Entrepreneurs aiming to grab a slice of Britain's #3.3 billion exports to China have been warned to remain aware of the country's patchy performance when it comes to protecting intellectual property.
Jonathan Middup, Ernst & Young’s Birmingham-based fraud and risk services specialist, urged business folk in the Midlands to look carefully at the controls and measures that protect their intellectual property, before capitalising on China’s domestic market.
He said: "Entrepreneurs are the lifeblood of the West Midlands economy and it is their ideas and intellectual property which sets them apart from their competition.
"As many of the region’s business gurus recognise the huge potential of this land of opportunity, I urge them to think carefully about protecting their ideas, designs and products through implementing the appropriate safeguards and measures."
Mr Middup’s warning comes on the eve of Ernst & Young’s Entrepreneur of the Year Award’s final at the Birmingham Metropole hotel, of which there are five finalists from the West Midlands vying for a coveted award.
Speaking about the risks facing entrepreneurial companies and large corporates exporting to China, and the dangers of leaving intellectual property unprotected, Mr Middup said: "Although most companies take out patents on their intellectual property, it is concerning that a large number fail to implement compliance agreements with their overseas distribution channels.
"Well drafted compliance agreements will enable a company to conduct regular audits of their distributors to ensure that patents are being upheld and that a distributor is declaring all of their sales.
"Implementing preventative measures, like the compliance agreements, are vital to protecting a company’s intellectual property and I would strongly recommend any UK exporter to seek specialist advice about integrating these systems into their business practices, particularly those exporting to China.
"A patent supplies the legal protection for intellectual property and some 1,219 patents were filed from companies in the West Midlands in 2006, but without implementing appropriate measures and controls, patent breaches are virtually impossible to monitor.
"China is experiencing unprecedented levels of growth and with that comes enormous opportunity.
"In these exciting times it is more important than ever before to go into these markets with protection in place."
The five Entrepreneur Of The Year award finalists from the West Midlands are: Nick Sanders, chief executive of CompAir; Dino Kyriacou, group managing director of G & P Group Holdings; Kenneth Forbes, chief executive of Meteor Group; Daniel Laurence, CEO of School Stickers; and Russ Singleton, CEO of Quadnetics Group.
