intellectual property and china

Intellectual Property and China

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Transmitting Culture and Technology

• Anthropologists continue to argue over how technology has been transmitted.

• Two Schools: Independent Development or Cultural Interchange



• The Iron Age started much earlier in the West [1200 BC].

• Iron weapons and tools only reached China in the Warring States Period [circa 500 BC]



• Paper invented in 105 AD by Cai Lun.

• Only reached the Arab world and the West after the Battle of Talas in 751 AD



• Today, technology moves exponentially faster across the globe.

• The High Tech revolution has changed the process of technology transfer



• The Middle Kingdom now the recipient of the transfer.

• China’s education system one of the largest impediments to innovation.


3 Philosophies of Intellectual Property

• Protective, Restrictive, Right to Exploit to the Inventor – Use of Governments and Law to Block Free Exchange

• Open, Free Flowing, Mankind’s Birthright and Legacy – Circumvention of all and any restrictions

• “I Don’t Give a Hoot; If It Works, I Want It?”


3 Key Learnings – Due Diligence

• Register your Copyrights and Patents

• Keep your R&D Off-shore

• Don’t use OEM’s to produce components

• Be Public – push for IP protection, monitor, act fast, be public with wins [pray]

• Compartmentalize – don’t keep it in one place

• Keep evolving!


3 Key Learnings – Market Position

• Chinese companies – provide low price, low quality

• Foreign enterprises – provide high price, high quality

• Latter strategy leads to counterfeiting


Blue Ocean Strategy W Chan Kim and Renée Mauborgne


Blue Ocean Strategy

• Red Ocean

• Existing Markets

• Products

=Commodities

• Exploits Existing

Markets

• Seeks Competitive

Advantage either in

Price or Differentiation

• Blue Ocean Non

existent Markets

• OR Alters boundaries

of existing markets

• Finds Markets without

Competition

• Uses Differentiation

PLUS Low Cost


Blue Ocean Strategy

BLUE OCEAN

LOW COSTS

BUYER VALUE


3 Key Learnings – Cross Cultural Agility

• Develop a global, cross cultural leadership team

• Insure your team and its leaders are committed to your brand

• Delay Localization

• Find, develop and grow your own China hands

• Listen to those on the ground about the China market and its problems – PA is not PA!

• Be flexible in your China policies


Q&A

intellectual property and china

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