Editor,

I am writing in response to your IPR (intellectual property rights) protection story on October 27.

Without a profit motive, who will invest in new development of movies, software, music and medicine?

The lack of IPR protection in China is a much greater concern because of the lack of innovation from Chinese companies. Forget Hollywood, or the price of a movie ticket. The problem is that there are no alternative choices since Chinese companies cannot compete with an illegal copy of a well-produced Western product sold for 8 yuan (US$1).

Some company one day will replace Microsoft, but it will never be a Chinese company. Why? Because there is no way for any company in China to produce a better alternative product and make a profit from it. They simply cannot generate any income to compete in a global market.

The argument from many of my business students that "Well, Microsoft is rich, America is a monopoly, so it's OK to steal from them" misses the main point. People who buy bootlegged products create a "no win" environment for the next great Chinese company. If a Chinese company invests millions in R&D to develop a better, cheaper product than the Western alternative, it will be stolen too. Their competition is not an original version of Windows that is over-priced for the Chinese market at 1,500 yuan (US$185), but an illegal copy that sells at 8 yuan! How can any company compete with that? You can't... unless you are competing against the 1,500 yuan version.

The answer is that the government must end this piracy issue now. Not only to protect the Western companies profits and technologies, but to provide an environment where Chinese companies have the financial incentive to invest in new technologies and can expect to be rewarded with profits. Only then will the next great software, movie or drug company have a Chinese name.

Salami, via e-mail

Editor,

It is true that property rights should be respected and protected, intellectual or otherwise, but surely Ravi has made a very good point. How many in the West would have to spend three days' wages to watch a movie? The cost dynamics of the West should not be imported wholesale into developing countries. Is it mankind for economy or economy for mankind?

If there is a global democracy, where the rich and poor each has one vote, surely the current global resource allocation cannot continue. Stealing IP is wrong, but over charging people with much lower incomes is equally, if not more, wrong.

Wang Tianfa, via e-ma

(China Daily 11/18/2005 page4)