The intellectual property laws of China are primitive and unsophisticated. China has drafted or revised all of its IP statutes to meet this requirement. Eighteen jurisdictions have introduced intellectual property law divisions to their courts. The intellectual property bench in the Shanghai intermediate court decides about 300 cases per year. Police departments in all major cities have created intellectual property enforcement divisions.
Criminal sanctions are also a major prevention measure.
Criminal courts have recently imposed penalties of three to five years in prison for the counterfeiting of foreign computer products. New regulations have established a system for seizure of counterfeit goods by customs authorities at China's major ports. Foreign parties cannot effectively make use of the enforcement system. Moreover, U.S. corporations such as Microsoft and 3M have successfully used the criminal justice system and the police for seizure of counterfeit products. China now has the basic framework for legal protection of intellectual property rights.