[baybal2]

> So this may well be a serious issue for some of Espressif's customers, who are mostly OEMs

I highly doubt that. From what I know, that feature was more of a nod to their customers from the West.

To most Chinese entrepreneurs, it makes no sense how your software being copied be an issue:

1. If you have a real specific reason why disclosure of your code be an end to your business, it will get hacked and copied anyways.

2. If you rely on that to stave away competition, you are already are in a such competitive market where this will make no difference, and your business will be cloned anyways.

3. You will get bad rep for that

[petra]

So how do Chinese Entrepreneurs maintain competitive advantage and profit ?

[baybal2]

Think a bit yourself. If you struck gold, you have zero chance not being cloned.

1. Do not strike gold — look for an easily entrechable position in niche market, like a lot of companies in US do

2. Economies of scale — works until your competitor bribes a banker for a giant loan

3. Be one step ahead — look at FAB business. In microelectronics fabrication, everybody copy each other, and you can't do anything about it, but somehow companies still maintain their positions

[petra]

You always have to be one step ahead. No competitive edge lasts forever.

But there's a big difference between being cloned in a month, and being cloned in a year.

Within a year, maybe you could build a brand, create v2, have some economies of scale in dealing with your suppliers(harder to bribe), create some internal expertise.

The last situation is somewhat similar to the fabless companies.

[userbinator]

By cloning and then improving.