Alibaba Group Holding Ltd (NYSE:BABA) and Tencent have joined hands in pushing for strong intellectual property laws that are expected to spearhead the creation of more original, online content in China. Bloomberg’s, Erik Schatzker, believes that the echoed sentiments are a sign that China is growing up in terms of its attitude towards intellectual property.
Enhancement of copyright protections is expected to spearhead and encourage the development of mature business models for videos music and animation. The Chinese government is trying to foster an environment where domestic companies are given a fair playing ground for developing content for the nation’s 632 million internet users.
Alibaba was accredited by the U.S government in 2012 after delisting 87 million listings on its Taobao and Tmall marketplace that had in a way infringed on various intellectual property rules.
“Obviously there have been some companies that have been very aggressive in prosecuting IP violations in China. I think it is interesting to see these major retailers saying we don’t want to be on the wrong side of that. So we are going to push for more regulations and more oversight than may be what has been going on in the past, “said Mr. Sam Grobart
Alibaba Group Holding Ltd (NYSE:BABA) Chairman Jack Ma has already stated that the government needs to work closely with all the stakeholders if it is to stamp its authority in the protection of intellectual property. The government is already spearheading plans to protect intellectual property having set up a court in Beijing that will try to address any standoff involving IP’s in the future.
“Rampant intellectual property theft from the west has been going on for years and possibly decades. Maybe they’ve got enough of what they need now, and there is enough of a startup culture with its engineering grads and intellectual development going on China. There is a genuine need to safeguard it from among Chinese if not from others, “said Mr.Schatzker.
The new courts and regulations are expected to be of great help to the likes of Alibaba Group Holding Ltd (NYSE:BABA) and Tencent, which are trying to tap into the half-billion Chinese, who access the internet daily.
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