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The Economics of counterfeit trade: governments, consumers, pirates and intellectual property rights

Author: Chaudhry, Peggy ; Zimmerman, AlanPublisher: Springer, 2009.Language: EnglishDescription: 194 p. : Graphs/Ill./Photos.ISBN: 9783540778349Type of document: BookBibliography/Index: Includes bibliographical references and index
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Item type Current location Collection Call number Status Date due Barcode Item holds
Book Europe Campus
Main Collection
Print HC2000 .I6 C43 2009
(Browse shelf)
001248012
Available 001248012
Total holds: 0

Includes bibliographical references and index

Digitized

The Economics of Counterfeit Trade Governments, Consumers, Pirates and Intellectual Property Rights Contents 1 Introduction...................................................................................................... 1 1.1 Overview.................................................................................................... 1 1.2 Definitions................................................................................................. 2 1.3 Roadmap of the Book................................................................................ 3 2 The Global Growth of Counterfeit Trade........................................................ 7 2.1 Introduction.................................................................................................. 7 2.2 History of Counterfeiting............................................................................. 7 2.3 Measuring the Counterfeit Market.............................................................. 9 2.4 The Growth of the Counterfeit Goods Market........................................... 11 2.5 Effects on the US....................................................................................... 13 2.6 Products Counterfeited.............................................................................. 15 2.7 Large and Small Firms Affected................................................................ 17 2.8 Reasons for the Growth of Counterfeit Goods.......................................... 19 2.8.1 Low Cost High Technology = Low Investment, High Profits.................................................................................. 19 2.8.2 Globalization and Lower Trade Barriers................................................ 20 2.8.3 Consumer Complicity .................................................................... 21 2.8.4 Expansion of Channels and Markets...................................................... 22 2.8.5 Powerful Worldwide Brands.................................................................. 24 2.8.6 Weak International and National Enforcement...................................... 24 2.8.7 High Tariffs and Taxes........................................................................... 25 2.9 Conclusions................................................................................................ 25 3 The Supply of Counterfeit Trade: The Problem Countries......................... 27 3.1 Introduction................................................................................................ 27 3.2 The Leading Sources of Counterfeit Goods.............................................. 27 3.2.1 US Customs Seizures............................................................................... 29 3.3 Specific Countries...................................................................................... 31 3.3.1 Russia ................................................................................................... 31 3.3.2 Argentina......................................................................................... 34 3.3.3 Chile................................................................................................. 34 3.3.4 Egypt................................................................................................ 35 3.3.5 India................................................................................................. 35 3.3.6 Israel................................................................................................ 36 3.3.7 Lebanon .......................................................................................... 37 3.3.8 Thailand........................................................................................... 37 3.3.9 Turkey.............................................................................................. 38 3.3.10 Ukraine.......................................................................................... 38 3.3.11 Venezuela...................................................................................... 39 3.3.12 Paraguay........................................................................................ 39 3.3.13 Mexico........................................................................................... 40 3.3.14 Brazil............................................................................................. 41 3.4 Notorious Markets....................................................................................... 42 3.5 Extra-Country.............................................................................................. 43 3.6 Conclusions................................................................................................. 44 4 Modeling the Intellectual Property Rights Environment............................. 45 4.1 Introduction................................................................................................. 45 4.2 Proposed Framework.................................................................................. 45 4.2.1 Level of Consumer Complicity....................................................... 46 4.2.2 Level of Pirate Activity................................................................... 47 4.2.3 Level of Host Country Enforcement............................................... 48 4.2.4 IPR Actions Targeted at Consumers, Distribution Channels, Host Governments, International Organizations and Pirates...................................... 49 4.2.5 The Model........................................................................................ 50 4.3 The Research Study..................................................................................... 51 4.4 Assessment of Managerial Perceptions...................................................... 4.4.1 Examining the Role of Consumer Complicity................................ 4.4.2 Evaluating the Effect of Indigenous Pirate Activity ...................... 4.4.3 Judging the Influence of Host Country IPR Enforcement.............. 4.5 Managerial Insights Regarding the IPR Environment: Key Findings............................................................................................. 59 4.6 Conclusions................................................................................................. 61 5 The Demand for Counterfeit Trade: Consumer Complicity........................ 63 5.1 Introduction................................................................................................ 63 5.2 Measuring the Demand for Counterfeit Goods......................................... 64 5.3 Conceptual Model of Consumer Complicity to Purchase Fake Goods........................................................................... 66 5.4 Marketing Variables that Influence Consumer Complicity....................... 67 5.4.1 Demographics of Consumers.......................................................... 67 5.4.2 Attitude Towards Counterfeiting..................................................... 69 52 52 55 56 5.4.3 Cultural Values............................................................................... 70 5.4.4 Ethical Perspective..........................................................................70 5.4.5 Product Attributes........................................................................... 70 5.4.6 Shopping Experience...................................................................... 71 5.4.7 Social Marketing Communications................................................. 72 5.5 Conclusions................................................................................................. 74 6 The Use of Anti-piracy Marketing Techniques to Educate the Consumer............................................................................... 75 6.1 Introduction................................................................................................. 75 6.2 Overview of Social Marketing Concepts.................................................... 75 6.2.1 Public Agenda................................................................................. 76 6.2.2 Media Agenda................................................................................. 78 6.2.3 Policy Agenda................................................................................. 78 6.3 Setting an Agenda to Change the Public Judgment of Counterfeit Trade................................................................................. 78 6.4 Anti-Counterfeiting Advertisements.......................................................... 80 6.4.1 Previous Advertisements................................................................ 81 6.4.2 Role Models.................................................................................... 82 6.4.3 Peer Pressure................................................................................... 84 6.4.4 Education ........................................................................................ 84 6.4.5 Fear.................................................................................................. 85 6.4.6 Quality of the Product..................................................................... 86 6.4.7 Negative Association with Suppliers.............................................. 88 6.4.8 Rewards Through Whistle Blowing................................................ 89 6.4.9 Blog Rebuttals to Advertisements.................................................. 90 6.5 Conclusions................................................................................................. 92 7 Changing Trade Policy: The EU and US Bolster Protection of Intellectual Property Rights...................................................................... 93 7.1 Introduction................................................................................................. 93 7.2 US IPR Enforcement Initiatives................................................................. 93 7.2.1 Strategy Targeting Organized Piracy.............................................. 95 7.3 European Commission Taxation and Customs Union................................ 96 7.4 IPR Enforcement Initiatives in the European Union.................................. 97 7.4.1 Retaliation: Understanding the New Enforcement Directive in the EU to Pursue Counterfeiters............................... 98 7.4.2 Seeking Retribution: The European Commission Develops Action Plan to Deter Pirates......................................... 100 7.4.3 EU­US Action Strategy for the Enforcement of Intellectual Property Rights..................................................... 101 7.4.4 Operation Infrastructure.................................................................. 102 7.4.5 EU Third-Country IPR Enforcement Strategy................................ 103 7.5 Conclusions................................................................................................. 104 8 Government and Industry Led Operations to Curb Counterfeit Trade.......................................................................... 107 8.1 8.2 Introduction....................................................................................... 107 Multilateral Organizations that Govern IPR..................................... 107 8.2.1 World Trade Organization: TRIPS........................................... 108 8.2.2 World Intellectual Property Organization................................. 109 8.2.3 Organization for Economic Cooperation and Development................................................................. 110 8.2.4 The International Criminal Police Organization....................... 111 Industry Associations that Govern IPR............................................. 112 8.3.1 International AntiCounterfeiting Coalition............................... 112 8.3.2 Business Software Alliance ..................................................... 113 8.3.3 Software Information Industry Association.............................. 115 8.3.4 Motion Picture Association of America................................... 115 8.3.5 Recording Industry Association of America............................. 117 8.3.6 International Federation of Phonographic Industry.................. 119 Conclusions....................................................................................... 120 8.3 8.4 9 The Special Case of China............................................................................... 121 9.1 Introduction............................................................................................. 121 9.2 The Growth of the Chinese Economy..................................................... 122 9.3 Estimating the Size of the Chinese Counterfeit Market.......................... 124 9.4 History of Intellectual Property in China................................................ 126 9.5 IPR Enforcement..................................................................................... 9.6 Recent Events.......................................................................................... 9.7 Information Sources................................................................................ 9.8 Conclusions............................................................................................. 129 133 134 135 10 Internet Piracy: The Virtual Marketplace for Counterfeit Goods........................................................................................ 137 10.1 Introduction........................................................................................... 137 10.2 The Growth of Counterfeits in the Virtual Marketplace....................... 137 10.3 Ethical Perceptions of Internet Piracy................................................... 140 10.4 Pirates on the Virtual Sea...................................................................... 141 10.4.1 The Warez Scene.................................................................... 142 10.4.2 Internet Sites .......................................................................... 143 10.5 US Government-Led Sting Operations to Curb Internet Piracy .......... 145 10.5.1 Operation Buccaneer............................................................... 145 10.5.2 Operation Digital Gridlock..................................................... 146 10.5.3 Operation Higher Education/Operation Fastlink ................... 146 10.5.4 Operation Site Down............................................................... 147 10.6 Enforcement Issues Related to Electronic Piracy................................. 147 10.6.1 Digital Millennium Copyright Act.......................................... 148 10.6.2 No Electronic Theft Act (1997).............................................. 149 10.6.3 College Opportunity and Affordability Act of 2007.............. 150 10.7 Conclusions........................................................................................... 152 11 Managerial Counterattack: Traditional and Novel Anti-counterfeiting Strategies.................................................. 153 111 Introduction............................................................................................ 153 11.2 Firms Must Act to Protect Their IP Rights............................................ 153 11.3 Suggestions from Researchers and Authors.......................................... 154 11.3.1 Using Technology................................................................... 155 11.3.2 Developing a Plan................................................................... 156 11.3.3 Summarizing the Existing Literature...................................... 157 11.4 Effectiveness of Recommended Actions .............................................. 157 11.4.1 Frequency of Actions Used..................................................... 157 11.4.2 Effectiveness of Actions ........................................................ 159 11.5 Organizing to Fight Counterfeit Product............................................... 160 11.6 Recommended Action Program............................................................ 162 11.7 Conclusions........................................................................................... 165 12 The Future: Will the Piracy Paradox Persist?............................................ 167 12.1 Introduction........................................................................................... 12.2 The Growth of Counterfeit Trade.......................................................... 12.3 Source Countries................................................................................... 12.4 The IPR Environment............................................................................ 12.5 Consumer Complicity ........................................................................... 12.6 Anti-Piracy Marketing Techniques....................................................... 12.7 Actions by the EU and US Governments.............................................. 12.8 Government and Industry Led Operations............................................ 12.9 China...................................................................................................... 12.10 The Internet......................................................................................... 12.11 Management Actions........................................................................... 12.12 Future Research .................................................................................. 12.13 The Outlook......................................................................................... 167 167 168 169 169 170 170 171 171 172 172 173 175 References............................................................................................................ 177 Index..................................................................................................................... 189

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