Protecting Intellectual Property

March 1, 2009

A couple of years ago I read a scholarly piece that compared the economic prosperity of former colonies. The study found that those colonies that were ruled by the British, and were therefore governed under British Common Law, were today more economically prosperous than those that were governed by nations that followed French Civil Law. Though there were a number of variables, the key one they found was that British Common Law had more protections in place for private property rights.

I am sure that not everyone would agree with their findings, particularly the French, but what I found to be key was that an entire society’s prosperity was dependent upon an individual’s security in the right to create, buy and sell property without concern that someone else could take away that which they had created.

It is for that reason that I have recently become concerned by an upsurge in the number of reports I have been receiving about what some perceive as a rise in intellectual property theft within the toy industry. Most toy companies I am familiar with are highly respectful of intellectual property rights. I truly do not know if the accusations are true.

If, however, the reports are true I am wondering if the economic stress is causing some manufacturers to take shortcuts. If they are, they may be getting some intellectual property at no charge but well may be paying a higher price in the long run. Not from lawsuits, although there will be that, but from the loss of trust in the inventor community that is essential to their securing innovative products in the future.

There is, however, a bigger concern. That loss of trust can leak into the community at large and seize up the flow of ideas. Creative people may choose either not to share with toy manufacturers or to take their ideas to an industry they feel they can trust.

Toy Nation is under enough duress these days from the new safety protocols and the economy. It does not need a break down in its civil society.

Posted by Richard Gottlieb on March 1, 2009 | Comments (7)

March 3, 2009

In response to: Protecting Intellectual Property
Sean McGowan commented:

I agree with the sentiments expressed here (thanks Richard for raising the subject) but I have to raise two issues that I fear do not bode well for the future. First, we are in the process of raising an entire generation of future business leaders (in the US, Europe, Asia and elsewhere) who do not share the same viscerally protective sentiment toward IP, simply because in their world, it is "OK" to steal IP. I ascribe no malice to their intent, but anyone who downloads music or video content for "free," or copies and pastes and article written by someone else, or "samples" music from another artist is stealing, although that word seems ugly and is rarely used directly by those who practice it daily. Plagiarism is rampant on college campuses not only because it is so easy to do on the interet, but also because our laws and even our intrinsic sense of what's right and wrong have been disrupted by technology that makes wrongful copying so easy. The kids don't know that what they are doing is wrong because they were doing it for years before anyone even realized it and no one stopped them early enough to say "You are stealing!!" The second worrisome fact is that our industry's products are almost all made in parts of the world with, shall we say, a far less developed history of protecting IP. You know what I'm talking about; don't make me name names. If we move our production, and our design, and our engineering to a part of the world where counterfeit goods flourish and the guilty are rarely punished, how suprised can we be if parties we once thought were playing by the rules slip down the slope? If cheating doesn't get punished, rational economic theory says you will be at a disadvantage if you don't cheat. What is needed, in other words, is rigorous education of young people about what consitutes theft of IP, and rigorous enforcement of international laws to protect IP. Both are difficult. Things will get worse before the get better.

March 3, 2009

In response to: Protecting Intellectual Property
Peggy Brown commented:

Innovation is the lifeblood of the toy industry, in fact, of any industry. Without innovative toys, our kids would be playing with sticks and rocks. Individually, creative people stand to lose the most as they can seldom afford to fight the giants, but you’re all right… IP theft hurts everybody. If we stick together and stand up for a high level of respect for each other, then the tables turn and the IP pirates stand to lose the most. Respect is something that must be earned, but can easily be shattered by unethical behavior. It’s up to us to call out the crooks!

March 3, 2009

In response to: Protecting Intellectual Property
Richard Gill commented:

As an inventor, inventors representative and the previous co-owner of successful game products I have to applaud you raising this issue Richard. I am also aware of some of the recent apparent infringements that are appearing at shows and it is a VERY worrying situation. I have advocated for the last 15+ years that Toy Nation has cleaned up its act with regards IP and we have leadership from many to thank for that. We need to all band together and make sure all that good is not undone by a disrespectful few - Mary is right - I dont know what to tell inventors right now. Lastly, I dont believe in making excuses the economy or otherwise - if it is wrong it is wrong and it should be stopped.

March 3, 2009

In response to: Protecting Intellectual Property
Mary Couzin commented:

I agree with all the previous comments and as someone who works with more new inventors than anyone else in the industry, I can say this is their primary concern. They are worried someone will steal their idea(s). I used to be able to tell them it happened so infrequently that it shouldn't be a concern, that is was more important to get their ideas out there. Now, I wonder how to respond.

March 2, 2009

In response to: Protecting Intellectual Property
Kim Vandenbroucke commented:

Tracy, Randy, Richard - I agree with all of you. Nobody wins when intellectual property is knocked off - not the inventor, not the manufacturer, not the buyer, retailer or consumer. And its very hard for the little guy (company or inventor) to pursue legal action against offenders. How about we all spend our time and effort creating great NEW products to enhance Toy Nation; not ones that cause us to bicker amongst ourselves.

March 2, 2009

In response to: Protecting Intellectual Property
Randall Horn commented:

Thanks Richard ... this type of practice is so unethical. I hope everyone will consider that most small toy companies just don't have the cash flow to even defend themselves legally. My strong view is this: If you or your company is about to launch or buy a product that attempts to benefit from the creativity, sales momentum, goodwill, or reputation of another previously launched product ... don't do it because it just isn't right. Let's all stand up and do the right thing.

March 2, 2009

In response to: Protecting Intellectual Property
Tracy Dudkieiwcz commented:

This is such an important message for us to hear. Thank you Richard for writing this blog! If companies manufacturer knock-off products instead of coming up with innovative ideas, our whole industry loses! In the end, we may turn away the consumer who is looking for innovative products.