A new report, The Chinese Challenge, Intellectual Property (IP) in China Manufacturing and Markets, will be released by consulting firm Technology Forecasters Inc. (TFI, Alameda, CA) on March, 22.  The report will include comprehensive tactics for protecting and defending electronics IP in China.

The Chinese Challenge presents up-to-date and thorough research on crafting a broad, multilayered IP protection plan for electronics products made or sold in China. The report is the result of interviews with engineers and managers from name-brand and contract-manufacturing electronics companies, as well as discussions with industry experts, trade associations and U.S. and Chinese government officials.

One of the major contentions of the report is that protection of electronics IP in China operations is more than a legal problem. The report focuses on production policies to minimize loss of control over IP, supply chain systems to guarantee quality inputs, as well as technical fixes to track products and support product redesign, making copying more difficult.  Based on a review of tactics and research, the report offers an Electronics IP Checklist with cost factors, effectiveness and advisability.

This report is authored by TFI associate Clive Jones, economist and managing director of Economic Data Resources, with the assistance of Ting Liu.

According to Jones, "China offers tremendous cost savings, but there can be tradeoffs against future market share. Companies need a range of tactics to check or slow down the diffusion of valuable IP to Chinese competitors." 

Two major groups of IP violators exist: smaller groups of counterfeiters and black marketers, and task groups in larger Chinese electronics companies. The latter group currently operates mostly below the radar. The smaller operations are responsible for most of the cases identified to date. They assemble from a combination of sources: authentic or at least grey market, black market, counterfeit and quality rejects. Their efforts are largely directed at simpler electronics products and supplies, although they have tried their hand at assembling systems like computer servers. Jones points out that "threats from larger companies are also very real, as witnessed by the existence of 'departments of reverse engineering' in some of the larger Chinese electronics concerns."

Table 1

Comparing Patents in China and U.S.

To order the report, contact TFI's Eric Miscoll: (817) 488-9456; email: emiscoll@techforecasters.com.

www.techforecasters.com

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