German firms urge Merkel to press China on piracy

BERLIN, May 18 (Reuters) German industry is urging Chancellor Angela Merkel to press the Chinese government to crack down more aggressively on piracy when she visits Beijing next week.

''German companies are suffering revenue losses because copies of their products are being sold in the Chinese market,'' a report prepared for Merkel by Germany's leading industry associations says.

''The existing legal penalties for product and brand piracy are not having a sufficient impact,'' the report, a copy of which was obtained by Reuters, says.

It urges Merkel and Economy Minister Michael Glos to press officials in Beijing and Shanghai for better protection against copyright infringement, a loosening of Chinese rules on technology transfer, and the dismantling of trade restrictions for raw materials.

''The combination of technology transfer and the build-up of an independent research capability could make China itself into a technology leader faster than is generally thought,'' the report says.

Merkel, Glos and an economic delegation that includes top managers from Deutsche Bank, Allianz, SAP and Siemens, travel to China on Sunday.

On Monday, Merkel is due to meet Chinese President Hu Jintao and Premier Wen Jiabao. Merkel is due to give speeches at a high-technology forum in Beijing and to German businessmen in Shanghai.

Reuters SK GC0410