this is a case study and the instructions are:

1. Summarize the case about 2-3 pages, it should contain the background to the case, the principal actors or protagonist, the objectives of the case, decisions and actions, thus, what they have already done to the case, the results / outcomes, challenges or mistakes, that will lead you to what are the problems now?

2. What are the management issues or problems in the case

3. What are other issues contributing to the management problems.

4. Alternative solutions or course of actions or what could be done differently to resolve these management problems

5. lessons learnt

6. Conclusions

ABOVE PAY ATTENTION TO ALL THE DATA AND FIGURES IN THE CASE

rP os t HKU906 YAHONG LI JIANGYONG LU ZHIGANG TAO SHANG-JIN WEI yo FOXCONN V BYD (B): STRATEGIC APPROACH TO INTELLECTUAL PROPERTY MANAGEMENT IN EMERGING MARKETS We believe justice will eventually prevail. - Edmund Ding, spokesman for Foxconn International Holdings Limited1 No tC op Foxconn International Holdings Limited (\"Foxconn\") was the world's largest contract manufacturer of mobile phones. In May 2006, the company discovered a leakage of trade secrets to a competitor, BYD Company Limited (\"BYD\"), through current and former employees in China. Four individuals were successfully convicted. Foxconn pressed for criminal prosecution of BYD for trade secret theft based on supportive evidence seized by the court from BYD's premises. The case took a dramatic turn when prosecutors dropped all criminal charges against BYD in December 2008, and three investigative officials were arrested for taking bribes and for destroying and faking evidence. An employee of BYD was detained for taking a bribe from Foxconn-related companies and stealing BYD's trade secrets. Foxconn's management was mulling over an appropriate litigation strategy for this case. Meanwhile, a severe global recession starting in late 2008 had resulted in an 85% drop in Foxconn's net profit for the 2008 financial year. 2 One of Foxconn's strategies for the downturn was to increase investments in production and research and development (\"R&D\") of smartphones, as the market for smartphones was projected to grow by 8.9% in 2009 while the traditional phone market would shrink by 3.5%.3 However, the success of this strategy would be threatened by ineffective intellectual property (\"IP\") protection. From 2003 to 2008, BYD had recruited 400 senior managers and engineers from Foxconn, posing serious threats 1 2 3 Wu, D. (16 July 2008) \"Taiwan Manufacturer Wants Chinese Rights\