2021•arXiv (Cornell University)Open access

The Intellectual Property Protection System of the Foreign Investment\n Law: Basic Structure, Motivation and Game Logic

Luo Ying

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Abstract

The intellectual property protection system constructed by China's Foreign\nInvestment Law has opened a new phase of rule of law protection of intellectual\nproperty rights for foreign-invested enterprises, which is an important\ninstitutional support indispensable for optimizing the business environment\nunder the rule of law.The development of the regime was influenced by the major\nconcerns of investors' home countries, the "innovation-driven development"\nstrategy, and the trend towards a high level of stringent protection of\ninternational intellectual property and investment rules.In addition, there is\na latent game of interests between multiple subjects, which can be analyzed by\nconstructing two standard formal game models according to legal game theory.The\nfirst game model aims to compare and analyze the gains and losses of China and\nIndia's IPR protection system for foreign-invested enterprises to attract\nforeign investment.The second game model is designed to analyze the benefits of\nChina and foreign investors under their respective possible behaviors before\nand after the inclusion of IPR protection provisions in the Foreign Investment\nLaw, with the optimal solution being a "moderately cautious" strategy for\nforeign investors and a "strict enforcement" strategy for China.\n

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The intellectual property protection system constructed by China's Foreign\nInvestment Law has opened a new phase of rule of law protection of intellectual\nproperty rights for foreign-invested enterprises, which is an important\ninstitutional support indispensable for optimizing the business environment\nunder the rule of law.The development of the regime was influenced by the major\nconcerns of investors' home countries, the "innovation-driven development"\nstrategy, and the trend towards a high level of stringent protection of\ninternational intellectual property and investment rules.In addition, there is\na latent game of interests between multiple subjects, which can be analyzed by\nconstructing two standard formal game models according to legal game theory.The\nfirst game model aims to compare and analyze the gains and losses of China and\nIndia's IPR protection system for foreign-invested enterprises to attract\nforeign investment.The second game model is designed to analyze the benefits of\nChina and foreign investors under their respective possible behaviors before\nand after the inclusion of IPR protection provisions in the Foreign Investment\nLaw, with the optimal solution being a "moderately cautious" strategy for\nforeign investors and a "strict enforcement" strategy for China.\n

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Available abstract

The intellectual property protection system constructed by China's Foreign\nInvestment Law has opened a new phase of rule of law protection of intellectual\nproperty rights for foreign-invested enterprises, which is an important\ninstitutional support indispensable for optimizing the business environment\nunder the rule of law.The development of the regime was influenced by the major\nconcerns of investors' home countries, the "innovation-driven development"\nstrategy, and the trend towards a high level of stringent protection of\ninternational intellectual property and investment rules.In addition, there is\na latent game of interests between multiple subjects, which can be analyzed by\nconstructing two standard formal game models according to legal game theory.The\nfirst game model aims to compare and analyze the gains and losses of China and\nIndia's IPR protection system for foreign-invested enterprises to attract\nforeign investment.The second game model is designed to analyze the benefits of\nChina and foreign investors under their respective possible behaviors before\nand after the inclusion of IPR protection provisions in the Foreign Investment\nLaw, with the optimal solution being a "moderately cautious" strategy for\nforeign investors and a "strict enforcement" strategy for China.\n

Key concepts: Intellectual property, Law and economics, Property (philosophy), Foreign direct investment, Game theory, Investment (military), Business, Economics

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