Form 332-519 Intellectual Property Rigts Questionnaire

INTELLECTUAL PROPERTY RIGHTS QUESTIONNAIRE
UNITED STATES INTERNATIONAL TRADE COMMISSION
Attention: IPR Project Team
Office of Industries, Room 511
500 E Street, SW, Washington, DC 20436
FAX: 202-205-2217
The U.S. International Trade Commission (USITC) has been asked, by the United States Senate
Committee on Finance (SFC), to estimate the size and scope of intellectual property right (IPR)
infringement in China and the effects of Chinese indigenous innovation policies as they relate to the U.S.
economy and jobs. This questionnaire has been designed to collect information to fulfill this request.
More information about this report and the investigation under which it is being prepared (No. 332-519)
can be found on the following Web site:
http://www.usitc.gov/research_and_analysis/What_We_Are_Working_On.htm
PURPOSE AND CONFIDENTIALITY
According to the letter from the Senate Committee on Finance requesting the report in this matter, “the
U.S. government has not conducted a comprehensive economic analysis of the effects of China’s
ineffective IPR protection and enforcement on the U.S. economy and U.S. jobs.” By completing this
questionnaire, your firm will provide valuable information that will help the Commission estimate the
effects of Chinese IPR infringement (and indigenous innovation policies) on the U.S. economy and
employment.
The Commission has designated as “confidential business information” the information you provide in
response to this questionnaire to the extent that such information would reveal the operations of your
firm and is not otherwise available to the public. The Commission will not disclose such confidential
business information unless required by law. Information received in response to this questionnaire
will be aggregated with information from other questionnaire responses and will not be published in a
manner that would reveal the operations of your firm. The Senate Committee on Finance has asked
the Commission to provide a non-confidential (public) report to the Committee.
The USITC will report its findings to the SFC on May 2, 2011, and the SFC has indicated it intends to
make this report available to the public.
YOU ARE REQUIRED BY LAW TO RESPOND TO THIS QUESTIONNAIRE.
MANY RESPONDENTS WILL NOT NED TO COMPLETE ALL SECTIONS.
PLEASE READ ALL INSTRUCTIONS AND RETURN COMPLETED QUESTIONNAIRE
TO THE USITC NO LATER THAN OCTOBER XX, 2010.
The information is requested under the authority of section 332(g) of the Tariff Act of 1930 (19 U.S.C. §
1332(g)). Completing the questionnaire is mandatory, and failure to reply as directed can result in a
subpoena or other order to compel the submission of records or information in your possession (19 U.S.C.
§ 1333(a)). Further information on this questionnaire can be obtained from:
Alexander Hammer (202-205-3271; [email protected])
Jeremy Wise (202-205-3190; [email protected])
OMB No. 3117-XXXX; Expiration Date: XX/XX/2011
No response is required if currently valid OMB control number is not displayed

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

2 of 46

FIRM INFORMATION
Firm name
Address
City

State

Zip code

Web site address
Is your firm headquartered in the United States, or is it an U.S. affiliate of a firm headquartered
outside the United States? If either of these conditions apply, please select “yes” below and read the
associated instructions and definitions.
YES

Complete all parts of the questionnaire that apply to your firm. Then, sign the
certification, and return the entire questionnaire to the USITC (see submission
instructions on page 5) no later than October 12, 2010.

NO

Sign the certificate below, and promptly return this page and the cover page to
the USITC at the address or fax number on the cover page.

CERTIFICATION
The undersigned certifies that the information supplied herein in response to this questionnaire is
complete and correct to the best of his/her knowledge and belief and understands that the information
submitted is subject to audit and verification by the USITC.
Section 332(g) of the Tariff Act of 1930 (19 U.S.C. 1332(g)) provides that the Commission may not
release information which it considers to be confidential business information unless the party submitting
such information had notice, at the time of submission, that such information would be released by the
Commission, or such party subsequently consents to the release of the information. The undersigned
acknowledges that information submitted in this questionnaire response and throughout this investigation
may be used by the USITC, its employees, and contract personnel who are acting in the capacity of
USITC employees, for the purposes of developing or maintaining the records of this investigation or
related proceedings for which this information is submitted, or in internal audits and in investigations
relating to the programs and operations of the USITC pursuant to 5 U.S.C. Appendix 3. The undersigned
understands that all contract personnel will sign nondisclosure agreements.

Name and title of authorized official

Signature of authorized official*

Date (MM/DD/YY)

Telephone (xxx-xxx-xxxx)

Fax (xxx-xxx-xxxx)

*If submitting an electronic version of this certificate to the USITC, check this box in lieu of a written
signature to indicate that the authorized official listed has certified the information provided.

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

3 of 46

INSTRUCTIONS
1. Type of firm that should complete this. This questionnaire is intended for firms that have any type
of operations or activities in the United States. This includes both firms that are headquartered in the
United States and those that are U.S. affiliates of companies that are headquartered outside the United
States. Firms that fit this profile but have not experienced any IPR infringement from Chinese entities
or who do not have concerns about China’s indigenous innovation policies (see definition, page 6)
will only have to complete sections 1 and 10.
2. Coordinated response. If responsibility for completing this questionnaire is shared among separate
persons or departments within your firm, please ensure that the response has been coordinated so that
the information provided is internally consistent. In the USITC’s experience with past questionnaires,
this will minimize the need for call backs.
3. Relationship to corporate structure. Independent individual business units, wholly-owned
affiliates, majority-owned affiliates, and joint ventures associated with your firm should all provide
separate questionnaire responses, but there should be no double counting.
If this is not possible, or unreasonably burdensome, then your firm may provide a consolidated
response.
4. Questionnaire structure. This questionnaire is composed of 10 sections, as shown below.

Table of Contents
Introduction
Confidentiality
Firm Information
Certification
Instructions
Completing and Submitting questionnaire
Definitions
Questionnaire
1. General Questions
2. General IPR Questions
3. Strategies for addressing IPR issues
4. Copyrights
5. Trademarks
6. Patents
7. Trade Secrets
8. Indigenous Innovation Policies in China
9. Overall Assessment of IPR and Indigenous
Innovation
10. Other Information

Page
1
2
2
3
5
6

10
15
23
26
30
33
36
39
44
46

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

4 of 46

5. What sections and questions to complete. Each section of the questionnaire consolidates a group of
related questions. All sections may not apply to your firm’s activities. Consequently, firms may not
need to fill out all sections. For example, firms that do not have concerns regarding IPR infringement
of their products from Chinese entities should only fill out sections 1 and 10. Also, firms may have
IPR infringement concerns from China that are limited to only one or two types of infringement (e.g.,
copyright and patents). In that case, firms must complete the section that corresponds to the type of
IPR infringement concern that they have. Please also note that not all questions in a section apply to
every firm. Unless otherwise instructed, leave these response areas blank.
6. Making reasonable estimates and allocations. If the information requested is not readily available
from your records, reasonable estimates are acceptable. Many questions ask for separate information
on all of your firm’s activities, as well as your IPR-related activities. If your records do not separate
information for these IPR types, then please provide reasonable estimates to make your allocations,
but do not double count. If infringing products or services cover more than one type of IP (e.g.
trademarks and copyrights), please allocate your firm’s losses appropriately without double-counting.
7. The format of U.S. dollar estimates. All dollar figures refer to U.S. dollars and should be provided
in units of actual dollars (not in units of thousands, millions, billions, etc.) unless otherwise specified.
Moreover, they should reflect current year dollars, not those corrected for inflation.
8. The format of employment estimates. All employee figures should refer to full-time equivalents
(FTEs). See definition section.
9. Annual data basis. All annual data should be provided on a calendar year basis. If conversion from a
fiscal year basis is necessary, reasonable estimates are acceptable.
10. Comments. Space has been provided at the end of the questionnaire (section 10) for additional
information and/or comments. Include any other information you feel is relevant to the USITC’s
investigation in this section.
11. Keep a copy of your submission for your records.

Note on Burden to Your Firm
The USITC has designed this questionnaire to minimize response burden. Your firm may not have to
answer all the sections and/or questions if they do not apply. This questionnaire was reviewed by
industry participants to ensure that data requests are sufficient, meaningful, and as limited as possible.
Public reporting burden for this questionnaire is estimated to average 40 hours per response. Send
comments regarding the accuracy of this burden estimate or any other aspect of this questionnaire,
including suggestions for reducing the burden, to the address on the cover page.

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

5 of 46

COMPLETING AND SUBMITING QUESTIONAIRE
1. Retrieving questionnaire. Go to the following address using your web browser. Press the enter key
and a dialogue box will appear. Use the “Save File” selection to place the questionnaire file on your
computer.
http://www.usitc.gov/documents/ipr.doc
2. Access File. Open the questionnaire file. This file is a Microsoft Word 2003 form-fillable file. It may
be opened and completed with later versions of MS Word. Contact a project leader if this file is
incompatible with your firm’s computer operating system or version of MS Word.
Note: The form-fillable file was designed to ease completion of the questionnaire and
minimize the need for the project team to contact firms for clarifications. But printing the
questionnaire and preparing a handwritten response is acceptable.
3. Enter Information. Enter requested information in the gray boxes for each question that applies to
your firm. Boxes will expand to accommodate responses. You will not be able to alter the
questionnaire or enter information outside the boxes. Certain boxes that require numeric information
only will delete any text that is inputted into them. (Gray boxes do not appear on printed versions.)
4. Submitting the questionnaire. After completing the questionnaire, there are three submission
options, as shown below. If submitting electronically, please keep the file as a Word document and do
not convert it to another file format.
Option 1: Transfer File to Secure Server. Use the USITC’s secure file upload Web site, found at:
https://dropbox.usitc.gov/
Complete the requested information in the form that appears.
For the PIN entry box, type: XXXX
Click on the “Next” button. On the second page, click on the “Browse” button, navigate to
completed questionnaire file on your computer, click “Open” (file path and name will appear).
Click “Submit.”
Option 2: E-mail. Attach the electronic version to an e-mail message and send it to
[email protected]. Note that submitting the questionnaire response by e-mail will subject your
firm’s confidential business information (CBI) to transmission over an unsecured environment and to
possible disclosure to third parties. Any risk of disclosure of CBI during transmission is assumed by your
firm and not the USITC. However, once the e-mail is received, the questionnaire response will be stored
in the USITC’s secured environment and will receive safeguards detailed in the certification on page 2.
Option 3: Mail. Copy the questionnaire file to removable media such as a CD, and mail to the address
below. Or print the questionnaire and mail to the address below.
UNITED STATES INTERNATIONAL TRADE COMMISSION
Attention: China IPR Project Team
Office of Industries, Room 511
500 E Street, SW, Washington, DC 20436

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

6 of 46

DEFINITIONS
1. China and Chinese entities. For the purposes of this study, China is what is commonly referred to as
“mainland China,” and excludes Hong Kong, Macao, and Taiwan. Chinese entities will refer to both
Chinese firms (e.g. private, state-owned, collective, joint-ventures, affiliates) and government
agencies.
2. Confidential Business Information. In section 201.6(a) of its Rules of Practice and Procedure (19
CFR 201.6(a)), the Commission defines “confidential business information” to mean: “Information
which concerns or relates to the trade secrets, processes, operations, style of works, or apparatus, or to
the production, sales, shipments, purchases, transfers, identification of customers, inventories, or
amount or source of any income, profits, losses, or expenditures of any person, firm, partnership,
corporation, or other organization, or other information of commercial value, the disclosure of which
is likely to have the effect of either impairing the Commission's ability to obtain such information as
is necessary to perform its statutory functions, or causing substantial harm to the competitive position
of the person, firm, partnership, corporation, or other organization from which the information was
obtained, unless the Commission is required by law to disclose such information.”
3. Full-time equivalent (FTE) employment. Refers to actual levels of employment, calculated by
taking the ratio of the total number of paid hours during a period (by part time, full time, and
contracted workers) to the number of working hours in that period. Employment estimates should
include those in any affiliated joint-venture operation where your firm maintains majority equity
status.
4. Indigenous innovation policies (China). For the purposes of this survey, indigenous innovation
policies include Chinese policies aimed at promoting innovation and domestic development of
intellectual property by Chinese companies, through such channels as government procurement
practices, technical standards setting, subsidies to China’s domestic firms, tax incentives to China’s
domestic firms, incentives for China’s domestic firms to register patents or other types of intellectual
property, unequal treatment in enforcing IPR relative to Chinese firms, preferential lending to
domestic firms, technology transfer requirements, compulsory licensing at below market rates, and
unequal enforcement of China’s Anti-Monopoly Law.
5. Intellectual property. Refers to creations of the mind including, but not limited to, inventions,
literary and artistic works, and symbols, names, and designs. International property rights are national
in scope. For example, to be protected in China, patents and trademarks must be registered in China.
Violation of IPR is often referred to as “infringement.” Major types of IPR include:
A. Trademarks: Any name, word, device, letter, number, three-dimensional shape, packaging, color,
or any combination thereof, adopted and used by manufacturers or merchants to identify their
goods or services and distinguish them from those manufactured or sold by others.
Violations of trademarks include:
i. to use a trademark that is identical with, or similar to, a registered or well-known trademark
in respect of the identical or similar goods without the authorization from the trademark
registrant;
ii. to sell goods with the knowledge that those goods bear a counterfeited registered trademark;
iii. to counterfeit, or to make or sell, without authorization, representations of a registered
trademark of another person; or

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

7 of 46

iv. to use a trademark that imitates or translates the well-known mark of another person that has
been registered in China, misleads the public, and is likely to create prejudice to the interests
of the well-known mark registrant.
A well-known trademark is one that is widely known to the relevant sectors of the public and
enjoys a highly regarded reputation in China.
Specifically excluded from this definition of violations is:
offering goods or services bearing a genuine mark which are imported or sold in the market
country, but are in contravention of a commercial arrangement regarding the sale or
distribution of such goods or services in the market country (“gray market goods”).
Trademark violations may also be referred to as “counterfeiting.”
B. Copyrights: A form of protection provided to original works of authorship broadly including
written works; oral works; musical, dramatic, choreographic, and acrobatic works (including
sound recordings); works of fine art and architecture; photographic works; cinematographic
works and works created by virtue of an analogous method of film production; drawings of
engineering designs and product designs; maps, sketches, and other graphic works and model
works; and computer software.
Copyright infringement includes violation of the following exclusive rights:
i. to reproduce the copyrighted work by any means;
ii. to prepare derivative works (including translations and compilations) based upon the
copyrighted work;
iii. to distribute the original or reproductions of a work to the public by sale or other transfer of
ownership, or by rental, lease, or lending;
iv. to perform the copyrighted work publicly (including by audio, video, or other broadcast);
v. to communicate to the public a work by wire or wireless means on communication networks;
vi. in the case of fine art, photography, and cinematography (or any other work created by
analogous methods of film production), to show the work publicly, and, in the case of fine art
and photography, to exhibit the work publicly;
vii. to fixate a work on a carrier by way of film production (or an analogous method) in order to
make a cinematographic work; and
viii. to claim authorship of the work and to object to any distortion, mutilation, or other alteration
of the work.
A copyright need not be registered with a government in order to be protectable. Copyright
violations may also be referred to as “piracy.”
C. Patents: A grant giving the patent owner the right to exclude others from making, using, or
selling his patented product or process within the national territory. In China, patents may be
granted for inventions, utility models, and designs.
i.

Invention patents are granted for any new technical solution relating to a product,
process, or improvement, and are protected for 20 years from the filing date. Such
patents are analogous to U.S. utility patents.

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

ii.

iii.

8 of 46

Utility model patents are granted for any new technical solution relating to the shape,
structure, or their combination, of a product which is fit for practical use, and are
protected for 10 years. There is no U.S. counterpart for this type of patent.
Design patents are provided for any new design relating to a product’s shape, pattern,
color, or their combination, which creates an aesthetic feeling and is fit for industrial
application, and are also protected for 10 years.

Patent infringement refers to patent exploitation without the authorization of the patent owner
including:
i.
ii.
iii.
iv.
v.

Manufacturing patented products;
Using patented processes;
Offering to sell or selling patented products;
Using products directly acquired by the patented processes for production or business
purposes; or
Importing or exporting patented products or products directly acquired through patented
processes.

D. Trade secrets: Technical or business information that is nonpublic, can bring economic benefits
to the rightholder, and is practical, and for which the rightholder has adopted measures to
maintain its confidentiality.
Trade secret violations include:
i.
ii.
iii.

iv.

Obtaining trade secrets from the owner by stealing, promising gain, using coercion, or
other improper means;
Disclosing, using, or allowing others to use trade secrets obtained by stealing, promising
gain, using coercion, or other improper means;
Disclosing, using, or allowing others to use trade secrets that a party has obtained by
breaking an agreement or by disregarding the requirements of the trade secret owner to
maintain the trade secret in confidence; and
Acquisition, use, or disclosure by a third party of someone else’s trade secret when this
third party had, or should have had, awareness that the secret is available owing to the
illegal acts mentioned above.

Trade secret violations may also be referred to as “misappropriation.”
E. Other IPR: May include plant variety rights, semiconductor mask works/layout design,
proprietary technical data submitted to a government agency in connection with the regulatory
review of a product, or other IPR recognized in China.
6. Profits (Gross). A company’s total earnings, calculated according to generally accepted accounting
principles (GAAP). It is usually calculated by taking the difference between sales (or revenue) and
the cost of goods sold. Overhead, payroll taxes, and interest payments are not used in this calculation.
7. Research and development (R&D): The systematic pursuit of new knowledge of a general nature,
the use of knowledge to meet a specific need, or the application of knowledge to the production or
improvement of a product, service, process, or method.
More specifically, R&D covers three activities: basic research, applied research, and experimental
development. Basic research is experimental or theoretical work undertaken primarily to acquire new

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

9 of 46

knowledge of the underlying foundation of phenomena and observable facts, without any particular
application or use in view. Applied research is also original investigation undertaken in order to
acquire new knowledge. It is, however, directed primarily towards a specific practical aim or
objective. Experimental development is systematic work, drawing on existing knowledge gained from
research and/or practical experience, which is directed to producing new materials, products, or
devices, to installing new processes, systems, and services, or to improving substantially those
already produced or installed.
8. Royalty and License Fees: Payments received for the use of IPR, including but not limited to
patents, trademarks, franchises, copyrights, and industrial processes.
9. Sales (Total): Total sales, net of returns, discounts, and allowances. Includes internal consumption
and transfers to related firms, as applicable, at fair market value. Total sales include income derived
from royalty and license fees.
10. Material sales or profit losses: Losses which are consequential or important.

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

10 of 46

SECTION 1. GENERAL QUESTIONS
1.1

1.2

Who is the person at your firm who should be contacted about this questionnaire?

Name

Title

Telephone (xxx-xxx-xxxx)

E-mail address

Report below the actual number of hours required and the cost to your firm or establishment(s)
of completing this questionnaire, including all preparatory activities.
Hours

1.3

Dollars

Is your firm owned, in whole or in part, by another firm(s)?
Yes
No

If you answered “yes” above, provide the following information about the firms (top four maximum,
based on equity share):
Approximate
Owner (firm name)
Address
equity share (%)

1.4

What best describes your current firm type (check only one box)?
Headquartered in United States without any foreign affiliates
Headquartered in United States with foreign affiliates
Affiliate of multinational headquartered in a country other than United States
Other –– Specify:

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

1.5

Please provide estimates for your firm’s sales in the markets identified below. DO NOT include
royalty and license income. Careful estimates are acceptable. If a value is zero, enter 0. If a value
is unknown, leave entry blank.

#

Market

1
2
3

Global
U.S. market
Chinese market

1.6

Market

1
2
3

Global
U.S. market
Chinese market

2008
Sales (in actual dollars)

2009

2007
2008
Royalty and license revenue (in actual dollars)

2009

Please provide estimates of your firm’s employees in the locations identified below. Include
production and related workers, and management, administrative, and marketing staff. Careful
estimates are acceptable. If a value is zero, enter 0. If a value is unknown, leave entry blank.

#

Location of employees

1
2
3

Global
United States
China

1.8

2007

Please provide estimates of your firm’s revenue from royalties and licenses in the markets
identified below. Careful estimates are acceptable. If a value is zero, enter 0. If a value is
unknown, leave entry blank.

#

1.7

11 of 46

2007
2008
Number of full-time equivalent
employees (in actual whole numbers)

2009

In 2009, approximately what share of your firm’s employees worldwide were U.S. nationals
(those that possess U.S. citizenship or lawful permanent residence residing both inside and
outside the United States)?
Approximate share, percent (round to nearest whole number)

1.9

Please provide estimates for your firm’s research and development (R&D) expenditures. Careful
estimates are acceptable. If a value is zero, enter 0. If a value is unknown, leave entry blank.

#

Location of R&D activity

1
2
3

Global
United States
China

2007
2008
R&D expenditures (in actual dollars)

2009

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

1.10

For your firm’s GLOBAL sales, please select the North American Industry Classification
System (NAICS) classification code(s)/industry(ies) that correspond to your firm’s principal
products and/or services in 2009. If one industry applies, enter “1” in the last column for that
industry. If more than one industry applies, rank up to the top three (in descending order of
global sales) by entering “1”, “2”, and, if appropriate, “3” in the last column. (Note that in
defining the industries below, some NAICS codes have been collapsed or combined.)

NAICS code(s)
31212, 31213,
31214
3122
3162, 3169
315
3254
325, except 3254
333
334518
334, except 334518
335
3361, 3362, 3363
3364
3391
33991
33993
5111
5112
5121
5122
51512
51913
5415
5417

12 of 46

Industry
Breweries, wineries, and distilleries

Enter “1”, “2”, “3”,
as appropriate, to
indicate your firm’s
industry(ies)

Tobacco manufacturing
Footwear and leather products manufacturing
Apparel manufacturing
Pharmaceuticals
Other chemical manufacturing
Machinery manufacturing
Watch, clock, and part manufacturing
Other computer and electronic product manufacturing
Electrical equipment, appliance, and component
manufacturing
Motor vehicle equipment manufacturing
Aerospace product and parts manufacturing
Medical equipment and supplies manufacturing
Jewelry and silverware manufacturing
Game, toy, and children’s vehicle manufacturing
Newspaper, periodical, book, and directory
publishers
Software publishers
Motion picture and video industries
Sound recording industries
Television broadcasting
Internet publishing and broadcasting and web search
portals
Computer systems design and related services
Scientific research and development services

If an appropriate NAICS code(s) or industry(ies) does not appear above, please indicate below the
NAICS 4-digit codes(s) and industry(ies) that apply to your firm.

Note: A list and definition of NAICS codes can be found at:
www.census.gov/cgi-bin/sssd/naics/naicsrch?chart=2007

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

1.11

For your firm’s sales in CHINA, please select the North American Industry Classification
System (NAICS) classification code(s)/industry(ies) that correspond to your firm’s principal
products and/or services in 2009. If one industry applies, enter “1” in the last column for that
industry. If more than one industry applies, rank up to the top three (in descending order of
global sales) by entering “1”, “2”, and, if appropriate, “3” in the last column. (Note that in
defining the industries below, some NAICS codes have been collapsed or combined.)

NAICS code(s)
31212, 31213,
31214
3122
3162, 3169
315
3254
325, except 3254
333
334518
334, except 334518
335
3361, 3362, 3363
3364
3391
33991
33993
5111
5112
5121
5122
51512
51913
5415
5417

13 of 46

Industry
Breweries, wineries, and distilleries

Enter “1”, “2”, “3”,
as appropriate, to
indicate your firm’s
industry(ies)

Tobacco manufacturing
Footwear and leather products manufacturing
Apparel manufacturing
Pharmaceuticals
Other chemical manufacturing
Machinery manufacturing
Watch, clock, and part manufacturing
Other computer and electronic product manufacturing
Electrical equipment, appliance, and component
manufacturing
Motor vehicle equipment manufacturing
Aerospace product and parts manufacturing
Medical equipment and supplies manufacturing
Jewelry and silverware manufacturing
Game, toy, and children’s vehicle manufacturing
Newspaper, periodical, book, and directory
publishers
Software publishers
Motion picture and video industries
Sound recording industries
Television broadcasting
Internet publishing and broadcasting and web search
portals
Computer systems design and related services
Scientific research and development services

If an appropriate NAICS code(s) or industry(ies) does not appear above, please indicate below the
NAICS 4-digit codes(s) and industry(ies) that apply to your firm.

Note: A list and definition of NAICS codes can be found at:
www.census.gov/cgi-bin/sssd/naics/naicsrch?chart=2007

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

1.12

14 of 46

Has your firm ever exported end-use or intermediary products to China, sent material for testing
or research, established an affiliate operation in China, or otherwise derived revenue from
business in China (aside from importing from China)?
Yes, currently
Yes in the past, but not now
No, but are considering doing so
No, and have no plans to do so

1.13

Which of the following activities does your firm perform in China (check all that apply)?
Sales
Research and development
Manufacturing (by your firm)
Manufacturing (contracted to another firm)
Exporting from China
Importing into China
Licensing of technology to any entity
No activities
Other activities –– Specify:

1.14

Does your company experience IPR infringement of your products or services by Chinese
entities or individuals?
Yes  Skip to section 2
No

1.15

 Proceed to question 1.15

Does your firm have concerns that China’s indigenous innovation policies are affecting, or will
likely affect, your firm’s revenues or business operations? (See definition section for “indigenous
innovation policies.”)
Yes  Skip to section 8
No

 Skip to section 10

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

15 of 46

SECTION 2. GENERAL IPR INFORMATION
2.1

Please indicate the importance of IPR protection to your firm’s business(es) during 2007-09.

Item
Copyrights
Trademarks
Patents
Trade secrets
Other IPR
If other, specify here:

2.2

Rank importance from 1 (not at all important)
to 5 (extremely important)
Not at all
Extremely
important
important
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5

Did your firm experience any IPR violations attributable to Chinese entities or individuals during
2007-09?
Yes

No

If you answered “yes” to 2.2, check all types of IPR infringement that apply:
Copyrights
Trademarks
Patents
Trade secrets
Other IPR –– Specify:

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

2.3

Please indicate the level of your firm’s general concerns regarding the effects of IPR violations
by Chinese entities or individuals that you have had during 2007-09.

Issue
Lost sales or royalties and
license fees in China
Lost sales or royalties and
license fees in U.S.
Lost sales or royalties and
license fees in all other
markets
Damage to brands or
product reputation
Reduced return to R&D
expenditures
Reduced return on
investment
Cost of IPR enforcement
Increased warranty costs
related to counterfeit
products
Lost employment in U.S.
Stolen trade secrets
Other
If other, specify here:

2.4

16 of 46

Rank your firm’s level of concern from 1 (not at all concerned)
to 5 (extremely concerned)
Extremely
Not at all
concerned
concerned
1

2

3

4

5

1

2

3

4

5

1

2

3

4

5

1

2

3

4

5

1

2

3

4

5

1

2

3

4

5

1

2

3

4

5

1

2

3

4

5

1
1
1

2
2
2

3
3
3

4
4
4

5
5
5

For your firm’s products/services, which of the listed Chinese entities were infringers of the
types of IPR identified below during 2007-09? Check all that apply.

Type of Chinese entity
Chinese state-owned enterprises
Chinese government agencies
Chinese private firms
Your firm’s joint venture partners
Individuals, including former
employees
Foreign-owned enterprises
Unknown entities
Other type of entity
Specify other entity:

Copyrights

Type of IPR Infringement
Trade
Trademarks Patents
secrets

Other
IPR

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

2.5

2.6

Did your firm license technology to any entities or individuals in China during 2007-09?
Yes

If you answered “yes” to 2.5, was such licensing required to gain or maintain
access to the Chinese market?
Yes
No
Unknown

No

If you answered “no,” what were the reasons? Check all that apply.
No demand for your firm’s technology
Your firm does not license technology
Barriers to obtaining IPR protection in China
Barriers to enforcing IPR in China
Other –– Specify:

Please indicate whether or not your firm’s revenues were lower as a result of IPR infringement in
China during 2007-09 than they would have been in the absence of such infringement.
Yes

If you answered “yes” to 2.6, what are the reasons for the lower revenues
associated with IPR infringement in China? Check all that apply.
Lowered price of products/services to compete with infringing
products
Fewer units sold in the Chinese market
Moved manufacturing facilities from China or did not expand existing
facilities
Moved R&D facilities from China or did not expand existing facilities
Did not enter China’s market
Other –– Specify:

Not affected
Unknown

2.7

17 of 46

Has your firm estimated revenue losses resulting from IPR infringement in China?
Yes
No

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

2.8

18 of 46

If you answered “yes” to 2.7, select the amounts of those losses in 2009 from the ranges provided.
If 2009 data are unavailable, use latest year available and specify this year in last column below.
Range of lost 2009 revenue

Type of loss
attributable to
IPR
$0
$1,000,001 $2,000,001
infringement by
to
to
to
Chinese entities $1,000,000 $2,000,000 $3,000,000
Lost sales, not including lost royalty and license fees:
In Chinese
market
In U.S. market
In all other
markets
Lost royalty and license fees:
From China
From U.S.
From all other
countries
Lost global
profits
Loss specifically
attributable to
internet-based
infringement

Latest
If more
available
than
year
$4,000,000,
$3,000,001
if not 2009
estimate to
to
$4,000,000 nearest million (4-digit)

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

2.9

19 of 46

If you answered “yes” to 2.7, please identify how your firm estimated losses associated with IPR
infringement in China.

Your firm based revenue losses on:
Estimates
(Estimated
(Estimated
of market in
amount of
amount of
infringement or infringement or China based on
Third party
China’s relative estimates of
confiscated
confiscated
economic and/or infringement
product)
product)
(e.g., industry
demographic
multiplied by
multiplied by
Type of loss (retail value)
associations)
(wholesale price) profile
Lost sales, not including royalty and license fees:
In
Chinese
market
In U.S.
.
market
In all
other
markets
Lost royalty and license fees:
From
China
. From U.S.
From all
other
countries
Lost global
profits
Loss
specifically
attributable to
internet-based
infringement

Not applicable

Not applicable

Other

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

20 of 46

2.10 If you answered “other” to 2.9, please briefly describe your firm’s method for measuring the
effects of IPR infringement of your firm’s products and services in China in 2007-09. Please
don’t use the “enter” key in your responses.
Type of loss attributable to IPR
infringement by Chinese entities
Description of method for measuring effects
Lost sales, not including royalty and license fees:
In Chinese market

In U.S. market

In all other markets

Lost royalty and license fees:
From China

From U.S.

From all other countries

Lost global profits

Loss specifically attributable to
internet-based infringement

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

2.11

21 of 46

Indicate the amounts of enforcement expenses incurred by your firm that were attributable to
infringement by Chinese entities in 2009, and expenses attributable to protection against IPR
infringement by Chinese entities in 2009 from the ranges provided. If 2009 data are unavailable,
use latest year available and specify this year in last column below.
Range of enforcement expenses in 2009

Item
Enforcement
expenses
attributable to
infringement by
Chinese entities
and expenses
attributable to
protection against
IPR infringement
by Chinese
entities

2.12

$0
$1,000,001
to
to
$1,000,000 $2,000,000

$2,000,001
to
$3,000,000

If more
Latest
than
available
$3,000,001 $4,000,000,
year
to
estimate to
if not 2009
$4,000,000 nearest million (4-digit)

If your firm operates in China, please rank the top three Chinese provinces which your firm
estimates had the best climate for protecting your firm’s intellectual property in 2007-09.
Not applicable
Applicable, but province unknown
Applicable. Please rank top three from list below (1 being best, 3 being third best).
Place the number in the space to the left of the province name.
Anhui
Beijing
Chongqing
Fujian
Gansu
Guangdong
Guanxi

Guizhou
Hainan
Hebei
Heilongjiang
Henan
Hubei
Hunan

Inner Mongolia
Jiangsu
Jiangxi
Jilin
Liaoning
Ningxia
Qinghai

Shaanxi
Shandong
Shanghai
Shanxi
Sichuan
Tianjin
Tibet

Xinjiang
Yunnan
Zhejiang

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

22 of 46

2.13a If your firm operates in China, please rank the top three Chinese provinces which your firm
estimates had the worst climate for protecting your firm’s intellectual property in 2007-09.
Not applicable
Applicable, but province unknown
Applicable. Please rank top three from below list (1 being worst, 3 being third worst).
Place the number in the space to the left of the province name.
Anhui
Beijing
Chongqing
Fujian
Gansu
Guangdong
Guanxi

Guizhou
Hainan
Hebei
Heilongjiang
Henan
Hubei
Hunan

Inner Mongolia
Jiangsu
Jiangxi
Jilin
Liaoning
Ningxia
Qinghai

Shaanxi
Shandong
Shanghai
Shanxi
Sichuan
Tianjin
Tibet

Xinjiang
Yunnan
Zhejiang

2.13b Which forms of IPR infringement are prevalent in the provinces identified in 2.12a?
Three provinces
with worst to third
worst IPR climates
(enter names from
list above)

Rank
Worst

Type of IPR infringement
(Check all that apply)

Copyrights

Trademarks

Patents

Trade
secrets

Other IPR

If checked “Other IPR”, specify type:
Second
worst
If checked “Other IPR”, specify type:
Third
worst
If checked “Other IPR”, specify type:

2.14

If your firm conducts business in China, please rank the three Chinese provinces from which your
firm derived the most revenue in 2007-09 based on your estimates.
Not applicable
Applicable, but province unknown
Applicable. Please rank top three from list below (1 being the most revenue, 3 being
third most revenue). Place the number in the space to the left of the province name.
Anhui
Beijing
Chongqing
Fujian
Gansu
Guangdong
Guanxi

Guizhou
Hainan
Hebei
Heilongjiang
Henan
Hubei
Hunan

Inner Mongolia
Jiangsu
Jiangxi
Jilin
Liaoning
Ningxia
Qinghai

Shaanxi
Shandong
Shanghai
Shanxi
Sichuan
Tianjin
Tibet

Xinjiang
Yunnan
Zhejiang

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

23 of 46

SECTION 3. STRATEGIES FOR ADDRESSING IPR ISSUES
3.1a

Does your firm generally discount its prices, relative to U.S. prices, for comparable products sold
in China?
Yes
No

3.1b

If you answered “yes” to 3.1a, what is the average discount at which your firm sells its
products in China, relative to U.S. prices?
Less than 5 percent
5 percent to less than 10 percent
10 percent or greater
If 10 percent or greater, specify approximate percentage:

3.1c

If you answered “yes” to 3.1a, how much of this discount is due to the need to compete
with IPR infringing versions of your products?
Less than half the discount
More than half the discount
Discount not associated with competition from IPR-infringed products.

3.2

Do IPR infringers in China discount their products relative to the price you charge in China?
Yes

If you answered “yes” to 3.2, specify average
percent discount:

No
Unknown

3.3

How would your firm best characterize the infringing product (check all that apply)?
Exact replica: No difference exists between your firm’s product/service and the infringed
product/service, but the knowledge/expression has been stolen or replicated (or production
facilities have been used without authorization)
High-quality/high-price substitutes/counterfeits: Consumer may not realize they are
buying illegal products
Bait and switch: Consumers may realize the product is infringed only upon opening or
use (e.g., high quality packaging, low quality products).
Moderate/low quality: Clearly an IPR-infringed product, consumers are most likely
consciously selecting IPR-infringed counterfeit product (to save money or because it’s
“good enough”).
Other –– Specify:

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

3.4a

24 of 46

If IPR protection and enforcement in China were brought to levels comparable to those in the
United States, would your global unit sales (i.e., sales volume not value) likely increase as a
result of such improved protection and enforcement?
Yes, global unit sales would likely increase
No, global unit sales would NOT likely increase
Unknown

3.4b

If you answered “yes” to 3.4a, by approximately how much do you assume your unit sales
would increase in the following markets?
Unit sales would increase (check one per market):
If more than 20 percent,
estimate to nearest 10
Less than 5
percent (e.g. 30 percent,
Market
percent
5 to 10 percent 10 to 20 percent
40 percent)
China
United States
All other

3.5a

If IPR protection and enforcement in China were brought to levels comparable to levels in the
United States, would your firm’s global receipt of royalties and license fees likely increase as a
result of such improved protection and enforcement?
Yes, global receipt of royalties and license fees would likely increase
No, global receipt of royalties and license fees would NOT likely increase
Unknown

3.5b

If you answered “yes” to 3.5a, by approximately how much do you assume your receipt of
royalties and license fees would increase?
Royalty and license fee income would increase (check one per market):
If more than 20 percent,
estimate to nearest 10
Less than 5
percent (e.g. 30 percent,
Market
percent
5 to 10 percent 10 to 20 percent
40 percent)
China
United States
All other

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

3.6a

25 of 46

If IPR protection and enforcement in China were at levels comparable to levels in the United
States, would you likely hire more employees worldwide?
Yes
No

3.6b

If you answered “yes” to 3.6a, where would these workers likely be hired?
In China, local Chinese employees
In China, U.S. expatriates
In the United States
U.S. expatriates in other countries
Nationals of other countries (neither the United States nor China)

3.6c

If you answered “yes” to 3.6a, by how much would your firm’s full-time equivalent
employment of U.S. workers likely rise?
Less than 2 percent
Between 2 and 5 percent
Between 5 and 10 percent
More than 10 percent
Unknown

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

26 of 46

SECTION 4. COPYRIGHTS
4.1

Has your firm experienced material sales or profit losses anywhere in the world due to copyright
infringement in China during 2007-09?
Yes, the firm has experienced associated material losses
No, the firm has NOT experienced associated material losses

 INSTRUCTIONS 
If you answered “No” to 4.1, proceed to section 5

4.2

Please indicate the number of copyright registrations owned by your firm that, as of December
31, 2009, were:

Pending or in force in the United States
Pending or in force in China
Recorded with U.S. Customs
Recorded with China Customs

4.3a

Does your firm have reason to believe that one or more of its copyrights (whether registered,
recorded, or not) has been infringed in China during 2007-09?
Yes
No

4.3b

If you answered “yes” to 4.3a, how many specific copyrights does
your firm believe to be infringed?

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

4.4a

27 of 46

During 2007-09, has your firm pursued any copyright enforcement proceedings in China?
Yes
No

4.4b

If you answered “yes” to 4.4a, estimate the number of proceedings your firm has pursued in
China during 2007-09.
Administrative action:
Civil proceedings:
Criminal proceedings:

4.4c

If you answered “yes” to 4.4a, estimate the total amount of monetary relief your firm
received from legal proceedings related to copyright infringement of your products in China
during 2007-09 (in actual dollars).
Total estimated amount:
Check here if unknown

4.4d

If you answered “yes” to 4.4a, how satisfied has your firm been with these proceedings?
Check one box for each proceeding as applicable.
Proceeding
Not satisfied
Satisfied
Very satisfied
Administrative action
Civil proceedings
Criminal proceedings
If you responded “not satisfied,” provide brief explanation in supplementary information question 10.1

4.5a

Has your firm lost sales, royalties, license fees, or other income in China, or in markets outside of
China, as a result of copyright infringement in China during 2007-09?
Yes
No

4.5b

If you answered “yes” to 4.5a, please estimate the total of such losses during 2007-09 (in
actual dollars).
Chinese market
U.S. market
All other markets
If you cannot differentiate by market, don’t enter estimates above
and enter total of such losses during 2007-09 (in actual dollars).

4.6a

Has your firm incurred expenses to address the infringement of your firm’s copyrights in China?
Yes
No

4.6b

If you answered “yes” to 4.6a, please estimate the total associated
expenses for 2007-09, which should include legal, investigative,
personnel, technical solutions, marketing, R&D, and other related
expenses (in actual dollars).

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

4.7

28 of 46

Compared to 2007, how would you characterize copyright infringement in China as it relates to
your firm’s products/services in 2009?
Increased over this period
Remained about the same
Decreased over this period
Too short a period to notice any changes
Unknown or not applicable

4.8a

Did copyright infringement in China affect the number of employees your firm hired in the United
States during 2007-09?
Caused a decrease in your firm’s employment of U.S. workers
Caused an increase in your firm’s employment of U.S. workers
No change

4.8b
4.8c

4.9a

If it caused a decrease in employment of your firm’s U.S. workers,
please estimate the number of full-time equivalent jobs lost.
If it caused an increase in employment of your firm’s U.S. workers,
please estimate the number of full-time equivalent jobs gained.

Did copyright infringement in China affect your firm’s research and development expenditures in
the United States during 2007-09?
Yes, caused a reduction in U.S.-based R&D expenditures
Yes, caused an increase in U.S.-based R&D expenditures
No, firm has R&D activities in the United States, but there has been no change in
U.S.-based R&D expenditures
No, firm does not have R&D activities in the United States

4.9b
4.9c

If it caused a reduction in your U.S.-based R&D expenditures,
please estimate the amount (in actual dollars).
If it caused an increase in your U.S.-based R&D expenditures,
please estimate the amount (in actual dollars).

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

29 of 46

4.10a Are infringing digital versions of your copyrighted products available for download from internet
Web sites hosted in China?
Yes
No
Unsure
Does not apply
4.10b

If you answered “yes” to 4.10a, how would you best characterize the growth of this type of
infringement between 2007-09?
Gradual increase in internet based infringement
Rapid increase in internet based infringement
No change
Gradual slowdown of internet based infringement
Rapid slowdown of internet based infringement

4.10c

If you answered “yes” to 4.10a, were digital files or physical goods a more predominant
source of Chinese infringement of your firm’s products/services during 2007-09?
Digital files on the internet (e.g., MP3 file)
Physical goods/services sold on the streets or on the internet
Unsure

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

30 of 46

SECTION 5. TRADEMARKS
5.1

Did your firm experience material losses in sales or profits anywhere in the world due to
trademark infringement in China during 2007-09?
Yes, the firm has experienced associated material losses
No, the firm has NOT experienced associated material losses

 INSTRUCTIONS 
If you answered “No” to 5.1, proceed to section 6

5.2

Please indicate the number of trademark registrations owned by your firm that, as of December
31, 2009, were:

Pending or in force in the United States
Pending or in force in China
Recorded with U.S. Customs
Recorded with China Customs

5.3a

Does your firm have reason to believe that one or more of its Chinese trademarks was infringed
in China in 2007-09?
Yes
No

5.3b

If you answered “yes” to 5.3a, how many of such
trademarks does your firm believe to be infringed?

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

5.4a

31 of 46

During 2007-09, did your firm pursue any trademark enforcement proceedings in China?
Yes
No

5.4b

If you answered “yes” to 5.4a, estimate the number of proceedings your firm has pursued
in China during 2007-09.
Administrative action:
Civil proceedings:
Criminal proceedings:

5.4c

If you answered “yes” to 5.4a, estimate the total amount of monetary relief your firm
received from legal proceedings related to trademark infringement of your products in
China during 2007-09 (in actual dollars).
Total estimated amount:
Check here if unknown

5.4d

If you answered “yes” to 5.4a, how satisfied has your firm been with these proceedings?
Check one box for each proceeding as applicable.
Proceeding
Not satisfied
Satisfied
Very satisfied
Administrative action
Civil proceedings
Criminal proceedings
If you responded “not satisfied,” provide brief explanation in supplementary information question 10.1

5.5a

Has your firm lost sales, royalties, license fees, or other income in China, or in markets outside of
China, as a result of trademark infringement in China during 2007-09?
Yes
No

5.5b

If you answered “yes” to 5.5a, please estimate the total of such losses during 2007-09 (in
actual dollars).
Chinese market
U.S. market
All other markets
If you cannot differentiate by market, don’t enter estimates above
and enter total of such losses during 2007-09 (in actual dollars).

5.6a

Has your firm incurred expenses to address the infringement of your firm’s trademarks in China?
Yes
No

5.6b

If you answered “yes” to 5.6a, please estimate total
associated expenses for 2007-09, which should include
legal, investigative, personnel, and other related expenses
(in actual dollars).

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

5.7a

32 of 46

Does your firm have a method for quantifying the extent to which trademark infringement in
China has damaged, diluted, or tarnished the value of your firm’s trademarks?
Yes
No

5.7b

5.8

If you answered “yes” to 5.7a, please provide the
estimated value of such harm (in actual dollars).

Compared to 2007, how would you best characterize trademark infringement in China as it
relates to your firm’s products/services in 2009?
Increased over this period
Remained about the same
Decreased over this period
Too short a period to notice any changes
Unknown or not applicable

5.9a

Did trademark infringement in China affect the number of employees your firm hired in the
United States during 2007-09?
Caused a decrease in your firm’s employment of U.S. workers
Caused an increase in your firm’s employment of U.S. workers
No change

5.9b
5.9c

If it caused a decrease in employment in your firm’s U.S workers,
please estimate the number of those full-time equivalent jobs lost.
If it caused an increase in employment in your firm’s U.S. workers,
please estimate the number of those full-time equivalent jobs gained.

5.10a Did trademark infringement in China affect your firm’s research and development expenditures in
the United States during 2007-09?
Yes, caused a reduction in U.S.-based R&D expenditures
Yes, caused an increase in U.S.-based R&D expenditures
No, firm has R&D activities in the United States, but there has been no change in
U.S.-based R&D expenditures
No, firm does not have R&D activities in the United States
5.10b
5.10c

If it caused a reduction in your U.S.-based R&D expenditures,
please estimate the amount (in actual dollars).
If it caused an increase in your U.S.-based R&D expenditures,
please estimate the amount (in actual dollars).

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

33 of 46

SECTION 6. PATENTS
6.1

Has your firm experienced material losses in sales or profits anywhere in the world due to patent
infringement in China during 2007-09?
Yes, the firm has experienced associated material losses
No, the firm has NOT experienced associated material losses

 INSTRUCTIONS 
If you answered “No” to 6.1, proceed to section 7

6.2

Please indicate the number of patents owned by your firm that, as of December 31, 2009, were:

Pending or in force in the United States
Pending or in force in China
Recorded with China customs

6.3a

Does your firm have reason to believe that one or more of its Chinese patents was infringed in
China in 2007-09?
Yes
No

6.3b

If you answered “yes” to 6.3a, how many of such patents
does your firm believe were infringed in China?

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

6.4a

34 of 46

During 2007-09, did your firm pursue any patent enforcement proceedings in China?
Yes
No

6.4b

If you answered “yes” to 6.4a, estimate the number of proceedings your firm has pursued in
China during 2007-09.
Administrative action:
Civil proceedings:
Criminal proceedings:

6.4c

If you answered “yes” to 6.4a, estimate the total amount of monetary relief your firm
received from legal proceedings related to patent infringement of your products in China
during 2007-09 (in actual dollars).
Total estimated amount:
Check here if unknown

6.4d

If you answered “yes” to 6.4a, how satisfied has your firm been with these proceedings?
Check one box for each proceeding as applicable.
Proceeding
Not satisfied Satisfied Very satisfied
Administrative action
Civil proceedings
Criminal proceedings
If you responded “not satisfied,” briefly explain in supplementary information question 10.1.

6.5

Estimate the total number of criminal defendants that were arrested for patent infringement of
your products in China during 2007-09?
Total estimated number:
Check here if unknown

6.6a

Has your firm lost sales, royalties, license fees, or other income in China, or in markets outside of
China, as a result of patent infringement in China during 2007-09?
Yes
No

6.6b

If you answered “yes” to 6.6a, please estimate the total of such losses during 2007-09 (in
actual dollars)
Chinese market
U.S. market
All other markets
If you cannot differentiate by market, don’t enter estimates above
and enter total of such losses during 2007-09 (in actual dollars).

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

6.7a

35 of 46

Has your firm incurred expenses to address the infringement of your firm’s patents in China?
Yes
No

6.7b

6.8

If you answered “yes” to 6.7a, please estimate total associated
expenses for 2007-09, which should include legal, investigative,
personnel, and other related expenses (in actual dollars).

Compared to 2007, how would you characterize patent infringement in China as it related to
your firm’s products/services in 2009?
Increased over this period
Remained about the same
Decreased over this period
Too short a period to notice any changes
Unknown or not applicable

6.9a

Did patent infringement in China affect the number of employees your firm hired in the United
States during 2007-09?
Caused a decrease in your firm’s employment of U.S. workers
Caused an increase in your firm’s employment of U.S. workers
No change

6.9b
6.9c

If it caused a decrease in your firm’s employment of U.S. workers,
please estimate the number of those full-time equivalent jobs lost.
If it caused an increase in your firm’s employment of U.S. workers,
please estimate the number of those full-time equivalent jobs gained.

6.10a Did patent infringement in China affect your firm’s R&D expenditures in the United States during
2007-09?
Yes, caused a reduction in U.S.-based R&D expenditures
Yes, caused an increase in U.S.-based R&D expenditures
No, firm has R&D activities in the United States, but there has been no change in
U.S.-based R&D expenditures
No, firm does not have R&D activities in the United States
6.10b
6.10c

If it caused a reduction in your U.S.-based R&D expenditures,
please estimate the amount (in actual dollars).
If it caused an increase in your U.S.-based R&D expenditures,
please estimate the amount (in actual dollars).

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

36 of 46

SECTION 7. TRADE SECRETS
7.1

Did your firm experience material losses in sales or profits anywhere in the world due to trade
secret misappropriation in China during 2007-09?
Yes, the firm has experienced associated material losses
No, the firm has NOT experienced associated material losses

 INSTRUCTIONS 
If you answered “No” to 7.1, proceed to section 8

7.2a

Does your firm take steps to maintain proprietary trade secrets as part of its operations in China?
Yes
No

7.2b

7.3a

If you answered “yes” to 7.2a, have these steps been effective?
Yes
No

During 2007-09, was any of your firm’s trade secret information misappropriated in China, or in
other location by Chinese entities, to compete against you?
Yes
No

7.3b

If you answered “yes” to 7.3a, through what avenue(s) were your firm’s trade secrets
misappropriated in China? Check all that apply.
Employee use or disclosure
Employee theft of information and establishment of rival firm
Joint venture partner use or disclosure
Information provided to regulatory agency
Computer hacking
Corporate espionage
Unknown
Other –– Specify:

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

7.4a

37 of 46

During 2007-09, did your firm pursue any trade secret misappropriation proceedings in China?
Yes
No

7.4b

If you answered “yes” to 7.4a, estimate the number of proceedings your firm has pursued in
China during 2007-09.
Administrative action:
Civil proceedings:
Criminal proceedings:

7.4c

If you answered “yes” to 7.4a, estimate the total amount of monetary relief your firm
received from legal proceedings related to trade secret misappropriation of your products in
China during 2007-09 (in actual dollars).
Total estimated amount:
Check here if unknown

7.4d

If you answered “yes” to 7.4a, how satisfied has your firm been with the misappropriation
proceedings?
Proceeding
Not satisfied
Satisfied
Very satisfied
Administrative action
Civil proceedings
Criminal proceedings
If you responded “not satisfied,” briefly explain in supplementary information question 10.1.

7.5a

Has your firm lost sales, royalties, license fees, or other income in China, or in markets outside of
China, as a result of trade secret misappropriation in China during 2007-09?
Yes
No

7.5b

If you answered “yes” to 7.5a, please estimate the total of such losses during 2007-09 (in
actual dollars).
Chinese market
U.S. market
All other markets
If you cannot differentiate by market, don’t enter estimates above
and enter total of such losses during 2007-09 (in actual dollars).

7.6a

Has your firm incurred expenses to address the misappropriation of trade secrets in China?
Yes
No

7.6b

If you answered “yes” to 7.6a, please estimate total associated
expenses for 2007-09, which should include legal, investigative,
personnel, and other related expenses (in actual dollars).

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

7.7

38 of 46

Compared to 2007, how would you characterize trade secret misappropriation in China as it
related to your firm’s products/services in 2009?
Become a bigger problem
Remained about the same
Become a smaller problem
Too short a period to notice any changes
Unknown or not applicable

7.8a

Did trade secret misappropriation in China affect the number of employees your firm hired in the
United States during 2007-09?
Caused a decrease in your firm’s employment of U.S. workers
Caused an increase in your firm’s your employment of U.S. workers
No

7.8b
7.8c

7.9a

If it caused a decrease in your firm’s employment of U.S. workers, please
estimate the number of those full-time equivalent jobs lost.
If it caused an increase in your firm’s employment of U.S. workers, please
estimate the number of those full-time equivalent jobs gained.

Did trade secret misappropriation in China affect your firm’s research and development
expenditures in the United States during 2007-09?
Yes, caused a reduction in U.S.-based R&D expenditures
Yes, caused an increase in U.S.-based R&D expenditures
No, firm has R&D activities in the United States, but there has been no change in
U.S.-based R&D expenditures
No, firm does not have R&D activities in the United States

7.9b
7.9c

7.10a

If it caused a reduction in your U.S.-based R&D expenditures,
please estimate the amount (in actual dollars).
If it caused an increase in your U.S.-based R&D expenditures,
please estimate the amount (in actual dollars).

Does your firm face requirements to disclose confidential data to Chinese regulatory agencies?
Yes
No

7.10b

If you answered “yes” to 7.10a, to your firm’s knowledge, has the data been disclosed to
persons outside the regulatory agency?
Yes
No

7.10c

If you answered “yes” to 7.10a, are you more concerned about data leakage in China than in
other countries?
Yes
No

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

39 of 46

SECTION 8. INDIGENOUS INNOVATION POLICIES IN CHINA
8.1

Are you aware of China’s indigenous innovation policies?
Yes
No

8.2

Did your firm experience material losses in sales or profits anywhere in the world due to China’s
indigenous innovation policies during 2007-09?
Yes, the firm has experienced associated material losses
No, the firm has NOT experienced associated material losses

 INSTRUCTIONS 
If you answered “No” to 8.2, proceed to section 9

8.3

Please indicate which of the following policy areas are an existing problem for your firm in
China. Also indicate whether your firm anticipates the problem to continue. Check all that apply.

Item
Government procurement policy
Chinese-specific technical standards
Subsidies to Chinese competitors not available to
your firm
Tax incentives to Chinese competitors not available
to your firm
Incentives to Chinese competitors to register patents
or other intellectual property, or government
payment for filing fees
Unequal treatment in enforcing IPR relative to
Chinese firms
Preferential lending
Technology transfer requirements
R&D requirements in China of your firm or affiliate
Closure of sector to foreign participation
Compulsory licensing
Unequal enforcement of China’s anti-monopoly law
Other –– Specify:

Existing problem

In future (check one):
Not expected Expected
to be a
to be a
problem
problem

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

8.4a

40 of 46

Has your firm estimated the amount of lost revenue (realized or potential) that has been, or is
anticipated to result from, China’s indigenous innovation policies?
Yes
No

8.4b

8.5

If you answered “yes” to 8.4a, estimate the total lost
revenues during 2007-09 (in actual dollars):

How do you anticipate that China’s indigenous innovation policies will affect your firm’s
revenue in China by 2015?
Increase revenue by more than 25 percent
Increase revenue between 10 and 25 percent
Increase revenue by less than 10 percent
No material revenue change
Decrease revenue by less than 10 percent
Decrease revenue between 10 and 25 percent
Decrease revenue by more than 25 percent
Unknown

8.6a

Have China’s indigenous innovation policies influenced the number of full-time equivalent U.S.
workers employed by your firm during 2007-09?
Yes
No

8.6b

If you answered “yes” to 8.6a, indicate the effect on your firm’s number of full-time
equivalent employees.
Increased by more than 25 percent
Increased by 10-25 percent
Increased by less than 10 percent
No change
Decreased by less than 10 percent
Decreased by 10-25 percent
Decreased by more than 25 percent.
Pleased provide estimate to the nearest 5 percentage
points here:
Unknown

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

8.7a

41 of 46

Does your firm conduct R&D in China?
Yes
No

8.7b

If you answered “yes” to 8.7a, what are the intended markets for the products developed by
this R&D? Check all that apply.
China
United States
All other markets

8.7c

If you answered “yes” to 8.7a, what type of R&D facility did you have in China as of the end
of 2009? Check all that apply.
Wholly owned affiliate
Joint venture
University partnership
Contracting arrangement with local Chinese firm
Other –– Specify:

8.8a

Has your firm attempted to sell goods or services to Chinese government ministries or agencies
(excluding state-owned enterprises)?
Yes
No

8.8b

If you answered “yes” to 8.8a, indicate whether your firm has made these sales
Yes
No

8.8c

If you answered “yes” to 8.8b, how would you characterize the ease of making sales to
Chinese government agencies in 2009 as compared to 2004?
Much easier
Easier
The same
Getting worse
Much worse
Unknown or not applicable

8.8d

If you answered “yes” to 8.8b, do the products and/or services you have sold to Chinese
government ministries or agencies rely on intellectual property developed and registered in
China?
All of the relevant IP was developed and registered in China
Some of the relevant IP was developed and registered in China
None of the relevant IP was developed and registered in China

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

8.9a

42 of 46

Has your firm attempted to sell goods or services to Chinese state-owned enterprises?
Yes
No

8.9b

If you answered “yes” to 8.9a, indicate whether your firm has made these sales.
Yes
No

8.9c

If you answered “yes” to 8.9b, how would you characterize the ease of making sales to
Chinese state-owned enterprises in 2009 as compared to 2004?
Much easier
Easier
The same
Getting worse
Much worse
Unknown or not applicable

8.9d

If you answered “yes” to 8.9b, do the products and/or services you have sold to Chinese
state-owned enterprises rely on IP developed and registered in China?
All of the relevant IP was developed and registered in China.
Some of the relevant IP was developed and registered in China.
None of the relevant IP was developed and registered in China.

8.10a Do you anticipate that your firm will be materially affected by changing Chinese government
procurement policies?
Yes
No
8.10b

If you responded “yes” to 8.10a, in what way do you anticipate responding? Check all that
apply.
Changing organizational/ownership structure
Entering into new partnerships with Chinese firms
Changing sourcing of components
Withdrawing from the Chinese market
Changing pricing structure
Applying for status as Chinese high-tech firm
Registering patents or other IP in China that were not previously registered
No actions
Other –– Specify:

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

43 of 46

8.11a Have there been any proposed or adopted Chinese technical standards that apply to your firm’s
products or services and that are incompatible with or redundant of widely adopted global
standards that your products or services already complies with?
Yes
No
8.11b

If you answered “yes” to 8.11a, how many of these are mandatory standards that require
your firm to modify its products for sale in China?
Estimated number of mandatory
standards affecting products:
Check here if unknown

8.11c

If you answered “yes” to 8.11a, was your firm offered the opportunity to participate in the
standard-setting process?
Yes
Yes, but with observer status only
No

8.11d

If you answered “yes” to 8.11a, has your firm taken part in the standard-setting process?
Yes
Yes, but participated as an observer only
No

8.11e

If you answered “yes” to 8.11a, does your firm expect those standards to damage your
firm’s competitiveness in the Chinese market?
Yes
No

8.11f

If you answered “yes” to 8.11a, does your firm expect those standards to damage your
firm’s competitiveness in markets outside of China?
Yes
No

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

44 of 46

SECTION 9. OVERALL ASSESSMENT OF IPR AND INDIGENOUS INNOVATION IN CHINA
9.1a

Has your firm made any significant strategic changes as a consequence of IPR infringement by
Chinese entities or individuals, or as a consequence of China’s indigenous innovation policies?
Yes
No

9.1b

If you answered “yes” to 9.1a, then which of the following strategic changes has your firm
made as a consequence of IPR infringement by Chinese entities or individuals? Check all that
apply.
Production:
Relocated away from China
Changed product lines in China
Other –– Specify:
Chinese joint venture partners:
Changed partners
Decreased number of partners
Reduced interaction with partners
Enforced greater separation between partners
Other –– Specify:
R&D and innovation:
Relocated away from China
Changed type of R&D performed in China
Increased R&D to take advantage of indigenous innovation policies
Increased R&D to stay ahead of infringers
Other _ Specify:
IPR enforcement:
More likely to report IPR infringement to China’s administrative
authorities
More likely to address IPR infringement in China through its courts
More likely to seek criminal prosecutions
Increased efforts on internal control of information
Increased efforts to get U.S. government to pressure China
Reduced number of patents and rely on trade secrets instead
Other –– Specify:
Adaptation:
Strategic price discrimination
Shifted sales focus away from China
Reduced product price
Reduced sales efforts in, or abandoned completely, third country markets
where infringing Chinese products are prevalent
Leveraged brand familiarity generated by IPR infringers to gain customers
Other –– Specify:
Indigenous innovation:
Less aggressive about selling in China
Less frequent bidding for government contracts
Other –– Specify:

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

9.2a

45 of 46

Have you experienced discriminatory treatment in connection with obtaining, commercializing,
or enforcing IPR in China?
Yes
No

9.2b

If you answered “yes” to 9.2a, please explain briefly. Please don’t use the “enter” key in your
responses.

Confidential Business Information
USITC Intellectual Property Rights Questionnaire

46 of 46

SECTION 10. OTHER INFORMATION
10.1

If you would like to describe any other IPR concerns related to infringement associated with
Chinese entities or China’s indigenous innovation policies, use the space below. This description
may include more information on the effects of infringement in "other IPR" categories (e.g.,
plant variety protection, semi-conductor mask works/layout design, or proprietary data
protection) by Chinese entities that may have an impact on your firms' sales and enforcement
costs. Also, if you would like to elaborate on any of your other responses, or provide any
additional pertinent information, use the space below. Please indicate if the additional
information applies to a specific question number. If the information is general in nature, leave
“Question no.” column blank. Please don’t use the “enter” key in your responses.

Question no.

Additional information