through various laws). However, there are some positive examples of rights holders achieving effective address. For example, in 2017, the Beijing IP court ruled that Apple Inc did not infringe on the Chinese company Shenzhen Baili's design patent for smartphones, and it awarded record damages to athletic company New Balance for infringement of its logo by three local companies. Still, incidences bad faith trademark filing appear to be worsening and a backlog still exists of decades of abusive filings. The courts and trademark office's efforts to address the problem may yield benefits, but so far, the tide of new filings and the resolution of old cases is an insurmountable problem for true brand development in China. 19. Availability of frameworks that promote cooperative private action against online sale of counterfeit goods: In 2017, positive evelopments occurred in terms of public-private partnerships for addressing the online sale of counterfeit good. Building on an existing private sector effort, the Ministry of Commerce has partnered with the parent company of Chinas leading online marketplace, Alibaba, in the Cloud Sword Alliance, an operation aimed at leveraging the company's anticounterfeiting technology and big data to identify counterfeit goods online and improve information available to local authorities and investigations. In 2017, as part of the Ministry of Commerce of the People's Republic of China(MOFCOM) partnership, the scope of the operation nearly tripled, from five provincial govemments to 13. Because of this unprecedented effort to address the challenge of counterfeit goods available online. Chinas score for this indicator rises by 0. 25. Nevertheless, to effectively identify and address online counterfeiting and to ensure relevant authorities act upon information identified, the operation should continue to involve rights holders Trade Secrets and Related Rights 22. Protection of trade secrets: Although the Chinese govemment recognizes the need to strengthen the protection of IP, insufficient safeguards remain an obstacle for foreign companies. China recently amended its Anti-Unfair Competition Law (AUCL), but only devotes one article to trade secrets protection. Regrettably, this can lead to a one-size-fits-all enforcement approach that may not best suit all rights conferred within the law. Moreover, under the existing legal framework, foreign companies must confront the unaddressed difficulties associated with the right to discovery, burden of proof, and protection of business confidential evidence in any alleged trade secret misappropriation litigation. Consequently, foreign companies struggle to effectively guard their tangible hnology and intangible knowledge against trade secret misappropriation. Commercialization of ip asset 25. Regulatory and administrative barriers to the commercialization of IP assets: Technology companies continue to face a growing number of regulatory and procedural barriers and inflexible terms to licensing in China that impede technology flows and ROD cooperation. In general, licensing agreements must receive government approval. In addition, technology import/export regulations involve discriminatory conditions for foreign licensors, including indemnification of Chinese licensees against third-party infringement and transfer of ownership of future improvements on a licensed technology to the licensee (whereas a Chinese IP owner is able to negotiate different terms), which restrict the ability of foreign companies to negotiate licensing and technology contracts on market terms and to fully commercialize their technology in China. U.S. Chamber International ip Index sixth EditionU.S. Chamber International IP Index Sixth Edition through various laws). However, there are some positive examples of rights holders achieving e€ective address. For example, in 2017, the Beijing IP court ruled that Apple Inc. did not infringe on the Chinese company Shenzhen Baili’s design patent for smartphones, and it awarded record damages to athletic company New Balance for infringement of its logo by three local companies. Still, incidences of bad faith trademark filing appear to be worsening and a backlog still exists of decades of abusive filings. The courts’ and trademark oce’s e€orts to address the problem may yield benefits, but so far, the tide of new filings and the resolution of old cases is an insurmountable problem for true brand development in China. 19. Availability of frameworks that promote cooperative private action against online sale of counterfeit goods: In 2017, positive developments occurred in terms of public-private partnerships for addressing the online sale of counterfeit good. Building on an existing private sector e€ort, the Ministry of Commerce has partnered with the parent company of China’s leading online marketplace, Alibaba, in the “Cloud Sword Alliance,” an operation aimed at leveraging the company’s anticounterfeiting technology and big data to identify counterfeit goods online and improve information available to local authorities and investigations. In 2017, as part of the Ministry of Commerce of the People’s Republic of China (MOFCOM) partnership, the scope of the operation nearly tripled, from five provincial governments to 13. Because of this unprecedented e€ort to address the challenge of counterfeit goods available online, China’s score for this indicator rises by 0.25. Nevertheless, to e€ectively identify and address online counterfeiting and to ensure relevant authorities act upon information identified, the operation should continue to involve rights holders. Trade Secrets and Related Rights 22. Protection of trade secrets: Although the Chinese government recognizes the need to strengthen the protection of IP, insucient safeguards remain an obstacle for foreign companies. China recently amended its Anti-Unfair Competition Law (AUCL), but only devotes one article to trade secrets protection. Regrettably, this can lead to a ‘one-size-fits-all’ enforcement approach that may not best suit all rights conferred within the law. Moreover, under the existing legal framework, foreign companies must confront the unaddressed diculties associated with the right to discovery, burden of proof, and protection of business confidential evidence in any alleged trade secret misappropriation litigation. Consequently, foreign companies struggle to e€ectively guard their tangible technology and intangible knowledge against trade secret misappropriation. Commercialization of IP Assets 25. Regulatory and administrative barriers to the commercialization of IP assets: Technology companies continue to face a growing number of regulatory and procedural barriers and inflexible terms to licensing in China that impede technology flows and R&D cooperation. In general, licensing agreements must receive government approval. In addition, technology import/export regulations involve discriminatory conditions for foreign licensors, including indemnification of Chinese licensees against third-party infringement and transfer of ownership of future improvements on a licensed technology to the licensee (whereas a Chinese IP owner is able to negotiate di€erent terms), which restrict the ability of foreign companies to negotiate licensing and technology contracts on market terms and to fully commercialize their technology in China.