IV
104TH CONGRESS
2D SESSION
H. RES. 429
Expressing the sense of the House of Representatives with respect to the
compliance of the People’s Republic of China with its intellectual property
rights enforcement agreement with the United States and its accession
to the World Trade Organization.
IN THE HOUSE OF REPRESENTATIVES
MAY 9, 1996
Mr. MARKEY (for himself, Ms. PELOSI, Mr. BRYANT of Texas, and Mr.
SPRATT) submitted the following resolution; which was referred to the
Committee on Ways and Means
RESOLUTION
Expressing the sense of the House of Representatives with
respect to the compliance of the People’s Republic of
China with its intellectual property rights enforcement
agreement with the United States and its accession to
the World Trade Organization.
Whereas the Intellectual Property Rights Enforcement Agree-
ment entered into in February of 1995 between the
United States Government and the Government of the
People’s Republic of China (hereafter in this resolution
referred to as the ‘‘Intellectual Property Rights Agree-
ment’’) committed the People’s Republic of China to take
strong measures to curb piracy of works protected by in-
tellectual property rights, particularly in the areas of
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computer software, audiovisual works, patented products,
and trademarks;
Whereas the Intellectual Property Rights Agreement requires
the People’s Republic of China to close factories engaging
in conduct prohibited by the Intellectual Property Rights
Agreement, revoke audiovisual permits and business li-
censes of establishments engaging in piracy, seize and de-
stroy pirated products, establish stringent border controls
to stop trafficking in pirated products, and remand for
criminal prosecution individuals responsible for pirating
activities;
Whereas despite some progress on the part of the People’s
Republic of China toward implementing the terms of the
Intellectual Property Rights Agreement, the United
States Trade Representative has determined that the ful-
fillment by the People’s Republic of China of key provi-
sions of the Intellectual Property Rights Agreement re-
mains seriously deficient;
Whereas the refusal of the People’s Republic of China to
comply with those provisions of the Intellectual Property
Rights Agreement requiring the closure of factories pro-
ducing pirated CD–ROM’s, compact discs, and laser discs
has inflicted an estimated $2,300,000,000 in damages on
United States intellectual property-based industries;
Whereas authorities in the People’s Republic of China have
not fulfilled their obligations under the Intellectual Prop-
erty Rights Agreement to eliminate the manufacture and
distribution of pirated products, vigorously pursue copy-
right infringement, prosecute those engaging in the most
egregious acts of piracy, and impose fines significant
enough to deter piracy;
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Whereas the People’s Republic of China has failed to estab-
lish the effective border enforcement system required by
the Intellectual Property Rights Agreement to prevent
the export of pirated products, and as a result shipments
of pirated cargo continue to reach overseas markets
where they deprive United States manufacturers of reve-
nues by driving down sales of legitimate products;
Whereas the National Copyright Administration established
in the People’s Republic of China as part of the Intellec-
tual Property Rights Agreement so that legitimate title
holders of intellectual property can be identified by man-
ufacturers before production commences, has received vir-
tually no requests by manufacturers for title verifications;
Whereas the widespread marketing of pirated CD–ROM’s
produced in the People’s Republic of China that contain
software compilations results in steep losses for the
United States software industry;
Whereas, while the People’s Republic of China fails to meet
its responsibilities under the Intellectual Property Rights
Agreement and, according to the United States Trade
Representative, is not engaged in good faith negotiations
to bring itself into compliance with the Intellectual Prop-
erty Rights Agreement, the People’s Republic of China
actively seeks entry into the World Trade Organization in
order to gain access to favorable international trading
privileges; and
Whereas the working party on accession of the People’s Re-
public of China to the World Trade Organization has
been meeting to determine the terms and conditions
under which the People’s Republic of China may join the
World Trade Organization: Now, therefore, be it
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Resolved, That it is the sense of the House of Rep-
resentatives that—
(1) during meetings of the working party of the
World Trade Organization on the accession of the
People’s Republic of China to the World Trade Or-
ganization, and in all bilateral consultations between
the United States Government and the Government
of the People’s Republic of China, full compliance by
the People’s Republic of China with the Intellectual
Property Rights Agreement should be established as
a condition for the accession of the People’s Repub-
lic of China to the World Trade Organization; and
(2) until such time as the United States Trade
Representative certifies that the People’s Republic of
China is making significant, steady, and measurable
progress toward fulfilling its obligations under the
Intellectual Property Rights Agreement, the United
States Government should oppose the accession of
the People’s Republic of China to the World Trade
Organization.
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