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