Knockoff Tech Selling Better Than the Original
An anonymous reader writes to mention an IT Wire story about the industrious Chinese industry centered around reproducing commercial products. These individuals have become so adept at forging based on the original that by the time the developer of the technology comes to market, the 'original' is seen as 'fake' by consumers. Other products, such as shoes, CDs, DVDs, and even expensive cars are available for much lower prices in certain Chinese markets. From the article: "Sell these products do, especially in Asia where the prices are low, few questions are asked and in many cases, the quality is actually pretty good. Samsung is said to have been so concerned by seeing its phones copied on the Chinese market that it tracked the distribution channels back to the source and discovered the electronics guys responsible for copying their latest products. After offering them a job with Samsung and a chance to go legitimate, they are reported to have declined the offer, saying that they were able to make more money by simply continuing in their pirate ways. What Samsung did next is not known."
These products are plentiful in the west too! In Canada, one only has to visit the so called Dollar Stores to see them.
Microsoft could take a few lessons from these guys...
Samsung will seek illegal recourse. Samsung is, after all, a Korean company, and all such companies are run by Korean men, of whom the overwhelming majority have served 2 years of mandatory service in the brutal Korean military.
The illegal recourse is to find and kill the Chinese pirate engineers. The operation should follow the rules of the Korean Special Forces and should leave no trails or traces.
The manufacturers of the "genuine" products will need to compete based on price. It seems that being the first isn't a factor in the Chinese market. The only worry is that companies like Samsung could downsize their R&D departments to better compete on price, which would result in fewer innovations for everyone.
In Soviet Russia, sigs read YOU!
Looks like 640mb of ram is enough for most people.
This is a downside to manufacturing in China. Even legitimate factories will order parts from a BOM and make illegit items after they fill your order. this is the risk in sending your IP to China to be made on the cheap.
... but if the knockoff alternatives lack the DRM that the authentic products contain, I'd probably consider purchasing the knockoff as well.
You know, the fact that China has managed to become the manufacturing center it has is rather astounding. They turn around and steal the technology of the companies who have decided to put plants there. Their system of law is simply unpredictable. By and large, companies who moved there should have known better. As irritated as outsourcing to India has been, in retrospect, we should have made a more concentrated effort in making India, rather than China, the mass-manufacturing center for the American market. India has a few things going for it that China probably never will. First and foremost, they have a republican (small r) system of government. They have benefitted from hundreds of years of English Common Law, which is arguably what makes Biz so seamless and efficient (relatively speaking) in the UK, US, and Canada. Finally, they don't seem to have an appetite for superpower status. We picked the wrong country to invest in. If I owned a manufacturing company, I'd get the heck out of China.
Various econimies, as they have started up, have begun by copying other countries products.
Hong Kong, Japan, and now - China.
Oh, and one mustn't forget - USA.
Some time ago, as the USA economy was just beginning, the USA did not respect copyright laws in any way. Notably, they copied books. There were loud complaints from - I believe - Charles Dickens, among others.
As their economies move along, their copies became better, then, eventually, they would start to create inovations of their own.
Then they would start to want copyright laws. And perhaps obey them.
"Cats like plain crisps"
"The manufacturers of the "genuine" products will need to compete based on price."
Don't worry Wal-Mart will see that that happens. Now if you excuse me, I have to place a support call to India.
Duplication plant?
I mean if they can duplicate it then they should be able to take a prototype and put it into mass production for cost less then anywhere else.
And since China is supposed to be a socialistic society then that means their society gets a big discount.
right?
Its the industrial age in china and lets fact it, they have more people then when we went thru that age.
This post is a dupe! I read this on www.slashdot.cn last week!
http://it.slashdot.org/article.pl?sid=06/10/24/181 9200&from=rss
Anyway I don't see either articles as news... Vaporware it's already an established business!
Would you fly on a plane that was built with these knockoffs? It's easy to take the shortsighted position that if it's good for me then it must be good in general. But not always.
RULES.
China is growing products & services as their engineering graduates do more and more original work, instead of copying.
At some point China will need to enforce copyrights, trademarks and patents so that their local inventive products can be sold on the world market...without copycats in the U.S., EU and elsewhere.
Relevant facts to date:
Right now Assignee companies of U.S. issued patents in China total 2400 or so, which isn't very many, but it is growing.
Almost 7000 U.S. patents have been issued to people residing in China. One can assume far more patents are submitted in China but never have foreign applications.
China graduates more engineers, mathemeticians and scientists every year than the U.S.
Will it go smoothly, soon, or be diligent in giving foreign patent holders the same rights as Chinese patent holders? I doubt it.
I find it interesting that this article used the word "Piracy" in conjunction with all these products. In many cases it appears the products weren't pirate versions of the originals, but unique, new products in their own right that happened to have the same features or in some cases even more features. For example the phone that is claimed to be a knock-off of the LG phone looked very similar, but it was by no means identical. The device that looks like a PSP but has a nintendo emulator and GSM phone built in is quite brilliant, and is in no way a fake PSP anymore than a portable tape or cd player is a fake walkman. To me the product would be pirate if it was produced by the same company off the same assembly lines but shipped out the back door and sold as using the original name, brand, etc, but through grey-market channels. On a general level, IP theft in China by chinese companies doing business with foreign companies is rampant. The question is, though, is that a bad thing? Is this not, at some level, unchecked and enthusiastic entrepreneurialism at work? At some point this is bad, as the Chinese, like the Japanese were during the 70s and 80s, are not really inventing or creating anything new. But the Japanese did move on and now seem to be inventing and creating a lot of things, and I think the Chinese will too. But the question becomes what will become of the West?
At least, the Chinese do not shove their surplus labor onto the USA.
Moreover, in India, child prostitution is all the rage these days. Sodomizing and raping children is a national hobby in India.
The Chinese are not angels, but the Indians are no better than the Chinese.
Now that China is starting to develop IP of their own it will be interesting to see how they react when other countries pirate it. I doubt they'll say "it's ok."
Invalid Checksum. Retrying.
Damn...
9 92066
http://slashdot.org/comments.pl?sid=208390&cid=16
Pfft. NO! Copying isn't innovation. Using the base idea with original implimentations added on is innovation.
"And even though there is no value in doing so, people will continue to innovate for some reason"
And here you try to handwave human behaviour into existance. There's no "some reason". There has to be good reason and you didn't provide it. In fact you did worse than that. You failed to explain how any innovation will get released to the public in a usable form.
"The engineers should charge for performances or sell T-shirts with their designs on them."
For a forum that's titled "your rights online", you all sure don't have a problem dictating to others what they should do.
Hey this fake cola tastes just like cola! Almost as if it came of the same assembly line....
The Indians (1) aggressively develop nuclear weapons, (2) refuse to sign the Nuclear Non-proliferation Treaty (NPT), and (3) shove their surplus labor onto the USA. New Delhi demanded that, in exchange for not interfering with American attempts to promote democracy and human rights, Washington agree to violate the terms of the NPT (of which the USA is a signatory), to outright give nuclear technology to India, and to increase the number of Indian H-1B workers admitted to the USA. Washington agreed.
At least, the Chinese do not shove their surplus labor onto the USA.
Moreover, in India, child prostitution is all the rage these days. Sodomizing and raping children is a national hobby in India.
The Chinese are not angels, but the Indians are no better than the Chinese.
I think he was joking.
"Ladies and gentlemen, my killbot features Lotus Notes and a machine gun. It is the finest available."
Sell these products do
Yoda, is that you?
"Sell these products do, especially in Asia where the prices are low, few questions are asked and in many cases, the quality is actually pretty good."
I'll never complain about Slashdot editors again.
I fail to follow your reasoning here. I remember when I paid $240 for an 80mB disk. Today I can get 500gB for $240. How could anyone get a 6000-fold reduction in price without R&D? Any cost-cutting the bean counters do is irrelevant compared to what R&D will get.
If a technology company wants to prevail in the marketplace, what they need to do is to keep R&D so intense that the copycats will not be able do duplicate the performance of genuine products.
I'm not sure how true this is, but a while ago I was taking a CCNA course and the teacher (who is full of stories) told us that he knows of only one technology company that pirates its own products in China to fight pirates.
;p
The company is Creative, and apparently when they decided to have manufacturing in China, they pirated their own products there too so they get the pirates' share. Can't beat em, join em
Might be too late for Samsung to do this now though.
If Prada is mad that their own customers don't actually WANT to pay $1000 for a belt then they are free to not charge a $1000 for a belt. It's not the product that's being pirated, it's the logo and the brand.
Because let's face reality. All of the gear, clothing, designer shoes and everything else are ALL coming out of the SAME factories whether the product is legit or pirated. Louis Vuitton makes handbags in the same Malaysian factories that the knockoffs come from. Samsung contracts phones to the same lines that copy them. The only difference being that the brand name charges more.
to pacify a communist nation, is to export capitalism to it. It worked with Russia. Or...would you rather face another cold-war?
Dealing with a communist nation is a bitch aint it? Here's hoping to change the tide through capitalism rather than war.
Life is not for the lazy.
As most of us know, the rules of patents and copyrights are there to allow an innovator to recoup expenses and some profit. We have taken it to the point where the rules are now used to insure financial security for the entire corporation into perpetuity. It seems like now that manufacture is so cheap, and the design process is so streamlined, that the big shops should be able to get a products refreshed pretty frequently. The big reason that large firms cannot is the sheer amount of overhead these mammoth corporations carry. Many will complain, like the car companies, that things like health care adds 5-10% to every car. But how much does overhead like luxury building, private airplanes, and golden parachutes add?
Perhaps if money was put into hiring and training people, and encouraging innovation, we would have nothing to fear from the knockoff artist.
"She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
i could see a consumer taking a risk on a bootleg CD or DVD. in general it is a digital copy, and unless the movie was film handheld inside a theater, the quality will probably be ok. the cost is low and the risk is low. ethics aside, it's not going to kill you.
when you get into the world of pirated automobiles..... um. i don't even know what to think about that. makes you wonder how they can be competitive. that's obviously a massive operation employing a ton of people.
i feel like i need to look into what a "pirated/bootleg car" actually means?
Luddite legacy IPR good for some bad for US, because you cannot enforce the present IPR laws (due to technology always changes) globally or locally; Therefor, the Luddite legacy IPR laws are failures
... and other well developed economies that blindly insist on continuing a failed IPR system, you change words and phrases, but maintain the anti-competitive structure of an International Luddite legacy IPR system. It is time for US and EU to lead the international community in moving towards a Global Open-competition economic architecture and quickly away from protectionist legacy economic models. A Global Open-competition economic architecture that rewards productive innovation and deters creative, developmental, research ... sharing of information.
...; ALSO, we must reward all owners of information, copyrights, patents ... production/services that has a marketable product financial value (including when it wins friends/influences people). (2) No IPR holder can prevent free (non-monetary/financial) use by any person, company ... country for creativity, product development, scientific research ... educational sharing (Binding court arbitration on the proportional sharing of performance profits). (3) All IPR falls in the public-domain, but all property falls in the (as determined by law and court) public or private. (4) Obvious/Public patents/IPR will be determined at the time of binding court arbitration (judge and independent empaneled topic experts) on the proportional sharing of performance profits, and any attempt by an arbitration participant to defraud the court or other participants will be considered criminal (big fine, 2-10 years in jail).
... not I filed it, I got it, you cannot have or use it (which is counter productive stupidity).
Luddite legacy (industrial-age) IPR is a failure and exceptionally harmful to US, EU
An IPR system needs to reward performance and productivity. (1) We must allow globally the free (non-monetary/financial) use and sharing of all information, copyrights, patents
I think, EFF, ACLU, and the FSF-GPL folks could manage developing a damn good and functional International Open-IPR treaty, but the USA Congress, EU, and others are still beholding to the corporatist special-interest more than the Public's/Citizens' and/or National interest. IPRs should be productivity based control
Unaccountable leaders are masters, and unrepresented people are slaves. How do US and EU fare?
* The manufacturers of the "genuine" products will need to compete based on price. *
They don't just need to compete based on price, but on features, particularly products with artificial restrictions on them. Any hardware for the entertainment industry comes to mind here.
For example, I wanted an mp3 player that acted as a USB key device, played/recorded FM radio, allowed me to drag and drop my mp3 files, didn't restrict me in regards to any form of DRM, and worked using AA batteries. If it worked as a voice recorder, that was an added bonus. I looked around and most of the mp3 players were powered using a built-in rechargeable battery, and the ones that weren't ran on AAA batteries. The only model I could find that used AA batteries is the Iriver T10.
The T10 looked like it could act as a USB key device, play/record FM radio, and work using AA batteries. So I purchased it, took it home and found out it would only allow me to upload mp3 files to it via Windows Media Player. The promised 'turn it into a drag and drop mp3 files device' firmware upgrade did not work. A cursory check via Google revealed that older, unavailable firmware upgrades did work, and that others encountered the same issues as myself with the current firmware upgrade.
I took the T10 back for a full refund and sent an irate email off to Iriver. At this point, if an obvious Iriver bootleg mp3 player came on the market, calling itself the Riveri, so long as the damn thing did what I want it to, I'd buy it. And when I went looking for its replacement in the future, my first choice of mp3 player wouldn't be Iriver, I'd go looking for Riveri products.
Same for next-gen DVDs and their players, computers, hell, widgets of all types.
Price wouldn't be the issue, features/restrictions are. The bootlegger isn't restricted by agreements with music corporations and film studios or PATENT OWNERS so I wouldn't expect their devices to cater to the music corporation/film studio/patent owner requirements. I'd expect the bootlegger would put MY requirements first, and in a market where both original and bootlegger products have the same quality, the bootlegger would have a competitive edge over the original manufacturer.
All of the gear, clothing, designer shoes and everything else are ALL coming out of the SAME factories whether the product is legit or pirated.
Very good point. Ultimately, brands are the creation of marketing more than anything else. Marketing until now has been based primarily on the notion that you must bombard customers with awareness of your brand in order to get them to buy your products. Otherwise, how will they know the difference between your product and that of your competitor?
However, brands to play the important role of giving consumers some assurance about the level of quality of the goods they are buying. A creator of knock-offs can make a series of knock-offs, making money on each product run, whether the product is any good or not. But the brand company will see its reputation suffer if its products suck.
Then again, there are plenty of brand products that seem to survive on marketing alone. The products are no better than cheaper alternatives, and all you pay for is the label. Clothing is a perfect example of this. The design is the same, but add the Prada logo and it immediately becomes 3x as expensive. Granted, Prada has to pay its designers, and the knock-off company doesn't. But there do seem to be some industries that have profit margins that can only be explained by the presence of branding. Remove the branding and the same breadth of products might still be on offer; profit margins for companies creating the designs would simply be lower.
I don't think brands will go away any time soon. Some people simply must have their branded luxury goods. But the availability of cheap alternatives that are as good or almost as good will probably continue to surge. In a world where people can share product ratings and opinions rapidly, the ability of brand merchants to control the market is weaker.
Read the EFF's Fair Use FAQ
No. Windows Genuine Advantage doesn't help the least against imitation.
And honestly, I rather prefer the imitation.
Do not trust this signature.
These companies are sending their top designs to China knowing full well that the designs will be spread around. Having your old stuff built in china is one thing, but having your top of the line built there is asking for issues. Sorry, but all of these companies know that the Chinese gov. actually encourages this, so I blame them, not the Chinese.
I prefer the "u" in honour as it seems to be missing these days.
it's a stab in the dark, but if you are going to build super-plants and shave every penny, i am guessing China is cheaper than India for manufacturing. China also is relatively accessible to the western coast of the USA by freighters, and has a billion potential workers that can be paid less than India.
Obviously India *had* a large pool of well educated workers that could be paid less than the USA. if you look at a map, it seems that shipping from India adds some twists and turns that China does not. i don't know how much of an issue that is, but if it's uneasy waters, then i am sure it matters. using India for tech support type work just means you have to run a set of cables there, not move super-freighters in and out.
again, i am just guessing. i am sure the governments themselves are a major issue, but when you deal in those kinds of volume... every little bit counts. China was wise to do this manufacturing. they are brought up to speed with what the world in making. they have their hands in most cutting edge technology, so no matter what their own home grown scientists and engineers can accomplish, they also get a peek at the rest of the world.
i don't know if it is true, but i had heard that the Korean car manufacturers learned a TON about design and manufacturing efficiency from the years they spent building cars for the Japanese companies. that's why they can be so competitive, and then just learn where to shave off some costs to stay cheaper. it's nothing new. a lot of American manufacturing plants have only stayed competitive by adapting to Japanese styles of running a plant. it does not work in some cases, but when it does, it will blow everything else out of the water. there are plenty of books written about converting an old american plant to a new (japanese based) method of manufacturing. it does not *all* come down to labor costs.
I have chosen to look at Reality, something that's been out of fashion since the 2000 US elections. The realities are that science and technology continue to advance and, as a consequence, abundance increases as cost decreases.
In a sense, the computer represents the ultimate achievement in manufacturing, at least as far as bits are concerned: Infinite abundance at zero cost. You can make an infinite number of copies of a digital work for no incremental cost. You are constrained only by the amount of storage you have, and the available energy to run the computer.
I wrote an essay on this subject over ten years ago, vaguely exploring the economic and social ramifications of such manufacturing capability. I've also posted here extensively on the subject. My main thrust was that defective recorded media (DRM) and other forms of copy protection were childish attempts to wish away reality, and that cheap copying was not only not going to go away, but proliferate. I argued that the economy existing in the memories of our computers -- where a given instance of an artifact was inherently valueless -- would one day "leak out" into the physical sphere. I argued that we needed to be prepared for this day, and that the realm of digital media served as an ideal place in which to try out new economic models and risk/reward structures -- structures and conventions that fundamentally acknowledged that digital artifacts were easily and infinitely copyable. I argued that this day was coming, whether we prepared for it or not. I argued that, if we didn't prepare for it, we would be seriously fscked.
Well, guess what? It looks like it's starting to happen.
We are not yet seeing anything close to computer-like ease of duplication, but even this meager advance in physical manufacturing is already causing what could be serious socioeconomic repercussions. Do not think for one moment that manufacturing is somehow going to get "harder" again. Absent a regional plague or war, this issue is only going to accelerate. Manufacturing costs will continue to fall and manufacturing centers will become more prolific as the technology of manufacturing itself becomes smaller and cheaper. Hell, 3D "printers" have fallen below the USD$10,000.00 mark. How long before you can pick them up in BestBuy?
This is not going to go away, and you are not going to stop it or slow it down with silly little notions like copy protection or WTO/WIPO trade agreements. You need to change your thinking. You need to prepare for this. Otherwise... Well, let's just say the social chaos of today's Iraq will look like a parlor game in comparison.
Schwab
Editor, A1-AAA AmeriCaptions
Driving down the cost of disk storage to $0.50/G requires real R&D. It's also a self-protecting market: the 2-3 years that a company may have an advantage in this area, it gets, without patents, simply from the expertise that they have and nobody else does.
The latest "brand name designs" rarely if ever contain any innovation beyond taking advantage of the latest smaller battery or whatever; what companies are trying to recoup there is not R&D, but advertising.
But the Japanese did move on and now seem to be inventing and creating a lot of things, and I think the Chinese will too. But the question becomes what will become of the West?There's a habit of examining past trends and then extrapolating them into the future like a trajectory. If they're catching up with us that fast then what happens when they've caught up, we'll be doomed. No. When they've caught up, they'll be in exactly the same situation we are, having to do lots of expensive research, development for the smallest advance.
What'll become of the west? We'll become equal trading partners, no more, no less. We'll have to work hard to compete, that's all.
Deleted
Are you saying my Sorny is not legit? What about my Magnetbox VCR or my Panaphonic DVD player?
Jesus was a compassionate social conservative who called individuals to sin no more.
It's all about the pricing and availability of goods. Go do an inventory of your house, or even just your bedroom, and find how many of your things are imported.
And now that lower-skilled jobs are being exported over there, fewer Americans can fit the "union tax" into their budgets, assuming the US goods meet the same quality.
Sure they look very similar but fake? The phone isn't claiming to be an LG, or the game a PSP as far as I can see. It's a clone, not a fake. It's not like the phone and other tech manufacturers don't rip each other off mercilessly. Do you believe for a second that companies don't "reverse engineer" each other's products within minutes of them hitting the street? Before if they can find a way get away with it.
Really what they're pissed about is the fact that the chinese are just better at it than they are.
The solution? Release the stuff in China first, nobody wants to be seen to have a knock off. Hell, it has by far the biggest market so it even makes sense.
Deleted
Daewoo used to make a car called "daewoo matiz". Daewoo went broke, and chevrolet bought them, changing the name of the car to "chevrolet spark".
China found out about the impending release of the chevrolet spark, a company called Chery cloned it into the Chevy QQ. It outsells the spark 5 to 1.
Chevrolet is not amused, in fact is has a lawsuit against Chery because they copied their design (the car is pretty similar) and beat them to market too.
Open Source Java Web Forum with LDAP authentication
The Indians (1) aggressively develop nuclear weapons, (2) refuse to sign the Nuclear Non-proliferation Treaty (NPT)
India is a nation of a billion people with a history spanning several thousand years; what reason on earth is there that they should not have nuclear weapons if second rate nations like the UK and France and military dictatorships like Russia have them?
and (3) shove their surplus labor onto the USA.
Quite to the contrary: the Indian government doesn't like the brain drain and is trying to stop it. It's the US government and US companies that lure away the best and the brightest from India to fill labor needs in the US.
Having lived in China and discussed the matter with my history prof aunt, China is indeed going through the growing pains the USA went through around the end of the 19th century. The rapid industrialization, environmental issues, and labor issues resemble what happened in the USA. The cities in China are swelling, due to their shift from an agrarian economy to an industrialized one. China is a special case, because they are basically jumping ahead a century in terms of technology in the span of 20 years.
A witty saying proves you are wittier than the next guy.
This silly idea that the West will do the 'brainwork', the conceptualizations, design, and marketing while the East will do the manufacturing and support is finally showing its weakest point. That is the assumption that the brainwork and the handwork are actually equal.
In reality the hand-work, the manufacturing and support is much more important. The brainwork is absurdly overpaid. The West would be well advised to rebuild their factories and discard their media/celebrity obsessed culture before they find that they have sunk to the level that China was 100 years ago.
No chance of that actually happening, though.
When I was a kid "Made in Japan" meant it was something cheap and crappy.
Now you can replace cheap with small *cough*Kei cars, Civics, Echos, Scions*cough*. Now if they allowed Europe to design them and get them to a tenth of $200000 level without involving Asia/Africa/Central & South America while retaining the performance, they might have a chance.
As for China, they still hold that title Japan once did to its fullest by the looks of the materials. Even on $3000 laptops or $10000+ servers the lack of quality shows- compared to hardware, steel, and plastic made in EU/US the hardware wouldn't be something I'd want to trust implicitly.
Maybe globalization is getting to be a bad idea when you allow companies to bypass domestic preference laws (CKD & rebrand of various electronics to hide actual manufacturer, Honda's bypasses of US/UK domestic preference laws via part percentage exploitation or factory building in target country), take jobs with no respect to the displacement(informal precedent set long before tech jobs went in 2003) , and lower quality across the board.
There are some ideas that economists will never understand. Those ideas also have the benefit of actually working.
Twitter supports and protects racists - by smearing their critics with the "Hate Speech" label.
Textiles were first. Target sells mens clothing (dress, and casual) that's virtually identical to the . The only difference I saw was comperable quality and a lower price. Food markets have been doing this for ages with 'store branded' products. (SafeWay, Vons, Trader Joes to name a few). Now the risks are far greater. If I get SafeWay select (aka the in store knock off) Tea I might get tea that's more tonic. Mabie it's been made by a small family that simply can't compete who knows. The American government has only it self to blame- Refusese to get socialised in important areas: Econimics, Polotics, Education, and health care. As a result fewer and fewer people can afford the astronomically high costs of living here. When our economy colapses from incompetant leadership people should thank three things: George W. Bush, Greed, and shortsighted planning. (Arguable all three come from the same gene pool)
I am way poor and underemployed. I have tried and tried to get interviews at Samsung, Hitachi, IBM and other major companies to no effect. They don't want me. They don't even want to talk with me. No I have it, I just need to start making illegal knockoffs of their main products and wait for them to come to me with a lucrative job offer!
For what it is worth thousands of years worth of indian civilization has only resulted in slave labour through their twisted indian caste systems. In less than the same time "second rate nations" like UK and France has evolved to a more enlightened form of government. What reason indeed, I suppose that answers your question well enough.
Online backup with Mozy, sounds like Ozzie, but more!
OK, there is technically one other way that can work with manufactured items. You ONLY build to spec for a specific client or clients, so much down, so much on delivery, and don't even try to just generally sell the whatevers, and then don't care if they are counterfeited then, just ignore it. Get the idea, design to spec for a customer or customers, do your limited manufacturing run, then move on to the next product. And there you have it, the high volume anything goes way and the limited volume guaranteed money way.
"Sell these products do"
I didn't know Yoda works for IT Wire!
"Pirated" might include the grey market, which is products ligitimately produced for another market but imported where it doesn't "belong" (arbitrage). Or, I also heard of a Chinese shoe factory that lost its contract to produce a well-known brand of shoes. So what did they do? They kept making the shoes, ignoring the middleman (the US branding company). The shoes hadn't changed, they simply hadn't been "blessed." A "bootleg" could just be the factory going beyond their order and producing extras. I wonder how far up the chain of command one would have to go in a car company to sneak out a few extra copies?
Doubt they'd care much if other companies copied their products. They depend on cheap exports, not original exports.
The thing that happened to every other country in China's situation was that individuals within the country started innovating, and wanted some return for that. They're the ones that are going to get pissed off by copies from other Chinese. That's what prompted the development of the concept of intellectual property in the first place (that, and patent laws).
Of course, this assumes individuals can actually get recompense for their innovations, something that doesn't happen in a pure communist system. Then again, China is no longer a pure communist system, and appears to be slowly but steadily moving in the capitalist direction.
Why would anyone engrave "Elbereth"?
I'm glad to see the free markets and free trade in action. May China be blessed by Ayn Rand!
I read a book twenty years ago about "industrial espionage" which also covered "piracy". Then it was Taiwan and Hong Kong that was the source of this sort of thing. The author of the book discovered that the Chinese had a network of companies set up who could reproduce the guts of the thing being copied, the packaging, the distribution, the whole nine yards.
At least one clothing company did what Samsung in the article tried to do - buy them out. They found a Chinese knockoff company, bought them, then released the product under their own name as their "budget brand".
Nothing wrong with the practice except when the "pirates" put the original company name on the product - that's fraud and should be exposed, if not punished. As long as the company doesn't promote the product as the original company's product, who cares?
Richard Steven Hack - This sig is TOO GODDAMN SHORT TO DO ANYTHING USEFUL WITH! MORONS!
Here is something more realistic: Your company makes cell-phones. You find that SuperPlastic, from Chemical Company X works great - but it is pretty pricey. So you send some to your firm's analytical department (or one of the many for hire), reverse engineer it, and then either start manufacturing it yourself or contract some cheap Chinese firm to do it for you. This would take less than a year in most cases. Without IP to protect it, Chemical Company X is out of luck. All the money it spent on R&D, as well as the free development samples it likely gave away, are now wasted.
IP may have some serious problems in the world of computer code, but actually works quite well for most inventions.
Read the paragraph starting with "An IPR system needs to reward performance and productivity."
... IPR, then no reward/compensation. Private property cannot be taken by anyone to obtain/create private gain without the IPR owner being compensated; ALSO, Public property as in GPL, OpenContent/CreativeCommons ... cannot be diluted by attachment to IPR private property, but when it is determined by court arbitration to be in the best interest of the general public the IPR private-property can be converted to GPL/Open-public property with a public payment compensation to the IPR owner as determined appropiet by an IPR court/judge and expert-panel/jury. Private/Public users of software, music, DVD ...media/content cannot be resticted in their private personal/home use of the IPR item after paying the original product source a single licence fee for using the IPR property; Therefor, media and content copyright/IPR owners would retain their rights as long as that version (same song, actors, content/media) was purchased, but when the artist goes to another company the songs, poems ... IPR content right remain with the writer, creator ... not the performer or RIAA companies.
....
The Deal: If there is no value in a useless or unused patent, copyright
When an IPR property is used for any form of financial gain (money, trade, influence) then the owner must be compensated.
The IPR owner has no right to restrict or prevent the use of the IPR item by anyone anyplace.
If the IPR is never used or is used, but does not result in gain for anyone, then no one pays anything for the use of the IPR item for research, development, personal use, educational use
Your Question: "Why would anyone spend the resources?" for the same reason as now to make money from thier efforts if the IPR proves to have any value in the marketplace, but not until value is proven by production contracts and/or court arbitration.
IOW: Performance, innovation, and productivity cannot be stopped or prevented and compensation will always depend on Performance, innovation, and productivity on a global/local scale.
Unaccountable leaders are masters, and unrepresented people are slaves. How do US and EU fare?
I love Apple as a company, but you cant just make up a brand image overnight, and for a certain model. You cant tell all the Chinese people (and others, although the story is about whats going on in China) that the "KY178 will get you laid" and expect that to work when the knock off is the same looking, and acting, and is half the price. If you add features, then they can add them to.
So how do you do it?
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Generic drugs are knockoffs. Most money spent on R&D in the drug industry goes toward developing generic drugs. Something becomes a good seller and others copy it. That's where they make their big bucks. That's why new drugs are slow to be developed, the R&D budget goes toward duplication.
I'd buy that for a dollar!
I don't know about cars, but "piracy" of motorcycles is really common, with many different companies competing to create the best quality bootleg. They basically buy the original motorcycle, and use the parts as the basis for new toolings to be produced in the chinese factories. Due to lack of technology, most copies are of motorcycles from the 1970's, however as China's mfg facilities improve they will be able to move up to more modern bikes.
No it won't.
Truth is, we are gonna get exactly what we have comming to us if we don't pull our head out
I can't feel but slightly bitter that I submitted this same story a day ago and it was rejected, only to appear now by somebody else :). Oh well, life goes on!
There's a huge market in counterfeit car parts (typically inferior quality products made to look like the original manufacturer's parts). Genuine car parts can be expensive (e.g. check the price for a headlamp cover on a new car etc.) so counterfeiting operations have become well-established in some countries. Not so good if the counterfeit part in question is vital to the safe operation of the vehicle and hasn't been properly tested or had to meet strict quality control standards.
Fake car parts danger.
You wouldn't have to actually block the door, just blocking the view of the door from the street with something that looked like construction equipment would pretty much end the flow of people coming in.Actually, something similar happened during the anti-software patent demo before the Luxembourgish ministry of economy. As the demonstrators had all their papers in order, the ministry could not have them forcefully removed. So what did they do? They ordered a huge moving van, and parked it right in front of the demonstrator's huge banner (which was hard to move without tearing the paper, being nailed on a wooden framed anchored in cement blocks).
My first hand experience occurred just a couple of weeks ago. I bought from a Chinese company one thousand 600 volt 70 amp IGBTs ostensibly made by International Rectifier, a well established and reputable company, for some stuff I am making at my little electronics manufacturing business at home for a customer of mine. I picked these parts up for what seemed like a good price but when I tried them out they just wouldn't behave properly. Eventually I cracked one open and the silicon die was only about 40% of the size of a known good one. Except for having numerous scratches indicative of poor handling, they look just like the real thing. I haven't got an ice-cube's hope in hell of getting my money back and there's really nothing I can do except chuck them in the bin and put it down to experience. Oh, wait on, the bin is already full of the 400 Chinese sourced eproms I already put there, the ones that say ST on the outside but identify as TI and yet look like neither and have an access time of something worse than one =microsecond=... You read about how China has absolutely massive pollution problems from all the industry there. You know what? I really don't care at all. Not one bit.
All I know is that I want to buy a MP3 player and I will not get anywhere near an I-POD or a zune, in fact I'm not risking buying something from other somewhat larger competitors like creative labs or any other player that is know by their trademark, I will search for a cheap no-name "ching-ling" (how we call those Chinese knock offs). They will not have any DRM stuff, simply because they don't need to get in bed with Americans *iaa and they are more interested in sell to me the customer.
It is sad, because I got to a point that I do not trust "brand-names". Brand-names appeared to assure that something had a specific origin and quality, before them there was no way to know where the products came, but I don't know exactly when they started to be more important then the product it self, so now when you buy a shoe, a shirt or a apple or dell computer you get the same thing for a more expensive price.
[]'s Victor Bogado da Silva Lins
^[:wq
Haha the bastards!
;)
If it was left there overnight, I'd have painted a pro-patent message on the side of the van. They'd never be able to convince the court that it wasn't their message, and have to pay for removing the paint/repainting the van.
Hell, paint it on the side facing the banner, nobody else would see the message or see you painting it
A chinese friend recently showed me his "iPod nano" knockoff from China.
It was the same size and shape and weight as a nano, but made with obviously cheaper materials. The clickwheel was replaced with a similar-looking clunky clicker. The front, normally logoless, was blazoned with a tacky ripoff Apple logo and the word "iPod" in cheap decal. The color screen was about double the size though.
BUT: The software was cooler. The UI design was all-new, and much flashier than Apple's, and ran in many languages including Chinese and variants. The features included FM radio, video (the screen was bigger and brighter than a real nano's), and audio record/playback.
The connectors were not Apple-style, there was just a USB connection and a micro-phono jack.
The whole tacky package was available, he assured me, in China for about $40. So who would buy the real one?
It takes many man-years of effort to develop a new plastic, and there is often a lag time of a year or more between the first customer samples and the first major sales. If your customers are allowed to reverse-engineer your products without penalty, by the time they test and decide upon the variation that they like best, and you figure out how to scale it, it would be already too late. It is regularly a process of 3-5 years from patent to commercial-scale product.
"Right, because there's no tech company in the world that actually innovates"
... I'm too lazy to look. Are you?
Did GP say 100% of the feats in engineering or "the finest feats"
My turnips listen for the soft cry of your love
that i understand. it read as though there were fully complete bootleg cars on some secret showroom.
whoa! where can i get one! 1970s Japanese motorcycles are among my favorites. i wonder if a new 2006 bootleg is any more dangerous on the highway than a 30 year old bike that i found on craigslist for $300?
ok, seems like a bad idea. but....... hmmmm.......
doesn't China make some of the bikes for some of the Japanese bike companies now? if so they will have the technology in place (to some degree) to make current bikes. as those plants upgrade, that older equipment is going to be used to make *something*. i know there are Korean motorcycles that are supposed to be in the US, or coming soon. same thing, they spent years making bikes for Honda etc and there are plants that have the technology and skilled workers in place. at some point the ultra efficient Honda people will upgrade their gear, so the old stuff will probably be sold off. the initial reviews i read of the US versions of Korean motorcycles seemed promising. they were not up to grade with the top of the line Japanese race bikes, but they were deemed a good buy for their price.
But a year or so later? That could happen quite easily if the law didn't prevent it. We could not possibly recoup the development costs in one year.
You wouldn't have to recoup all your development costs within a year, you'd just have to improve the product or production line so that it was better or more efficient than someone who is a year behind. That's not much to ask for, and if you can't do it then you deserve to be out of business.
I do not know of anyone who plans products for one year life cycles, and I work in the semiconductor industry, one of the fastest around. Rather, our products should be bleeding edge for a couple of years, and continue to provide robust revenue for a decade or more when they are no longer at the forefront, but used in non-critical layers. In any case, the sales in our FIRST year are often nil or trivially small.