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Chinese Government to Shift to Legal Software by 2013

US Dept of Commerce, 11/21/11

At the recent 22nd Joint Commission on Commerce and Trade (JCCT) between China and the US in Chengdu, China China's Vice Premier Wang Qishan said China is committed to ensuring that software legalization programs are completed by all 31 provincial entities by mid-2012 and at the municipal and county-level by 2013. Wang said China will continue to take measures to ensure that governments at all levels use only legitimate software, ensuring that all types of software used by government agencies are licensed. China has requested government agencies at all levels to bring software into state asset management systems, and will increase resources devoted to conducting audits and inspections, and will publish the auditing results as required by China's law to ensure that all types of software used by government agencies are being accurately accounted for. To promote efficiency and accuracy in these audits and inspections, government agencies will employ technical and other means to further improve management of their software assets.

In addition, China will further promote the use of licensed software in enterprises and conduct enterprise software management pilot projects and publish progress reports about these projects.

China also announced that the State Council has issued a measure requiring governments of provinces, municipalities and autonomous regions to eliminate by December 1, 2011 any catalogs or other measures linking indigenous innovation policies to government procurement preferences.

Building on the innovation principles agreed to in the 2011 APEC Leaders' Declaration, China and the United States agree to use the JCCT Intellectual Property Rights Working Group to study investment, tax and other regulatory measures outside of government procurement, with the first phase of study in 2012 covering investment and tax, and the second phase in 2013 covering key measures in other areas, to determine whether the receipt of government benefits is linked to where intellectual property is owned or developed, or to the licensing of technology by foreign investors to host country entities. The two sides will actively discuss removal of these barriers that distort trade and investment.

China has established a State Council-level leadership structure, headed by Vice Premier Wang Qishan, to lead and coordinate intellectual property rights (IPR) enforcement across China. Through the establishment of this mechanism, China will enhance its ability to crack down on IPR infringement by making permanent the leadership structure under the recent Special IPR Campaign.

China stated that the Standardization Administration of China and the National Energy Administration follow the principles of openness and transparency in the development of national and industry standards. China confirmed that foreign entities are welcome to participate in China's smart grid standards technical committees. China welcomed continued bilateral cooperation with the United States on smart grid standards, including under the Energy Cooperation Program framework. State Grid Corporation of China plans to invest USD 100 bln in a smart grid by 2030.

Building on the 2010 JCCT commitment to develop a one-stop shopping mechanism for telecommunications network access license and radio type approval, China agreed to publish these procedures by the end of 2011. According to the US Department of Commerce, for a given piece of telecommunications equipment, it can cost between USD 30,000-35,000 to test for all three licenses required in the China market. China also intends to publish in draft and allow public comment on the revision to its value-added telecommunications services catalogue.

The U.S. and China agreed to enhance efforts to combat online sales of counterfeit products with a U.S.-China government/industry program in spring 2012 to identify new approaches to combating the sale of infringing hard goods on online markets. The two countries will hold government/industry roundtables in China to discuss online copyright protection and enforcement, including library copyright protection in 2012.

China's broadcast and television associations and relevant U.S. counterparts will enhance their communications and exchanges concerning broadcast tariff rates. This exchange will be held with the support of the U.S. and Chinese governments.

The United States and China have agreed to hold a Cloud Computing Seminar in the first half of 2012 to exchange best practices in approaches to cloud computing.

U.S. Commerce Secretary John Bryson and U.S. Trade Representative Ron Kirk co-chaired the Commission with Wang. Other participants included U.S. Ambassador to China Gary Locke, U.S. Trade and Development Agency Director Leocadia Zak, and representatives from the State and Treasury Departments. Senior Chinese officials from 23 ministries and agencies also attended.

To view the entire fact sheet regarding the Joint Commission, click here.

Keywords: telecom John Bryson Leocadia Zak enterprise software Gary Locke IPR infringement law procurement software television copyright State Council State Grid Standardization Administration of China cloud computing Ron Kirk smart grid Wang Qishan broadcasting regulation network access permit China-US Joint Commission on Commerce Trade USTDA

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