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Jun 13, 2013

Data Theft in China: Often Comes from the Inside

We often discusse Intellectual Property rights and enforcement here in the Jungle and it must be looked at from a different angle than most Westerners are accustomed.

First of all, the inhabitants of the Jungle don’t really consider it infringement and certainly most don’t have the core internal belief that there is anything wrong with taking someone’s information or intellectual property. In addition, they don’t really believe in Win – Win business outcomes and if they can get the upper hand through any means, they will try and it is your fault for letting the playing field remain un-leveled to their benefit.

Finally, there is a long history of companies coming to China and sharing technology in the hopes of doing future business or having a successful Joint Venture only for the technology to be taken by their “partner” – Wahaha and Danone are a fine example as are Siemens and their MagLev high speed train technology. So, it’s no surprise that according to a recent survey of U.S. companies in China that 25% report that they have been a victim of corporate espionage in some form – these are the companies who are willing to admit it. I tell everyone who wants to do business here in The Jungle to make sure you know who you are dealing with before you do a deal and protect your intellectual property at all costs regardless of where you are doing business.

These companies need to beef up their data security and watch out for their own employees because data theft usually comes from the inside.

by Frank Caruso

IPG is engaged in projects for companies and entrepreneurs doing business in Bangladesh, Cambodia, China, Korea, Laos, Myanmar, the Philippines, Vietnam and the U.S.