Pirated CDs, DVDs and software cost United States music, movie and software businesses at least $3 billion a year. In May 2011, China was listed for the seventh year by the U.S. Trade Representative’s office as a country with one of the worst records for preventing copyright theft.
The United States has repeatedly urged China to strengthen its protection of copyrights and patents and crackdown on piracy and counterfeiting. Often when the news about the trade imbalance with China is announced Washington threatens China with tariffs and WTO reports unless it does more t tackle the piracy issue The most serious crackdowns by the Chinese on piracy seem to take place on the eve of meetings between Chinese and American leaders.
China was on the 2005 U.S. piracy list along with 13 other nations. Hollywood studios have sent representatives to China to put pressure on authorities to crack down more on counterfeiting and run public service campaign to educate consumers.
Microsoft has 75-person anti-piracy team that devotes much of it attention to China. In November 2007, it made a deal with China’s second largest computer company, Founder Technology, to pre-install Microsoft’s Windows as part of its effort to combat piracy.
Three-D technology is being offered as a means of thwarting piracy in the film business. Film makers in the United States are trying to get Chinese to buy their DVDs on the grounds that the quality is better than pirated versions, which sometimes end before the movie is even over, and selling them at places like Wal-Mart, Carrefour and the Chinese bookstore chain Xinhua.
Piracy is especially sensitive at a time when Washington and other Western governments are trying to create jobs by boosting exports. In 2009, the World Trade Organization upheld a U.S. complaint ago that Beijing was violating its trade commitments by failing to root out the problem.
Rampant copying also has hampered Beijing's efforts to attract technology industries because businesspeople say companies are reluctant to do high-level research in China or bring in advanced designs for fear of theft. China’s commerce minister said that enforcement of piracy laws is necessary for China to develop its own creative industries.
