Management and Organisational Behaviour

Assessment two

Assessment 2

Management and Organisational Behaviour

Assessment two

Letter of transmittal
Dear Siemens,

Here is the final version of the report on Siemens trademark issue which was
commissioned by Dr. Theodora Issa
This report is analysis HiSense trademark issues from the leadership and Business
ethics; in order to let Siemens has better management and brand trust.

Thank you for giving me the opportunity to work on this report.

Regards,

Yun Zhao

Management and Organisational Behaviour

Assessment two

Executive Summary
This report is analysis HiSense trademark issues from the leadership and Business
ethics; in order to let Siemens has better management and brand trust. Siemens using
unethical business activities to prevent Chineses products into EC, Which charge
high transfer fees to return trademark back.
Siemens need ethical leadership and active leadership in their management to keep
their brand and credibility. The main recommendation is Siemens should pay more
attention to their decisions maker, especially in the management of people. Leaders
should play a good role model rather than unethical profit.

Table of Contents
Contents
Letter of transmittal........................................................................................... 1
Executive Summary.......................................................................................... 3
Table of Contents.............................................................................................. 4
1.0 Introduction................................................................................................ 1
2.0 Background................................................................................................ 1
3.0 Literature................................................................................................... 3

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4.0 Method...................................................................................................... 3
4.1 Qualitative approach..................................................................................3
4.2 Quantitative approach................................................................................4
5.0 Results...................................................................................................... 5
6.0 Analysis and discussion.................................................................................6
Solution A (Ethically):.................................................................................... 6
Solution B (Leadership):.................................................................................. 7
7.0 Conclusion................................................................................................. 8
8.0 Recommendation......................................................................................... 9
9.0 Reflection................................................................................................ 10
References list:............................................................................................... 12
Appendices................................................................................................... 14

Management and Organisational Behaviour

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1.0 Introduction
Siemens AG was founded in 1847; it is a global leader in the field of electrical and
electronic engineering companies. In order to prevent the well-known Chinese
products into the EU market, Siemens using the "game rules," the loopholes in the
foreign registered a number of well-known Chinese trademarks. At Siemens, this
"prevention strategy" is paying off when the "registered trademark" caused Chinese
Ministry of Commerce and the European Union's attention, Siemens brand image and
therefore greatly reduced. Hisense found its mark in Germany was Bosch - Siemens
AG registered by Bosch - Siemens trademarked terms HiSenSe and Hisense Hisense
trademarks vary only in the case of S early 21 st Century. Hisense products were
limited exports to Europe, so little effect. Bosch - Siemens Company is a joint venture
of Siemens worldwide. With the rapid growth in overseas markets, Hisense and
Hisense products into trademark issues becomes the biggest obstacle to the
international market. This report will analysis in registered trademark from the
unethical activities and not to be endorsed leadership, there are two solutions put
forward in the Analysis and Discussion. The report includes detail background of this
case and literature review. Therefore, this report will through the quantitative and
qualitative methods to find the results with analysis and discussions.

2.0 Background
In this case, Hisense had to take the initiative to contact with Siemens. In the
negotiations with Siemens, Hisense had hoped to spend money to buy back the
trademark, but the "price" transfer fee Siemens out of order Hisense unacceptable. In
desperation, Hisense again registered a new trademark Hisense in Germany. But
before long, the new logo was accused of belonging to a similar mark Siemens
aspects are excluded. Hisense trademark back in 1993 in the Chinese Trademark
Office has registered, has allowed registering in Asia, Africa, Eastern Europe,
Australasia, and nearly 40 countries. And he won the title of China's well-known
trademarks in 1999, shortly thereafter; Hisense found "Hisense" trademark registered
in Germany was Siemens.

Student Name: Yun Zhao

Student ID: 18153293

Management and Organisational Behaviour

Assessment two

The lighting company in Xiamen Donglin electrons have the same experiences and
Hisense. 2001, Donglin Electronics has been used in English "Firefly" trademark was
registered in Germany by Siemens subsidiary OSRAM. Xiamen Donglin Electronics
is a leading manufacturer of energy-saving lamps. Dong Lin Electronics from Poland
this year to promote their "Firefly" brand to Germany, unexpectedly found that the
brand has been registered by OSRAM. OSRAM is the first to register the Dong Lin
Electronics has not set foot in 18 European countries. Donglin electronic lighting
products cannot enter these countries.
According to reports, not only Hisense, Siemens Donglin electronic trademark was
registered, but also the trademark Hai Deshi, in the light of Qingdao Branch, on Haiao
Li Wei, Guangzhou-Star, Foshan Electrical and Lighting lamps and other five
enterprises have been registered by Siemens.
For trademark event, Siemens (China) has denied "cybersquatting" of the accused.
Siemens (China) point out: At present, Siemens put 'HiSense' trademark is mainly
used in the dishwasher, the major countries in the EU are sold. HiSense trademark
no for colour TV, air conditioning, etc., which Hisense trademark products have little
relevance, and there is no direct competition. But Hisense trademark was registered in
Germany is the fact that, "Hisense" as Hisense Group (including affiliated companies)
trademark, Hisense is also important intellectual property and no one can fake that.
Bosch - Siemens acts undoubtedly cybersquatting", HiSense will recapture the
trademark in anyway. After full consultation, Siemens and Hisense have reached on
trademark issues on March 10, 2005 settlement, Siemens withdrawal district court in
Cologne, Germany, Hisense trademark returned.

Student Name: Yun Zhao

Student ID: 18153293

Management and Organisational Behaviour

Assessment two

3.0 Literature
From the Literature (Appendices):
The trademark HiSense and Haixin held by HiSense group recognized as the
well-known trademarks by the State industry and Commerce Administration Bureau.
But Bosch & Siemens AG Company preemptively registered the trademark HiSense
in German.
Siemens AG registered in Germany, "HiSense" trademark when the mark and Hisense
"Hisense" trademark case distinctions only in the middle of the letter "S, but it was
limited Hisense products exports to Europe, so little affected. But, When Hisense
overseas sales growth gratifying, trademark issues makes Hisense products into the
German market severely disrupted.
In the negotiations with Siemens, Hisense has proposed to buy "HiSense" trademark,
but Siemens out of tens of millions of euros Hisense trademark transfer price cannot
be accepted, in fact, Siemens registered "HiSense" trademark, precisely in order to
prevent Hisense European market. After full consultation, Siemens and Hisense have
reached on trademark issues on 2005 settlement, then Siemens withdrawal district
court in Cologne Germany and make Hisense trademark returned.

4.0 Method
In this case, Siemens and Hisense Trademark War can analysis in qualitative

approach and quantitative approach.

4.1 Qualitative approach

Qualitative research is undertaken in naturalistic settings and is interpretive in nature,
with the collected information deriving mostly from interviews and observation
(Michelle, Horsfall and Hayter 2014, 711). Most of spectators in this War were
thought Siemens registered trademark of HiSense is not a good behaviour. A
trademark is not infringed by a domain name unless the trademark existed at the time
of domain name registration. This kind of cybersquatting is speculative and legitimate
(Kilian 2000, 4). In fact, this trademark was originally design by Hisense. Just

Student Name: Yun Zhao

Student ID: 18153293

Management and Organisational Behaviour

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because Hisense lack awareness of trademark protection, and Siemens is precisely

because of this, registered Hisense trademark in Germany. Although this is legitimate,
but this behavior has received condemned by society. A lot of people from on this
matter, for trust Siemens is greatly reduced. In dealing with this matter of peace talks,
Simon offers an astronomical transfer fee, which makes Hisense more unacceptable.
Then many companies leave a lot of public opinion to condemn Siemens. From a
qualitative approach, the registered trademark is a means to limit the development of
other businesses market and it can also be used to get more benefits (protect their own
products and large amount transfer fee) by this way, however it will lose trust of
customers from this way.

4.2 Quantitative approach

From the quantitative approach Kostoff (1994, 178) noted the quantitative approach
to gathering information focuses on describing a phenomenon across a larger number
of participants thereby providing the possibility of summarizing characteristics across
groups or relationships. From this case, although not a lot of data to support, but
suffered through more than a company registered by means of the Siemens trademark.
Which we know, more than once, Siemens registered trademarks of other companies,
but also repeated use Siemens registered trademark approach to profiteering,
including Dong Lin and other five companies, they are invariably involved in the
Siemens trademark of war. The companies have been greatly loss from their
international product cannot successfully enter the European market; it made loss of a
large number of customers. Because of this, European customers did not know the
product they are buying is belong to Siemens or other companies, because the
trademark and other company products are same. This is an unethical business
practices, and the leadership has the wrong leadership issues.

Student Name: Yun Zhao

Student ID: 18153293

Management and Organisational Behaviour

Assessment two

5.0 Results
The trademark "war" has made bad affected for Siemens brand image in China.
Siemens continues to heat up as the trademark dispute with Chinese companies,
Siemens is the world-renowned German companies in China will face unprecedented
"crisis of credibility."
In this development of society, the product's market has become increasingly fast.
Many businesses want to use better quality to retain existing customers and markets.
But the face of the market impact of foreign products, it will give the market some
effects. Like the price decline may reflect the reduction in the number and sales. If
company can prevent or reduce the impact of foreign products inside-home sales, that
will give the company products more benefits. So increasing fury and in totally
unpredictable ways. Some leaders are simply overwhelmed by what they face. Others
are stunned by fear and some are still unsure as to what to do (Doug 2014, 19).
Business leaders fail to act in an ethical manner, society will enact more laws
restricting further and further the enterprise system (Ostapski, Oliver and Gonzalez
1996, 572).
Meanwhile, when Siemens chasing the interests and market. The leaders forget the
business ethics and organization transformation. Organizational transformation is
likely to become even more important to organizations because of the breathtaking
changes foreseen in the business and political environment (Eisenbach 1999, 80).
Cybersquatting behaviours only have some of the characteristics of unfair
competition. Because although registered by others, it has hit the credibility of the
prior use of trademark acts constitute a breach of generally accepted principles of
business ethics and fair competition. Moreover it won the misconduct interests, but
this part does not constitute an unfair advantage prejudice the legitimate interests of
others, because the law others did not provide for the use of a trademark prior
entitlements protected by law. In addition, fraud or improper behaviour is not
registered as a trademark for the implementation of the principle of earlier
registration, if company do not apply for registration, people can apply for registration
of course, does not exclude competitors, and law does not require it to be illegal, so
determination cybersquatting case of lack of legal basis of unfair competition.
Student Name: Yun Zhao

Student ID: 18153293

Management and Organisational Behaviour

Assessment two

Merchant registered trademark of real value and meaning, is to distinguish between

different manufacturers of the same products, indicating the true origin of the product,
and sincerely tell consumers, which is required by the principle of good faith.
"HiSense" is not only a well-known trademark, Hisense, and Hisense's well-known
firms, whether pursuant to the Paris Convention and other international conventions
or according to German law, the right firm Hisense whether registered or not in the
country, should be protected, even if the get registered trademark has not been
revoked, we should remain firm Hisense rights are respected. So, if one day people
saw in the market, not only Hisense products, according to the manufacturer by the
name of the label indicate the provisions from the Chinese company Hisense, and
Hisense brand label products, but it is from the Siemens family - above marked as
Siemens, Hisense trademark below. As a result, European and German consumer
probably thought it was a marriage of Siemens and Hisense (like Bosch Siemens) or
brands. In fact, this is only because the cybersquatting cause confusion.

6.0 Analysis and discussion

Some companies or individuals registered trademarks, trademarks reselling smell the
opportunity, has spawned an industry interests chain, the first registered, then the
hype, and then redeem or coercion companies sold the company's competitors. On the
one hand they provide paid services to businesses recover trademark, on the other
hand secretly trademark resale speculation. This formed the industrial chain more so
trademark cybersquatting said benefits increased, a number of international
companies overseas trademark registration, they know trademark registered easily,
accountability difficult, and the economic interests of big risk is extremely low, so
wantonly become a trademark registered Some companies seek means of interest.
Whether this issue is to protect their products or market, the management and
decision-making have big problems. There are two solutions show below for Siemens:

Solution A (Ethically):
Siemens Cybersquatting behaviours have serious business ethical problems,
Understand ways to lead ethically: One of the most important steps to leading
ethically is to act ethical. Working for a boss who behaves unethically engenders little
to no respect from the managers direct reports. Further, employees may be tempted
Student Name: Yun Zhao

Student ID: 18153293

Management and Organisational Behaviour

Assessment two

to rationalize their own unethical conduct when they see their leaders acting
unethically (Mallor et al, 2010, 119).
Siemens leaders need to play an exemplary role in business, the staff or the subsidiary
will learn leadership decision-making, of cybersquatting policies became more and
more, which will make a serious decline in business ethics. Siemens is one of the big
listed companies, it have played a certain role in Europe and also has the impact of
electrical utilities in the world. If adverse business ethical issues affect the reputation
of Siemens image, this trademark cybersquatting will be very failure. Corporate social
responsibility is thus a conventional rule making it possible for stakeholders to
identify areas of mutual interest, to produce rules or norms together, and to increase
compliance (Farid and Isabelle 2013, 27).To do this we need to be cognizant of the
personal values and morality shaping our decision making, understand our
professional responsibilities and to use some sort of process to guide our thinking
(Kilderry 2013, 14).Therefore, the positive improvement of business ethics standards,
it is necessary for Siemens.

Solution B (Leadership):
Whatever the decision, all comes from the leader, therefore, the right leadership
direction and leadership is very important. If the Cybersquatting behaviours case,
transformational leaders can be obtained and attract institutional investors. Rather
than restrict other companies market management. In other words, Cybersquatting
behaviours is lawful, Companies that operate globally are being increasingly used to
act in a socially responsible manner (Jacqueline 2006, 13). Taking into account
socially responsible manner, Siemens should use better leadership, Transformational
leaders articulate an attractive future vision, infuse work with meaning, and inspire
followers (Bass 1985, 187). A high level of corporate social responsibility can bring
many benefits to the company, its shareholders, customers and employees, including
increased competitive advantage to attract institutional investors, as well as the
organization's reputation (Wu et al. 2014, 2). Leadership are making most decisions of
a strategic nature, but that the resulting decisions are a function of teams interacting
with teams (Waldron 2001, 81).

Student Name: Yun Zhao

Student ID: 18153293

Management and Organisational Behaviour

Assessment two

In order to make the decision-making better, leadership is not only to take into
account each decision can bring how much benefit to the company, but also needs to
take into account how much will the company's overall negative impact. CEO Ethical
Leadership is likely to lead to collective participation of employees of ethical conduct,
which creates a moral climate is shared ethical work practices and ideas (Shin. 2014,
301). Despite these fruitful findings, little attention has been devoted to the
relationship between CEO ethical leadership and corporate social responsibility,
broadly conceptualized as context-specific organizational actions and policies that
take into account stakeholders expectations and the triple bottom line of economic,
social, and environmental performance (Aguinis 2011, 855). Leadership can make
the decision and bring huge benefits, however, if a wrong decision making for the
company, the company may lose more than they have earn before.

7.0 Conclusion
Trademark cybersquatting there are three main ways: First peer through the registered
trademark, to seize the market. Second, the agency obtained the exclusive rights
through registered trademark, to obtain greater profits. The third is to obtain benefits
through the transfer of trademarks. Although many people thought Ethics is a
universal value (Schwartz 2005, 29). Good leadership have better ethics direction,
strategic leadership, organizational culture, corporate social responsibility and
corporate social responsibility moderators. There is no doubt that corporate social
responsibility is important to the capabilities, competitive advantage, and financial
performance of organizations (Aguinis and Glavas 2012, 942). Ethical leadership has
been found to result in various followers positive outcomes including voice
behaviour (Walumbwa and Schaubroeck 2009, 1277), Active leadership, good
management style and leadership for management can change and bring more
revenue. If company only want to generate revenue and abuse of business ethics
behavior, it would be opposed to more countries and businesses company. Therefore
Siemens should not only bring more revenue to company, but also need improve
product image in the world. At the end, Siemens used low prices to transfer back to
Hisense's trademark; however there is a serious decline in Siemens credibility,
especially in China.

Student Name: Yun Zhao

Student ID: 18153293

Management and Organisational Behaviour

Assessment two

8.0 Recommendation
From Siemens and Hisense trademark case, it is worth noting that the leadership
should not be used the unethical methods to make benefits for restrict competitors.
Although it is hard to say this behaviour is illegal, but it has created unfair
competition environment in facts. Firstly, Siemens should pay more attention to their
decisions maker, especially in the management of people. Leaders should play a good
role model rather than unethical profit. Siemens should consider more practical
factors and media opinion. Second, Siemens should be inspired in the trademark case,
the decision should be a more perfect to protect their goods, do not let own trademark
have same trouble. Finally, the importance of trademarks has been very clear, each
country has the right to protect the property in other countries whatever it is registered
or not.
Total word count: 2707

Student Name: Yun Zhao

Student ID: 18153293

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9.0 Reflection
Here is my first reflective paper which I have learnt from this assignment.
My assignment is analysis and research Siemens trademark case. In this case, I did a
lot of research on Siemens leadership management and ethical behaviour for Siemens.
Hisense trademark was registered definitely not only case in Germany. According to
statistics, at present, the Chinese mainland has been registered by more than 15% of
the enterprises to apply for trademark registration abroad. Numerous companies with
Hisense have a similar experience have also been kept in the dark. There are many
individuals or companies cybersquatting increasing. Trademark registered by them or
ask for a huge transfer fee trademark or trademark reselling, was registered to the
enterprise caused great losses. Even more serious is the trademark registered by a
number of companies and they have become anti-dumping in market. It makes market
development facing difficult opponent. In China, there are more and more enterprises
going abroad at that time which international trademark registration is imperative.
Cybersquatting trademark is not only for Siemens, it is become a common case in the
world, if the company lacks self-protection awareness of the brand; Cybersquatting
trademark will make trouble for the company. To deal with Cybersquatting trademark
will not only calls a lot of time and money, moreover it will delay sell products and
back to the markets.
Brands and Trademarks reputation are not from the well-known, but they are from
consumers real recognition. There are any violation of public order and morals
brands and trademarks, the emotional harm caused to society; it is bound to make a lot
of uncertain consumers to vote without their head. Trademark registrations really need
ethical blood for this society and play its responsibility.
I know the unregistered trademark not protected by law; it cannot effectively use
modern propaganda to compete with other competition. Since the trademark is used
by someone else, the law does not provide protection for the trademark, therefor,
others will be free to enjoy the market that has been hard to create it. The company's
market and economic benefits will compromise. If the company trademark registered

Student Name: Yun Zhao

Student ID: 18153293

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by others at first, if so the company cannot continue to use the trademark. However,
company continues to use and company violated the registered trademark rights of
others, so the company needs to have a comprehensive protection of trademarks.

Here are my some reflection advices. Whatever Siemens or Hisense, it use for all
managers and they should pay attention them. Firstly, to raise awareness of
intellectual property, to develop internationally registered trademark habit. Secondly,
we must regularly conduct defensive registrations, the use of "a commodity, a
trademark, and an application" approach, to prevent their legitimate rights have been
infringed. Finally, manager should strengthen the monitoring of overseas markets, pay
close attention to SAIC promulgated the "Trademark Notice", as has been found with
the same or similar trademarks to timely objection to the application to the State
Administration; manager can entrust a trademark agency market monitoring, in order
to detection of infringing information from overseas on time.
To sum up, nowadays, the Competition in the world is the competition of economic
strength, technological innovation competition, the talent competition and intellectual
property competition. Company in order to win the increasingly fierce international
competition initiative, it needs to build a strong brand and it is necessary to fully
understand the importance of intellectual property from a strategic. Planning and
using intellectual property strategies are necessary. In the case of normal ethical,
leader should the use resources as much as possible to help the company move on,
rather than using some loopholes in the law, for unethical competition to get benefits.
Total word count: 609

Student Name: Yun Zhao

Student ID: 18153293

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References list:
Aguinis, Herman, 2011. Organizational responsibility: Doing good and doing well. In
S. Zedeck Ed. Washington, DC: American Psychological Association.
Aguinis, Herman, Ante Glavas, 2012. What we know and dont know about
corporate social responsibility: A review and research agenda Journal of
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Bass, Bernard M., 1985. Leadership and performance beyond expectations. New
York, NY: Free Press.
Cleary, Michelle, Jan Horsfall, Mark Hayter, 2014 Qualitative research: Quality
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Eisenbach, Regina, 1999. Transformational leadership in the context of
organizational change. Journal of organizational change management. Vol. 12 (2)
pp. 80-88 PID: 51114232330001951
Farid, Baddache, Nicolai Isabelle, 2013. Follow the leader: how corporate social
responsibility influences strategy and practice in the business community, Journal of
Business Strategy, Vol. 34 (6) pp. 26 35 doi: 10.1108/JBS-01-2013-0002
Jacqueline Cramer, 2006. Corporate Social Responsibility and Globalisation: An
Action Plan for Business. Publisher: Sheffield: Greenleaf Publishing
Kilderry, Anna, 2013 Ethical leadership TLN Journal Vol.20 (2), p.14-15
ISSN: 1444-1284
Kostoff, Rn, 1994. Quantitative Technological forecasting and Social Chang. Vol
45 (2) pp.189-205 doi:10.1016/0040-1625(94)90093-0
Mallor, Jane, James A. Barnes, Thomas Bowers, Arien Langvardt, 2010. Business
law: The ethical, global, and e-commerce environment. 14 th ed. New York, NY:
McGraw Hill/Irwin.

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Monica, Kilian, 2000. Cybersquatting and trademark infringement Elaw Journal:

Murdoch University Electronic Journal of Law. Vol.7 (3) pp. 5 ISSN: 1321-8247
Ostapski, S. Andrew, John Oliver, Gaston T. Gonzalez, 1996. The legal and ethical
components of executive decision-making: A course for business managers Journal
of Business Ethics.Vol.15 (5), pp.571-579. ISSN: 0167-4544
Shin, Yuhyung, 2012. CEO Ethical Leadership, Ethical Climate, Climate Strength,
and Collective Organizational Citizenship Behaviour Journal of Business Ethics
Vol.108 (3), pp.299-312 doi: 10.1007/s10551-011-1091-7
Schwartz, Mark S., 2005. Universal moral values for corporate codes of ethics
Journal of Business Ethics. Vol.59 (2), pp.27-44 doi: 10.1007/s10551-005-3403-2
Wu, Long Z., Ho K. Kwan, Gang X. He, Frederick H. Yim, Randy K. Chiu, 2014.
CEO Ethical Leadership and Corporate Social Responsibility: A Moderated
Mediation Model Journal of Business Ethics, pp.1-13 DOI: 10.1007/s10551-0142108-9
Waldron, Darrylg, 2001, International Management: Creating a More Realistic
Global Planning Environment Journal of Teaching in International Business Vol.12
(1), p.79-92 doi: 10.1300/J066v12n01_05
Williamson, Doug, 2014. Transformational Leadership Leadership Excellence
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Appendices

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Student ID: 18153293

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Student Name: Yun Zhao

Student ID: 18153293