IP Protection in Emerging Markets

Increasingly common sourcing and production from multiple nations exposes global companies and their customers to new vulnerabilities. When goods, materials and parts are coming together from multiple points around the globe, one risk is the intrusion of counterfeit components, some so defective that they can lead to product failure. Far-flung suppliers and business partners also increase the risk of trade secret theft, a problem that has become more acute with digitized information.

Even so, companies can address the risks through application of best practices and continual assessment and improvement within their management systems.

Ninety-one percent of European companies surveyed by the Trade Secrets and Innovation Coalition reported that they had experienced at least one theft or unauthorized disclosure of trade secrets within the past seven years, and in 44 percent of such cases they believed the information was used to compete against them.

Counterfeit software is another source of vulnerability in the IT supply chain. An estimated 59 percent of downloaded counterfeit software harbors malicious or other unwanted code that can expose systems to the risk of data loss, prolonged downtime or outright failure.

The author lists areas such as management of the supply chain and contractors, IP compliance team-building, and security and confidentiality training, where most companies can measure and improve their IP protection practices. She advises integrating practices that address these areas into management systems and sharing them with business partners in the global supply chain.