Term Paper on "Product Piracy Is a Huge Problem"

Term Paper 3 pages (1145 words) Sources: 1+

[EXCERPT] . . . .

Product piracy is a huge problem that governments and companies face and with the growing sophistication of the world is becoming harder and harder to control. One of the ways in which companies are most impacted by piracy is that it reduces their ability to fund their research and development projects. Piracy is more widespread than popularly believed. In fact, some estimates approximate 9% of the world's products to be counterfeit (Carratu International ) and this number may well be growing. Certain consumer products, such as athletic footwear and music / electronic department are especially susceptible to this trend. In 2000 alone, customs borders of U.S. seized $7.8 million dollars of pirated DVD's, videos, and music CDs ( Bernstein & Munro, 60 ). China boasted that they had once seized $33 billion dollars worth of pirated music disks and videos. This is only a slice of the problem.

Dealing with the problem is difficult and companies and government -- these are the one that are usually most effected -- have tried various strategies. The problem is that products are often easy to imitate. Counterfeiters save by not investing in the expense of research and development, safety testing, and other expenses that go into inventing and crating a product. More so, penalties for piracy are relatively light. In this way, counterfeiters have more to benefit than lose by piracy, and companies / or governments trying to prevent it often find themselves fighting a losing battle.

The best way to address this problem is to instantiate it with a famous company -- Pfizer - that experienced the problem, particularly in regards to one of its most innovative products, Viagra, and found ori
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ginal ways to deal with it. The following essay, therefore, is a treatment of Pfizer, its problems and solutions as well as an analysis of Pfizer's current situation. Recommendation will be derived from the case study.

Pfizer began as a small pharmaceutical company in Brooklyn in 1843. It was Pfizer's perfection of the fermentation process that enabled them to become the world's largest producer of penicillin by the 20th century. Later this was coupled with their strategic excellence in research and development, production, and sales as well as excellent sustainability programs that included social activism and philanthropic activities (Rodengen, 59-77 ). All of this positioned them as a world-renowned company.

By 2004 they were making almost $7 billion and expecting proceeds (Clark, 2003). This case history deals with company's Chinese branch where it operated factories in Dalian and Guangzhou as well as corporate offices in Beijing.

In 2001, Pfizer found that more than 88% of the Viagra bottles showcased on shelves, other than in hospitals, were pirated copies of their own invention. Aside from loss of profit to company, this poses other concerns notably concerns of consumer safety and health (World Health Organization, 8) since counterfeiters rarely go to the trouble and expense of making sure that their pharmaceutical imitation meet the requirements of policies such as the United States Food and Drug Administration. In this case, the Chinese produced counterfeit Viagra had also spread to other parts of the world such as Panama, Mexico, the United States, the Middle East, Russia and Southeast Asia .

Although China had tightened its counterfeiting laws as a result of their inclusion into the World Trade Organization (WTO) in 2001, piracy still occurs at magnanimous rates on local and regional levels. Bribes and extortion compound police… READ MORE

Quoted Instructions for "Product Piracy Is a Huge Problem" Assignment:

I have ordered before this same topic but A± need more to be added to this order because I ordered 800 words but A±t needed to be 1500 so if you could add it to the essay which already exists. ALSO at school we use a programme called turn it in which shows where the parts of the essay were taken from the internet and the recent ones I submitted were al referances and it said that they were used in other peoples term papers so if you could be careful A± would really appreciate. this is the essay you have already written. I need at least 600 more words to be added to this essay. thank you

Introduction

Product piracy is a term that relates to all illegal activities that involve imitating, copying, or counterfeiting of intellectual property. It is an act of theft. It may also include infringement and brand name misuse related to product development, manufacturers, retailers or use of product or services. This vice is normally considered illegal and punishable by the law owing to the fact that it violates the right of privacy. To eradicate this vice, a number of measures have been adopted by governments, individuals and multi-national organizations. According to the International Chamber of Commerce counterfeiting continues to be a rampant societal dilemma accounting to between 5-7% of world trade, it is estimated to be worth US $600billion annually (Wall Street, 2005).

Ways in which governments and companies can prevent piracy

One way of ensuring that products are not easily pirated is by using copy protection system. An example is the Serial Shield system which uses special code to defeat tracers, debuggers and monitors to prevent people analyzing unauthorized code instructions. It helps in protecting projects against cracking or code spying without permission. This system is also being initiated in music and software piracy by having them sold in forms which cannot be copied by another individual (Hamister and Braunscheidel, 2011, Cummings, 2010).

The government can also assist in the fighting against piracy by instituting and enforcing of tough legislation on various products. The government should have an independent body which investigates sources of pirated products and prosecute them in case they are caught. The same bodies should also be responsible for ensuring that no pirated goods are passed into the boarders of a country through any means possible. The government can also reduce piracy by having registered bodies to deal with the production and sales of certain products which can become societal threat if wrongly manufactured. For instance pharmaceuticals may contain incorrect ingredients / quantities or even wrong formula which may seriously cause harm or even kill consumers if not properly handled (Chaudhuri et al., 2006). In this case the government should ensure no counterfeit medicines and over-the-counter drugs are sold to consumers and should work with World Health Organization (WHO) to identify the best way possible, set standards accordingly to avoid Counterfeit Medical Products.

The government can also help to stop or even reduce piracy by creating a better business environment for most industries. Through creation of this better working environment by offering subsidies, tax exemptions, free importation of raw products and even other costs which might increase the selling price. This will in turn lead to low selling price of most goods hence encouraging people to rely more on the goods because it is genuine and affordable. Pirated goods will therefore have no room to trade because the market will be flooded by genuine goods which are widely used by the citizens (Wall Street, 2005).

In creating awareness i.e. using Anti-piracy, the government should increase education of public officials, customs and law enforcement officers to ensure products are not easily pirated while companies must take the lead in raising awareness, educating the public and decision makers on the harms and costs of product piracy. This kind of education helps to increase the effectiveness and discourage consumers from buying counterfeited and pirated products such as movies, music, softwares (Smith and Telang, 2009).

Free trade zones provide some of the entry points of pirated goods into a country. Government can reduce or even stop the entry of such counterfeit products through regulating the market and having few agents to trade on behalf of individual or medium companies which form the majority. By reducing the number of individual traders, the commodities***** genuineness can be certified easily hence reducing some of them passing unnoticed into the market.

Conclusion

Piracy is really killing most manufacturing companies since they can no longer compete with the production capacity of these pirated goods. These pirated goods are everyday penetrating the market hence affecting the market of genuinely produced goods. Many companies and service industries have found themselves closing their operations due to their inability to keep up with the high cost of production as compared to the low market for the goods (Pang, 2004). Therefore for these companies to sustain themselves in the market, they have to come up with various ways to prevent their products from being pirated with the aid of the government.

References

CHAUDHURI, S., GOLDBERG, P. K. & JIA, P. 2006. Estimating the Effects of Global Patent Protection in Pharmaceuticals: A Case Study of Quinolones in India. The American Economic Review, 96, 1477-1514.

CUMMINGS, A. S. 2010. From Monopoly to Intellectual Property: Music Piracy and the Remaking of American Copyright, 1909-1971. Journal of American History, 97, 659-681.

HAMISTER, J. & BRAUNSCHEIDEL, M. 2011. SOFTWARE PIRACY AND INTELLECTUAL PROPERTY RIGHTS PROTECTION. Allied Academies International Conference: Proceedings of the Academy of Information & Management Sciences (AIMS), 15, 1-4.

PANG, L. 2004. Piracy/Privacy: The Despair of Cinema and Collectivity in China. boundary 2, 31, 101-124.

SMITH, M. D. & TELANG, R. 2009. COMPETING WITH FREE: THE IMPACT OF MOVIE BROADCASTS ON DVD SALES AND INTERNET PIRACY. MIS Quarterly, 33, 321-338.

WALL STREET 2005. White House to Seek Tougher Antipiracy Law. Wall Street Journal - Eastern Edition, 246, B8.

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