Interesting Look at Chinese Counterfeiting

Asia Business Intelligence Blog ran an interesting post yesterday on Chinese counterfeiting.  According to the post, approximately 8% of China's GDP may come from counterfeiting.  Asia Biz starts out by analogizing China's counterfeiting with past counterfeiting by Taiwan and Japan, but then veers off into philosophizing that the Chinese view of law is at the heart of the widespread counterfeiting there:

My strong impression from readings and discussions on this subject is that mainland Chinese view the law as but a tool – a means to an end – whereby individual gain can be gotten at the expense of a rival. They do not respect it as a particularized expression of an encompassing framework established to protect the welfare of the populace at large, despite sloganeering to the contrary. The law is for “me,” but not, more importantly, for “us.”

Until that conceptual foundation has been built – who knows when and if, despite the work by many brilliant intellectuals – the rights you hold in your intellectual property will be the object of stubborn disrespect and counterfeiting will continue to be a staple of the Chinese economy.

I agree and I disagree.  I agree with the analogy to Taiwan and to Japan, but I disagree that there is something "Chinese" about counterfeiting.  I have said it before and I will say it again: as China's economy continues to grow, and as Chinese companies themselves continue to innovate, enforcement of IP rights will increase in China.  Just as it did in Taiwan and in Japan (and I would add Korea to this list), increased wealth will lead to increased IP protection. 

Only time will tell who is right on this.  In the meantime, don't just throw up your hands and say "that's just China."  At minimum, you must explore the various legal options that can protect your IP and your brand.