI Global Network Initiative13

Smith, Chris. "H.R. 275 - The Global Online Freedom Act of 2007." Thomas (2007). Print. For a recap of the legislation, see: Gruenwald, Juliana. "Lawmaker urges support for Global Online Freedom Act Nextgov." Nextgov - Federal technology news, best practices, and web 2.0 tools. 25 Feb. 2010. Web. 27 Feb. 2010. <http://www.nextgov.com/nextgov/ng_20100225_1487.php?oref=topnews>. 10 "U.S. Chamber of Commerce 2010 Intellectual Property Agenda." US Chamber of Commerce - GIPC. 18 Feb. 2010. Web. 27 Feb. 2010. 11 "Internet Rights Protection Initiative Launches | Human Rights Watch." Press Center | Human Rights Watch. 29 Oct. 2008. Web. 27 Feb. 2010. <http://china.hrw.org/press/news_release/internet_rights_protection_initiative_launches>. 12 He, Huaiwen. "Measuring the Economic Impact of IP Systems." WIPO - World Intellectual Property Organization. 2007. Web. 27 Feb. 2010. <http://www.wipo.int/portal/en/news/2007/article_0032.html>. 13 "News and Events - GNI Statement on Googles New Approach to China." Global Network Initiative. 14 Jan. 2010. Web. 27 Feb. 2010. <http://www.globalnetworkinitiative.org/newsandevents/Google_New_Approach_to_China.php>. For Secretary of State Clintons statement on Internet Freedom to GNI, see:

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Further Empower and increase awareness of the House Subcommittee on Courts, the Internet, and Intellectual Property14

Conclusion: The U.S. must support policy and international organizations with an eye toward balancing socio-economic relationships with China. China must eventually codify a fully democratic approach to freedom of information, abandon its policy of state-sponsored intellectual property theft and adhere to international doctrine with regard to human rights. The U.S. must continue its interdependent economic relations with China, while protecting its intellectual property and basic philosophy of freedom of access to information and freedom of speech. Only by straddling intellectual property and human rights can both countries continue prosperous growth of their economies and citizens rights.

"News and Events - GNI Statement on U.S. Secretary of State Clinton's Address on Internet Freedom." Global Network Initiative. 21 Jan. 2010. Web. 27 Feb. 2010. <http://www.globalnetworkinitiative.org/newsandevents/Clinton_Internet_Freedom.php 14 This is the seminal discussion of international piracy given to the U.S. Congress to date and is instrumental to gain a solid understanding of the issues: International Piracy: The Challenges of Protecting Intellectual Property in the 21st Century , 110th Congress - Subcommittee on Courts, the Internet, and Intellectual Property Cong., 17 (2007) (testimony of Eric H. Smith). Print.

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Works Cited Bai, Benjamin. "Benjamin Bai: Yes, China Does Protect Intellectual Property - WSJ.com." Business News & Financial News - The Wall Street Journal - WSJ.com. 11 Feb. 2010. Web. 27 Feb. 2010. <http://online.wsj.com/article/SB10001424052748704259304575044150656353806.html ?mod=googlenews_wsj>. Dumbaugh, Kerry. "China-U.S. Relations: Current Issues & Implications for U.S. Policy." Congressional Research Service. 14 July 2006. Web. 27 Feb. 2010. <http://www.fas.org/sgp/crs/row/RL32804.pdf>. "Epoch Times - Data Thefts Cost Every Firm $2 Million Per Year: Study." Epoch Times National, World, China, Sports, Entertainment News. 24 Feb. 2010. Web. 27 Feb. 2010. <http://www.theepochtimes.com/n2/content/view/30318/>. Gruenwald, Juliana. "Lawmaker urges support for Global Online Freedom Act - Nextgov." Nextgov - Federal technology news, best practices, and web 2.0 tools. 25 Feb. 2010. Web. 27 Feb. 2010. <http://www.nextgov.com/nextgov/ng_20100225_1487.php?oref=topnews>. Guanjin, Cheng. "China says google hacking claims "groundless." China Daily Website Connecting China Connecting the World. 24 Feb. 2010. Web. 27 Feb. 2010. <http://www.chinadaily.com.cn/world/2010-02/24/content_9492764.htm>. He, Huaiwen. "Measuring the Economic Impact of IP Systems." WIPO - World Intellectual Property Organization. 2007. Web. 27 Feb. 2010. <http://www.wipo.int/portal/en/news/2007/article_0032.html>. Helfer, Laurence R. "Human Rights and Intellectual Property: Conflict or Coexistence." Minnesota: Intellectual Property Review 5.1 (2003): 1-16. Print. International Piracy: The Challenges of Protecting Intellectual Property in the 21st Century, 110th Congress - Subcommittee on Courts, the Internet, and Intellectual Property Cong., 17 (2007) (testimony of Eric H. Smith). Print. "Internet Rights Protection Initiative Launches | Human Rights Watch." Press Center | Human Rights Watch. 29 Oct. 2008. Web. 27 Feb. 2010. <http://china.hrw.org/press/news_release/internet_rights_protection_initiative_launches>.

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McMillan, Robert. "More Than 100 Companies Targeted by Google Hackers - PCWorld Business Center." Reviews and News on Tech Products, Software and Downloads PCWorld. 26 Feb. 2010. Web. 27 Feb. 2010. <http://www.pcworld.com/businesscenter/article/190346/more_than_100_companies_tar geted_by_google_hackers.html>. "News and Events - GNI Statement on Googles New Approach to China." Global Network Initiative. 14 Jan. 2010. Web. 27 Feb. 2010. <http://www.globalnetworkinitiative.org/newsandevents/Google_New_Approach_to_Chi na.php>. "News and Events - GNI Statement on U.S. Secretary of State Clinton's Address on Internet Freedom." Global Network Initiative. 21 Jan. 2010. Web. 27 Feb. 2010. <http://www.globalnetworkinitiative.org/newsandevents/Clinton_Internet_Freedom.php Smith, Chris. "H.R. 275 - The Global Online Freedom Act of 2007." Thomas (2007). Print. "U.S. Chamber of Commerce 2010 Intellectual Property Agenda." US Chamber of Commerce GIPC. 18 Feb. 2010. Web. 27 Feb. 2010. "Whereas Google announced on January 12, 2010, the mid-December 2009 discovery that it had been victimized by a highly sophisticated and targeted cyber attack on its corporate infrastructure... (Agreed to by Senate)." THOMAS (Library of Congress). 2 Feb. 2010. Web. 27 Feb. 2010. <http://thomas.loc.gov/cgi-bin/query/z?c111:S.RES.405:>.