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Chinese businesses need to prepare for patent wars
Author:DoraSource:www.walletamazon.comAs Chinese smartphone brands work to carve out a spot in the major-league global smartphone industry, they are increasingly being dragged into an international patent war with foreign tech firms.
The latest case saw San Francisco-based audio tech firm Dolby Laboratories lodge a lawsuit against Chinese smartphone companies Oppo and Vivo in India, accusing them of infringing on its patented technology. Back in 2014, Chinese tech firm Xiaomi was barred from selling phones in India after Sweden-based Ericsson filed a complaint with an India court alleging patent infringement.
The legal setbacks Chinese smartphone manufacturers have experienced are partly due to their lack of patent awareness. Following reform and opening-up, China has been a recipient of technological diffusion and has succeeded through copying those tech inflows. A low emphasis on intellectual property IP rights has helped with the country's rapid economic growth. But that has also made Chinese firms insensitive to IP. But Chinese firms are quickly catching up to their foreign peers technologically and can even beat them in some areas. Innovation has become a key driver of China's economy and is greatly endorsed by the top leadership. That means stricter IP protection is required to promote economic growth and motivate Chinese firms to map out their own IP strategies.
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