In May 2006, Foxconn International Holdings first discovered the leakage of trade secrets in the company BYD Limited by current and former employees. Despite the successful conviction of four individuals involved, prosecutors dropped all charges against BYD in December 2008. About 400 top managers and engineers have left Foxconn for BYD, starting in 2003, as a constant threat of further infringements of intellectual property ("IP") rights. In response to the deepest global recession since the end of 2008, one of the strategies of the company Foxconn has increased investment in research and production of smartphones that support the high demand compared to traditional mobile phones. Because Foxconn factories located mainly in emerging markets with high risks of IP, the success of this strategy is threatened by inadequate protection of intellectual property. It is extremely important for the company to review its strategy in the field of IP management, not only to protect their research and development investments, but also to generate additional revenue for survival. It must also develop a strategy lawsuit against BYD. "Hide
on Yahong Li, Jiangyong Lu, Zhigang Tao, Shangjin Wei, Penelope Chan Source: University of Hong Kong, 28 pages. Publication Date: June 25, 2010. Prod. #: HKU906-PDF-ENG