Anti-corruption and Intellectual Property Protection Articles
Combating Strategic Counterfeiters in Licit and Illilcit Supply Chains
Soo-Haeng Cho, Xin Fang, Sridhar R. Tayur, 2011
Counterfeiters are becoming more sophisticated from shoes to infant milk powder and aircraft parts, creating problems for consumers, firms, and governments. By endogenizing a counterfeiter's decisions on quality, price, and type (deceptive, so infiltrating a licit, but complicit, distributor, or non-deceptive in an illicit channel), the report provides insights into when anti-counterfeiting strategies work well and when they do not. Access the article here.
Shanzhai ("Bandit") Mobile Phone Companies: The Guerrilla Warfare of Product Development and Supply Chain Management
Hau Lee, David Hoyt, Power Siu, Mitchell Tseng, 2010
In 2008, more than 750 million cell phones were produced in China. A significant portion (20 percent, or about 150 million units) of these phones were produced by Shanzhai companies. These companies had rapidly taken a significant share (about 10 percent) of the worldwide market. This phenomenal growth was primarily due to nonconventional approaches to the global market in market positioning, rapid product development, and tightly coupled, responsive and efficient supply chain management. Though Shanzhai often has been perceived as a term for counterfeiting, in reality it is more than just copying. This case describes the Shanzhai phenomenon, and how these companies operate. It also provides an example of one company that successfully transitioned from a Shanzhai culture to become a major mainstream force in the Chinese mobile phone industry. The case also discusses forces that challenge the future of the Shanzhai model. Access the case study here.
Fighting Corruption in the Supply Chain
UN Global Compact, 2010
This guide aims to help companies reduce corruption risks in their supply chains, specifically outlining why businesses must join the fight against corruption and providing pragmatic advice on addressing this complex challenge. The report offers detailed guidance on common supply chain corruption scenarios and a set of tools for fighting corruption. Access the full report here.
Win the China IP War and Gain Globally
David McHardy Reid, Simon MacKinnon, 2010
The loss of intellectual property is a compelling problem for international companies developing their business positions in China. This article in Thunderbird International Business Review reports on a qualitative study that involved face-to-face interviews with CEOs of major IP-owning companies as well as IP lawyers, IP protection consultants, and security agents who track down offenders to provide case evidence to the Public Security Bureau. Analysis implies that a majority of companies were found to be lax in their IP protection measures, relying perhaps too much on legal redress rather than a priori preventatives. As a response, a strategic framework has been developed to deliver higher levels of IP protection. Access the article here.
The Economic Impact of Counterfeiting and Piracy
The Organization for Econmic Co-operation and Development, 2008
This report assesses the magnitude and impact that infringements of intellectual property rights have on governments, business, and consumers. This publication estimates the incidence of counterfeited and pirated items in world trade. The study also provides an analysis of the market for counterfeited and pirated goods and the effects on various affected parties, ranging from the owners of the intellectual property rights, to consumers and governments. The study also provides a number of in-depth snapshots of different industry sectors, highlighting how those sectors are affected by counterfeiting and piracy, and how they are responding. Access the report here.