An analysis of piracy in China: the cause, reason and solution

China has long been criticized as a notorious haven for digital media pirates. Although the government claims enormous actions have been taken, western media still blame China for putting insufficient effort into deterring piracy. In any case, piracy is still the No.1 issue for any digital media companies in China that wish to make profit. According to the report from Business Software Alliance’s (BSA), the overall piracy rate is as high as nearly 90%, resulting in a $2.9 billion loss in 2007.1 However, it may be unfair for China to take all the blame because the statistics do not tell everything. Piracy is not always an evil that lowers the social welfare. Under some circumstances, piracy can have positive consequences for people an