Ch 20: From Pirates to Profits

Walk down any chinese city and you'll see "discounted" versions of almost any movie and software you can think of. You'll also find a shortage of movie theators. Why go to the movies when you can see the same show at home for a tiny fraction of the price? Before I came to China I had always heard about how xy company was losing millions and millions to the pirates in China. And the solution has mostly centered around tighter laws and more severe punishments. That will not work in the present and history has shown that it has not in the past.

I think its only logical that in order for Chinese Intellectual Property laws to be respected there has to be Chinese IP to protect. Sounds simple right? Why would you protect the farmers milk if only he owned all the cows? Hollywood studios should invest in creating blockbusters with Chinese film makers and let the Chinese film makers have a larger share of the production benefits. Once everyone has skin in the game the whole pie for both Movie Theators and legit DVD/Blue Ray will explode- I absolutely garantee this.

Software companies fall into the same paradym. Invest in China beyond just cheap IT "fill in" work. Create real and valualable IP that can be used in both the Chinese and foreign markets. Share in the benefits and you will see your IP theft problems gradually decrease. IP laws are logical for modern day society but it's best to be practical and appeal to people on a more realistic level. This isn't a China thing, it's a human thing.