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Marina Case China

In: Business and Management

Submitted By gnunes12
Words 541
Pages 3
Subject: Case 2-9 Coping with Corruption in Trading with China

Prof - 24/02/2014

Assume you are the CEO of a new firm that has perfected a package of software applications for medium and large sized companies to help manage intellectual property applications (patents, trademarks, copyrights). Licenses for companies in the United States have sold briskly, at $ 2000 per company for more than a year. Now you have heard rumors that your software is being pirated in China. Ironic, isn’t it? Write a briefing for your board of directors with a specific plan of action to address this leakage of your intellectual property into the Chinese market.

We all know that there are lots of challenges entering the China market for international companies. First, we need to consider the two broader issues, establishing if the company either should or not bring its products to China. We have to consider that China is evolving in technology and innovation, and that provides a measure of hope for all technology owners. It is a risk and the company should be prepared to fight it. I am here to address this piracy problem that our company may have and address some certain precautions that can substantially lessen the risk. For example, setting up a solely owned foreign company where possible to manufacture the product is a better alternative, rather than entering into a joint venture. I say that once it provides more control over who has access to the technology and knowhow. Breaking the manufacturing process into several discrete operations that are located in different facilities can prevent any single group of employees from seeing the whole process. Another good way to prevent technology leakage is to manufacture more components, where much of the technology is contained, in house, rather than outsourcing. .

Also, we have to consider the…...

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