Patent Strategy---Bitter Happiness
Issue 1,[Patent]
Making the patent strategy and form the power of contending with foreign enterprises is the hope of Chinese enterprise.
In recent years, Chinese enterprises that manufacture color TV sets, DVDs, mobile phones, digital cameras, and motorcycles have been held back and restricted in their successes due to large foreign patent giants controlling the patent system. These Chinese companies find themselves struggling to advance and compete because they lack a credible patent strategy system that will allow them to compete in the ongoing “patent war.”
“It is a crucial measure for the disposal of increasing patent disputes to establish complete patent protection strategy as soon as possible. ”The secretary-general of a guild told the reporter. “It is inevitable that Chinese enterprises copy or imitate the products made by other enterprises when they lack power in capital and technology. However, the enterprises must draw a lesson from their experience. When the enterprises obtain the profit, they should found the developing center to develop the products of independent intellectual property and replace the products as soon as possible.”
The enterprises lacking the ability to innovate will be eliminated from the market. “When considering the situation from a long-term point of view, Chinese businesses must establish an ability to successfully win patents, thus gaining power and finding a way to contend with the foreign enterprises; the establishment of a sound managing system that can smoothly facilitate the process of a technological invention receiving a patent in a timely manner is a necessary task for Chinese companies. The Chinese enterprises need to realize the long-term competitive power of patents,” said Yuan Jianzhong.
In the competition between Chinese enterprises and foreign enterprises, Chinese companies in certain sectors are making strides to find ways to compete more evenly with the foreign companies. Specifically, Chinese businesses in the electrical home appliance industry possess key technologies and original intellectual property and thus are trying to break the foreign companies’ domination over this sector. DVT (Digital Visual Technology) was the first patent ever held by a Chinese enterprise in the area of language-learning recorders. Furthermore, some Chinese enterprises holding patents, such as Haier and Huawei, have established a credible reputation in the international market.
If an enterprise holds a great deal of patents, it can claim an exploitation fee on infringing enterprises and most importantly, it has the ability to control the market and restrict its competitors through legal means. “But it is not enough to achieve these goals. Holding key technology is only a means. Obtaining a benefit from your patented technology in the market is the ultimate aim,” a specialist said.
This conundrum that often arises in gaining patents and then applying them to the market unsuccessfully is evident in many cases. Although advanced technologies and many patents were used in Motorola’s plan for Iridium satellites, the plan ultimately resulted in a failure. This situation demonstrates that an enterprise cannot solely rely on the advantage of holding patents. Only by correctly implementing the patent strategy that is part of enterprise’s managing strategy can an enterprise fully capitalize on the use of patents and gain an advantage in competition.
To implement an effective patent strategy, Chinese enterprises must first face an array of problems or issues. Some specialists point out: “There is no existing complete system of intellectual property at present. It is of the utmost importance that a strategy for the system of intellectual property be devised as soon as possible.”
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