1 in 5 US Companies Says China Has Stolen their IP in the Last Year Alone
According to a CNBC survey, 1 in 5 tech companies in the United States believes their intellectual property has been stolen by Chinese companies, and is one of the points fueling the dispute between the two countries’ tariffs and ongoing trade war.
“One in five North American-based corporations on the CNBC Global CFO Council says Chinese companies have stolen their intellectual property within the last year. In all, 7 of the 23 companies surveyed say that Chinese firms have stolen from them over the past decade.” (CNBC)
The aforementioned council represents a swathe of the largest public and private companies in the world, and according to CNBC, manages nearly $5 trillion in market value across all sorts of markets and niches.
Conservative think-tank American Enterprise Institute noted that China’s government had issued a memo that laid out 38 punishments for IP violators, up to and including denying them access to government funding, a move the think-tank described as significant. It’s certainly a great step forward.
There are no precise statistics on how much IP is stolen by each nation, though a spokesperson for the IP commission estimates an annual cost of up to $600 billion is lost in the US economy, and that Chinese citizens are those prosecuted most frequently for trade secret theft in US courts.
Whether during the course of this ongoing discussion between the US and China, the state of IP security will change, no one knows. For tech companies, it’d be a huge win for their business and bottom line if China began putting a stop to such IP infringements.