Microsoft’s Trouble in China

Question: Why do you think it is so difficult to reduce software piracy in China? What strategies might Microsoft adopt to try to limit piracy in China? Are there ways of selling software that might make it difficult for piracy to occur?

Answer: China is a huge potential market for Microsoft with a population of 1.273 billion. An integral part of Microsoft’s international strategy has been expansion into Mainland China which projected to become the third largest PC market in the world in 2001.

The most obvious and serious obstacle to Microsoft’s success in china hasbeen the rampant level of software used in China is pirated. Mostly used Microsoft products in china are illegal copies .Chinese government believed to be one of the worst offenders Microsoft’s lawyers complain that Beijing does not budget for software purchase, forcing its cash strapped bureaucracy to find cheap software solutions that means much of the government ends up using pirated software.

Chinese judicial authorities do not enforce their own laws. Microsofts pressed officials in chinas southern province to raid a manufacturer that was used by the Microsoft to authenticate its software manuals .The chinese authorities procecuted the manufacturer acknowledge that a copy right violation had occured Microsoft by little fined the pirate company which undettered by this victory .

It has been possible because of not having the protection of intellectual property right. Copy rights are the exclusively legal rights of authors. Thats why Microsofts continued in its attempts to use the legal system in china to limit copy right violations. Protecting intellectual property has also become increasingly problemetic, particularly if it can be rendered in a digital form and then copied and distributed at very low cost via pirated CDs or over the internet. Though intellectual property rights differ greatly from country to country.

In china has intringent intellectual property regulations on their books , the enforcement of these regulations has often been lax. Weak enforcement encourages the piracy of intellectual property .China has become the worst offenders in Asia.

In the later Chinese legal system started up for some actions claiming the engineers who actually admitted to using the pirated software were not employed by the Yadu group but by an affiliated firm.Price is another responses to reduce the piracy to compete the pirated versions. Yet another tractic adopted by the company has been to lobby the US government to pressure the Chinese authorities to start enforceing their own laws. As part of its lobbying effort Microsoft engaged in its ownversion of Gurrelila Warfare digging through transition paying locals to spy even posing as money ggrubbing businessmen to collect evidence of piracy which they have been passed on to US trade officials and had some leverage over China.

International business responses to violations of their intellectual property.They can lobby their government to push for international agreements to ensure that intellectual property rights are protected and laws are enforced. For the first time GATT to cover intellectual property rights known as Trade Related Aspects of Intellectual property rights (TRIPS)established a council of WTO to oversee enforcement of much stricter intellectual property regulations in 1995.In addition lobbying firms can file lawsuits on their own behalf.

The Chinese govt started to enforcing its intellectual property rights laws to crack on factories that is using pirated goods and to respects US trademarks including Microsofts and Chinese ministries to stop using pirated software. Finally national and economical securities , even military , lowers the piracy.

The promotion of Chinese Language Version of the Linux Operating System as an alternative to the Chinese Language version of 2000.It can build any security inti its computer systems will not have undetectable vulnerabilities which might make difficulty for occurring piracy. .