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USITO Weely Newsletter 11/13/2009
2009-11-13

 
 

No.398 November 13, 2009

Special Issues  
 
USITO Export Control Event in Shanghai
Member Download PPTs: 1 2
 
Standards Work Group Meeting, PM November 11
Check Top Story Below
 

On 11/4/2009, USITO, SEMI and TechAmerica jointly hosted our ongoing program, the Customs and Export Controls event in Shanghai. The speakers shared their views on the Validated End User (VEU) program and enforcement, the U.S. export licensing for companies in China, as well as industry perspectives on export controls. Members please click here for the ppt of the speaker John Larkin of LTI, and click here for that of Grace Wang from Lam Research Corp.

Top Story

USITO Work Group Meeting on SAC Draft Regulation

USITO's Standards and Conformity Assessment Work Group held a meeting in the afternoon of November 11 Wednesday to discuss the newly released draft rule on standardization work that involves patent issues.

On November 2, 2009, the Standardization Administration of China (SAC) issued a notice in its website, inviting comments to the "Interim Provisions on Formulation and Revision of Patent-related National Standards"(Please click here for Chinese, Membes click here for updated USITO translation). The notice states, SAC welcomes industry comments to the Rules, with an aim to "fairly handle the issue of patents involved in national standards, regulate the process in coping with patents when formuting standards, encourage indigenous innovation", etc. The deadline for submitting comments is November 30.

Fourteen USITO member companies joined the work group meeting, in which they widely exchanged views and compared notes about the issue. Moderated by work group chair Terry Zhang, the meeting drilled down the draft regulation by going over the terms article by article, and garnered valuable ideas from each participants. The work group reached consensus to deliver USITO comments to SAC in the last week of this month, with the initial draft to be ready within ten days.

USITO Notes: This issue has long attracted great attention from USITO member companies with operations in China. Actually SAC issued the first draft of this regulation as early as 2003, when USITO had organized its members comments and submitted a letter of comments in 2004 (members please click here to download the 2004 USITO final submission in Chinese). Thanks to the industry outcry, SAC decided to postpone the drafting work until recently. Because of a growing number of cases involving standards-patents conflict has emerged in recent years, according to experts, the judicial systems are thirsty for applicable terms in handling the cases, which prompted the standardization authorities to pick up the issue again.

We have prepared a brief notes for our Nov.11 work group meeting, since it was a small-scale member initiated meeting, so notes will not be downloadable in our website. Members please send an email to JingL@usito.org if you are interested, and we'll send it to you after we check with the meeting initiators. For additional points not covered in the meeting notes, please send us an email.

As covered in our last weekly newsletter, the Chinese standardization efforts are dominated by the government, unlike western countries (industry leads), so the government may take actions on involved patent issues that are hardly acceptable to the industry. As standards are for public use while patent is basically private, it is always a challenge to fix their relations especially in China. Members please stay tuned for our first draft letter of comments.


USITO Exchanges with EU Delegation on Infosec Issue

On October 30, USITO met with the visiting European Union DG Enterprise group in EU Delegation China Office, where both parties exchanged views on China's information security issues. The EU side was attended by EU Delegation representative, EC policy officer, etc. Some company representatives invited by EU side were also present in the meeting. Theme of the meeting was EU delegation's briefing on their meeting turnouts with Chinese government bodies on infosec topic in the past few days. Members please click here for the meeting report.

USITO Board Meeting To Take Place November 19, 2009

USITO is scheduled to host the next Board Meeting in Beijing on November 19, 2009. So far most of USITO's board members have registered to attend the meeting. We would like to welcome our member company representatives to raise their issues or ideas to our board directors for discussion in the board meeting. The whole day meeting, as previous meetings did, will review and discuss a variety of policy issues, USITO operations, as well as the strategies to more effectively bridging U.S.-China ICT industries. For any questions regarding the meeting, please contact wenjie@usito.org.

Member in the News: Hopes ride high on Windows 7

The release of the next generation of the Windows operating system has created a carnival atmosphere in the IT industry - with long queues at the door, cheers and whistles, and an air of anticipation at the Beijing 798 Art Zone show, where Windows 7 was the star attraction. The applause from Intel, Lenovo, Hewlett-Packard and Dell representatives, along with others from software, Internet, personal computer, chip and hardware companies was audible. Detail

Knowledge Center: Carriers' Mobile Phone Application Stores

A brief analysis by CCID consulting on the market landscape of the mobile phone application stores. Member Download

Selected Chinese Media Reports
 

3G Mobile Communications

ChinaMobile Advances TD-IOT Convergence

China Mobile announced on November 12 that it will establish China Mobile Institute of Internet of Things in Wuxi, focusing on R&D of technologies enabling the convergence of TD-SCDMA and Internet of Things. It will also set up an Internet of Things data center in Wuxi to support the operation of Internet of Things-related services. Sources said that China Mobile and the municipal government of Wuxi have signed a strategic cooperation agreement on promoting the convergence of TD-SCDMA and Internet of Things, under which both sides will make greater efforts to accelerate the convergence of Internet of Things and TD-SCDMA network. Both sides will implement pilot projects extensively in fields including industry, agriculture and public service. Chinese Text 

China Telecom Establishes VideoServicesCenter

On November 12, ChinaTelecomVideoServicesOperationCenter was proclaimed in Shanghai, aiming to develop China Telecom’s video services, including video services planning, strategy and platform. The video services operation center will be responsible for China Telecom’s IPTV, handset video and Internet video services and operations of the central video platform to support the development of local video services. Also, it will make efforts to build a social video industry chain, and work with the municipal government of Shanghai to build Shanghai video industry. The purpose of the center is to develop the video services plans, cooperation strategy and business modes for China Telecom, and achieve the unified development, in-depth operation and commercial promotion of video services. Chinese Text

Huawei Wins GSM Deal from India

According to a foreign media report, Indian state-owned telecom company BSNL announced last Friday that Huawei won a contract from it to supply GSM mobile communication equipment accommodating more than 20 million subscribers for south India. BSNL Chairman and GM Kuldeep Goyal confirmed the award, saying that “we have awarded the contract for south India’s 2G communication lines to Huawei”. Despite the lowest bid, Huawei failed to win the contract issued by BSNL for west India for reason of national security considerations. Chinese Text

ZTE Wins Telefonica Contracts

ZTE has entered into a cooperation agreement with Telefonica, the world’s fourth largest telecom operator, participating in the construction of Spanish LTE (4G) experimental network. Telefonica is planning to construct LTE experimental networks in six countries. ZTE will supply equipment for the LTE network to be constructed in Spain. ZTE said it has more than 2000 people working on LTE R&D, and considered itself as one of the world’ s earliest LET terminal developers. Since the end of 2008, ZTE has achieved the leapfrog development in GSM/UMTS/LTE, and its product innovation and delivery capabilities have gained wide recognition of first-class operators. Chinese Text

Software

Gartner: Asia-pacific Software Expenditures Grow 10% Next Year

Gartner, an international research and consulting agency, predicted that the software income of Asia-Pacific enterprises in 2010 is expected to hit USD22.1billion, up 10.2% over 2009. According to Gartner, in the next 5 years after 2010, China, Vietnam and India will continue the highest annual compound growth rate, reaching 14.6%, 12.4% and 10.7% respectively. Gartner pointed out that China and India continuously benefit from their respective huge user market and economic stimulus package, and relatively low penetration level of software. China will lead in the growth of software demands in Asia-pacific region due to its economic stimulus package, said Gartner. Chinese Text

Chinese Software Industry Shows Momentum of Rapid Growth

Hu Kunshan, Vice Chairman of China Software Industry Association, said at the Sixth China International Service Outsourcing Conference that China’s software service industry has been growing rapidly in recent years, at an annual average growth of 38%, and the revenues is expected to top RMB1 trillion in 2010. According to Hu, the Several Policies Encouraging the development of Software and IC Industries released by the State Council in June 2000 sparked the rapid growth of Chinese software industry. The income from the nation’s software industry reached RMB757.3b in 2008, and the number is expected to hit RMB900b in 2009, and will top RMB 1trillion in 2010. New advances have been made in software technology and product innovation, and domestic software has obtained the dominance in power, telecommunication and finance. The development and applications of software technology have cultivated new industries including E-commerce and Internet value-added service, and promoted the convergence of real economy and virtual economy, and hi-tech industries and traditional industries. Chinese Text

Semiconductor

SMIC Makes Peace with TSMC

SMIC announced on November 10 that it has entered into a settlement agreement with Taiwan Semiconductor Manufacturing Company, and will pay USD200 million by installments in cash to TSMC in the next four years. At the same time, a certain number of new shares and a warrant for subscribing for shares need to be issued to TSMC, and after the transaction, TSMC will hold 10% stakes in SMIC. According to the settlement agreement, all the pending lawsuits between SMIC and TSMC are terminated. In addition to the USD200 million payment to be made in cash, SMIC will issue 1,789,000,000 new shares to TSMC, which requires necessary regulatory approval. Chinese Text

Digital Media

First National Digital Home Engineering Lab Established

On November 10, Hai’er National Engineering Lab for Digital Home Network, China’s first state-level engineering lab in e-home field, was proclaimed. A charter was deliberated and approved at the inauguration conference, Hai’er Group was elected as the Chairman of the lab, and the first batch of research programs were announced. According to Zhang Minggao, member of ChineseAcademy of Engineering, the lab focuses on cutting edge technology fields, and represents the leading technology level in digital home industry. The establishment of the lab will help effectively reorganize the resources of the whole industry chain, form an open state-level high-end innovation platform, and build a digital home technology innovation system to make breakthrough in interconnection of 3G products and convergence communication and other bottlenecks hindering the development of digital home industry. Chinese Text

SARFT to Regulate New Media Industry Chain

Sources from a new media operator said that the State Administration of Radio, Film and Television is likely to establish a regulatory agency for oversight of the new media industry chain, focusing on evaluation of the transaction prices of new media content and value of rights infringed upon in copyright lawsuits. An SARFT working group on new media film & TV copyright research has concluded its initial survey. An insider commented that this program may spark a unified trading platform for new media content in China. In recent years, with the development of new media technologies, more and more TV audiences are turning to new media such as P2P TV, video websites and mobile phone TV, leading to rapid growth of new media transaction market and increase of copyright disputes and lawsuits, which fail to be settled reasonably due to lack of explicit provisions. Chinese Text

 

USITO selected and translated the news summaries above. If you are interested in learning more details about the above Chinese language links, you are welcome to contact us (wenjie@usito.org) to sponsor the translation of that report.

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