Trade friction over intellectual property rights is being cited by some countries as a pretext to implement protectionism, a senior Chinese government official said, according to Shanghai Securities News.

Spokesman for the Ministry of Commerce Shen Danyang made the remarks on June 25 at a news conference in response to a new round of patent infringement investigations recently launched by the US International Trade Commission. China's ZTE Corporation was among those being investigated.

"Such IP friction is a kind of growing pain for China's economy and industries and also a barrier that Chinese manufacturers need to cross during the transition from Made in China to Created in China," Shen said.

According to Chinese news agencies, this Section 337 investigation involves five renowned electronics producers, including the California-headquartered Vizio Inc, ZTE Corp, Taiwan's Amtran Technology Co, Japan's Panasonic Co and Toshiba Co as well as their US branches.

Section 337 refers to a part of a US law that deals with infringement of intellectual property.

The investigation will target consumer electronics that have displays and processing functions, such as laptops, tablets, desktop computers, high-definition cameras and blue-ray and DVD players, according to the US commission.

It also noted that the investigation was based on an appeal filed in May by the local Graphics Properties Holdings in New Jersey, accusing those companies of violating its patents and asking for an exclusion order toward the mentioned electronic devices.

ZTE Corp has responded that the company "is aware of this investigation and is actively preparing to respond to the suit", according to hexun.com, one of China's largest financial portals.

ZTE Corp also said they "hope to seek reasonable solutions based on the rules of mutual respect and mutual benefit", the portal reported.

Shen noted that authorities from the Ministry of Commerce have contacted the company to provide legal consultation and support.

He added that they hoped the investigation was not an excuse for trade protectionism and called for an open and fair process and result of the investigation.

In fact, this is not the first time that Chinese companies have been targeted by a Section 337 investigation.

Launched in January, the most recent was an investigation of 3G and 4G wireless devices produced by Huawei and ZTE, according to hexun.com.

Industry insiders said the number of investigations has largely increased in recent years.

There were 56 Section 337 investigations that involved Chinese companies from 2006 to 2010. The number increased to 126 a year later, most of which were patent disputes, according to Nanfang Metropolis Daily.

Experts compare the US Section 337 investigation to a weapon of mass destruction, saying its consequences will be more detrimental than anti-dumping charges.

If involved companies do not show a positive attitude in responding to the suit or a violation is found, their products could be banned from export to the US.

To improve the capacity of Chinese companies to deal with Section 337 investigations, the Ministry of Commerce has established a response mechanism with the help of chambers of commerce and industry associations to provide consultation and training, Shen said.

haonan@chinadaily.com.cn

(China Daily 07/03/2013 page17)