IP Protection in Long Term Cooperation with a UK ISV

Project introduction

Industry: Aromatic Substance Manufacture Industry
Workload: 240 man months +
Work model: ODC (Offshore Development Center)

The client

AN U.K. ISV (Independent Software Vendor)

What does the client want?

The client needs to develop a web-based ERP product aiming at aromatic substance manufacture industry.

Features

1. Full life cycle development from initial planning to first version launching (no onshore developer);
2. The client and offshore team work together on requirement collection and confirmation;
3. The client and offshore team share all source code including most core modules;
4. IPR of this client is well protected by a series of IPR policies;

Challenge

As known to all, software piracy in China has been a major barrier for the development of software industry for a long time. Full cycle software development is more risky as the offshore team has all source code of the product.

How we face it

First of all, the company devotes itself to software outsource industry completely. Shinetech doesn't own any software product itself. For any new development, any kind of solution library isn't allowed in the company except open source information. In the cooperation process, the company values two kinds of relationship: ‘with the client' and ‘with the developer'.

With the client
As the company upholds the strategy of building long term partnership with all clients and pays very much attention on its reputation in the industry, win-win relationship becomes the only way out. Therefore, IPR issue matters life and death of the company. Any information release related to IPR, for example, latest news, case study and reference information, requests previous confirmation by the client. And so also do the information of the project and software product.

With the developer
No matter what, developer is the main subject of software development for the client which is also the key person for IP protection. In Shinetech, developers have built win-win relationship with the company, and a mutual reliability occurs naturally for both sides. In 2007, the staff turnover in Shinetech is 8.33%, which is much lower than the average in the industry.

Just driven by the 'win-win' principle, Shinetech developers know the importance of clients' IP protection and what it means to the company and to himself.

Shinetech positions itself a developer-centered company, we value our developer, and a self-grow atmosphere has been created for them by:

1. Our developers get the best offer in the software industry in China.
2. The company has the policy of staff's holding shares.
3. Career promotion roadmap for all team members.
4. Welfare increase plan. (including insurance package, dining compensation, comfort working environment, annual paid leave).
5. Training and education opportunity.

Specific measures of IPR protection:

• NDA
  The Non-Disclosure Agreement (NDA) is signed at the start of a business relationship.
• Employee Confidentiality Contract
  All team members sign applicable confidentiality contracts along with their employee agreement upon joining Shinetech. During two years development process, a few engineers leave this team and one of them leaves Shinetech. The contracts affirm that the team members comply with Shinetech IP Protection regulations.
• Database Security
  The team puts database into an isolated data server in a blocked shelf. Access to sensitive information is limited to a key person only. The database will not be used for any purpose other than development.
• Confidential Document Control (DC)
  All copies of client's confidential documents are regularly accounted for, and deleted when usage needs have expired. All such confidential documents are returned and disposed of by the client.
• Office Security
  The development team has a separate office with a security door with password access and only the relevant staffs are permitted to enter the office room. No one is allowed access to any hardware devices, except the network administrator. The security procedures and precautions are also enforced systematically after working hours.
• Personal Computer Security
  As each team member has his/her own computer with a startup password, therefore none, other than the network administrator, cannot access anyone else's computer.