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)

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