The Commission of the Theft of American Intellectual Property released a report Wednesday claiming the United States loses more than $300 billion annually to IP theft and urging the United States to take immediate action to stop the Chinese from stealing its intellectual property.
"The American response to date of hectoring governments and prosecuting individuals has been utterly inadequate to deal with the problem," the report said.
The commission studies how and when China or other nations steal intellectual property from the United States.
China is responsible for roughly 70 percent of all IP theft, according to the report.
"[There is a] tremendous loss of revenue and reward for those who made the inventions or who have purchased licenses to provide goods and services based on them, as well as of the jobs associated with those losses," the report said.
"[I]llegal theft of intellectual property is undermining both the means and the incentive for entrepreneurs to innovate, which will slow the development of new inventions and industries that can further expand the world economy and continue to raise the prosperity and quality of life for everyone."
The commission claims that better IP protection would add millions of jobs in the United States and guarantee economic growth.
"The incentive to innovate drives productivity growth and the advancements that improve the quality of life," the report said. "The threat of IP theft diminishes that incentive."
The commission recommends creating global institutions and reforming laws to protect intellectual property.