Microsoft, US Disagree on China Piracy
While Microsoft is confident that sales in China will increase as a result of a crackdown on piracy in 2007, the United States government is not. It filed complaints with the World Trade Organization on Tuesday.
Microsoft says sales during the year will increase some 20 percent in China, due to an overall decrease in piracy of its software. For example, 90 percent of Lenovo computers had pirated copies of Windows installed in 2006. This year, that percentage has decreased to 30 percent.
Other local manufacturers, like Founder, are pushing to eradicate pirated copies of the software from their assembly lines, which have trickled down to the Chinese divisions of other PC makers such as Hewlett Packard and Dell.
However, the United States government apparently is taking a different view when it comes to China's progress in combating piracy. It filed two complaints against the country Tuesday with the World Trade Organization.
U.S. Trade Representative Susan C. Schwab said that levels of piracy in China are still way too high, and said China's inadequate protection of intellectual property costs United States companies "billions" per year. Schwab added that talks have not resolved several concerns still held by the US.
"We will continue to welcome dialogue with China in an effort to resolve these issues," Schwab said in a statement. "Ultimately, it is in the best interest of all nations, including China, to protect intellectual property rights."
The government's action in the WTO goes beyond the realm of computer software, also including concerns about the sale of movies, videos and music. A second complaint targets what it calls unfair restrictions on the sale of U.S. goods within China.
Even with the hard line coming from Washington, Microsoft is singing a happy tune when it comes to the Chinese market. Vista sales are apparently brisk, and the launch of the new operating system has also buoyed PC sales within the region.
Another six software titles from Microsoft are set to debut in China this year, Microsoft's Chinese division said.