AFR report, page-34

In case people had not realised, our IP consists largely of patents that spells out to the whole world how to make Phoslock and how to use it. In principle the product is relatively simple to make - mix, stir, and scoop up the goop that settles out, so Phoslock's trade secrets will probably not be that significant beyond the basic idea. Patents do this so that the whole world can be fully informed as to what is protected, and what IP must be respected as being proprietary, so that the author and developer of the technology has exclusive rights to use that process to make that product for a set period. The value in the patent is in its being upheld in its jurisdiction and in its being backed up by the full force of commercial law in all places that jurisdiction is respected. Strictly speaking no business can then copy or pass off a product that is the same or similar to the patented product, or they can be penalised by all countries that subscribe to the patent laws. And while unscrupulous players, including countries, may turn a blind eye occasionally there will - and must - be a price to pay by those who defy those laws. The trade war between China and US is all about this and about breaches of those laws. But make no mistake, international business, and even national business, cannot be conducted indefinitely or comfortably without respecting those laws. Those that don't comply will earn a reputation for being scumbags that others will take note of, unless they are also scumbags, and trade restraints, penalties, and embargoes etc will follow. China has developed a bit of a reputation for not adequately respecting patents by other nation's industries. That reputation is why many on here are scathing in their attitudes to China and Chinese business practices. This is precisely the reputational tarnish I am referring to. But China does not want that reputation, and will eventually do everything it can to lose it. That reputation costs it money - and face - and trust. If it wants to play the role as a world power then it has to act like one, even when it costs. Even if it may not have perfect role models to emulate! That is why I suggest that the CCP will not allow a very public incident like PET being screwed over and left out of pocket when it has done its best to co-operate with Chinese government agencies and to assist the country in its politically announced aspirations to clean up its shitty environment following poorly executed industrialisation moves over the previous decades. The world will take notice how our little incident unfolds from here, and will decide where it puts its money.