Deli Yang

Alleviating piracy through open source strategy: An exploratory study of business software firms in China

This paper advances the existing knowledge of anti-piracy strategies by proposing an open source strategy (OS strategy) to alleviate software piracy based on a qualitative, case-based, exploratory study of eight software firms operating in China. The paper shows that the OS strategy is conditionally adoptable, depending on how users are willing to pay for services (market conditions); how critical and complex software is required for upgrading and modifications (software conditions); and how firms can avoid resources overloading and/or shortage (firm conditions). The paper also identifies several new indicators to assess the effectiveness of the OS strategy against piracy. Managerial implications about how to improve business in piracy-ridden environment are discussed.

International Licensing and Contracting of Intellectual Property

This chapter extends previous discussions to detail the strategy of licensing IP in the IB context. First, it explains the basic categorizations of licensing activities. Second, the different types of possible relationship between licensing partners are spelled out. Third, the chapter emphasizes the importance of using negotiating skills to arrive at a successful international IP licensing contract. Finally, it focuses on what should be included in a licensing contract to stress the fundamental importance of going through the contract thoroughly before signing. The importance of a cooperative manner in implementing the contract for the mutual benefit of the contracting parties is underlined.

Internationalizing Intellectual Property

This chapter considers internationalizing strategies to profit from IP knowledge, that is, the commercialization of IP in international markets. First, it emphasizes the pre-commercializing evaluation of the idea of expanding internationally. Such an evaluation should be conducted to assess the owners’ capacity, reasons to expand abroad, international IP environment and timing for IP commercialization. Second, further evaluation should be made to analyze which strategies are available for IP commercialization. These strategies need to take IP into account in assessing the costs, profits, risks and levels of headquarters (HQ) control involved in adopting a particular international commercializing strategy. Finally, the chapter discusses the decision-making process to the actual selection of an appropriate strategy for internationally commercializing an IP.

Culture and Intellectual Property

The aim of this chapter is to provide a critical understanding as to how and why cultural factors affect people’s attitudes towards IPP. Four topics are discussed and supported by case examples, using the USA and China as comparators. First, the chapter examines how different levels of education can impact on people’s understanding of IP and how IP training can change people’s attitudes towards IPP. Second, the ways in which religious principles can directly and indirectly affect IP attitudes are examined. Third, the effects of different social classes on positive or negative attitudes towards IP are considered. Finally, the impact of language as a cultural element affecting IP understanding is discussed.

Valuing Intellectual Property

This chapter focuses on the valuation of IP, and covers four main themes. First, it shows how people from different backgrounds can perceive value very differently. Second — the most important theme of this chapter — is the evaluation of the market, cost and income approaches, the three most frequently used and widely accepted valuation methods — for measuring IP assets. Third, some less frequently used methods are outlined. Finally, the significance of valuation is discussed to examine how IP valuation can serve different purposes in business.

Intellectual Property Theories

This chapter focuses on the theoretical components of IP. First, IP as a collective concept is critically discussed, and some identical or similar terms are explained to avoid possible confusion in later chapters. Second, this section explains some major concepts covered under the IP ‘umbrella’, the scope of which has expanded considerably over recent years. Third, different types of IP that have common characteristics will be identified and discussed. Fourth, this chapter also focuses on the theoretical arguments for IPP, emphasizing both the importance and the difficulties of balancing the public interests with those of intellectual owners. Finally, the relevant theoretical schools of thought are summarized to position the book’s focus in its academic context.

The Effects of Political Economy on Intellectual Property

This chapter focuses on the effect of political economy systems on the formation of IP Systems (IPS), and thereby on the strength of IPP. First, it discusses the political systems from democratic to totalitarian regimes and their impact on a country’s IPS. Second, attention is drawn to four legal systems — civil, common, theocratic legal regimes and pluralistic — and their influence on the formation of IPS. Finally, the chapter elaborates the effects of three economic systems — market-driven, command and mixed economy — on the formation of IPS.

Managing Intellectual Property Assets

This chapter focuses on managing intellectual property (MIP) assets, including the managerial efforts involved in generating IP products and services, and protecting and disseminating them through managing IP people and IP information. ‘IP products and services’ refers to the products and services with embedded IP rights. A product, such as a BMW car could involve many sorts of embedded IP, with its mechanical or electronic elements protected by patents, industrial designs and utility models; its BMW logo protected as a trademark; and its driver’s manual protected by copyright. ‘IP people’ refers to corporate employees who spend 50 per cent or more of their time on IP activities.

Intellectual Property Systems

An IP system (IPS) — the system a country uses to protect IP — covers, in a narrow sense the administration of IP: the examinations and granting of IP applications, the dissemination of IP information, and the promotion of IPP in the domestic and international arenas (Thompson 1993). As I have previously argued (2003), an IPS should also be taken to include the relevant legislative guidance (the legislature and institutional mechanisms) and judicial force (the court and enforcement systems). A successful administrative system of IP needs institutional instructions and judicial execution, and these three are inseparable elements that must be integrated to contribute to a strong IPS.