Monday, January 4, 2010

Chinese counterfeiting thrives despite crackdowns

Chinese counterfeiting thrives despite crackdowns

While China has talked up its recent progress in stamping out copyright piracy, the market for fake iPhones and bootleg DVDs still flourishes, and its trading partners say it could do better.

Late last month, the United States -- consistently critical of Beijing's failure to stop the illicit production of US brands -- issued an annual report saying piracy in the Asian giant remained at "unacceptably high levels".

Analysts say despite official crackdowns and successful prosecutions, graft and weak policing means factories continue to churn out fake goods, costing foreign and domestic firms billions of dollars in lost revenue.

"Local protectionism and government corruption are the real issue," Daniel Chow, a professor at the Ohio State University College of Law, told AFP.

"The central government is probably sincere but enforcement occurs at the local level, and local governments have a direct and indirect interest in protecting counterfeiting, which is important to the local economy."

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