New tough provisions should be a barrier to the production of pirated goods, such as computer software and CDs, they said.

For instance, the law specifies penalties for copyright infringement, they added.

Fines are as high as 50,000 yuan (US$6,000) for some violations. Ill-gotten money will be confiscated and a fine three times the amount of illegal profits will be levied.

"The new Patent Law will push the country's technological innovation and will better fit in with the patent-protection system in World Trade Organization countries," Qian Yongming, director of Shanghai Intellectual Property Administration, told Shanghai Daily.

China now appears to be on the verge of entering the global trade body, observers said.

Qian also said the new law includes provisions that make it easier for enterprises to transfer copyrighted inventions or models to others. They will no longer have to get approval from local govern-ments, Qian said.

By amending 35 of the law's provisions, it is easier to crack down on violations of intellectual property rights and pave the way for China's entry into WTO, intellectual property rights specialists said.

It is acknowledged that China's regulatory framework for protecting intellectual property has been seriously flawed, specialists said.

"The new law has changed the provisions not conforming to the trade-related aspects of intellectual property rights," said Liu Chunquan, an attorney with Shanghai Lianhua Law Firm.

For instance, people who claim the rights to an intellectual property can file a lawsuit if they are dissatisfied with the administrative ruling on the utility model and design under the new law, Liu said. Previously, only issues concerning the patent to an invention were covered by the legal system.

When someone unwittingly violated another's intellectual property rights, no litigation was allowed under the old law, Liu said.

The new law will allow action, given sufficient legal evidence.

(Eastday.com 07/02/2001)