Along with the rapid development of China’s foreign trade and the implementation of “going out” strategy, the competitiveness of China’s enterprises in international markets is increasingly enhanced. However, China’s enterprises also face more and more trade frictions and risks in the process of developing international markets. Some statistical data show that the direct economic losses arising out of the disputes of intellectual property rights (IPR) incurred by China’s enterprises have reached USD 69.1 billon and the relevant indirect losses associated with the loss of trade opportunity have reached about USD 147 billion since China entered WTO . Meanwhile, most of Chinese enterprises do not have solid consciousness of IPR protection as well as strong ability to safeguard their rights, which becomes the major constraints on the sound development of international markets by Chinese enterprises. Enforcing IRP protection in foreign countries by Chinese enterprises and safeguarding the rights of Chinese enterprises in foreign countries has received extensive attention in Chinese business community. 

I. The Current Situation of IPR Protection at International Trade Fairs and Existing Issues

---The Current Situation of IPR Protection at International Trade Fairs

Adopting strong IRP protection has currently become the common practice of many countries’ trade policy. We still face severe challenges of IPR protection at international trade fairs.

---The Issue of Disputes Relating to  IPR Protection at International Trade Fairs

1.The disputes relating to IPR protection at international trade fairs are increasingly rising and this trend will last in the near future;

2.The disputes relating to IPR protection at international trade fairs frequently occurred in hi-tech and IT areas, such as MP3/MP4 and mobile phones;

3.Chinese enterprises encounter a unfavorable environment for participating in international trade fairs; they have to adopt some nonstandard ways such as fair within fairs and over-the-counter fairs;

4.The enforcement of IPR protection is increasingly enhanced in foreign countries; the infringement of IPR is subject to more severe criminal sanctions.

II. Countermeasures for Disputes Relating to IPR Protection at International Trade Fairs

Enhancing IPR protection and promoting innovations is the common consensus shared by international society and the necessary choice of China for its social and economic development and participating in international competition.

On June 5, 2008, the Sate Council promulgated Outlines on the National Strategy of Intellectual Property Rights", in which the following guidelines are prescribed: Intellectual property policy related to foreign trade needs to be improved. The mechanisms for administering intellectual property, early warning and emergency response, overseas IPR protection and dispute settlement need to be established and strengthened in foreign trade sector. These guidelines provide the guidance for our work of overseas IPR protection.

--- Government Level：

 1. Improving the research on the regimes of IPR protection at international trade fairs；

2. Establishing and perfecting the mechanism for IPR protection at international trade fairs；

3. Conducting publicity and trainings on IPR protection and encouraging Chinese enterprise to safeguard their rights in a bold and skillful manner.

--- Society Level：

      1. Bringing the role of chamber of commerce/trade association into full play；

      2. Enhancing the strengths of overseas IPR protection by joint efforts of Chinese enterprises.

--- Society Level：

     1. Increasing the public's awareness on IPR protection；

     2. Sound and compliance operations；

     3. Defense and counterclaim.

Chen Fuli  Division Head of Treaties and Law of the Ministry of Commerce

(September 2008, China International Investment & Trade Fair held in Xiamen)