Crime That Pays (and Pretty Well Too) International Business Enviroments and Operations

1111 Words5 Pages
* Notorious silk market in being. * 10 million people a year, 35000 sqm, 7 levels and 2000 small stalls. * Full with counterfeiting products from all national brand and from all types with a low and negotiable prices (clothes, cosmetics, electronics and software). * Customers from all over the world and from all nationalities. * The main subject is software piracy. * Classifying software pirates: 1. Individuals 2. Employee with a product license 3. Multinational crime syndicates * Each country deal with counterfeit in a different way: 1. USA: consider it as a federal crime, and may end up with 6 digits fine and jail), and you will be facing the consequences whether you know the law or not. 2. North Korea: they cut pirates broadband and connections block their websites. 3. China: 499 copy till it is considered as a crime, with a fine equivalent to a car ticket. * Counterfeiters prefer software pirating because: 1. There is many ways to do it (stealing licenses, cracking the software..etc) 2. The high internet speed 3. The developing technologies and techniques, which make their goal much easier. 4. The copy of the counterfeited software functions the same as the original one. 5. Many countries don’t consider software piracy as a crime. 6. The low costs of this counterfeit. * The above makes the counterfeiters the main threat for the biggest software companies. * The facts say that: * The number of PCs in USA equals the Number of PCs in China, but the total software sales in china is around 5% of the USA sales. * China population is around 1.34 billion people, but it brings less revenue than Netherlands, that has 17million people population. * Piracy rates increased from 38%

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