The protection of intellectual property rights (IPRs) is a contentious issue in developing and emerging economies. While countries like China are often reluctant to strengthen IPRs, industrialized countries complain about welfare losses in their markets due to foreign counterfeiting and piracy. In this context, Johannes Liegsalz empirically analyzes the legal framework and the economic relevance of patents in the People's Republic of China. His results show that IPRs play a vital role in contemporary China and that they have a positive impact on international trade flows and foreign direct...