China is a leading soure of fake goods despite repeated crackdowns, but Chinese officials have promised the latest enforcement will produce lasting results.
Communist leaders have given the new crackdown special prominence, publicly linking it to efforts to transform China from a low-cost factory to a creator of profitable technology by nurturing companies in software and other fields. Breitling Watches China's fledgling software, music and other creative companies have been devastated by unlicensed copying.
"Intellectual property protection is essential for building an innovation-oriented country and achieving a shift from `China manufactured' to `China innovated,"' Li Chenggang, deputy director of the Commerce Ministry's law department, said at a news conference. He was joined by officials of China's commerce, intellectual property and other agencies.
Trade groups say illegal Chinese copying of music, designer clothing and other goods costs legitimate producers billions of dollars a year in lost potential sales. It said they made more than 100 million capsules filled with sawdust and wheat flour and sold under the brand names of 201 different types of medication.
Xinhua said the medicines were sold by mail and over the Internet but gave no details of whether anyone was injured or which brand names were counterfeited.
Rampant copying also has hampered Beijing's efforts to replica watches attract technology industries because businesspeople say companies are reluctant to do high-level research in China or bring in advanced designs for fear of theft.
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