Protection of Intellectual Property Strategies and perception of risk. A case study of Swedish SMEs' expansion to China

Abstract

The Chinese market is attracting immense amounts of foreign direct investment (FDI). From only attracting simpler production just ten years ago, it is now attracting technology-intensive industries en masse. However, while the intellectual property is increasing in importance to companies, the Chinese intellectual property rights infrastructure remains perceived as weak by many companies. This thesis therefore aims to create a better understanding of what strategies firms adopt in order to protect its intellectual property when entering the Chinese market, while also providing a better view of how the companies perceive the risks involved. The study approaches the topic through the use of case studies performed on three companies relying on unique technologies. Due to the lack of existing research available on the chosen topic, information has mainly been gathered through extensive interviews with three anonymous companies, and one intellectual property consulting agency. Our study has resulted in the IP protection barrier model – a model that incorporates the availablestrategies, methods, and actions for protection. This model has then consequently been applied to the interviewed companies, analyzing their protective actions. Doing this, we have found that althoughthe companies have implemented the available suggested methods and strategies to some extent, the use of the IP protection barrier model identifies a great number of actions available to the companies in order to provide a more comprehensive protection for their intellectual property. We suggest that further studies look closer at how the personal opinions of the employees and management affect the chosen strategies within the firm, as well as the shared perception of risk. Alternatively performs a quantitative study on the strategies and methods used by foreign firms entering the Chinese market.