Stratic Advice on Intellectual Property Investment in Asia/苏冉(11)
B) Singapore
According to the Global Competitiveness Report published by the World Economic Forum, Singapore’s annual international IP protection rank has improved consistently from 15th in 2001, to 12th in 2002, and now to 8th in 2003. In 2003, Singapore was rated the most IP protective country in Asia for the second time in two consecutive years by the Political & Economic Risk Consultancy (PERC). For further fight against software copyright piracy, the relevant authorities also have conducted a wide and comprehensive review of the IP laws which dovetailed with the implementation of obligations under the United States-Singapore Free Trade Agreement.
Issue Ⅳ: Market Potentiality in P.R.C and Singapore
A) P.R.C
Obviously, China is not only a large purchasing market but also a large potential labor and entrepreneurial market for software development and service. Transportation in China has turned to be more convenient. There grows up Express Transportation as Fedex, DHL, Ups, etc. To the bottom line, according to International Data Corporation (IDC), packaged software was an approximately US$135 Billion global industry in 1998 (growing 14% through 2002), while the global IT products/services industry reached nearly US$800 Billion (growing nearly 10% through 2002). Many software moguls have classified China as "perhaps the world's most interesting market." .Second, with huge market potentiality hidden in western regions and Chinese inclined economic policies, many foreign software companies positively take advantages of the western regions as the basis, and then spread to the whole country regularly, just like IBM, and Intel. Furthermore, the enactment and actual enforcement of new IPR laws and public embarrassment of pirating manufactures suggests that there’s a future for the software industry in China. Thinking of the old saying “the waters among giants have always been perilous for smaller firms” , the software industry is under the same condition. Smaller firms may be able to find creative service-based methods for entering the Chinese market, though it would certainly need to be a long-term investment. Over time, as China develops credible protections for IPR and begins penalizing violators, smaller foreign companies will be able to justify developing and promoting better products and services in the Chinese market.
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