Tuesday, February 19, 2013

How USA Intellectual Property Laws Give China an Edge

It  is absolute madness that the US Taxpayer bails out GM, who in turn takes the money to build cars in China, and keep the profits for themselves.  And for a mere 2 billion in profit, what does China get?

International operations including China generated a pretax profit of $473 million for the quarter ended Dec. 31 compared with $373 million for the same period in 2011. Profits for the full year in unit rose 15% to $2.19 billion.

China gets USA best practices, which are static for lack of competition in USA.  China gets a dead in the water competitior since USA is in industrial lockdown compliments of our intellectual property regime.  With the bailouts of GM the taxpayers at a minimum should have been given all autommotive patents open-sourced.  Get rid of the barriers to entry.

Another field USA is falling behind is 3D copiers, because well, copying is a crime in usa.  It is against the law to use your time, talent, materials and equipment to make some things, becuase the state arbitrarily picked some winner, and made you a loser.


"This will mean a third industrial revolution, since localized production can be carried out on demand according to the requests of the customer. The customer will be less dependent on low-cost countries setting up production lines. We particularly see a lot of potential in the medical field, where customization is something that is opening doors for patients, doctors and researchers," Michiels said

I’ve come across another China expert who is agnostic on intellectual propoerty rights, but recognizes there is a problem.  He has an article outlining some examples of working around the problem.

A library director tipped me off when I was marketing high-value scientific literature there. She confided in me that any monograph that I was selling in China would be pirated automatically if it exceeded 75 copies per title. The information allowed me to change my sales strategy. Instead of hoping to sell many copies of a “best-seller” title, I switched my goal to selling limited quantities of the hundreds of titles that we published. China was an extremely profitable market for us as a result.

There are more work-arounds turned into opportunities on his site.  if we want to be competitive, we must end the intellectual property regime in USA.

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