Abstract

The recent global proliferation of free trade zones (FTZs) has increased the difficulty of protecting intellectual property rights (IPR), as criminals take advantage of these zones' relaxed oversight and reduced customs controls by manufacturing and shipping illegal goods within and outside of these zones. IPR enforcement in FTZs remains a contentious issue internationally. Some international harmonization of national rules has occurred under the auspices of the World Customs Organization (WCO) and the World Trade Organization (WTO). Yet, as shown by the US and to a lesser extent China, national law has increasingly tightened around IPR enforcement in FTZs. National enforcement of trade-related IPR rules in FTZs will serve the Shanghai Pilot Free Trade Zone well. Chinese Customs regulations fail to provide adequate remedies for dealing with IPR infringing goods in this FTZ, especially remedies covering in-transit goods and Original Equipment Manufacturer (OEM) goods.

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