BCG Survey: I/P "Highly Vulnerable" in China

More than 60 percent of the respondents to a BCG Survey said they considered their intellectual property (patents, manufacturing know-how, etc.) 'highly vulnerable' and over 90% felt that intellectual property is at greater risk in China than it is in the United States. Their major concerns were loss of revenue, technology and market position. At the same time, respondents did not feel that their companies are organized to effectively face these challenges. More than 60 percent said they lack confidence in the adequacy of their companies' IP strategy, in part because of the Chinese environment but also because top management doesn't take IP seriously enough. The survey results indicated that few companies have senior officers responsible for IP and that IP often reports three or more levels down from the CEO.

"The survey shows that IP is still not receiving the priority attention that it should from senior executives when they are considering acquisitions or alliances or developing plans for research and development in China. But leading companies are catching on fast" says BCG's David Michael, co-author of the August 2004 report. "All managers, not just those dealing with China, are going to get smarter about the IP elements of their business. They have to."