Copyright theft harms China, too
China is constantly at the sharp end of Western accusations that it is infringing intellectual property rights. The latest US government violations report keeps it on a priority watch list of 10 nations, expressing "grave concerns" about misappropriation of trade secrets and "incremental progress" in meeting perceived obligations.
China is constantly at the sharp end of Western accusations that it is infringing intellectual property rights. The latest US government violations report keeps it on a priority watch list of 10 nations, expressing "grave concerns" about misappropriation of trade secrets and "incremental progress" in meeting perceived obligations. But theft of patents, designs and copyright is not just a problem in the countries that are named and shamed. It is an international phenomenon that has no boundaries. Hon Lik, the Chinese inventor of the electronic cigarette, well knows that. He claims he is being robbed of a fortune by companies in China and elsewhere that are unlawfully making copycats.
Hon is not trying to make up for poor business decisions with his accusations. He is widely acknowledged as the creator of the smokeless cigarette and the firm he co-founded, Ruyan, has been selling it on the mainland since 2003. Patent protections are held by Dragonite International, a Hong Kong-listed company of which he is chief executive. A number of American companies have been sued and several more are being pursued, but that has not deterred countless other firms there and around the world from illegally profiting.
The e-cigarette market is exploding, especially in Europe and North America. Tens of millions of the world's one billion smokers have turned to them in the belief - so far backed by limited research - that they are less harmful than traditional tobacco products. Researchers at Wells Fargo & Co predict global sales will near US$2 billion by the end of the year and top US$10 billion by 2017. There are apt to be unscrupulous business people in such an environment.
Hon's companies are not Apple or Google - they do not have the resources to pursue each and every patent infringement. Nor, given the legal requirements in various jurisdictions, can cases always be promptly handled and processed. China has challenges in enforcing intellectual property rights protection, but as the e-cigarette shows, so too can Western nations.