On April 10, the China State Council (CSC) approved the guidelines for a national strategy of IP rights. Hammered out by the State Intellectual Property Office and other government agencies, the guidelines call ''for greater efforts to crack down on the infringement of intellectual property rights, safeguard market order and the legal rights of the public, strengthen international cooperation and abide by international practice, and make concerted efforts to raise awareness of intellectual property issues among the public,'' according to the Xinhua news agency.

The news was welcomed by the multinationals as well as the chip community. ''Progress is and will continue to be made in China's enforcement of intellectual property," said Richard Thurston, vice president and general counsel for the legal organization at silicon foundry giant Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), at the event. The event is sponsored by EE Times, Semiconductor Insights and Portelligent.

TSMC (Hsinchu) itself has experienced some legal issues in China. The company has filed several IP suits against rival Semiconductor Manufacturing International Corp. (Shanghai.)

While China is making "significant advances" in IP protection, there are still some major challenges in terms of understanding the regulations--or even the basic "rule of law" --and procedures in China, Thurston said.

"Many in China acknowledge that a 'rule of law'' is crucial to China's drive for greater scientific and technological innovation," he said during the panel. "I believe the 'rule of law' will continue to evolve [in China]. The real challenge for us America lawyers is [to understand] the 'rule of law.' ''

Indeed, the Chinese legal system is often complex and not for neophytes. For example, in a suit filed in China, the ''rules of discovery are not as well development as Western courts," said Russell Boltwood, vice president of licensing and IP at UTStarcom Inc., at the panel discussion.

There is also the perception that foreign companies will not get a fair shake in filing IP suits in China. The courts in China tend to protect Chinese companies, according to some.

But to some degree, that is changing in China, according to Jun Gong, a partner in the law firm of Jun He Law Offices (Beijing). In legal cases that involve multinationals, the courts are trying to be ''more fair" in China, he said.

During the panel, he advised multinationals to protect themselves in China by filing patents in that nation. "Be careful and be sure [you] involve local legal counsel in protecting your IP in China,'' TSMC's Thurston added.