11 shanzhai china's ip stronghold
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Shanzhai in China refers to Chinese imitation and pirated brands and goods. There are different types of Shanzhai, including copy, parody, and new brands. Parody, in particular, is a work created to mock, comment on, or poke fun at an original work by means of humorous, satiric or ironic imitation. Shanzhai culture in China has led to innovation through copying existing products and business models, improving them, and developing new markets through rapid customization and response to customer needs. While imitation and copying initially occurred, over time true innovation developed, as seen in the cellular phone industry through companies like MediaTek that pioneered new technologies and business models.
11 shanzhai china's ip stronghold
- 2. Types of ShanzhaiCopyParodyPrivate Lebal (Baipai,) e.g., Kirkland at CostcoNew Brand2
- 4. What is ParodyA parody (pronounced /?p?r?di?/; also called send-up or spoof), in contemporary usage, is a work created to mock, comment on, or poke fun at an original work, its subject, author, style, or some other target, by means of humorous, satiric or ironic imitation. It is known as Shanzhai in China4
- 5. Parody Examples in China
- 6. Parody Examples in China6
- 7. Parody Examples in China7
- 8. Parody Examples in China8
- 9. Parody Examples in ChinaParody Lamborghini-Ferrari9
- 10. What is ShanzhaiShanzhai (simplified?Chinese: ɽկ;?pinyin: sh¨¡nzh¨¤i) refers to Chinese imitation and pirated brands and goods, particularly electronics. Literally "mountain village" or "mountain stronghold", the term refers to the mountain stockades of warlords or thieves, far away from official control. "Shanzhai" can also be stretched to refer to people who are lookalikes, low-quality or improved goods, as well as things done in parody.10
- 11. ShanzhaiLearning focus is Cellular Phones11
- 13. RancorOpium War 1839 ¨C 1842 Anglo-French Invasion in China (Second Opium War) 1860Eight-Nation Alliance 1900Russo-Japanese War 1904 ¨C 5Sino-Japanese War 1937 ¨C 194513
- 14. Survival of OEMThe average OEM profit is less than 4%This number could be even lower if governments had not provided compensations.International brands¡¯ can be 50% and do not want to reduce it.14
- 15. Customization &Business Model InnovationRe-package, add-on for individual customers, delivery in 1 hourGSM Quad Band Dual SIMQuick Response Manufacturing15
- 16. Quick Response ManufacturingIn China¡¯s cellular phone marketAn ecosystemCenter ¨C Media Tek¡¯s Turn-key solution16
- 17. Media Tek¡¯s Turn-key solutionOne IC has Cellular phone, MP3, touch panel, ¡ functionsIC + software, all design problems solved at Media Tek Downstream companies (Independent Design House, IDH) only need to put on peripherals such as screens, cases, etc. radio receivers, etc. 17
- 18. Quick Response ManufacturingSynchronized procurementProduct development, material movement, production, logistics, and distribution all achieved simultaneously.18
- 19. Quick Response ManufacturingProduction time ¨C from one year to 1 monthsNeed only 3 people ¨C one contacting Media Tek, another find OEM, and the other selling products and collecting money19
- 20. Blue Ocean & Disruptive InnovationTo be discussed when we talk about Blue Ocean Strategy ¨C Strategic canvas & Disruptive Innovation20
- 22. Innovation from ImitationDo only Chinese copy?Can innovation come from nowhere?22
- 23. Copyright in the USA in 18 CenturyThe first American "pirate¡° ¨C Benjamin FranklinA Philadelphia printer who re-published the works of British authors without seeking their permission or offering remuneration.The person who discovered electricity23
- 24. Charles DickensDickens¡¯ North American reading tours of 1842 and 1867-68 Lobbied the American Congress to recognize the copyright of British authors24
- 25. Charles DickensDuring his first visit, made him anathema in certain political circles and in the American press25
- 26. Webster DictionaryAn AMERICAN dictionary of English Language26
- 27. Japan and Korea¡¯s ModelToyota's first production car - Model AA was introduced in 1936. It was heavily based on Chrysler Airflow and chassis and electrics were copied from Ford. In late 1930's Toyota and Ford had talked about a joint-venture but war interrupted talks.27
- 28. Toyota & Chrysler28Toyota Model AA
- 29. Toyota & Chrysler29Chrysler Airflow
- 30. Scion30
- 31. Scion31
- 32. Scion32
- 34. Japan and Korea¡¯s ModelAlmost every model of Hyundai is a copy.34
- 35. Japan and Korea¡¯s ModelFirst: 2009 Mercedes Benz CL 550Second: Hyundai Sonata RevealedNew Hyundai YF Sonata and Kia Cadenza are?HOT (Report on November 10, 200935
- 36. More on Hyundai36Cadillac 2008 CTS2009 Sonata
- 37. Taiwan follows US Patent LawsResults?37
- 38. Innovation Needs Cash, Market, and Experience!38
- 40. Patent Works?Innovation firms benefit from patents?Patents spur innovation? ¨C no evidenceBut how about cost?How about industries? (cf. Biotech versus IT)40
- 41. Cost/Benefit of PatentsProfit for the US firms:1997 $8.4B ¨C 1999 $9.3B2/3 in chemical and pharmaceutical companiesCost: domestic litigation alone:1997 $8B ¨C 1999 $16Bcompanies doing the most research and development are sued the most.41
- 42. Intellectual MonopolyStory of Watt1768, Watt ¡®repaired¡¯ Newcomen engines ¡®with substantial borrowing¡¯ and applied for a patentNothing much happened then42
- 43. Intellectual MonopolyStory of Watt1775, patent almost expiredIndustrialist Matthew Boulton with good relationship with the parliament supported him.The patent was extended until 1800Watt spent more time engaged in legal action to establish and preserve his monopoly than he did in the actual improvement and production of his engine.43
- 44. Intellectual MonopolyStory of Watt1790, the superior Hornblower engine was in production, Boulton and Watt went after him with the full force of the legal system.Many new improvements to the steam engine became available by 1804, butthese innovations were kept idle until the Boulton and Watt patent expired44
- 45. Intellectual MonopolyStory of WattAn important limitation of the original Newcomen engine could be fixed by a method patented by James Pickard, which prevented Watt from using it. The existence of a patent forced Watt to contrive an alternative less efficient mechanical device to fixed the problem. 45
- 46. Intellectual MonopolyStory of WattIt was only in 1794, after the expiration of Pickard¡¯s patent that Boulton and Watt adopted the economically and technically superior device to fix the problem.46
- 47. Intellectual MonopolyStory of Watt ¨C without patentWhen the patents expired many establishments for making steam-engines of Watt's principle were then commenced.However, Watt¡¯s competitors principally aimed at cheapness rather than excellence. 47
- 48. Intellectual MonopolyStory of Watt ¨C without patentAs a result, far from being driven out of business, Boulton and Watt for many years afterwards kept up their price and had increased orders.48
- 49. Intellectual MonopolyStory of Watt ¨C without patentAfter getting one step ahead, Watt remained ahead not by superior innovation, but by superior exploitation of the legal system. The fact that his business partner Boulton was a wealthy man with strong connections in parliament, was not a minor help.49
- 50. Why Hornblower Is Superior?It was a substantial improvement over Watt¡¯s It introduced the new concept of the ¡°compound engine¡± with more than one cylinder.This was the basis for further steam engine development after Watt¡¯s patents expired.50
- 51. Why Hornblower Is Superior?Hornblower built on the earlier work of Watt, making use of his ¡°separate condenser.¡± The monopoly over the ¡°separate condenser,¡± blocked the development of ¡°compound engine,¡± Retarding economic growth.51
- 52. Intellectual MonopolyStory of WattDuring Watt¡¯s patents, the UK added about 750 horsepower of steam engines per yearIn the thirty years following Watt¡¯s patents, additional horsepower was added at arate of more than 4,000 per year. 52
- 53. Intellectual MonopolyStory of WattThe fuel efficiency of steam engines changed little during the period of Watt¡¯s patent;while between 1810 and 1835 it is estimated to have increased by afactor of five.53
- 54. Jerome Lemelson1923 ¨C 1997Over 600 patents ¨C used as submarine patentsWorth US$1.3BSo, how did he do?54
- 55. Jerome Lemelson¡¯s StrategiesKnew the critical technologies for market demandCordless telephone, fax machine, camcorders, etc. 55
- 56. Jerome Lemelson¡¯s StrategiesContinuation applicationsa patent application filed by an applicant who wants to pursue additional claims to an invention disclosed in an earlier application of the applicant (the "parent" application) that has not yet been issued or abandoned.This type of application is useful when a patent examiner has allowed some but rejected other claims in an application, or where an applicant may not have exhausted all useful ways of claiming different embodiments of the invention.56
- 57. Results of Jerome Lemelson¡¯s StrategiesLemelson¡¯s patents occupied the top thirteen positions for the longest prosecutions from 1914 to 2001.Served as ¡°Submarines¡±In 2004, his estate was defeated in Symbol and Cognex case ¨C plaintiff sought (and received) a ruling that 76 claims under Lemelson's machine vision patents were unenforceable.57
- 58. 58
- 59. Is Parody an Enemy?59
- 60. Experiment of Fictionwise.comWe might expect that the sale of unencrypted electronic books results in relatively few sales since they will immediately appear for free on peer-to-peer networks, Strikingly, the data shows exactly the opposite.60
- 61. Experiment of Fictionwise.comOwned by Barnes & NobleeBooks in in encrypted or non-encrypted formats.The encrypted books tend to be by the best known authors and highly rated. Both types of books sell for a similar price ¨C about $5 for a novel. 61
- 62. Experiment of Fictionwise.comFictionwide.com lists the top 25 recent best-sellers and the top 25 best-sellers for the last 6 months. On the randomly chosen date of September 1, 2002 no encrypted ebooks appeared on either list. Almost five years later, the situation has changed somewhat in favor of encrypted books, but not dramatically so. 62
- 63. 63
- 65. Schumpeter¡¯s InnovationThe Theory of Economic Development, 1934, Harvard University Press, BostonThe introduction of a new good or of a new quality of a good.The introduction of a new method of production.65
- 66. Schumpeter¡¯s InnovationThe opening of a new market, whether or not this market has existed before.The conquest of a new source of supply of raw materials or half-manufactured goods.The carrying out of the new organization.66
- 67. The introduction of a new good or of a new quality of a good.Quad Band (GSM & CDMA) Dual SIMMedia Tek¡¯s turn-key solutionReceiving TV signalsLonger idle timeAnti-theft tracking67
- 68. The introduction of a new method of production.New supply chain ¨C clusterMedia Tek with independent design housesSwift reactions to market changes68
- 69. The opening of a new market, whether or not this market has existed before.The bottom of the pyramidDisruptive innovation ¨C avoid overshootingHighly customized69
- 70. The conquest of a new source of supply of raw materials or half-manufactured goods.Media-Tek¡¯s processorsAbundant suppliersControl distribution channels 70
- 71. The carrying out of the new organization.Media-Tek¡¯s open source business modelCluster ¨C Taiwan¡¯s scientific park modelClose to customers (fewer middlemen from 5 ¨C 8 to at most 3 levels for cellular phones)71
- 73. Compromise73
- 74. Compromise between Submarines and R&D HousesiPodP&G¡¯s Connect + DevelopMedia Tek & MotorolaMedia Tek joined TD-SCDMA74