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Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets  
Product Ref: 09/453C Company: Foxconn International Holdings

Product Type: Case Industry: Technology Hardware

Related Product(s): Teaching Note
In May 2006, Foxconn International Holdings first discovered a trade secret leakage to BYD Company Limited through current and former employees. Despite successful conviction of four individuals involved, prosecutors dropped all criminal charges against BYD in December 2008. Around 400 senior managers and engineers have left Foxconn for BYD since 2003, posing continuous threats of further infringement of intellectual property ("IP") rights. In response to a deep global recession since late 2008, one of Foxconn's strategies has been to increase investments in research on and production of smartphones, which maintain strong demand relative to traditional mobile phones. Because Foxconn's factories are located mainly in emerging markets with high IP risks, the success of this strategy is being threatened by ineffective IP protection. It is imperative for the company to revisit its IP management strategies, not only to protect its research and development investment but also to generate extra revenue for survival. It also has to devise an appropriate litigation strategy against BYD.

Foxconn V BYD (A) is a pre-requisite of this case.
Functional Area : Strategy & General Management

Issues: Limitations of China's legal system in protecting intellectual property rights. Appropriate litigation strategies to handle trade secret thefts. Strategic approach to intellectual property management in emerging markets. Leveraging intellectual property as revenue-generating tools.
Length: 28 pages Country: China (People's Rep. of)

Pub. Year: 2010 Level of Difficulty: 3
This product type is available in the following language(s):      English
Related Information: N/A
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