Innovation is important for the competitiveness of an enterprise. Patents protect innovations and enable companies to exploit the fruits of their R&D. This article focuses on the effects of product piracy upon our Western patent system. It shows that in the future there will be only two alternatives for the strategic IP-management in sectors exposed to piracy threats: to patent the inventions in all relevant markets or to maintain them as trade secrets. This paper highlights the parameters as well as results.
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