Another perspective on IP and plagiarism

In this article Ming Laursen?(Profile on LinkedIn)?and Ann Christin Mahrt?(Profile on LinkedIn)?will enlighten you on IP and plagiarism.

In our last article about?cultural differences between China and Denmark?we promised to touch upon IP and as Ming mentioned last time: “The issues and worries on “IP”, “trust” and “expectation” are very interesting topics”. These we are digging deeper into in this article. We see plagiarism, counterfeit or fake as the same, just different wording.

Who would do plagiarizing? Everyone - businesses, presently and historically

Ming -?Out of professional curiosity I take pictures whenever I see look-like copy products in display, and I have now at least 100 pictures taken from both Europe and Asia. The recent picture is a fake version of a wooden hanger in a shop in Copenhagen with almost exact design features except for color and material. One can also easily spot a copy Y chair at a cafe in Shanghai as well. Throughout history where there is development there is plagiarism, where there is innovation there is copyright theft. It’s human nature of learning to survive, making shortcuts to success and winning competitions.

“By three methods we may learn wisdom: by reflection, which is noblest; By imitation, which is easiest; And by experience, which is the bitterest.” - Confucius. In the past, people embraced imitation. The famous danish artist Bertel Thorvaldsen (1770-1844) who embodied the style of classical Greek art, he believed that “only through the imitation of classical art pieces could one become a truly great artist.”- Thorvaldsen Museum. There has been one simple purpose of imitation: learning. In ancient China, imitation of master’s work was the only way to become a master oneself.??But when an apprentice had to wait years before becoming independent, respect turned often into resentment, when access to technology was denied, stealing became an option for self-efficiency and development.

During Han Dynasty, silk was one of the most desired thus most protected commodities by the imperial court. When Chinese princesses were married off to neighbor states, they were allowed many silk items as dowry but never silk cocoons which would reveal the secrets of the silk making process. There are many stories around how the techniques were stolen eventually. One of them sounds like this: Two European monks travelled in search of silk cocoon and they managed to smuggle two out of China, but they didn’t have the knowledge of reeling, so they waited until silkworms hatched and left a hole in the cocoon, that’s why Europeans appreciate more rough surfaced silk (e.g. washed silk) than the finest Chinese silk satin, because Europeans had to knotted silk thread out of broken cocoons which gave rather rough texture.

Ann Christin –?It is very interesting with the historical perspective you mention, Ming. As it changes our perspective in how we see things and provide understanding as well. At all times, businesses and people have tried to copy others or find inspiration in things the see in their daily life. It’s natural. But there is a difference if you just copy the exact same product and does not add any new to it. Then it is not your invention – some may call it to steal or benefit from others fortune. Having work with e-commerce in China for almost 6 years many things have come to my attention and one of them is “Fake products” there is different perceptions regarding the person’s culture and personality of the one that copies a product. In the west it is called inspiration where on the other hand in China it is called copying products with a much more negative meaning. The question is who invented the initial product? Burberry got their inspiration from the coats soldiers wore in the first world war, where primarily officers of rank and above purchased the trench as part of their uniform – a mark of social distinction and class. And before that were earlier styles of the trench coat already developed. And today you see a lot of brands communicating the trench coat in various ways. So, is it all about look and feel – how you wrap it and communicate it? And is that a fake – if it is lightly the same but with another touch, look and feel. Look at all the danish kids’ universe brands where it initially is the same product category types of items but with a different wrapping, storytelling and look & feel.

Ming -?We can certainly say if it’s not by Burberry it won’t be regarded as original. Burberry did add great brand values into that trench coat and gained great economic values later while other trench coats have been taking the free ride. Like Chinese emperor’s chair from Ming dynasty inspired danish Hans Wegner’s Y chair, it seems perfectly accepted as original danish design classic even though Y chair took someone else’s original design, without permission.

What’s behind plagiarism, why copy?

Ming -?“Plagiarism” happens as history wheel rolls and often for only one reason: economic interests. In the past 30 years China has been producing for the world, especially the west. In the beginning nobody in China would make copies, overproduced products would be collected by local merchants and sold off in so-called “Waimao Jie” export goods market as leftovers. When China as a market became more open to foreign brands perceptions of foreign products changed, they are no longer overproduced commodities that factories had to get rid of locally, but desired cheap luxury for foreigners from developed countries, who had found it irresistible. “Waimao Jie” soon became most profitable “Fake Market”. When I moved back to China 14 years ago, “Fake Markets” in Chinese cities were exceedingly active, they were huge and crowded in selling basically all fabrication products from known brands. But when you turn around and look at the customers, you will find 90% of them were Europeans and North Americans. In a way brand’s awareness was awakened by this “rather fake than no brand” purchase behavior brought by the foreigners, fake market becomes the vane for brands’ market value, and surprisingly the genuine products benefited from these free riders, studies showed. Today China is the biggest market for luxury brands. So, I don’t believe plagiarism can be stopped, nor requires too much of our attention.?

Ann Christin –?I agree, counterfeits are always produced from an economic perspective. Copycats see the opportunity of a given product, which is selling well, and a counterfeit can be produced for less cost and at a lower price to another target audience who cannot afford the original. The original product is often much more expensive, as you mention Ming later in the article with the example of Rolex. Customers buying a copy might later buy the original product. I remember when people travelled to Thailand and bought fake Mulberry bags among other brands, and I got some of these products too from friends and ended up buying the real stuff in UK and Copenhagen. Sometimes a counterfeit can give the original brand, not in the market, an awareness that the brand can turn to its own advantage.

Worry too much about it - No need and why?

Ming -?We all have moved upwards by standing on the shoulders of our predecessors, everything we have ever created comes from civilizations before us. Should China start collecting royalty for its greatest inventions that changed the world? Dr. Joseph Needham, a world-renowned historian of science and technology, listed 26 technologies invented by the Chinese that were passed on to the West. Among them, rice planting, silk, decimal place-value charts, lacquer, porcelain, tea and fire arrows had a tremendous impact on the development of global civilization. Those inventions were taken by Europeans and modified into more advanced technologies for the greatest capitalistic adventures. Our world today is benefiting from both civilizations, but we often forget the past contributions and hold on only to our “own” creations. Many fashion brands use other clothes as sample and make a few modifications, and then call it their own design. Some went further for remaking that modified copy style so many times that they start to believe the style is truly their creation and would go to great length to protect it. I don’t believe “Kicking off the ladder” is cool or effective to brand success, on the contrary, attacking directly on plagiarism doesn’t automatically increase brand value and awareness, it may only stir public attention and raise the question: “Who really has the true origin?”

Ann Christin –?It is a good point. Change perspective. When you experience fake products - keep focus on your brand and your products, and if you can create a storytelling where you show that your brand goes beyond its products you are well ahead on the competitive global marketplace. Your time and effort spend on your brand will benefit your brand and your business in the end. Even though your brand has gained a patent, besides trademark registration, there is no security that copycats would not imitate it, when they see that there is an interest for it in the market and an incentive to earn money. In the end it is a personal decision “What to do and what to focus on”. It is your choice.

How to prevent plagiarism?

Ming -?Attitude towards plagiarism and tactics performed by companies like Microsoft and Lego is worth to study. I have three things in mind when it comes to tackle the issue.?

??????be prepared but focus on the real challenges instead - copyright and patent protections are sometimes necessary but can never protect you 100% and certainly won’t earn you profit. You can’t win over your “sailor’s stripe” t-shirt design, but you can focus on branding it as Burberry did for its trench coat to win brand recognition.

??????make sure your products become successful in the market. No one copies a “worthless” product, it would be a very expensive affair.??“As long as they’re going to steal it, we want them to steal ours.”?said Bill Gates, back in 1998, “and somehow we find the way to harvest their addictions”. Today 10% of the Microsoft annual revenue of $125 billion comes from China.??

??????be more innovative than the follower, stay ahead as leader. Lego has been able to keep its status as one of the best innovative companies in the world (and probably most copied as well) by moving constantly forward and leading the way. A study on “fake Rolex” showed that about 40% of those who purchased fake products ended up buying genuine ones later. “First-mover advantage” “tolerance” are some of the great advises from some of the great companies we can learn from, they are also the greater challenges which we should engage our focus. In the world where we inspire others and are equally inspired by others, how to stay true innovative and create values is far more interesting than how to overprotect something that is not even ours to begin with.

Ann Christin –?Being innovative is key - coming up with new products, ideas, and features. Then you might be able to shift focus and strengthen your experiences towards your consumers. Even though the Lego brand got copied in China they are still on the market selling the original Lego products to Chinese consumers. Initially, selling to different target audiences. Brands in China who has been there for long experience copycats, but still earn money. Looking at it in another way the brand might benefit from copycats as they must do efforts to create brand awareness to attract customers and in the end you as brand owner has the original authentic product that most Chinese consumers would like to buy.

And what to do when plagiarism has happened?

Ming –?The brand “Supreme” had rather unique branding and marketing strategies, it aroused people’s desire globally back then. Young Chinese traveled to US and waited many days in front of the shop for just getting a t-shirt. Then it lost a lawsuit in Europe which meant any products using Supreme logo can be legally sold in Italy and Spain. An Italian registered company opened several “Supreme” shops in China selling same products/design with the same logo and even collaborated with Samsung. Finally, it was not the lawsuits but the loyal followers who forced the “Fake Supreme” to close their shops in China. But unfortunately, consumer’s confidence was so shuttered after the farce they would rather giving up buying “Supreme” than spending too much time figuring out whether the product is authentic. Comparing “What to do” we ought to sometimes think about what NOT to do when someone has copied our design.?

Ann Christin –?What to do is to keep focusing on your products, your values, and your storytelling. Ensure your trademark both in your own market and in the markets, you operate in. I often hear from brands that they don’t want to sell their products in China due to copycats. But I if you have a fantastic product, you may not have to be in China to be copied that can easily happen, not being present in the market. And if the case is that your product has been copied you may be able to benefit from it, as copycats also must promote the fake product. In China consumers prefer the original, authentic product rather than the fake. So, in the end you hold the cards - with the authentic product, hopefully an international trademark and a Chinese Trademark to be able to sell and must right to sell in China. Do keep in mind the first to file for trademark for a brand in China has the right to sell on the market. Before you ever think of selling your products in China better file for Chinese trademark to be ready for action in China.