Today I testified before the United States Trade Representative on China’s compliance with its World Trade Organization (WTO) commitments. See this document for my testimony and this United States Information Technology Office (USITO) submission to USTR.
In addition to the serious Intellectual Property Rights issues and other matters such as China’s so-called secure and controllable cybersecurity policies discussed during the testimony, today’s hearing underscored three additional big picture factors that that policymakers need to address as a new administration soon takes office. They can be summarized as follows.
Today, President Obama announced that the U.S. and China came to a cyber-espionage "common understanding." They have agreed not to "conduct or knowingly support" the cyber theft of intellectual property.
The U.S. Ambassador to China, Max Baucus, presided over what has become an annual IPR Roundtable on April 24, 2015 in Beijing. I had the honor to represent SIIA on a panel entitled: “The Importance of Copyright to Tomorrow’s Creators.” Noting 2012 and 2013 groundbreaking reports from the United States and the European Union on the overall contribution that IP-intensive industries make to the economy – “Intellectual Property and the U.S. Economy: Industries in Focus” and “IPR Intensive Industries: Contribution to Economic Performance and Employment in Europe” – I focused on the software sector and drew from Robert Shapiro’s 2014 report: “The U.S. Software Industry: An Engine for Economic Growth and Employment” in highlighting the fact that in 2012 software accounted for 2.6% of U.S. GDP, was responsible for 12.2% of fixed business investment, and contributed 15.6% to total labor factor productivity.  ...