Friday, August 03, 2007 Impact of piracy on local industries By Clint Fabiosa & Andrew Ong I protect
HEAVY losses on several levels, both tangible and intangible, are suffered by countries in which counterfeiting and piracy take place, with little or no focused government efforts to prevent such activities.
For example, manufacturers of legitimate goods will establish their facilities in other countries which enforce intellectual property rights. This would result in loss of foreign income, which ultimately affects a country’s balance of payments.
The cycle continues in ways that hurt a country’s long-term prospects. Local creators and inventors are discouraged by the risk that their products will be illegally copied and sold, denying them a return on investment and restricting future growth as well as dampening the very spirit and energy that are an integral part of the creativity process. That spirit, so important to a country’s well-being, is notable when it thrives.
A good example are the “silicon valleys” of California in the United States of America and Bangalore, India.
