The influence of product piracy in the Global Labour Market

It sounds paradoxical: China’s economy is increasingly suffering among the big amount of product piracy even in its own country – and Western companies earn well in protecting against counterfeiting Chinese companies. The success of Wibu system can be imagined how rapidly changes the second-largest economy in the world. Wibu system specifically provides to other companies to protect their digital products from counterfeiting and counterfeiters. For nine years Wibu system is also active in Shanghai, Beijing and in 2010, opened the second establishment.

Although China is still the stronghold of the pirates, according to a recent study by the VDMA industry association shows.

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Thus, almost three-quarters of the fakes that cost the German engineers per year, eight billion euros, come from the People’s Republic. However, the copier are no longer satisfied to plagiarize foreign inventions, one to one.

Increasingly, Chinese companies are now working out by itself to develop technologies and meet the needs of their compatriots. Even more, China’s economy increasingly brings  its own high-tech products, innovative businesses are heavily subsidized by the state.

Dola Zhou directs the Office of Wibu system in Shanghai. She says that lucrative products such as slot machines or medical are copied. “The Companys working on a product for two to three years and then within two weeks bring a cheap copy on the market.” Especially in the slot machine industry a fierce battle raging between the manufacturer and the inventor of it was “very profitable to sell their ideas twice or three times.”

Dola Zhou and her team advise companies how they can protect their products. If you are interested, they provide tailor-made encryption software that can be integrated into the device – for example in an MRI scanner or a slot machine.

The technical development of China is often underestimated. The country develops from a pure producers at a place where complex technologies and developed are invented.

Fact is: Every year hundred thousands of engineers are leaving the university. So there is a huge potential for innovation, while German companies complain about the shortage of skilled workers. For German industrial companies, it is certainly not easy to defend themselves from Chinese competition.

Even in his own industry, meanwhile, Wibu system feels competition from Chinese competitors. So far, the Chinese competitors are developing especially security software for home computers while the Germans and their competitors in the U.S. for instance, supplying machinery builders in the whole world. But that could change – the Chinese are learning very quickly.

Sources:

http://www.spiegel.de/wirtschaft/unternehmen/0,1518,829413,00.html

http://www.spiegel.de/wirtschaft/unternehmen/0,1518,828725,00.html

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