By Laura MacInnis GENEVA, Jan 30 (Reuters) - Chinese firms could push Beijing to tighten its intellectual property rules, as long demanded by the West, once they produce their own goods that would benefit from them, an anti-counterfeiting conference heard on Tuesday. Much Chinese manufacturing is done under licence from foreign companies, but once local businesses develop more sophisticated products they will start pressuring the government to step up intellectual property protection, speakers said. "It is going to be a slow process," World Customs Organisation chief Michel Danet told the conference hosted by the World Intellectual Property Organisation, a U.N. agency that says piracy costs the global economy over $100 billion a year. Bob Wright, vice chairman of General Electric <GE.N> and chairman and chief executive of the media giant NBC Universal, said China had made strides in strengthening its judiciary and enforcement policies. "One of these days not too far away" when the country had "Chinese-created IP (intellectual property) to defend and protect, that situation will turn on," he said. Corporate giants including Vivendi Universal <VIV.PA> and Microsoft <MSFT.O> this week named China the worst country for intellectual property rights, citing it as the source of two thirds of counterfeit goods seized in the European Union. The United States has warned China that it could pursue action at the World Trade Organisation, which Beijing joined in 2001, if it does not take firmer action to protect copyright. Xiong Xuanguo, vice president of China's Supreme People's Court, told the conference his country "has conscientiously observed its commitments" and put in place intellectual property rules that accord with international norms. "Compared with many other countries, punishments on (intellectual property rights) related crimes in China are relatively severe," he said, according to a text of his speech. Officials at the two-day Geneva conference, the third annual such gathering, are expected to outline ways to fight piracy -- such as stronger law enforcement links and better public education -- without agreeing to a concrete action plan. John Dryden, a deputy director at the Organisation for Economic Cooperation and Development, said counterfeit and pirated products were sold "in virtually all economies". The Middle East was an important market for fake auto parts, while Africa was a major destination for counterfeit drugs, he said. Counterfeit cigarettes were appearing "almost everywhere", and music, films and software were also significant in all economies, particularly developing countries, Dryden said. Recent seizures also showed large amounts of counterfeited clothing and apparel, electrical equipment, leather articles, toys, games, clocks and watches in circulation, he said.
