Protecting Intellectual Property Rights
The Bay State, especially Central Mass, has been bleeding manufacturing jobs off and on for years. It’s no wonder given the low labor rate in developing countries. For instance, manufacturers of metal goods in India pay their laborers the equivalent of about $1 per day. That means that US manufacturers are stuck competing on price unless their products are significantly different.
In the last couple of years, China has become the big threat. As they gear up to industrialize their farming populations, manufacturers from around the world are looking to those Far Eastern shores as a source of cheap labor as well as a monstrously large market.
The problem is, as China gears up to compete in worldwide commerce, how do you encourage it to play by the rules, especially when it’s pretty well known that they have little respect for intellectual property rights (IP)?
Case in point, toolmaker Diamond Machining Technology of Marlborough. A Chinese firm had the audacity to copy DMT’s products, then bring them to the US to sell right under DMT’s nose. So the US firm had to incur added legal expense to protect its business. And while the US courts have upheld DMT’s rights, how do you get the offending firm to comply? According to the Worcester Telegram:
U.S. District Court judge has ordered a Chinese company to stop infringing on Diamond Machining Technology Inc.’s patented sharpening technology in a case that began when DMT discovered copies of its tools at a Las Vegas trade show.
Judge Kent J. Dawson of the U.S. District of Nevada ruled last month that Jing Yin Lixin Diamond Tools Factory, a business with headquarters near Shanghai, infringed on a DMT patent. He ordered Jing Yin Lixin to stop its copying and pay DMT’s legal fees, according to online court filings.
Will the US prevent the Chinese firm from importing to the States? Does the Chinese firm even care, given that it can still sell to the rest of the world? The story points out that the Chinese firm didn’t even bother to retain counsel. They sent a fluffy little letter asking for “a fair, reasonable, and light judgment.”
Eventually, capitalism and the global economy will have a significant impact on the lives of China’s citizens, providing job opportunities and pressuring China’s communist leaders to lighten up. But in the meantime, it’s going to get messy, both here and there.

