Wisey
Member
- Joined
- 19 Jul 2014
- Messages
- 1,062
Actually it's a little more complex than that. Assume for a moment you are a startup with a product you want to sell on a limited basis. And this product requires heavy machinery to make - not the type of product you can make at home. Like an led driver. You need to sell several thousand just to break even. However you can't make thousands because it's a new product and you're not sure who will buy it yet.
So you can order several thousand from a German or US factory, or you can go a Chinese factory who is happy to make you 2-300 for a tiny profit. Now why is the Chinese factory willing to make you 2-300 for a tiny profit? Because it knows it can make a knock-off from your design and sell it elsewhere to recover its manufacturing costs and make the profit it wants to. So did the Chinese factory just help you or hurt you?
Don't forget that it was the choice of the product maker to go to china. Not the other way around.
To say that IP theft is the fault of the person that went to China and not the thief in China, who would have signed an agreement then ignored it is laughable. I agree that the person has taken a risk based on the previous experience of other companies, but that in no way justifies the IP being stolen. If the manufacturer enters an agreement to produce the item at a certain price and has no rights to the IP, then they have no rights to the IP.