Korean Government to Enhance IP Protection for Chipmakers

rgMekanic

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The Korea Times is reporting that the Korean Government is trying to enhance measures to protect the intellectual property rights of Samsung Electronics and SK Hynix. The move comes after Chinese officials are putting increased pressure on the companies to cross-license more of their technology to Chinese manufacturers.

Can't blame the Korean government wanting to protect the IP's of Samsung and SK Hynix, however I can also see the desire for Chinese companies to get licensed more of their tech. The current memory shortage coupled with the fact that Samsung, SK and Micron supply over 90% of the global DRAM chips, it would be nice for another player to be allowed in the game.

"Competition in memory chips can be brutal where technological leadership leads to cost advantages and any significant disadvantage can challenge even the deepest pockets. This could mean significant losses in an oversupply scenario. A Taiwan case study is a miserable tale. What happened to the Taiwanese DRAM industry in the 2000s is a good reminder to China of what not to do," said Mark C. Newman, a senior analyst at Bernstein Research.
 

HaloSVT

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cross-license is just bad all around.Youre going to put yourself outta the biz when china starts to copy cat your goods.It really is time to start divesting in china,frankly allowing them to get this far was a big mistake and we are paying for it.
 

DukenukemX

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I'm all for it, because the Chinese are going to do something about these memory prices anyway. Don't license it out, the Chinese will do what they want anyway and you'll lose out. License it out and you'll at least get royalties. Also as consumers in a capitalist society, the more competition the better.
 

Elf_Boy

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It would not surprise me, at all, if China wants to pull a Wal-Mart. Sell at a loss, put everyone else out of the business then jack up prices. With Nation State backing this could happen.
 

Flapjack

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Sorry, Chinese manufacturing may have come a long way, but it is still Chinese manufacturing. RAM is just too touchy a thing for me to take chances with.
 

Lakados

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It would not surprise me, at all, if China wants to pull a Wal-Mart. Sell at a loss, put everyone else out of the business then jack up prices. With Nation State backing this could happen.
They have done that very thing before, how do you think they got control of most of the worlds supply of rare earth to begin with. They flooded the market well below cost drove their competitors out of business bought them up then leveled the prices.

Sorry, Chinese manufacturing may have come a long way, but it is still Chinese manufacturing. RAM is just too touchy a thing for me to take chances with.
Rio Tinto was once sweet talked into building one Aluminum smelter in central China. It was met with huge construction delays and cost overruns. Turns out the Chinese government was cycling out the construction workers to other sites as they completed parts of the plant so they could duplicate the work on 2 other sites. This only came to light when engineers were brought in to troubleshoot parts of the smelter not functioning correctly and they realized that every part was a knockoff and completely out of spec.

More recently China also managed to piss off Snecma (French), RR (UK), PW/GE(US), and Saturn/Aviadvigatel (Rus) by stealing their engine designs. Bought a few reverse engineered them and built their own, of course the Chinese courts ruled that their designs loom nothing like any of those others so they all got sent packing. The engines are supppsedly terrible and have high failure rates though because their metallurgy tech and quality control just isn’t there, it’s on par with early 1980’s specs which just doesn’t fly with 2016 designs.

TLDR:
Can’t blame anybody from wanting to protect their IP from a country notorious for not recognizing the rights of other countries IP.
 

ZeqOBpf6

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China produces counterfeit sandpaper. Why would anyone risk doing business with them.
 

lostin3d

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The current memory shortage coupled with the fact that Samsung, SK and Micron supply over 90% of the global DRAM chips

On that note, I find it quite interesting during a time of shortage lately I've been seeing a lot of stories on just about every pc/phone related company releasing new lines of ram/nand. Even companies like Gigabyte that're not normally know for it.
 

SomeoneElse

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This is China's game, get the designs, sell low and torpedo other companies then control the price once everyone else is out of business. All on worse quality products. Don't blame Korea one bit for wanting to strengthen their IP.
 

Master_shake_

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I'm all for it, because the Chinese are going to do something about these memory prices anyway. Don't license it out, the Chinese will do what they want anyway and you'll lose out. License it out and you'll at least get royalties. Also as consumers in a capitalist society, the more competition the better.

this.

china will make memory that won't be as good but other manufacturers have to compete anyway.

cheap good memory.
 

Flapjack

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Lakados said:
TLDR:
Can’t blame anybody from wanting to protect their IP from a country notorious for not recognizing the rights of other countries IP.
Exactly. At the risk of being called "racist" by some butterfly out there, the Chinese are a bunch of cheap-ass dirtbags who flood the market with junk. It's one thing if you're buying some cheap tools that you know won't last... it's totally another thing when you're talking about something as sensitive as memory.
 

MickeyBailey

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How does forcing a company to give away the fruits of their hard-earned and expensive labor help anyone but those that steal it? A similar parallel is pharma companies in the US. If the government prohibits profits, there will be no more innovation and the whole world suffers. If you make Samsung, SK Hynix, and Micron unprofitable, why would they continue to spend tens of billions of dollars in R&D and capex every year?
 

Flapjack

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How does forcing a company to give away the fruits of their hard-earned and expensive labor help anyone but those that steal it? A similar parallel is pharma companies in the US. If the government prohibits profits, there will be no more innovation and the whole world suffers. If you make Samsung, SK Hynix, and Micron unprofitable, why would they continue to spend tens of billions of dollars in R&D and capex every year?
...and that is the overall problem with regulation in a free market. Not saying there should be no regulations, but they really should only be implemented when all other free market controls have failed.

As for pharmas and medication, it is a little more complicated. If Trump wants to do something about medication costs, he needs to look no further than Canada. Countries like Canada and Mexico have forced American pharmaceutical companies to sell less to them to discourage counterfeiting. NAFTA was supposed to fix this by requiring countries like Canada to adhere to certain guidelines in the granting of patents and enforcement of copyrights, but Canada has intentionally dragged their feet in the implementation of NAFTA TRIPs. The end result is the pharmas have to gouge Americans to cover the cost of developing drugs, shifting the percentage of R&D costs to US consumers. Not saying you're in this category MickeyBailey, but I'm sick to death of people saying "greedy pharma this" and "greedy pharma that" when they have little idea of how complicated things are. These low-information voters would vote in a heartbeat to grant government power to limit profits these companies can earn, while completely lacking the understanding of what de-incentivizing these products would do. Unfortunately, Americans keep paying an unfair share of the R&D so that we can stay #1 in development of new drugs and biotech.

Great read here:
http://www.ipwatchdog.com/2014/06/1...atent-utility-doctrine-is-necessary/id=49994/
 
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