How to Stop Intellectual Property Theft in China

For good or ill, the so-called "bottom line" in all business is the money. More specifically, it's about who gets the money. When one company invents something new, it wants to prevent intellectual property theft to secure its profit. But other companies are often willing to go to great lengths to make money as well. According to reports, China accounts for more than two-thirds of such theft. Read on to learn more.

Difficulty: Challenging

Instructions

1. Determine what, if anything, is being done at the present time to protect your intellectual property from theft. Check on the actual safeguards that are in place and what steps are already being taken if a theft is suspected or discovered.

2. Do your homework. Check on the needs and policies of the company with whom you want to do business. Be aware of the Chinese government's stance on approving foreign goods.

3. Refuse to offer your schematics or other engineering specifications for previous review by the Chinese government, if you have any suspicion that those designs will be used to steal your product. Decide for yourself and your company if it may be better to refuse such a deal, than lose all control of your product's integrity in a foreign market, even one as large and up-and-coming as is China's.

4. Talk with, write to or otherwise communicate with your elected officials to help craft and enforce strong trade policies with China. If China, as an entity, is made to crack down on intellectual property theft, the market will open up and they will be forced to do business on a more relatively "fair" footing.

5. Stop buying goods from China, if there is any possibility that the products you buy are the result of intellectual property theft. The key to China's economic boom position here in the U.S. is our ever-ready willingness to buy ever-cheaper goods, without questioning why the prices are so low. Begin the questioning, and step up to the challenge of not being led or deceived by lower prices.

Tips & Warnings

• China appears to be the world's fastest-growing economy these days, which makes it difficult to complain about their business tactics. If you complain, be careful to protect your present and future interests without burning any bridges you might have to that market.
• Be ready and willing to give up some money. Set your mind to the idea that you don't have to save as much as you have been all along and, on principle, decide that you'll search out and buy only industry-compliant products and technology.

Resources

• A detailed description of the problem and solutions.