Piracy

Piracy is always a hot topic with MNC's in China. Piracy is rampant in every area from automotive parts to designer clothes to oranges. This article tries to offer some suggestions for combating piracy, but the players are at the very top of the MNC ladder with tremendous amounts of cash to throw at the problem. In most cases, it is too early to measure success.

The author estimates that 86% of all software in China is pirated - probably an accurate figure. In response Microsoft has pushed hard on the government to both end the use of pirated Microsoft products in government offices (that would be a good start) and to change the way computers are sold (Microsoft products will be loaded onto the system prior to sale and the price of the computer reflects that).

But Microsoft has leverage. It has spent large sums of money on infrastructure in new development zones and has bought its way into the hearts and souls of government officials.

In a different approach, the movie industry has struck out against pirated DVDs by drastically dropping the prices of DVDs and attempting to beat the pirates to market. They are promising authorized products will hit the market within two weeks of release of the movie in theatres in the US. The movies will retail for 20 kuai (a little over US $2). Being a consumer of pirated DVDs, I think the marketing technique is likely to work.

In China, there are virtually no venues to acquire full price DVDs, and HBO only shows B movies from the 80's so pirated DVDs in almost every expat home. But I sound as if I am apologizing when I'm not.

The solutions have limited appeal for most companies. Few have the resources to pressure the Chinese government available to Microsoft and dropping your price 88.5% is generally not an attractive alternative.

Most Chinese don't understand the concept of intellectual property. If they can copy your product and get others to buy it, they don't see the issue. Unless it is their weird little whatevers they are using to promote the Olympics. Then they seem to get it.