In this business tv show, emerging market specialists Stephen Philips, Chief Executive, China-Britain Busin...
In this business tv show, emerging market specialists Stephen Philips, Chief Executive, China-Britain Business Council, Ian Coleman, Partner, Head of emerging markets, PricewaterhouseCoopers UK, Frederique Schillern, COO Asia Pacific, Equity Trust, and Chris Runckel, President, Runckel and Associates, discuss the IP challenges that every company must consider before doing business in an emerging economy.
Frederique Schillern: You could say that intellectual property in China is a big concern; it should be for anybody who is really transferring intellectual property in China.
Chris Runckel: China in all honesty is a disaster in respect of protection of intellectual property. Even today intellectual property is not being protected in a worldwide sense. You know other places have their problems as well; India has their problem with intellectual property as well but of all the countries in Asia, China is the worst.
Ian Coleman: What we are increasingly seeing people do is look to work through licensing arrangements that are more collaborative where there is an attempt to actually almost bring the enemy into the camp if that’s a analogy that one may use. I’m not sure that it’s a great analogy actually but none the less that concept of actually getting into a circumstance where there is a mutual understanding of the profit motive and working that through.
Chris Runckel: There are ways in which you can design your manufacturing to limit your exposure of that intellectual property and many companies have done a very good job of that. What they will do is they will manufacture certain components in China to lower cost and actually put together sub assemblies in China but they do the final manufacturing or final putting everything together in another location. Other time there are ways in which you can actually basically protect your intellectual property by only releasing certain portions of it to exposure in China and this is how may major corporations are actually doing their manufacturing so that they limit their risk.
Frederique Schillern: I think authorities in China are definitely putting a push on this because in their development cycle a few years ago they needed our money to grow their economy. They no longer need our money, they need our technology but they know that technologies only going to get transferred if the people who own that technology know that it’s protected.
Stephen Philips: The Chinese government have put in place in fact quite sophisticated IPR laws the problem at the moment is in the enforcement of those laws. I think progress is being made. I think the Chinese recognise that this is a very important issue it’s a very important issue in fact for Chinese businesses because unless you have IP protection then Chinese companies themselves aren’t going to innovate.
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