A Study of The Negative Impact of Piracy on The Economy and Society at Large

Intellectual piracy that’s common in the streets of New York has originated itself in China. From electronics such as phones and laptops to luxury brand names such as Gucci and Dolce & Gabbana, intellectual piracy has become a serious problem within China, with its wings spreading to Chinatown in New York City. The video Intellectual Piracy in China discusses the high amount of piracy that derives from China; it goes into how fake things take over most of the market within China, and gives the specific example of fake Viagra within China which could result in deadly situations as the fake versions of the pill are being made with chemicals that could be dangerous for human use. The case Coping with Piracy in China touches on similar subjects as the video, and mainly focuses on counterfeit Apple products offered by China. According to the case article, there were at least five self-branded Apple stores within only one city of China (“Coping with Piracy in China”, n.d.) However, the case article emphasizes how the counterfeit market in China could be actually benefiting Apple as a company rather than otherwise. This paper will analyze what the video and the case study regarding intellectual piracy in China are focusing on by examining the content of the video and case study and explaining my opinion with the findings made, and the reasons as to why I agree with the video’s findings, while I disagree with the case study’s findings.

According to the case article, the self-branded Apple stores within China have some of the most heavily trafficked Apple stores in the world (“Coping with Piracy in China,” n.d.). Tourists in China can easily come across any of these self-branded stores and purchase knock off Apple products for themselves for only a small percentage of the actual cost of the actual product. Although hundreds of patent lawyers and investigators are after these self-branded items and the stores and people behind it, Apple has yet to comment on the whole situations, and the case study believes that rather than doing harm to the company, these self-made Apple brands are actually promoting the Apple brand for free, and is seen as beneficial for Apple (“Coping with Piracy in China,” n.d.). The self-branded Apple stores are providing a pathway for the actual Apple company to promote themselves to an enormous market, China’s market, at absolutely no cost to them.

Unfortunately, I don’t agree with the findings made within the conclusion of the case study. I find it controversial that the case study explicitly states how enormous the market for fake stuff within China are, but also gives off the implication that this is actually beneficial for Apple. Even though Apple’s brand is being promoted at no cost to them, their own products are not the ones being sold. Apple is already an international company that has one of the largest customer bases, and it doesn’t need the unnecessary promotion of a company copying their brand to have a beneficial outcome within their own company. Furthermore, the case study specifies this has benefits for the Apple company, but the Apple company itself speaks of how “more than $11 billion is lost to piracy every year” (“Piracy Prevention,” n.d.) In their website, Apple mostly focuses on software piracy, but nonetheless it goes on to show that they are negatively affected by piracy either way. Software piracy still falls under intellectual piracy, ideas are still being stolen and being profited off of. Thus, it’s misleading for the case study to imply that benefits of such an occurrence could take place. However, I do agree with one point that was made here. It’s weird that patent lawyers and investigators are unable to find these people faking brands when a tourist can easily walk within a street, and buy a knock off product right away. It seems that the global efforts for wiping intellectual piracy out of the way aren’t truly taking place.

The video, on the other hand, brings to light a much more realistic version of how piracy has an impact on the economy of United States as well as how it impacts specific companies that are being copied off of. Patent lawyers and intellectual piracy experts talk within the video and give their opinions, and they’re also shown to be shopping on the streets of New York, within Chinatown, where intellectual piracy is a substantial issue. Some of these experts talk about the gravity of these issues, and how it could be deadly in the long run. They give the hypothetical scenarios of one flying on a plane that has counterfeit parts, or having to drive a cart with fake parts (PBS NewsHour, 2014). The example the video mainly focused on was that of Viagra. Viagra is widely used within China, even for purposes it’s not meant to be used for; for example, Viagra is given to pandas within zoos in China to always keep them excited and energized. Due to the huge market of Viagra within China, there has been those who have even faked Viagra pills (PBS NewsHour, 2014). The creation of these Viagra pills includes the use of dangerous chemicals that shouldn’t be consumed by humans, and the pills are created overall in horrible conditions. It’s unethical and immoral that some people are determined strictly on making earnings in ways that put others’ lives at risk. The conclusion of the video emphasizes how no matter what intellectual piracy is illegal, frowned upon, and most importantly, negatively impacts businesses and individuals.

I completely agree with the video’s findings, and I understand their point more thoroughly through their clever examples. At the end of the day, behind each brand, each product, and each idea is a person that truly worked hard to create it, and put all their innovation and originality in it to create something that hasn’t been seen before. People who copy their ideas and sell it as if they are originals are literally stealing the hard work those people and companies have done. Most importantly, when it comes to counterfeit medicine and pills, like the trend of the counterfeit Viagra within China, people’s lives are at risk since unknown chemicals are being used, safety measures aren’t being taken, and overall the pill is being generated in unsanitary and harmful conditions. As can be seen, intellectual piracy is a problem that needs to be addressed not only in China, but also within United States as well. Although there are claims that intellectual piracy could benefit some, one needs to look at the consequences and realities that comes along with intellectual piracy to see that this is not the truth.