Protecting Intellectual Property in China Harvard Case Solution & Analysis

Intellectual property protection is the No. 1 challenge for multinational corporations operating in China. For European manufacturing companies, prospective profits were reduced by the lack of IP in China by 20%. The effects from IP leakage are not invisible in counterfeited items including high-end goods, toys and aircraft and automotive parts. But IP infractions go beyond products to include entire business and pirated operational procedures and service models. IP leakage frequently occurs through staff transports or common practices from foreign multinationals. For multinationals, this type of IP leakage is commonly a calculated risk worth taking.

However, unintentional IP leakage can affect a Business’s standing and profitability, and can make strong local as well as international competitions. In studying more than 50 multinational corporations, Mary Teagarden and authors Andreas Schotter identified nine IP protection practices in China to be used. Four of the practices are not offensive and focused; the others are internal and proactive. Collectively, they create what the authors call the "IP protection web," which enables corporations to (1) expand faster within China as well as in other emerging markets; (2) improve functionality; and (3) enhance local and global innovativeness. All of the firms the writers analyzed learned to safeguard their IP through learning from mistakes. The shifting composition of IP hazard creates a demand for reconfiguration that is continuing. Really, as Chinese companies become more skillful at absorbing leaked IP, international businesses develop new ways to engender loyalty and must develop more innovative responses.

Protecting Intellectual Property in China Case Study Solution

PUBLICATION DATE: July 01, 2014 PRODUCT #: SMR494-PDF-ENG

This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE

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