European Union Ambassador to China Serge Abou Thursday called on European intellectual property rights holders and Chinese retailers to sign a memorandum of understanding to jointly monitor IPR infringements.

The purpose of the MOU is to ensure that Chinese retail market landlords respect their commitments to prevent counterfeits, which will mean fewer European companies file lawsuits.

He said that friendly discussions have been going on between the two parties although he wasn't personally involved. He hopes that the cooperation agreement will "involve the maximum markets on one hand and the maximum brands on the other hand".

He clarified that the purpose of the agreement was not to persuade European firms to "bypass the courts" but to stop counterfeiting "more effectively". "If this measure doesn't work out," he said, "companies can continue to lodge lawsuits."

Abou also expressed his wish that discussions over the adoption of the MOU could be concluded with landlords of key Beijing retail markets before European Commissioner for Trade Peter Mandelson's visit to Beijing on June 7.

"It would be a sign of China's good intentions to the world," he said.

A written statement by the ambassador said that Mandelson himself had expressed the same wish and would publicly congratulate the Beijing Municipal Government on the successful settlement of the matter.

Praising the commitments of China's top leadership and the judicial departments, Abou said that he had no intention of pressuring the Chinese government.

"I think counterfeits will be stopped in China. It's just a matter of time. We hope to resolve this problem through discussions," he said.

Last September, Burberry, Chanel, Gucci, Louis Vuitton Moet Hennessy and Prada, jointly filed a lawsuit against Beijing's famous Xiushui (Silk Alley) market and five of its stall holders, after twice finding fake versions of their brands. The firms won compensation totaling 100,000 yuan (12,500 U.S. dollars) in the first case in China where a market manager was found culpable.

Source: Xinhua