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Contending with Chinese counterfeits: Culture, growth, and management responses

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  • Zimmerman, Alan

Abstract

Almost every product imaginable is being copied and manufactured in China, then either sold there or exported elsewhere. While some improvement in the overall intellectual property rights (IPR) environment in China has occurred recently, the issue of piracy remains a daunting one. To understand Chinese IPR conditions requires a look at the rapid growth of the nation's economy, as well as its history. With booming economic conditions has come an equivalent surge in the manufacture of counterfeit product, and ideologically the country's political culture has not lent itself to the concept of ownership of intellectual property. Both Confucianism and Communism hold no interest in individual ownership; historically, censorship has been considered more important than copyrights, and inventions as belonging to the state. Though it is virtually impossible to estimate the value of counterfeit product originating in China, totals may reach over $150 billion. Both firms doing business in China and foreign governments are dissatisfied with the current level of IPR protection. Managers need to be proactive on many levels to be sure their intellectual property is adequately protected.

Suggested Citation

  • Zimmerman, Alan, 2013. "Contending with Chinese counterfeits: Culture, growth, and management responses," Business Horizons, Elsevier, vol. 56(2), pages 141-148.
  • Handle: RePEc:eee:bushor:v:56:y:2013:i:2:p:141-148
    DOI: 10.1016/j.bushor.2012.10.003
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    Cited by:

    1. S Sidhartha Narayan & Malavika Ranjan & Madhumitha Raghuraman, 2021. "Comparing Intellectual property policy in the Global North and South -- A one-size-fits-all policy for economic prosperity?," Papers 2107.06855, arXiv.org, revised Aug 2021.
    2. Montecchi, Matteo & Plangger, Kirk & Etter, Michael, 2019. "It’s real, trust me! Establishing supply chain provenance using blockchain," Business Horizons, Elsevier, vol. 62(3), pages 283-293.
    3. Alberto Pastore, 2014. "No al falso! Un?indagine esplorativa sulle strategie anti-contraffazione delle fashion firms," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2014(2), pages 81-102.
    4. Prud'homme, Dan & von Zedtwitz, Max, 2019. "Managing “forced” technology transfer in emerging markets: The case of China," Journal of International Management, Elsevier, vol. 25(3), pages 1-1.
    5. Mike W Peng & David Ahlstrom & Shawn M Carraher & Weilei (Stone) Shi, 2017. "An institution-based view of global IPR history," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(7), pages 893-907, September.
    6. James A Brander & Victor Cui & Ilan Vertinsky, 2017. "China and intellectual property rights: A challenge to the rule of law," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(7), pages 908-921, September.
    7. Jung Kwan Kim & Ram Mudambi, 2020. "An ecosystem-based analysis of design innovation infringements: South Korea and China in the global tire industry," Journal of International Business Policy, Palgrave Macmillan, vol. 3(1), pages 38-57, March.

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