How do Belgian companies deal with Chinese competition, its relentless progress and China's intellectual property protection policy?

Abstract

Intellectual property is a major concern for most innovative companies. It is also of very high importance for China, which is making a shift towards innovation and aims to become a global powerhouse for intellectual property protection. For years, the country has been facing a lot of criticism regarding its operating modes and real ambitions while it suffers a rather bad reputation regarding its intellectual property protection system, especially by foreigners. However, despite the country's reputation, many foreign companies are not doing a particularly good job of protecting their intellectual property in China, if at all, while some others excel. Many companies are not aware of what China is, how it has and is evolving and do not understand the business challenges and opportunities in and coming from the country, which often go beyond the business level. To establish an understanding of the current situation, this study aims to recontextualise Chinese actions, to expose a utilisation of the Chinese system as well as to provide a scope of strategic possibilities by focusing mainly on patents. This was made possible thanks to interviews with 14 companies of various sizes and sectors, all of which have IP-related interests in China as well as 3 IP-focused law firms. The study has shown that China is indeed extending its influence in Europe as well as in other regions of the world and that there is a growing need for companies to act in an informed manner with regard to the protection of their intellectual property. Although the tools and procedures for protection are common to all, there is no single strategy but a multitude that depends mainly on the industry in which the company operates, its business strategy, its level of internationalisation and its financial resources.