The Demand for Counterfeit Trade: Consumer Complicity
In this chapter, we propose a conceptual framework to better understand the various components that affect a consumer’s willingness to purchase counterfeit goods. We assert that consumer complicity to purchase counterfeit goods is a function of both intri
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The Economics of Counterfeit Trade Governments, Consumers, Pirates and Intellectual Property Rights
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The Economics of Counterfeit Trade
Peggy Chaudhry • Alan Zimmerman
The Economics of Counterfeit Trade Governments, Consumers, Pirates and Intellectual Property Rights
Dr. Peggy Chaudhry Villanova School of Business 2039 Bartley Hall 800 Lancaster Ave. Villanova, PA 19085 USA [email protected]
Dr. Alan Zimmerman College of Staten Island-CUNY 3N234 2800 Victory Blvd. Staten Island, NY 10314 USA [email protected]
ISBN: 978-3-540-77834-9 e-ISBN: 978-3-540-77835-6 DOI: 10.1007/978-3-540-77835-6 Library of Congress Control Number: 2008940287 © 2009 Springer-Verlag Berlin Heidelberg This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable for prosecution under the German Copyright Law. The use of registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: WMX Design GmbH, Heidelberg, Germany Printed on acid-free paper 9 8 7 6 5 4 3 2 1 0 springer.com
Preface
The expansion of world trade has brought with it an explosive growth in counterfeit merchandise. Estimates put the world total for counterfeit products at about one half trillion dollars annually, although it is impossible to accurately determine the true size of the counterfeit market. What is known is that this illicit trade has infected nearly every industry from pharmaceuticals to aircraft parts. Software and music piracy are easy targets widely reported in the media. In 2007, the Business Software Alliance (BSA) estimated that 38% of personal computer software installed worldwide was illegal and the losses to the software industry were $48 billion worldwide. The Recording Industry Association of America (RIAA) reported a 58% increase in the seizures of counterfeit CDs. Overall, a wide range of industries agree that there is a severe problem with the protection of intellectual property rights (IPR) throughout the world, yet there have been virtually no attempts to describe all aspects of the problem. This work aims to give the most complete description of various characteristics of the IPR environment in a global context. We believe a holistic understanding of the problem must include consumer complicity to purchase counterfeit products, tactics of the counterfeiters (pirates) as well as actions (or inaction) by home and host governments, and the role of international organiza
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