IP infringement losses up to $4bn annually

IP infringement losses up to $4bn annually

Innovation is at risk as the semiconductor equipment and materials suppliers face serious challenges

Friday, May 02, 2008

Nearly 60 percent of the companies surveyed have taken legal action against IP violations. However, only 48 percent of them were satisfied with the outcome, citing legal processes that were slow, expensive, and unpredictable. Companies were also concerned about costs and variability in the outcome of litigation.

Over 60 percent of the companies surveyed have experienced adverse economic impact caused by IP violations -- due to loss of sales and market shares -- with estimated lost revenues ranging from one percent to 2.5 percent of the total annual sales of the industry. In aggregate, the total magnitude of economic impact due to IP violations on the industry including lost sales, market share losses, loss of sales due to pricing pressure and loss of market valuation is in the range of US$2-4 billion per year.

To address IP concerns, the white paper provides a set of recommendations to SEMI that focus on expanding public policy efforts, working with governments for global IP protection, driving customer dialogue, working with SEMI member companies to promote a global culture of respect for the industry IP assets, as well as providing IP management education to its members.

©CIOL Bureau

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