| Chances are the latest Adidas t-shirt you | | | | improving products on a regular basis. By the |
| just bought has a 'Made in China' tag on it. | | | | time imitators catch up with an existing |
| No matter what aspect of modern day | | | | product, companies have already introduced a |
| manufacturing one looks into, China is the | | | | product that has better quality or is an |
| land of promise. Organizations all over the | | | | improvement over the existing product. A good |
| US and Europe are investing millions of | | | | example of the above mentioned concept is |
| dollars in outsourced production centers in | | | | mobile phones. By the time a low cost |
| China, but piracy and counterfeiting is still | | | | imitation of a mobile phone is ready, |
| the biggest concern for organizations. In | | | | manufacturers like Nokia and Motorola have |
| 2006, US industry lost nearly $512 billion | | | | already introduced an improved product or a |
| dollars due to piracy and counterfeiting. | | | | higher model. In essence, a buyer has no |
| Today, everything from fake Gucci handbags to | | | | motivation to buy low cost imitations as a |
| spurious car parts are being produced in | | | | better product is available. |
| China. | | | | |
| | | | IPR violators have been forced to invest in |
| China is home to nearly 2/3rds of the world's | | | | R&D and come up with their own mobile phones |
| counterfeit and pirated goods market, and IP | | | | and there are numerous low cost Chinese |
| (Intellectual Property) rights violation is | | | | mobile phones available in the market (that |
| rampant in China. The reason why counterfeit | | | | have nothing to do with their bigger |
| products are so cheap is because | | | | counterparts). This is why people looking for |
| counterfeiters can skip investing in R&D | | | | cheap mobile phones prefer buying Chinese |
| (Research and Development) and copy patented | | | | made mobile phones. Releasing products at a |
| products and techniques, thus mass produce | | | | rapid pace allows larger organizations to |
| products for less. A company manufacturing | | | | keep imitators at bay, and ensures that |
| cheap imitations has to spend nothing on | | | | customers buy cheaper products only by |
| advertising, brand building and quality | | | | choice. The biggest factor in favor of larger |
| control. Unfortunately, IPR (Intellectual | | | | organizations is the quality after sales |
| Property Rights) are being violated in every | | | | service provided, making a consumer's |
| imaginable field of production, and even | | | | investment in a product worthwhile. |
| printed products like books are being | | | | |
| counterfeited in China. | | | | Block counterfeiting and imitations |
| | | | |
| Given China's current scenario, hiring IP | | | | The formulas for products like Coke and KFC |
| attorneys is just one of the legal measures | | | | are among the most closely guarded secrets on |
| that organizations can take to protect their | | | | the planet. Companies can analyze their |
| investments. China's legal system is | | | | supply and production chains to isolate |
| unusually slow, and even though the Chinese | | | | processes that can be protected. Instead of |
| government has setup an IPR protection work | | | | protecting the entire supply/production |
| group to handle IPR violation cases, a lot | | | | chain, it is simpler to protect vital aspects |
| more has to be done to prevent further damage | | | | of the production and supply process. For |
| to overseas investors. Almost all major MNCs | | | | example, KFC has a single formula for their |
| in China have a team of IP attorneys, but | | | | fried chicken and ready made batter is |
| there are other more intuitive measures being | | | | shipped out to centers all over the world |
| taken by companies to discourage | | | | (the concept holds true for Coke's |
| counterfeiting. Below is a list of steps | | | | manufacturing system). The above mentioned |
| being taken by companies to keep spurious | | | | concept is not restricted to chemical |
| products at bay: | | | | formulas only. Organizations can also protect |
| | | | vital components by having the final product |
| Staying ahead of imitators | | | | assembled in China (a technique used to |
| | | | protect hi-tech gadgets and electronics |
| Large organizations simply 'outpace' | | | | items). |
| imitators by introducing new products and | | | | |