ERNST & YOUNG--- In contemplating doing business in China, companies tend to gravitate one of three approaches to intellectual property risk. Some avoid the country altogether out of concern about counterfeiting, the black market or product diversion. Others view the advantages of the labor pool and the consumer market to outweigh these concerns, which are viewed as the price of doing business and nothing is done to counter them. Still others deal with adverse events in the country with a very defensive approach, reacting to each event as it occurs and scrambling to keep up.
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