Protecting IP in China is hard, but awareness is rising, thanks to Donald Trump
scmp.com
For more than five years, National Technical Systems has tried to set up shop in China. But the California-based testing and engineering services provider has never managed to find a good fit.
NTS services 4,000 clients in North America in the aerospace, nuclear, defence, telecommunications, automotive and energy sectors – all areas deemed strategically important for China. NTS’s services and technologies, therefore, are highly coveted.
But previous attempts to expand into China failed because the Chinese companies it negotiated with all insisted on owning majority control of the joint entity or partnership – effectively forcing NTS to turn over its proprietary intellectual property in exchange for access to the massive China market.
Recently, though, China’s tough stance has been softening. In the past few months, NTS has received offers with at least one Chinese company agreeing to a 50-50 ownership split, letting NTS retain control of its technologies, a consultant involved in the deal told the South China Morning Post.
“The compromise alone is a totally different way of thinking on the Chinese part,” said the consultant, who was planning a trip to China to finalise terms with the joint venture partner.
“Trump’s getting tough on China is at least good for one thing – that on the ground level, China is now more mindful when it comes to handling foreign technologies,” the consultant said. |
