Turbomeca chairman and CEO Pierre Fabre knows that for his company to grow and prosper, it is not only necessary to sell engines to helicopter manufacturers that deliver all over the world but also to allow engines to be built in countries like China. But it is naïve to think, Fabre said, that there is no risk of losing control of intellectual property when engines are manufactured by non-Turbomeca-owned entities. On the other hand, he said, there is a French saying. “Fear doesn’t protect from danger.”
“There is risk,” Fabre admitted. “Of course, we try to protect what we have. And the best [plan] is to continue to invest in research and technology to make sure that what we have protected and that is copied is going to be obsolete.” Huge technical progress is made every year in the industry. “By continuing to invest, we have the best protection,” said Fabre. “We spend 10 percent of sales on research and technology. We do that because we are convinced that the world needs more efficient aircraft.” But this R&D also limits the consequences of lack of property control.
