How do you keep your Intellectual Property secret when it’s your sales pitch?

June 19th, 2007  by China Business Success Stories

By Andrew Hupert

How do you keep your Intellectual Property secret when it's your sales pitch? The ex-pat manager’s conundrum in China: how do you protect your IP when your IP is both your product and your sales pitch? For many service-oriented businesses, the very ideas that they are guarding from being stolen must be displayed and discussed in order to promote their business. No one will buy a design or consulting service if they have no idea about what the designer or consultant is talking about. But once that designer or consultant describes his creative ideas, he is in danger of having those ideas pilfered.

What can you do to protect yourself but still get your brand ‘out there’?

First of all, get used to the idea that your designs, models, concepts and IP will get adapted by others. That’s what being a market leader is all about. You have to find ways to use that trend instead of fighting it. I was once on a roundtable panel with a stock analyst who refused to divulge his company’s recommendations. He looked like a fool, and no one understood why he got involved when all he did was waste everyone’s time. If you want to promote your IP, you have to reveal some of it.

If you make iPods, you have to target people who appreciate the difference between fakes and real things. Apple sells to three groups of people: 1) Fashion conscious people who like being on the cutting edge, 2) Genuine technophiles who appreciate the quality of their design and engineering and 3) Community members who value the software, upgrades and support they get from the Apple brand. Apple knows it will never sell to the rmb 150 fake market – and they don’t try. They offer value to the top of the market, and are willing to forgo the rest.

Five quick ideas for promoting your IP without losing your shirt – or your sanity.

1) Identify your target customer profile. Pre-qualify leads, and say “no” to inquiries who can’t meet your basic requirements. I’ve stopped sending detailed proposals to anonymous callers, free-email addresses and low-level “data-collectors”. Make your first call about getting the meeting with the decision makers.

2) Let the pirates build and educate your market. Do it the “Microsoft way”. They were ripped off for years – but those 8 rmb-per-disk dirt-bags ended up building their brand and making Windows the hands-down standard. Rip-offs hurt your pride and make you angry – but they are also promoting your ideas and teaching potential buyers about your industry.

3) Customer service and marketing. These are the Achilles Heel of the pirates and rip-off artists. Make sure you are building a community of buyers around a strong brand that is committed to service and quality.

4) Shine a light on it. Make “as stolen by …” part of your marketing approach! The customers you should be targeting won’t bother with cut-rate rip-offs, but sometimes they’ll buy from them without knowing it. Talk about how you have become the industry leader and that others have already started stealing your ideas. Then discuss the areas where your quality is better, and where you are moving ahead.

5) Keep it new. Stay ahead of the curve by setting the pace – and keep it brisk. Let your old clients know when you have upgraded or modernized your offering. That’s the strongest way to stay in touch with existing clients and build a community around your brand.

Andrew Hupert, China Solved

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One Response to “How do you keep your Intellectual Property secret when it’s your sales pitch?”

  1. Frank Says:

    Good overview Andrew.

    Leading the pack is the best way to keep the pirates at bay. I can’t tell you how many companies I have seen in China that naively imagine they can stay still and not have local companies catch up on them. The arrogance of market leadership…………

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