Omnia Juncta in Uno: Foreign Powers and Trademark Protection in Shanghai’s Concession Era∗ Laura Alfaro Cathy Ge Bao Maggie X. Chen Junjie Hong Claudia Steinwender June 2021 (Preliminary and Incomplete) Abstract Intellectual property (IP) institutions have been a salient topic of economic research and a prime cause of political disputes, including the latest U.S.-China trade war. In this paper, we investigate the effects of trademark protection, an under-examined form of IP protec- tion, by exploring a historical precedent: China’s trademark law of 1923—a law enacted not to protect the domestic economy, but an unanticipated, disapproved response to end con- flicts between foreign powers. Exploiting a unique, newly digitized firm-level dataset from Shanghai in 1870-1941 and bilateral product trade data, we show that the trademark law spurred employment and trade growth and advertising investment for Western firms with greater dependence on trademark protection. In contrast, Japanese businesses, who had fre- quently been accused of counterfeiting, experienced employment contractions. Further, the trademark law led to greater domestic integration both within and outside the boundary of Western firms as they became more inclined to promote Chinese employees and work with domestic agents. Finally, we show that previous attempts by foreign powers to strengthen trademark protection — such as extraterritoriality rights, bilateral commercial treaties, and an unenforced legal trademark code — were ultimately unsuccessful. JEL: F2, D2, O1, O3, N4 Keywords: trademark, firm growth, institution, treaty, concession ∗Harvard Business School and NBER,
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