Adaptive IP strategies in China: a tactical analysis

Abstract

Purpose – The Chinese market presents numerous challenges to companies from industrialized nations, none of which is as daunting as protecting intellectual property (IP). It is necessary to develop a fresh approach for the US, EU and Japanese governments and companies to take advantage of China's growing domestic market while not exposing their IP to continued losses. This paper seeks to discuss this issue.Design/methodology/approach – The research is based on review of existing literature on IP rights infringements in China, application of theory of sustainable competitive advantage as a prescription to discourage imitation and promote early‐mover advantages, and SWOT analysis of the contrasting US and Japanese IP strategies.Findings – Both US and Japanese IP strategies have advantages and disadvantages, but the question remains who can be the most creative and adaptive in their ultimate goal of preserving their IP rights while prospering in the world's largest marketplace.Practical implications – Apart ...