AN ANCIENT PROFESSION. PIRACY & PHANTOM SHIPS DEFINITIONS MARITIME CRIME PIRACY.
M2 Reports In Piracy
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MEMO TO HQ FROM M2 TO: HQ 4670 FROM: M2 REF: Registration of brand “CSUEB Pioneers” t-shirts in Outer Slavobia URGENT! You sent me to open up the market here for CSUEB t-shirts but I have been informed by our newly-appointed distributor here that we do not have any brand name protection here. Worse yet, our contact here has told me, “Beware, piracy abounds!” What should we do?
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Transcript of M2 Reports In Piracy
MEMO TO HQ FROM M2
TO: HQ 4670FROM: M2REF: Registration of brand “CSUEB Pioneers”
t-shirts in Outer SlavobiaURGENT! You sent me to open up the market
here for CSUEB t-shirts but I have been informed by our newly-appointed distributor here that we do not have any brand name protection here. Worse yet, our contact here has told me, “Beware, piracy abounds!” What should we do?
BEWARE! PIRATES! Piracy and counterfeiting are serious problems in
International Business. Piracy is the unlawful usage or theft of intellectual property; counterfeiting is generally considered the unlawful reproduction of goods or intellectual property. In both cases, it is without the permission of the owner.
Losses to business run in the billions. This problem affects a wide range of products and
industries, especially intellectual property, such as:
Software Films Products and Product designs/formulas Brand names
SOFTWARE PIRACYSandy Boulton, Director of Piracy Prevention at Autodesk (one of largest software and digital content companies in the world):“The damaging effects of piracy on our customers, developers, the economy, and employment rates are enormous.”
SOURCE: TRENDS IN SOFTWARE PIRACY 1994-2002 BSA (Business Software Alliance)
SOFTWARE PIRACYSOURCE: TRENDS IN SOFTWARE PIRACY 1994-2002 BSA
SOFTWARE PIRACYSOURCE: TRENDS IN SOFTWARE PIRACY BY REGION - 2003
Figure 2.2: Regional Piracy Rates for Software
0 20 40 60 80
North America
Western Europe
Middle East and Africa
Latin America
Asia Pacific
Eastern Europe
Percentage of Software that is Pirated
P 57
SOFTWARE PIRACYSOURCE: TRENDS IN SOFTWARE PIRACY 1994-2002 BSA
FILM PIRACY According to the Motion Picture
Association of America (MPAA), the U.S. Motion Picture Industry lost $18.2 billion in 2005 to piracy.
Film piracy includes Premature release of “people’s heads” movies Illegal duplication Signal and broadcast theft Internet Piracy Parallel imports
PRODUCT PIRACY: FAKES Product ImitationExample: fake CD’s Product Formula piracyExample: medicines with no active
ingredients Product design/style piracyExample: watches
PRODUCT KNOCK-OFFS Hermes bags: Sell for $6,000 and
have a trademark strap across the front
Similar jelly bags marketed at $98
Source: Wall Street Journal Friday, April 9, 2004 B-1
PRODUCT PIRACY: FAKES
Business Week, “Fakes!” February 7, 2005
BRAND PIRACY
Use or registration of brand name first before actual owner/developer.
Example: McDonald’s “Golden Arches” Imitation of brand names.Example: Bausch & Lomb’s Ray Ban
sunglasses become “Ran Bans.” Use of highly similar logo design
BRAND PIRACY
“It looks like our cup {and} it looks like our logo.” – Spokesperson for Starbuck’s
BRAND PIRACY
Starbucks Mexican style……CAFETOMAS!
STRATEGIES TO MANAGE PIRACY
SECURE LEGAL PROTECTION PRIOR TO MARKET ENTRY
HANDS-OFF STRATEGY GO TO ARBITRATION SEEK LEGAL PROSECUTION WITHDRAW FROM MARKET EDUCATE CONSUMERS ORGANIZE INDUSTRY GROUPS
STRATEGIES TO MANAGE PIRACY
LOBBY GOVERNMENTS TO PUSH FOR INTERNATIONAL AGREEMENTS EMPHASIZING ENFORCEMENT
DEVELOP PRODUCT FREATURES WHICH DISCOURAGE OR THWART PIRACY
OFFER INCENTIVES AND TRAINING TO COUNTRIES WHO COMPLY
TRACK FLOW OF LEGITIMATE PRODUCTS
IMPORTANT NOTE Even with WTO’s TRIPS, (Trade
Related Aspects of Intellectual Property Rights), enforcement is difficult.
Not all legal systems protect intellectual property to the same degree.
Loopholes and shortcomings exist.
