Counterfeiting Goods in China
China's counterfeit goods range from electronics to liquor; counterfeit goods have the brand but not the quality. According to a recent article from ABC News, "Chinese counterfeiting now costs foreign firms an estimated $20 billion a year in lost profits." It is quite apparent that the absence of copyright laws spurns from the communistic form of government and the view that what is perceived to be good is what is good for the majority rather than protecting individual rights. Are there ways to protect the brand without instituting copyright laws? Are there any societal benefits to counterfeit goods? Do counterfeit goods provide benefits to the customer? Practically speaking one would respond that yes there are benefits to the consumer as this must be the reason that the counterfeit goods are purchased. As one analyzes the situation it is difficult to pin-point the benefit or benefits. The following are a list of negative effects consumers face from purchasing counterfeit goods: non-durable, poor quality goods, risk of exposure to toxic or contaminated materials, broken goods, goods that contain materials which are harmful to the environment or have caused harm to animals, deceptive advertising, and more. Buyers face a huge risk since they do not fully know what they are buying. Are there positive effects for the consumer?