NEPIRC Executive Director Speaks About Manufacturer Concerns at Department of Homeland Security Conference

Eric Joseph Esoda, Executive Director of NEPIRC, recently spoke about international intellectual property violations and the related risks to domestic manufacturers at a Department of Homeland Security conference within the Attorney General Office in Philadelphia, PA. Mr. Esoda’s presentation was part of an overall Supply Chain Security workshop sponsored by the Department of Homeland Security.

Mr. Esoda’s presentation highlighted several recent cases involving overseas manufacturer violation of U.S.-based manufacturer intellectual property rights and the resultant financial losses that occurred. His presentation highlighted that intellectual property risk is now among the most commonly cited reasons for U.S.-based manufacturer reshoring of patented components and sub-assemblies. “The risk that a company’s proprietary products, processes or trade secrets will be compromised by foreign contract manufacturers is very real, costing domestic companies over $300 billion in revenue in 2013 alone,” said Mr. Esoda. As a result, many companies are now reshoring their currently-outsourced supply chain inputs and creating domestic supplier-buyer relationships for parts they previously had produced overseas.

“Intellectual property risk is now cited more frequently as a reason for reshoring than total product cost, loss of customer responsiveness and communications or cultural differences,” he added.

Mr. Esoda’s presentation was given just days before the Federal Bureau of Investigation charged several Chinese officials with economic espionage and unauthorized use of proprietary manufacturing information within the nuclear, metals and solar power industries.

June 10, 2014