26 April 1997
Source: http://www.usia.gov/


Unites States Information Agency

24 April 1997

TEXT: COMMERCE 4/24 RELEASE ON TITLE VERIFICATION OFFICE

(USTR Barshefsky says TVO helps IPR enforcement)  (650)



Washington -- Secretary of Commerce William Daley and U.S. Trade
Representative Charlene Barshefsky welcomed the decision by three U.S.
software trade associations -- Business Software Alliance, Interactive
Digital Software Association, and Software Publishers Association --
to use the U.S. Information Technology Office established by the
Commerce Department and U.S. industry as their joint Software Title
Verification Office in China.


"The development of a Title Verification Office (TVO) in China is an
important step toward insuring that the production, distribution, and
sale of IPR products in China is accountable to the rightful owners --
copyright holders," Barshefsky said. "The TVO system amounts to
another step in increased IPR enforcement and gaining legitimate
market access in China."


The U.S. Information Technology Office (USITO) was officially opened
in October 1995 in Beijing to help U.S. information technologies firms
do business in China, according to the release. The USITO is a joint
endeavor between the U.S. Department of Commerce and three trade
associations -- the American Electronics Association, the Software
Publishers Association, and the Telecommunications Industry
Association.


Following is the text of the release:



(begin text)



WASHINGTON, D.C. -- Underscoring the Clinton Administrations
commitment to helping U.S. software companies do business in China,
Commerce Secretary William M. Daley and U.S. Trade Representative
Ambassador Charlene Barshefsky today welcomed the decision by three
U.S. software trade associations -- Business Software Alliance,
Interactive Digital Software Assn., and Software Publishers Assn. --
to use the U.S. Information Technology Office established by the
Commerce Department and U.S. industry as their joint Software Title
Verification Office in China.


"I commend the efforts of the software industry and our government in
working together to protect U.S. intellectual property rights and
increase sales of legitimate U.S. software in China," Secretary Daley
said. "Software is a critical U.S. industry that employs hundreds of
thousands of high-wage, high-skill workers and supplies approximately
75 percent of the worldwide prepackaged software market. We will
continue to do all we can to increase sales of legitimate software in
China, a vital market for our software industry."


"Our 1995 and 1996 Intellectual Property Rights (IPR) accords are
critical in bringing China into compliance with international IPR
standards," said Ambassador Barshefsky. "The development of a Title
Verification Office (TVO) in China is an important step toward
insuring that the production, distribution, and sale of IPR products
in China is accountable to the rightful owners -- copyright holders.
The TVO system amounts to another step in increased IPR enforcement
and gaining legitimate market access in China."


The establishment of the TVO was mandated by the June 1996 IPR Accord
negotiated with China by the Office of the U.S. Trade Representative
(USTR). The Software Title Verification Office will channel requests
for title verification from the National Copyright Administration of
China (NCAC) to U.S. software suppliers that hold the copyrights. The
NCAC will not issue a certificate to the entity to reproduce, produce,
or publish any foreign computer software unless they receive
confirmation from the copyright holders granting permission to do so.
The TVO will operate as a one-stop shop for Chinese authorities to
receive quick and accurate information on legitimate right holders of
intellectual property.


China has made progress in creating an effective system to protect
intellectual property rights. According to the Chinese Government (and
supported by U.S. industry figures), a total of 39 illegal production
facilities have been closed since June 1996. In addition, China has
arrested more than 250 "major criminals" involved in IPR piracy and
the production of pornographic materials. The 22 legitimate factories
throughout China have turned their attention to domestic production
while piracy of foreign sound recordings, in particular, has dropped
dramatically.


(end text)




Return to Washington File home page