Assignment: Durex in China
SSL PLC is a major producer of health-related products and is responsible for the famous condom brand ‘Durex'. Since its registration as a condom brand in 1929, the name has become well known in many countries. Durex has a 22% global market share, has become a premium seller in over 40 countries, and is number two in 23 countries. In recent years the company has taken steps to conquer the Chinese market by establishing a 5050-equity joint venture (EJV) with a Chinese privately owned company. Set up in 1998, the EJV is based in the Chinese coastal city of Qingdao, Shandong Province. The condom market in China is very competitive. Durex's main competitors in China are essentially the other foreign brands. However, one of the company's local competitors is a brand called Jissbon, which in the short term has resulted in being a real issue for Durex. The world-famous condom producer filed a lawsuit against Jissbon on 24 June 2002.
Durex is accusing Jissbon of stealing information from Durex's website and printing it word-for-word to describe its own product. On its website, Jissbon described itself as ‘a British-based world famous condom producer with a 70-year history and 20% of the global market share whose products are sold in more than 140 countries'. The description is very similar to that of Durex. Durex claims the design of Jissbon's website and even the details it provides are copied from Durex. As a result, Durex accused Jissbon of making claims that Durex can genuinely make about its own brand. In response to Durex's accusations, Jissbon admitted that some of the information on its website is false but stressed that the website is not for business purposes but intended to change people's ideas of condoms and safe sex. Durex asked for a formal apology and compensation of 5 million yuan (US$602,410) from Jissbon, saying that Jissbon has caused great loss to Durex's valuable image. The case was finally settled in December 2002. Jissbon had to give Durex 100,000 yuan, alter their website and make a public apology in the national press.
Question
1 What steps can companies take in an attempt to prevent IPR infringement?
2 Discuss the impact IPR infringement has on the consumer.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.