Year: 2015

From the BBC Business Daily:

China’s latest factory data is the worst in 3 years. What’s wrong with China’s business model? Mark Anderson is CEO of InventIP, a consortium of US companies and experts who’ve put together a report, claiming that some 50% of Chinese growth in recent decades has been founded on the stealing of western business ideas, via old-fashioned industrial espionage and more sophisticated state-sponsored hacking. He exclusively tells the BBC the basis for his claims. And we also hear from Chinese author Edward Tse, who says the old stereotypes of Chinese companies leeching off western technology and possessing few ideas of their own is outdated. He’s spent years advising Chinese companies, and in a new book, China’s Disrupters, he claims a new genuinely entrepreneurial and innovative spirit has transformed the country’s business climate.

Listen to the discussion

Research by INVNT/IP Consortium Shows Instability Is Natural Result of PRC National Business Model

A study just completed by the INVNT/IP Global Consortium suggests that China is experiencing a serious episode of domestic economic collapse, with up to 50% of GDP growth rates reported over the last three decades derived directly from the theft of intellectual property and fraudulent practices around its re-branding, amplification, and subsidized sale in global markets.

The economic instability caused by a reliance on this model has left China and its Standing Committee in a position of extremely high risk, according to the study, which is scheduled for full release later this year.

INVNT/IP CEO Mark Anderson explained: “We have just completed the best description of the Chinese national business model available today, and up to one-half of China’s growth is based on fraud and theft. The implications of this research are a cause for deep concern among China’s global partners and investors. We are now convinced that almost all aspects of the modern segments of the Chinese economy are both illegal and unstable, from the IP theft that drives it to fraudulent banks, structural trade barriers, continual currency manipulation, and WTO-prohibited subsidies.

“The result is the short-term appearance of being rich, but the longer-term risk of instability and collapse, which it is facing now.”

According to Robert Atkinson, founder and president of the Information Technology and Innovation Foundation (ITIF), “China has long relied on currency manipulation to support its mercantilist, export-driven model, and its recent decision to devalue the RMB is no different. Notwithstanding apologetic responses from organizations like the International Monetary Fund (IMF) and the US Treasury, this most recent decision continues China’s negative-sum policies of helping its own economy at the expense of the global economy.”

Mark Anderson, Founder & CEO, INVNT/IP

Security, Risk, and Software: Protecting Crown Jewels from State-sponsored Theft

COFES 2015: Stepping Back to See the Big Picture

 

Executive Branch Commits to Serious Penalties for Crown-Jewel Intellectual Property Theft – Addresses Espionage Described by INVNT/IP (an SNS Initiative) As “National Emergency”

The INVNT/IP Global Consortium, a Strategic News Service global initiative, has issued a strong public endorsement of President Barack Obama’s presidential order leveling sanctions against those who steal corporate trade secrets. It applauds and supports the President and Michael Daniel, Special Assistant to the President and Cybersecurity Coordinator, in their work to curtail the ongoing epidemic of other nations stealing America’s “crown jewel” intellectual property. The Consortium has now shown that this practice does irreparable harm to the US and global economy, and believes that President Obama’s Executive Order 13964, signed on April 1st, is the first major step in a difficult path toward more equitable global competition for innovating US firms.

INVNT/IP internal research shows that Chinese cyber espionage – an ongoing nation-sponsored project targeting crown-jewel intellectual property in firms worldwide – caused at least USD 2.27 trillion in damages to the US economy in just four economic subsectors between 2003 and 2013.

Non-classified INVNT/IP information indicates that the People’s Republic of China is responsible for 80% to 90% of the theft of crown-jewel intellectual property. INVNT/IP’s work further shows that Chinese state-sponsored groups are currently targeting innovating firms in 402 different sectors specifically chosen by the Politburo Standing Committee, seeking to steal and “digest” the intellectual property of leading firms and government bodies in the United States and abroad.

The Consortium anticipates that the President’s order paves the way for further action regarding the issue of economic espionage perpetrated against US firms and government organizations. In declaring such theft a national emergency, the directive authorizes strict economic consequences, including seizure of assets, restriction of travel, and prosecution by the Treasury and Attorney General in cases of significant financial harm to US interests through malicious cyber activity.

“The INVNT/IP Consortium encourages both parties in Congress to take additional steps in this direction, united by the understanding that technology drives the global economy, and state-sponsored theft of crown-jewel secrets is a direct attack on American jobs, families, companies, and the nation’s economic security.

“We fully support the President in this action and applaud his leadership in identifying the Number One threat to American workers and business owners today. Stealing corporate trade secrets is a calculated, illegal activity which has already destroyed entire global economic sectors, creating trillions of dollars in permanent damage to American towns and cities, our most innovative companies, and the country itself. The competitive struggle so often described today between the US and China is not one of legitimate competition, but rather is a battle between thieves and victims. This has to stop, and the President’s order is a great first step,” said Mark Anderson, CEO of the INVNT/IP Consortium.

INVNT/IP represents the world’s top technology companies in working with lead government agencies and universities worldwide to protect “crown jewel” intellectual property. The Consortium conducts active programs for the promotion of IP value recognition and protection through cooperation among its corporate members and global government network. It currently operates in Australia, the US, the UK, and the EU.

For more information about INVNT/IP, visit the website: www.invntip.com.