Law360, New York (January 04, 2010, 12:32 PM ET) -- The outsourcing of American advanced technology to foreign contract manufacturers — particularly in Asia — is politically controversial in the United States.

But the short-term economic benefits are undeniable: lower labor costs abroad, combined in Asia with manufacturing expertise and an impressive regional supply chain, are compelling.

Yet in transferring manufacturing operations abroad, U.S. companies often fail to take adequate steps to protect the valuable intellectual property embodied in specialized production processes.

In some cases, the nature of a proprietary production process does not lend itself...