Chinese entrepreneurs can struggle to protect inventions in a nation full of copycats
Uniphase, a Silicon Valley company that made lasers and optical fibres.was a high-flyer, with a market capitalisation fives times the value of Apple at that time. Investors loved the firm for its role in building out the infrastructure of the internet. But when boom turned to crash’s share price plunged by 99.8%. Employees whose stock options had made them paper millionaires lost it all overnight. “I got killed by the bubble,” says Mr Li. “I was too young, too naive.
Next time he saw a bubble, Mr Li was ready. It was 2004 and money had poured into the manufacture of light-emitting diode The design was a global hit. If you have recently used a cheap, portable projector that throws a surprisingly good image, it is likely to contain Mr Li’s design. He estimates that Appotronics is the only Chinese firm that holds a patent that has been cited as “prior art” more than 400 times, a sign that large numbers of companies are using the idea. Apple, the beacon of Silicon Valley innovation, has only a few dozen patents cited so often.
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