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Quote: If not they'll have no one but themselves to blame when savvy businessmen in countries like China or Russia end up meeting consumer demand after it becomes impossible for local companies to do so.
Um..what? China and Russia are COMMUNIST countries. You're comparing them to the West. Why? Business over on these shores is light years different than the mindset of your typical Chinese Red.
I'm not comparing the countries at all. And while both are totalitarian it's inaccurate to call either Communist, even if the Chinese government still makes that claim.
All you have to do is look at the large number of Russian MP3 sites to understand what I'm talking about. They sell music legally under Russian law. The labels don't like the pricing, but they're powerless to do anything about it. As a result those sites are popular and profitable. All the posturing in the world by the EU, US, or labels hasn't changed that. Western companies can't compete with this business model. The only exception to this currently is iTunes and they're trading off the Apple and iPod names rather than their business model.
In China it's a slightly different story. They're mostly concerned with patents because of their manufacturing sector. Even though they're technically required to pay the DVD patent royalties mandated by Western law and Western companies, guess what? They don't. When the massive influx of Chinese DVD players hit the West and drove prices down a few years ago it was in no small part because they weren't paying the patent royalties at all. Later the Chinese government negotiated a settlement on their behalf which requires them to pay some of those royalties for previous units sold and start paying royalties on new units. But they still don't pay as much as a Japanese, European, or US company would.
Its in those countries' best interest to ignore or at least dance around Western IP law because they get little or no benefit from it. China in particular can't be forced into 100% compliance because they control so much of the world's manufacturing capacity. The people who pay the biggest price aren't the companies holding the IP. It's the Western companies that can't compete because they're hamstrung by IP laws which are completely one-sided and written with only the IP holders' interests in mind.
This message has been edited since posting. Last time this message was edited on 3 February 2009 13:57
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