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Trade Secrets for Sale

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pocharle
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Supply Network Guru
Re: other foot
pocharle   3/20/2013 12:28:32 PM
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Good point. This reminds me of all of the recent major lawsuits where the big wigs only have to pay minimal fines. Sure, it's a fine but when it's only 1/2000th of your net income, who cares right...

Eldredge
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Re: Only China or Korea and other countries too?
Eldredge   3/13/2013 8:33:49 AM
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Doug,

    Good point - when we outsource manufacturing, we also outsource technology. In many cases it may be in small increments, but it all adds up.

Douglas Alexander
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Re: Only China or Korea and other countries too?
Douglas Alexander   3/11/2013 9:11:33 PM
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_hm, I agree. I think if I had a unique design that was the bread and butter of my company, I would not outsource to China. If Korea is a proven site for industrial espionage, I would cross Korea of my list too. Maybe no business will prove we mean business when it comes to protecting our trade secrets.

_hm
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Only China or Korea and other countries too?
_hm   3/11/2013 7:03:13 PM
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Is this applicable to China only? It should also be applicable to other countries e.g. Korea and others. Also, if it is true, why so many fortune 500 organazation are moving to China for Research and Design? They should fear outsourcing of advance design work.

Douglas Alexander
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Re: other foot
Douglas Alexander   3/11/2013 3:37:33 PM
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@pocharlie,  Until they come up with a lot harsher penalties, crime does pay. By definition, a deterrent should not have any element of reward in it. For some third-world folks, a prison sentence with three meals a day would be a step up in quality of life.

pocharle
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Re: other foot
pocharle   3/11/2013 11:27:26 AM
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I'm pretty sure they would make an overly strict punishment for foreigners to make an example to deter the next guy from doing the same.

Douglas Alexander
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Re: other foot
Douglas Alexander   3/11/2013 11:05:27 AM
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@Flyingscot, lets say that the $400 million IP could be sold for 5 million USD. About 12 years of US style jail time is a salary of about $400,000.00 plus per year. Say average engineering salary might be 100k/yr. so by slipping out of the country with 5million IP theft payoff, that works out to 50 years of legitimate pay. Or, effectively a lifetime of work in exchange for a hard drive's worth of IP. I think there needs to be a much stronger deterrent than simple jail time with activities, a library resource, TV, and three square meals a day. Hard labor worth of a 4X payback equivalent, seems it might do the trick. Some of our prisons compared to overseas prisons are like luxury hotels. In fact, in my travels overseas, the prisons I saw were like dig kennels. They were cages where a prisoner could not stand up and there was no food unless a family member provided. The prisoners were washed down with hoses through the cage bars and there need not be any trial for up to two years of confinement. "Humane" was not a term associated with prisoners. It was really a medieval experience.

FLYINGSCOT
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other foot
FLYINGSCOT   3/11/2013 5:47:48 AM
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I wonder what sentences China would dole out to foreign workers if the roles were reversed.  Jail time measured in months for $400M loss does not seem overly punitive so I wonder what type of deterrent it is.

Douglas Alexander
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Re: Re : Trade Secrets for Sale
Douglas Alexander   3/10/2013 9:44:46 PM
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@Tirlapur, I think you are right about other nations needing to join the outcry. I regularly read a Linked-In blog mostly contributed to by Henry Livingston. He keeps us all posted on the latest legislation and counterfeiting incidences around the globe. We are getting a bunch of lip-service from Chinese government, and I have not read anything about a deliberate effort on their behalf to curb the counterfeiting and pirating operations. I also subscribe to China Daily which is so well written and has just the right amount, allowable would be another word, of articles covering government shortcomings, that I can almost believe they are planning to do something in response to comply with US and China agreements to help fight IP theft and counterfeiters.  If I lived in China and read this paper, I would think the goverment really has reformed. But, if I walked out my front door and saw the easy visibility of counterfeiting operations, I would know otherwise. The counterfeiters are not hiding and until they feel compelled to hide their illicit operations, I don't think the government is beginning to do the job of stopping them. When we hear of massive arrests and illicit factory closures on a daily basis, then we can have some respect for the words of the government. Right now the word is "corruption", not "anti-counterfeiting."

tirlapur
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Re : Trade Secrets for Sale
tirlapur   3/10/2013 12:03:22 AM
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China has stolen so many trade secrets and technologies that not only does it get a huge benefit in reduced R&D spending, but it also can funnel that savings into espionage technologies.

@Douglas, thanks for the post. By indulgingin IP theft China has not only reduced its R&D spending but it has also impacted the revenue of the companies which is holding that IP. I think international community should come together to fight China on this issue, so that interest of companies involved in R&D can be protected.



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