Supply Chain News Bites - Only from SCDigest
 

-Jan. 10, 2008

 
 

Supply Chain Graphic of the Week – Protecting Intellectual Property in China

 
 

Understanding the "Pyramid of IP Protection" can Reduce Risk, Loss of Assets - and Market Position; Strategic, Legal and Operational Dimensions

 
 

By SCDigest Editorial Staff

 
 

With the growth in offshoring and outsourcing to China has come corresponding concern about Intellectual Property protection - and with good reason. Companies ranging from GM to Apple to Motorola and dozens more have suffered from Chinese competitors - often former partners - ripping off product designs or other loss of Intellectual Property. Counterfeiting is also a huge issue in many segments. (See Offshoring Continues to Generate Patent and Intellectual Property Issues).

Though progress is being made in Chinese law and enforcement, the environment there is still far from Western IP standards. Companies must take extra precautions both in the China market generally and with manufacturing and engineering partners to protect their assets.

The graphic below, from the new book Operation China: from Strategy to Execution, by Jimmy Hexter and Jonathan Woetzel, offers the following framework for actions and policies that should be taken to maximize protections. (See full SCDigest review of this new book.)

 

Source: Operation China: from Strategy to Execution
By Jimmy Hexter and Jonathan Woetzel

Companies that don't have a well-developed IP protection strategy and program in China (and in other global manufacturing and sourcing operations) would be well served to consider this model.

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