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China is dramatically catching up and is rapidly becoming a leading technological innovator on the global scale. The number of Chinese firms with global ambitions is growing fast, more and more technological innovation is coming from China, and the number of patents in China is also growing steadily. The negative side of this development is the still insufficient protection of intellectual property in China. The phenomenon of counterfeits originating from China has increased constantly over the past two decades. Moreover, within the past ten years the scale of intellectual property theft has risen exponentially in terms of its sophistication, volume, the range of goods, and the countries affected. This book addresses managers dealing with innovation in China, and offers concrete advice on how Western firms can benefit from these innovations. Among others, it provides examples and checklists to help decision-makers active in China.​

Inhaltsverzeichnis

Frontmatter

1. China as a Place to Innovate

Abstract
Many western firms have to find an answer to the massive and aggressive Chinese growth. In the past it has been relatively easy: China was a destination for low cost manufacturing and a market for low cost products. Today this is different: China has become very competitive in many technological areas. And as such more and more transnational companies have identified China as a preferred place to conduct offshore R&D activities. Today we see many firms that go beyond simply innovating for China. Their Chinese R&D labs are responsible for many of their breakthrough-innovations in recent years.
Oliver Gassmann, Angela Beckenbauer, Sascha Friesike

2. Protection of Intellectual Property in China

Abstract
Globally, three quarters of all imitations originate from China. Within the past 10 years the scale of intellectual property theft has risen exponentially in terms of its sophistication, its volume, the range of goods, and the countries affected. In this context, the protection of intellectual property and their associated rights remains a challenging task for any industrial firm. The development and elaboration of effective and solid protection strategies, including legal and factual protection means, need to receive careful managerial consideration.
Oliver Gassmann, Angela Beckenbauer, Sascha Friesike

3. Dimensions of IP Protection in China

Abstract
The application of intellectual property protection means depends on the type and the characteristics of a threat. Common intellectual property threats in China concern legal infringements such as patent, trademark, design or copyright infringements. Yet intellectual property rights infringements are only part of the IP threat environment in China. In addition to such legal-illicit threats, also legal-licit, that is to say uncertainties within the boundaries of the law and factual challenges are predominant in China. In China the impudence and creativity of infringements show that the extent of IP infringements and challenges remains a difficult task to counteract.
Oliver Gassmann, Angela Beckenbauer, Sascha Friesike

4. The IP Protection Star

Abstract
Firms need a holistic piracy intelligence and IP protection to profit from innovation. They also need to develop strong brands and to manage technology-intensive processes in China. The different facets of legal and factual protection means need an overall perspective of directly or indirectly protecting IP.
The IP protection star addresses five dimensions, namely legal-, technology-, business-, market-, and human-driven IP protection. Many firms solely focus on legal aspects and thus lose their IP by means of personal fluctuation. Some firms are excellent in technology protection but fail in the market because fake products with low quality damaged their brands. Some firms do focus on the business and the legal part, but are imitated by firms that received technical information from key suppliers.
The IP protection star helps managers to avoid white spots and to establish a holistic view on their IP management.
Oliver Gassmann, Angela Beckenbauer, Sascha Friesike

5. Integrated Management of Piracy Intelligence

Abstract
In many firms, the IP management is an isolated unit with little contact with the daily business. Yet, the management of IP protection, the identification of piracy and the application of countermeasures require the involvement of many roles within the organization. Since IP departments are often organized as central units in a firm and are responsible for all IP management tasks and related services, the requirements of an integrated protection system are not met. In most organizations, an integrated management approach that involves different departments to identify and counteract IP threats is missing. The need for such an approach is often only realized after the occurrence of an infringement or serious IP threat.
Oliver Gassmann, Angela Beckenbauer, Sascha Friesike

6. Using the IP Protection Star Effectively

Abstract
The protection means, technology, human, market and business are vital to embrace the dynamics of IP threats in China. The piracy intelligence and identification of IP infringements is challenging. Due to the dominant view that IP professionals autonomously man-age IP activities, the traditional IP protection is mainly characterized by the application and management of proprietary rights. However, one has to acknowledge the emerging principle that IP protection creates value, which, in itself, creates protection. The protection of the value proposition creates differentiation to competitors, which in turn creates the appropriation of returns from innovations. Institutionalizing IP protection creates change and comprises task ownerships with clearly defined responsibilities. The pervasiveness of the view that IP protection mostly consists of legal protection is incomplete. The refinement of legal and factual protection means into a human-, market- and business- as well as legally- and technology-driven protection leads to a comprehensive view on IP protection options.
Oliver Gassmann, Angela Beckenbauer, Sascha Friesike

7. Outlook

Abstract
The protection of proprietary IP in China remains a challenging task. It will require several more years and a revolutionary rethink before China develops into a strong appropriability regime. The increasing number of patent applications in China by domes-tic firms underlines the importance of IP generation by local firms to protect their innovation portfolios. The Chinese government continually invests in innovation and has strategically placed it at the center of its 5-year development plan. However, as long as the Chinese IPR regulations and enforcement remain weak, IP protection will remain one of the highest priorities for industrial firms in China. If China continues its innovation efforts, whilst also reinforcing its intellectual property system, it will become an innovation powerhouse within the next two decades.
Oliver Gassmann, Angela Beckenbauer, Sascha Friesike

Backmatter

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