“Piracy in China is reducing year by year because the government is placing more attention on it and prices between the real and fake have narrowed,” said Qian Liyong, director of the E.U.-China Project on the protection of intellectual property rights, based in Beijing.
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Most experts agree that piracy in China is a long-term issue, but many say that conditions should improve as software makers cut prices, users become more educated and living standards rise.
“There are signs that law enforcement is picking up, and that should help things improve.”īusiness Software Alliance, a trade association created by the software industry, said the sector had lost more than $6.6 billion in China last year to piracy. “A lot of people are used to getting away with it for a long time,” said Steve Vickers, president of FTI-International Risk.
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Violation of intellectual property rights has been a sore spot in China’s relations with its major trading partners, even as it has cracked down on rampant piracy of everything from Gucci bags to software.Ī Chinese court jailed four people in August for spreading a bootleg version of Microsoft’s Windows XP, in what Xinhua, the official news agency, called the nation’s biggest software piracy bust. In a nod to such pressures, Microsoft cut the price of its Office 2007 Home and Student Edition to 199 yuan last year from 699 yuan.Īnd Microsoft will sell its low-end Windows 7 Home Basic version for 399 yuan, a modest price by Western standards but still 15 times as much as is charged for pirated copies. “If you’re trying to sell a program that costs 2,000 yuan to a student living on 400 yuan a month, that’s simply not going to work out for most consumers.”
“The big issue that is driving piracy in China today is price,” said Matthew Cheung, an analyst at the research firm Gartner. While that figure is falling, it is still double the global average and about four times the average in developed markets like the United States and Japan.
research firm IDC estimated that about 80 percent of software sold in China last year was pirated.
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