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Ashton Udall

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May 17, 2007

China and Your Intellectual Property: Why do They Copy?

Reverse_engineering_5 This very morning in Shenzhen, China, a young design engineer will rise from his bed, have a quick breakfast and get dressed in clothes that might be the very ones he wore yesterday.  He'll jump on his bike or scooter, zip through the streets for 20 minutes, jump off and head into his company's manufacturing plant office to begin the day.  He'll put his things away, join another engineer in their "Reverse Engineering Department", and sit down around an existing product selling successfully on the market in Europe, Canada, and the United States.  He'll begin to pull piece after piece of it away and log notes on it's assembly, materials, dimensions, etc., with the intent of giving this information to his bosses, who will create 10,000 exact replicas at the factory to sell into the Chinese market with a new label on it.  Why?

This morning I read a post asking the question "Why Does China Copy Designs" at DesignSojourn blog, written by D.T., Design Translator, a product designer who works out of Sydney and Singapore.  His analysis largely focused on cultural and socioeconomic factors regarding the motivation of chinese companies to replicate, build-off-of, tweak, and steal existing product designs.  I usually get the question of "how does one prevent a product, invention, idea, or design from being stolen?"  Rarely do I get the question of "why do they steal?".  As D.T. points out, giving an explanation does not equal defense of the practice.  It's just a bloody interesting question.  It's a very complex issue.  But, to discuss it in a blog requires simplification.  I've consolidated D.T.'s points into two themes that struck me.

  • Culture and Education:  "Fast forward to today, this is also similar to (i dare say) most design schools in China where students come from a rote learning high school background and are tought to follow instead of think. At school they look to famous designers and architects as examples, and their work naturally becomes very thematic or contain the safest forms of expression. Furthermore it is expected that Schools focus on technical skills instead of thinking skills, as learning about creativity is about following a set way of doing things."   

A few years ago, I was part of a program which brought professionals, educators, and politicians from 14 different countries around the PacRim for 6 months to discuss and interact on issues of culture, leadership, and more.  We discussed this phenomenon with our Chinese teammates and their responses were the same.  Today in Chinese culture, you are frowned upon heavily if you take a risk and are wrong.  New/different ideas and practices that deviate from the norm are shunned.  Conformity is praised.  Some might say the foundation for this cultural theme was laid by the teachings of Confucius.  Thus, the typical chinese person learns throughout their educational experience and upbringing that it's better to replicate something already proven than try and develop something new.

  • Socioeconomic situation:  "When you grow up in a country where life is cheap, things do get brutal and money talks. There is no area for the softer aspects of the business, like branding, experience and emotive products etc." 

Competition amongst companies and factories over there can be very intense and many individuals will do whatever they can to beat out the next guy and build financial security for their family.  When I wrote my little story at the beginning of this post, I purposefully included the fact that my fairytale engineer might wear the same clothes day after day.  This is because he really might only have a few decent shirts, pants, and two pairs of shoes.  Many of these people have seen dramatic changes in their lifetimes, scarcity, and total government control.  Life can be very tough in China, and only recently since the early 90's, has there been a window opened for a new and better way of living.  When opportunity to flourish arises, many will take it.

A few points of note... 

  • The situation is improving. 
  • It is likely that they will begin protecting IP more when they have their own IP to protect (which they will someday). 
  • This is why it's absolutely necessary to know who you're doing business with and visit their factory.

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Comments

Thanks for the write up.

When I wrote the article, I was worried and expected some raised eyebrows in doubt, but I'm glad that someone that has a close working relationship with China also concurs with my observations.

Please keep in touch.

DT,
I certainly concur with many of your observations. It can be a touchy issue to tackle, particularly when it deals with a subject such as culture. I think it's good to write on a topic like this because I really do think the question "why" is rarely asked or discussed in comparison to just talking about the phenomenon taking place, the fact that it is a negative, and what to do about it. Thanks for the inspiration.

Nice post guys. IP and other unethical business practices is still a big issue in China.

You mentioned the reason of rote learning in culture and education but did not seem to get into more details. I think the more accurate descriptions can be discussed.

Interesting post. To me, IP is less of an issue than fake/dangerous foodstuff and medicine that continue to be produced in China. The reasons those exist in the marketplace can be also be attributed to your "socio-economic situation" reasoning as well..

SCott,
Thanks for the note. I must say that I am not an expert on China's education or culture. It's a very complex question and my observations are based on insights from more knowledgeable people than I, as well as what I have gathered in my own experiences.

With that said, there are a few factors that people tend to point to when considering the emphasis of rote learning in Chinese education. Check out this International Herald Tribune article:
http://www.iht.com/articles/2003/10/21/rchina_ed3_.php

As for me, I witness it working with engineers and factories in general. But one anecdote springs to mind that might be more entertaining. I once played a game with some Chinese reporters in which we went around the group and had to name all prime numbers that didn't have a 7 in it or was a multiple of 7, between 0 and 100. This might have involved beer. And then we went backwards. The Americans in the group, including myself, floundered after 20. The Chinese guys ate it up and had no problem reciting the prime numbers up and down from 0 to 100. Whether this was attributable to their superior math skills or just the fact that they had simply memorized prime numbers, the difference was clear. And these were reporters, not mathematicians. Now, if we had played Pictionary or Charades, it might have been a different story. This is one simple experience of many, but I would love to hear about anyone else's that might corroborate this post or challenge it.

Dezza,
Good point. The food and pharma question in China could be much more hazardous if gone wrong. The recent pet food scandal is an example of the potential dangers when these industries, products, and companies are not heavily monitored and regulated for safety and quality. In the case of pharmaceuticals and biomedical products being developed and manufactured in China, you may be onto something in suggesting that the desire to replicate drugs for the chance at substantial profit (stemming from the socioeconomic issue) is much more dangerous than a popular mp4 player. I recently had a conversation with Dan Harris of ChinaLawBlog, when the pet food scandal arose, about the fact that product liability is an area that we may see a lot of legal activity in coming years.

I saw your information at http://productglobal.typepad.com/gss/2007/05/china_and_your_.html. Have you seen http://www.FreePatentsOnline.com ? The site might be a good resource to add. This site allows free patent searching, free PDF downloading, free alerts, and more. It is a good resource for intellectual property attorneys, patent searchers, scientists, and students.

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