Protecting Your Intellectual Property Rights: Understanding the Role of Management, Governments, Consumers and Pirates

239 Pages·2013·3.894 MB·English

by  Peggy Chaudhry, Alan Zimmerman (auth.)

Management for Professionals
For further volumes:
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Peggy Chaudhry Alan Zimmerman
●
Protecting Your Intellectual
Property Rights
Understanding the Role of Management,
Governments, Consumers and Pirates
Peggy Chaudhry Alan Zimmerman
Villanova School of Business City University of New York
Villanova University College of Staten Island
Villanova , PA , USA Staten Island , NY , USA
ISSN 2192-8096 ISSN 2192-810X (electronic)
ISBN 978-1-4614-5567-7 ISBN 978-1-4614-5568-4 (eBook)
DOI 10.1007/978-1-4614-5568-4
Springer New York Heidelberg Dordrecht London
Library of Congress Control Number: 2012951629
© Springer Science+Business Media New York 2013
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I would like to devote the book to my family.
I want to recognize my husband, Sohail,
for his endless encouragement of my research
endeavors. I sincerely acknowledge my
parents, Dave and Evelyn, who always
supported my career aspirations.
Finally, I thank my children, Matt and Aeysha,
for giving me the motivation to succeed.
Dr. Peggy Chaudhry
This book is dedicated to my family whose
interest and help has been invaluable.
First, to my wife Lori for her unstinting
encouragement. Also to the next generation:
Craig, Dan, Howie, Karen, and Matt and
their respective partners. And the next:
Alex, Abby, Emma, Hannah, Lily, Luke,
Natalie, Owen, Phoebe, Sophia, and
Samantha. With this collective intelligence
we can solve any problem.
Dr. Alan Zimmerman

Preface
The expansion of world trade has brought with it an explosive growth in counterfeit
merchandise. Estimates put the world total for counterfeit products at about one half
trillion dollars annually, although it is impossible to accurately determine the true
size of the counterfeit market. What is known is that this illicit trade has infected
nearly every industry from pharmaceuticals to aircraft parts. Software and music
piracy are easy targets widely reported in the media. In 2011, the Business Software
Alliance (BSA) estimated that 42% of personal computer software installed world-
wide was illegal and the losses to the software industry were $63 billion. These
fi gures represent a signi fi cant increase from 2007 when about 38% of software was
pirated costing the industry about $48 billion. Overall, a wide range of industries
agree that there is a severe problem with the protection of intellectual property rights
(IPR) throughout the world, yet there have been virtually no attempts to describe all
aspects of the problem.
This work aims to give the most complete description of various characteristics
of the IPR environment in a global context. We believe a holistic understanding of
the problem must include consumer complicity to purchase counterfeit products,
tactics of the counterfeiters (pirates) as well as actions (or inaction) by home and
host governments, and the role of international organizations and industry alliances.
This book establishes the full environmental aspects of piracy, describes successful
anticounterfeiting actions, and then prescribes measures IPR owners should take to
protect their intellectual property.
While there have been many articles in the popular and business press that focus
on counterfeit trade, there have been only a small number of books published on the
subject that address the predicament facing nearly every industry in a dispassionate,
intellectual manner. We believe this book ful fi lls a unique need for a thorough
review of all aspects of the IPR problem.
This book is not targeted at consumers although we hope they will fi nd it
enlightening. This is a research-based book that can serve as the basis for further
inquiries by academics, institutional researchers, and professionals in the interna-
tional business and legal communities. We believe it should be a useful reference
vii
viii Preface
for government of fi cials, managers, and law professionals who are combating
counterfeiting as part of their everyday responsibilities in countries throughout
the world.
This work is a result of our continuing interest in the subject of counterfeit prod-
ucts. Extensive travel to China and other countries or just walking the streets of New
York reminds us that this is a pervasive problem. For 20 years we have been work-
ing on various aspects of the problem and we have each published journal articles
and delivered conference presentations based on the research we have been doing
over that period. We would be remiss if we did not thank Victor Cordell and Michael
Walsh for stimulating our interest in the subject and contributing to our early publi-
cations. In addition we would like to recognize the involvement of Jonathan Peters
whose facility with statistics has been invaluable. A special thanks to Dr. Stephan
Schläfereit for reviewing our work. We are also most grateful to Tom Snelling,
Partner, and his colleagues, Jen Yang and Jillian Caldwell, at Fresh fi elds Bruckhaus
Deringer LLP for all their insights and help. Finally, we appreciate the assistance of
Stephen Stumpf, Fred J. Springer Chair in Business Leadership, for sponsoring the
funding of research and conference presentations through the Villanova School of
Business. Overall, it is evident from the preceding remarks and forthcoming
acknowledgments that this book is a result of the inspiration and support of many
colleagues. Nevertheless we accept complete responsibility for the text including
any errors that may have inadvertently occurred.
Villanova, PA, USA Peggy Chaudhry
Staten Island, NY, USA Alan Zimmerman
Author Bios
Dr. Peggy Chaudhry is an associate professor of International Business at the
Villanova School of Business, Villanova University, Villanova, Pennsylvania. She
received her Ph.D. in International Business with minors in International Economics
and Marketing at the University of Wisconsin at Madison. She is considered an
expert in intellectual property, illicit trade issues (particularly, counterfeit/gray mar-
kets and distribution channels), and international business management. Her
research interests include managerial tactics to curb counterfeit trade, consumer
complicity with counterfeit goods, and gray markets for consumer goods, including
impacts for the pharmaceutical industry. She currently serves on the Editorial Board
of B usiness Horizons and has published articles in the areas of intellectual property
rights in business trade publications, such as A dvertising Age and T he Wall Street
Journal. Her academic research has appeared in many journal outlets such as
Advances in International Marketing , Business Horizons , Columbia Journal of
World Business , Enterprise Information Systems , European Management Journal ,
Journal of Business Strategy , Journal of Business & Technology Law , Journal of
International Marketing , Multinational Business Review , and Virginia Journal of
International Law . In 2009, she published her fi rst book (with Alan Zimmerman),
The Economics of Counterfeit Trade : Governments, Consumers , Pirates and
Intellectual Property Rights. She has been invited to speak before various audiences
on the topic of the protection of intellectual property rights and consumer complic-
ity with counterfeit goods including the US International Trade Commission and the
University of Maryland’s Francis King Carey School of Law. She was also inter-
viewed by The Wall Street Journal for her views of the growth in counterfeit trade.
ix
x Author Bios
Dr. Alan Zimmerman is professor of International Business and Marketing at
City University of New York, College of Staten Island, Director of the International
Business Program, and Advisor to the International Business Society. Zimmerman
is a two-time Fulbright Scholar and three-time president of the New Jersey American
Marketing Association Chapter. In January 2011 he taught at the Shanghai Institute
of Language and Commerce in the People’s Republic of China, his fourth visit to
that country.
He is also the founder and president of three businesses including Radley
Resources, a business to business market research and consulting practice. The
fi rm’s extensive list of clients includes American Express, DuPont, and Owens-
Corning. He worked for more than 30 years in international and domestic marketing
with the consultancy and with Westinghouse Electric Corporation. He served as
vice president of marketing for E.F. Hauserman, a $100-million interior wall manu-
facturer. He is a frequent speaker and author on international business and market-
ing. His text book, B usiness Marketing Management : A Global Perspective , written
with UK professor Jim Blythe, and now in its second edition, is being used by
colleges around the world. His academic research has appeared in many journals
including B usiness Horizons , Multinational Business Review , Science and
Engineering Ethics , Journal of Asia Paci fi c Business , Journal of Business &
Industrial Marketing , and the J ournal of Global Marketing .
He holds a doctorate in international business and marketing from the Lubin
School of Business at Pace University, New York, an MBA from Duquesne
University in Pittsburgh, and a BS in Communications from Temple University in
Philadelphia. In January 2010, he spent three weeks in India on a second Fulbright
award, lecturing in Delhi and rural Rajasthan. In 2005, he held a semester-long
Fulbright assignment at the Dublin Institute of Technology, with whom CSI has an
established exchange program.