The Piracy of Ideas

This article, which appeared in the GAO Journal, No. 6, Summer 1989, discusses the piracy of intellectual property rights, such as copyrights, patents, and trademarks, through the unauthorized reproduction of the copyrighted materials. The piracy of intellectual property rights accounts for as much as $60 billion in world trade annually, and American firms may lose from $43 billion to $61 billion annually through foreign piracy. Piracy poses a threat to public health and safety, since defective copies of machine parts, agricultural chemicals, and health products have caused considerable harm. Recent legislation authorized the U.S. International Trade Commission to instruct the U.S. Customs Service to seize infringing goods, and promises to cut down on the importation of products that violate U.S. intellectual property rights. Using bilateral negotiations, the United States has had some success in encouraging foreign governments to strengthen their protection of intellectual property rights, but much remains to be done.