As Xmi (X-mini), a “high-quality mini speaker” is being sold at a much cheaper price by the Chinese, Ryan Lee, owner of the China-based company that produces Xmi, believes that the only way to fight these counterfeits is with rapid, unmatched innovation.
Most China-based manufacturing companies now have plants that have split up components among different suppliers so that no single company would have all the required parts to produce the products. This is what Lee is doing with is company too these days. And instead of ensuing a legal battle, Lee would rather invest more in developing better quality products. “I’d rather throw my money to the engineers, not to my lawyers”, says Lee.
As we have also seen counterfeit cars (Chery QQ for example) in Dunne’s book. US International Trade Commission states that American companies reported losses of about “$48.2 billion in 2009 in sales, royalties, or license fees” due to counterfeits solely in China. For more see the BBC article