in the West is an idea that I can have a
company that produces nothing it has a
ton of patents but produces money by
soon Aaron for writes those patents do
you have inventors you have lawyers
making money off of buying intellectual
property of trading it that's weird
right it's kind of weird that you
produce nothing but make a lot of money
the idea that you can take an idea in a
world that's this big and say exactly
one person owns the right to it globally
like Apple has the right to the phone
with rounded rectangles they're the only
people who can produce that really like
seriously this is the way we're going to
live in like we just give people
monopolies through the IP system for 20
years for stupid ideas because they were
first-to-file that made sense back in
the day when there were fewer people
less innovators the less connected world
now we have like this network of people
we're like we're empowered to do our
things and we can almost trade our
creativity and China's ecosystem is this
network ecosystem of an idea for an idea
like let's let's trade now you realize
your place in ecosystems I need other
people around me you can't be a dick to
like all the other guys around you just
because you have a monopoly of this
thing someday you're going to be on the
bottom side of the chain and you're
going to need other people's help and so
you build networks of collaborations
with people by sharing in this open
source philosophy
oh yeah we have all first copycat let's
say it's a fan
so yeah reverse engineer from the video
we've seen the plan of the 3d models you
can download all the hardware companies
that come in here of course we encourage
them to pass on all of their technology
but we don't expect them to fight
anybody who's copying them we expect
them to be moving much faster than
anybody who's copying them and coming up
with the next thing the whole time and
building a brand and then eventually
those patents make it used when they get
into a patent trade-off that's the use
of a patents not not not to stop people
copying you the way to stop people
copying is to make whatever they're
copying irrelevant because you've come
up with something much better a huge
barrier I think to small companies the
United States is like the patent system
in the copyrights and just like left and
right as legal challenges and you spend
a huge portion of your money on lawyers
and IP filings and all that sort of
stuff it's a drag it really is if you
want to be making stuff you want to be
actually working with people and sharing
ideas openly and getting things going hi
I'm Shane
I like to mend things this one's called
a solo
control speed back even this isn't my
native dimension SCADA hovertrax yeah
the Hobart story is very interesting
example of somebody in America who came
up with the intellectual property and
then spent a long time fighting
manufacturers who were actually creating
something which was similar that's a
great example of a case where I would
have encouraged somebody not to start
like fighting around IP protection it's
better just to build a brand around a
really great product make sure you've
got you know the leading product in the
area this is really the first time we
have a technology product which become
widely popular which become a culture
icon fight we don't have a name for it
it just emerged more people come in the
Bob wait we get the Bobby Regan
eventually you will get to a form which
will go viral this is kind of point to
the future of how things could happen
so in Horsham Bay you still find Sandra
there are basic effects there are
reproductions of established brands give
you an example because this is a
contemporary sort of Shanghai SmartWatch
running on an Android system the
reproductions were really the items that
were sought after by people who could
not afford the the real thing
my understanding is that the early Shan
Zhai were people who worked for the
bigger corporations here like Nokia
Motorolla Foxconn and they were some
very smart engineers who got sick of the
management and I like look I can build a
phone cheaper better faster than these
guys can I understand why they have all
this process I can make it for half the
price if we just cut cut the fat and
they would quit talk to their friends
who they knew all this upstream
suppliers and they would get the other
parts and they would build you know what
were effectively you know copycat phones
the key innovations are able to do it
much much lower cost just you know
learning how to walk before they could
run essentially the most similar things
to the ideas of Santa in the West it's
the idea of Robin Hood they try to
empower the poor with the latest
advancement in technology since I and
the maker movement startups they are
frightened like they are very much share
the same spirit even the DNI from
becoming a they feel powerful
when they talk about people who left the
factories and copied a phone well that
was kind of like the open source stuff
that was an open source they just sort
of like oh the schematics are in the
desk I will community help myself to
them make a photocopy and then leave the
factory with it right you know was that
stealing or was it open source right in
in the West it's called theft right out
here it's called sharing so the device
is that there's a hall from the market
and you can see it has a number of
markings on it this one was the the
higher grade version it was 70 80 bucks
u.s. when you power it on you see that
it's running a a very well skin flavor
of Android iconography is actually
pretty good and then the great thing is
this one supports two SIM cards
replaceable memory card and a
replaceable battery when it comes with
two batteries which is actually a
feature that many local people really
want to have there they're unhappy about
a having no memory card slot and B
having not a replaceable battery the
companies were able to access very
easily the two basic components that you
need to make a phone one is the boom ban
which is basically a printed circuit
board and the other one is the Gumo
which is basically the shell so there
were companies specialising in making
boom bang and boom all that had slots
for those printed circuit boards that
were very easily accessible by the
companies you know people from the West
who are used to sort of month-long
development cycles like how do I do this
is amazing like this capability came out
of nowhere overnight but actually it's
been honed over like a decade or two out
of those roots of people you know coming
out of the big factories and figuring
this all out themselves
Shandra the example that is still going
on now but it is a very small percentage
of what is produced in the market there
is a very strong emerging middle class
in China that has the purchase power to
afford the original items that may be
more expensive than the reproductions it
is not possible to target new markets
just with imitating the established
brands there is a limit to what can be
achieved in that sense once they kind of
got in a position where they could now
build a copy of a phone pretty well
they can now start innovating they'll
take like an Android phone an iPhone and
mash them together and come up with this
weird thing that is pretty cool and is
different in some way you know if you go
in in the market in question but you
will find there many people distributing
this type of advertisements for a
company that are called white brand
companies that will make it for you
assembling very different components and
then you can add your your own brand
your own name or whatever you want and
distribute it as your own item yeah
these are these are all white label
ideas it's an empty sample and all of
these are different empty samples so
they can go ahead and build it for you
on the spot and then order I don't
however many you want and later on you
can actually ask them to go ahead and
put your graphic on the front beyond for
example or
maybe you know these logos over here in
the West kind of philosophy is are we
come up with something really
fantastically new that nobody's done
before become the market leader and
we're really successful with it the
Chinese mentality is slightly different
they look at something that's already on
the market and then they create a much
better version of it much quicker it's
not copying its evolution of products
which becomes much better than what was
out there before we've grabbed another
one in the market there looks like a
Smart Watch but you'll notice that I
only has a single button and the
graphics are made for children so this
is a phone plus GPS module that you can
use to sort of report a kid's location
if the kid is in trouble they can dial
their parents you can see it has like
SOS call features I would bet that
probably 80 to 90% of the design
material in here is borrowed from other
vendors who use these previously and
other SmartWatch designs but people are
sharing the IEP the guy who probably
shared the IEP to them was someone who
could sell them chips or motherboards of
circuit boards and so there was some
factory backing up and sharing crosses
they want people to use these things and
that lets these guys try try try like
this what many models of this in fact
when we're buying this as a woman next
to us was asking for these and then left
on the table we said this one's too
thick let's go find one this that's
that's thinner than this one over here
they'll probably have less features or
less battery life or whatever it is but
the market here can build these
different variants and service it
because of the phenomenal ecosystem
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something is really happening companies
are realizing the importance of having
new ideas and being different so many
companies who were involved in the
Shanghai before are now looking at
design they are now looking at how to
develop innovation in their own
companies the model that has been
developed in Shenzhen can actually be
quite frightening in other parts of the
world and it's not surprising that many
American companies are now looking at
models that are developed in China to
see how they can adjust themselves well
Suzy a woman Jacinda she to the
toecutter HCMC immersive Komatsu to the
ingenuity
who can tell you what time T the to TT a
different man
super intelligent ah who sits into me
moon shall sigh body
we like a suit I'm naughty
[Music]
the OPM will show you in charge honking
so far shorty eat actually iggle piggle
chun-sam we're trying on the OEM OPM
Romeo from Yoshino so sooner you got
ramen attention
Santini and Jonathan and renewed
equipment in open man did not just one
room your OPM to don't I am oh
about for either so those are son of a
product that we make electronic stuff
this is President Obama wearing my
headphone with my business partner
mitchrichman those people's been here
you know a car what I hear that Justin's
picture my partner Venus Brown this
year's SAR by lavina's Brown what I am I
forgot who signs us there's somebody
famous I forgot
[Music]
this is my office and that's something I
can't live without is my cigar like I
can't do without my cigar sorry I
just cause we are not your traditional
like a manufacturer right which is you
know give me a product and manufacture
we manufacture stuff like a monster and
all that a Harman Kardon creative Altec
Lansing JBL all the biggest industry we
actually dominate anywhere between 8 to
12 percent of the US market
I'm an audio side but what we're doing
so different is we we have our own
design house we're able to create some
really cool incredible product so here's
like design house some inspiration about
what we can do we have like some
instruments 3d printing rapid
prototyping this team is designing some
characters in 3d this is a game it's
interactive learning in China a lot of
factories are very traditional so this
is also very new model the CEO he tried
to drag this model and since since 2005
they are producing now for 45 brands
mostly international and mostly in u.s.
come on sit down the would you light all
away like Arlene Selenia you get
requested yeah sure Salem Econolodge of
a ladder you get to appease young in
second of Kings young lee nayeon with a
eager young dr. kathy entirety power
through the ancient torture not dumping
down in suicides from public servant and
a woman three decades on both say thank
you madam a distinction you know most
people don't realize that there's at
least twenty six percent of a technology
from Silicon Valley actually converse in
jail so what they do is they hire kind
of like a headhunter so to speak because
there's so much innovation we are about
minimum of a month to a year advance
kinds of technology for example we have
a this incredible bed you can sleep on
there and the moment you wake up in the
morning you'll give you stats how many
time you roll over how much Steve how
much rest you have and then also can
read your blood pressure if you gotta
tell you you have any problems we
identify and this is technology existing
registered a and we've done this almost
two years ago no matter what the way
life is routine how we can get earlier
should be a tissue should be a
submissive and nightly that humans think
yet how how would you own the TC ego
correction teasing the ego when do the
TTP he won't make me get me are trying
evil we say like 25% of innovation
creating engines then are by by the
American say buy it go to us and then
they sell it here 100 time more
expensive China feel little bit bored I
think about this business model we made
it here but all the credit is uh for
some stuff somebody else in only no
hundred Quincy
Jian Yu wen hua ji partial Shido gr she
sang shil she doe in oviedo you thank
him Kofa he don't yell his name his
ding-dong everybody is looking for the
Chinese thought up made in China
I want the proof to show to the world
like look we innovate we have a lot of
opportunity here
I think all focus should be let's create
a quality product and you could be proud
say this is made in China
so if you can just focus on that new
technology to focus on a brandy and to
focus on apology and I think within the
next five years people have different
perspective of made in China
I think that will happen to me the
reason why the city has embraced this
notion new technology is trying to
reinvent himself my concern is that
industry invention it wants to very
quickly rid of its past you definitely
see like a gentrification happening and
I can't say who's for better for worse
after the consensus again father
yeah but citizen Santa will be an area
that occurs here we got to create this
innovation and this you know the startup
world I never been seen before
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[Laughter]
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