US law professor sees 'positive development' in China's IP protection

China's plan to set up a system of punitive compensation for intellectual property infringements is a "positive development," as the country pays more attention to IP protection, said Jay Kesan, a law professor at the University of Illinois at Urbana-Champaign (UIUC).

In a recent email interview with Xinhua, Kesan, also a patent attorney, said he has read the new policy on IP protection "with great interest," referring to a draft government regulation on implementing the Foreign Investment Law, which is slated to go into effect next year.

Noting that the punitive compensation system focuses on the listing of dishonest individuals and entities who severely violate IP laws and regulations, Kesan said "since this list is made public, it will increase the awareness of IP protection."

"It will also increase the opportunity costs of IP infringement for those individuals and businesses because their credibility will be affected, and that may result in fewer business opportunities for them," said Kesan, who directs a program in intellectual property and technology law at UIUC's College of Law.

Kesan said he hopes to see more details of the punitive measures that might be taken against those dishonest persons and entities.

According to the draft, China will also push for establishing a fast-track IP protection mechanism, improve the mechanisms to resolve IP disputes through multiple means and provide assistance, and increase IP protection for foreign investors and enterprises. Moreover, the draft made detailed stipulations on banning the use of administrative measures to force foreign investors or enterprises to transfer technology.

The new Foreign Investment Law is "likely to make foreign investors more willing and confident about investing in China," he said.

Kesan, who has traveled to China many times and has been to many Chinese cities, told Xinhua earlier that he has witnessed China's great progress in IP protection in recent years, saying "Continuing along in this direction will ultimately benefit the Chinese economy very significantly."