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Microsoft troubles in china


             3.) Why do you think it is so difficult to reduce software piracy in China? What strategies might Microsoft adopt to try to limit piracy in China? Are there ways of selling software that might make it difficult for piracy to occur?.
             It is difficult to reduce software piracy for several reasons. Microsoft has no control over laws surrounding the protection of intellectual property. They cannot enforce laws and the only leverage they held was pressure through US government to enforce laws or risk entrance into the WTO. Even when China acquiesced to US pressure, the US or Microsoft was just left to taking their word. Unfortunately for Microsoft, software piracy figures didn't really change. I believe another reason for the piracy is spawned from hate of the US. Why would they pay full price and purchase a licensed version of Microsoft Windows, when the money is going to a country that they dispise. The government feels this same resentment hence the reason they don't go out an enforce the makeshift laws created out of US pressure. .
             Microsoft has tried a couple things to reduce software piracy. One of which is to lower license fees to come more in line with that of pirated rates. In reality this didn't work because reduced prices to $100 still didn't compare to that of $5 - $20 pirated rates. A newer solution has Microsoft releasing its source code to Chinese government. Microsoft did this in a move to try to convince the Chinese government it should have fewer software security concerns. The strategy is also aimed at challenging the rising market share of Linux based software.
             A way to curtail piracy is one in which Microsoft already has. It is through registration codes to allow upgrades. With Windows XP, it is possible to pirate but calls for a major upgrade with a patch called SP1. You may download it but when you try to install it, it asks for a registration code. If your code is pirated, it won't work and you won't be able to install the critical update.


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