About a year and a half ago, I wrote about a $12 “Gongkai” cell phone(pictured above) that I stumbled across in the markets of Shenzhen, China. My most striking impression was that Chinese entrepreneurs had relatively unfettered access to cutting-edge technology, enabling start-ups to innovate while bootstrapping. Meanwhile, Western entrepreneurs often find themselves trapped in a spiderweb of IP frameworks, spending more money on lawyers than on tooling. Further investigation taught me that the Chinese have a parallel system of traditions and ethics around sharing IP, which lead me to coin the term “gongkai”. This is deliberately not the Chinese word for “Open Source”, because that word (kaiyuan) refers to openness in a Western-style IP framework, which this not. Gongkai is more a reference to the fact that copyrighted documents, sometimes labeled “confidential” and “proprietary”, are made known to the public and shared overtly, but not necessarily according to the letter of the law. However, this copying isn’t a one-way flow of value, as it would be in the case of copied movies or music. Rather, these documents are the knowledge base needed to build a phone using the copyright owner’s chips, and as such, this sharing of documents helps to promote the sales of their chips. There is ultimately, if you will, a quid-pro-quo between the copyright holders and the copiers.