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Zoellick Discusses Digital Piracy In China
by William New
In meetings with top Chinese officials this week, U.S. Trade Representative Robert Zoellick called for the enforcement of intellectual property rights in seeking a "culture of cooperation" to curb piracy.
"[L]ike you, wherever I go in the world you see major problems of pirating, so this is not a problem that is done overnight," Zoellick said at a Tuesday press briefing in Beijing, after meetings with the Chinese vice premier and trade minister. "But then the next step is, I want to try to build a culture of cooperation in intellectual property so as we turn to the next set of issues, particularly those related to the digital world, that we can try to establish the right standards."
Zoellick said the enforcement of intellectual property rights is a changing problem. For instance, in the recently completed U.S. trade agreements with Singapore and Chile, the business-software and entertainment industries made a priority of establishing new intellectual property rights for the digital world, particularly for temporary, downloaded copies of software, music or movies.
"I think part of what I hope to do with the Chinese authorities is, first, establish this as a mutual interest," he said. "And I think we are well on our way to doing that given the creative industries here. Second is to encourage, and I think this part has already been well on its way, [to] make sure you have the right legal structure. Then third, step up the enforcement action."
"They know there has been rampant piracy," Zoellick said. "[Trade Minister Shi Guangsheng] talked to me about some of the criminal penalties that they were putting in place, which is very important if you're going to be effective on this. This is an area where, frankly, our businesses will work with us and the Chinese government and Chinese businesses share the same interest." He added that sometimes financial penalties only become "a cost of doing business."
With China's plenary National People's Congress scheduled for next month, Zoellick said there is "a whole host" of laws and rules that must be changed for China to implement commitments that the nation made in joining the World Trade Organization. But for the United States, the focus is on the enforcement of intellectual property rights, he said.
"This is again why China is a particularly interesting place -- because you build interests within China that recognize the benefits of intellectual property protection because of the software development here and the creative-industries development here," Zoellick said.
China's Size Contributes To Unique Character
On his last visit to Beijing, Zoellick met with software and other technology industry entrepreneurs and found a "commonality of purpose," he said. But the vastness of China as a country and the differences in regions is part of the problem, he said. Zoellick said he plans to address university students in a more remote region on the subject of the WTO. "Part of this trip is also to listen and to learn how they view things," he said.
Zoellick said he would seek the view of the Chinese leadership on business and the economy with an eye toward new developments such as e-commerce. He also wants to get the view of the U.S. business community doing business there, he said.
"Part of my job is to be in touch with people in the American business community to understand how they see the changing business environment [in China] and how they are affecting locations of production, networks of production, the impediments to e-commerce or other new developments," he said. "I'd be benefited if I get a sense of the Chinese leadership's view on that."
Zoellick said China's agreement to join the WTO Information Technology Agreement encourages China's inclusion in a global sourcing network for IT components. He cited the integrated sourcing initiative in the recently completed U.S.-Singapore trade agreement that has allowed IT components from Indonesia to be drawn into the sourcing network.
The initiative removed paperwork on customs procedures and on how much of a product must come from within the agreement countries, thereby creating incentives for investors to go to Indonesia -- particularly the islands of Batam and Bintam, just off Singapore's shore -- for sourcing. Zoellick said he learned this week that Japanese firms already are planning to capitalize on the arrangement.
Broad Powers Possible For EU Security Agency
The European Union Network and Information Security Agency could receive broad powers, according to a reading of the recent European Commission proposal to create the agency.
The reason for establishing the agency is to narrow the wide differences between the 15 EU countries on network and information security. But centralizing that coordination also could mean involving EU-wide law enforcement, EU-level information collection, the setting of EU standards and risk-assessment methods, and developing network and information security requirements for nations to implement, according to the proposal.
As defined by the proposal, networks include satellites, fixed and mobile telecommunications lines, and radio, television broadcasts and cable TV networks. Information systems include computers and electronic communications networks.
As proposed, the roughly $25 million agency would operate for five years (2004-2008), with a review after three years. A management board composed of six member states' appointees and six commission appointees would oversee the agency. Also on the board would be two representatives from industry and one consumer advocate, all proposed by the commission and without the right to vote.
An executive director, appointed by the management board but with a "high degree of independence and flexibility," will organize the internal functioning of the agency and submit annual reports. The director will have the help of a "restricted" advisory board of nine experts in various fields. There also may be temporary working groups of experts. The agency would have 31 staff, drawn from the private and public sectors -- all considered EU officials.
Agency Would Collect And Analyze Data
A primary objective of the agency would be to collect and analyze data, including "information on current and emerging risks and, in particular, those which would impact on the resilience of critical communications networks and the information accessed and transmitted through them," the proposal said. The plan calls for money for IT equipment necessary to implement data collection and analysis.
The proposal specifies who could make requests and how they would be handled. The agency likely would provide opinions and support for harmonized processes and procedures in member states' application of technical requirements affecting security. It also would identify and promote needed security standards and certification schemes as mandated by European legislation.
In addition, although a high level of transparency and wide access to the agency's information is cited as necessary, the agency "will also collect information which needs to be kept confidential." It could be shared with third parties only to protect public security and for law enforcement.
In each EU country, the proposal states that the agency would have the "most extensive legal capacity accorded to legal persons under their laws."
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