Economic Analysis Of Piracy Phenomenon On Cultural Products

Chinese economic reforms, mainly in material production and financial areas, basically didn't involve in the field of cultural industries. However, in early 2006, the CPC Central Committee and State Council "to deepen cultural restructuring of a number of observations" clearly propose: prosperity and development of socialist advanced culture has total, strategic position and role. The cultural reform objectives are: to develop the theme of reform as the motive force, system, mechanism innovation, it has formed a scientific and effective macro-cultural management system, efficient services to the micro-cultural production and operation mechanism public ownership dominant and diverse ownership pattern of the common development of cultural industries and unified, open, competitive and orderly modern market system and culture; to form a perfect cultural innovation system, to form a national culture as the main body absorb useful culture, promote Chinese open to the world of culture and cultural patterns. In September 2009 the Cultural Industry Promotion Plan adopted by the State Council executive meeting proposes eight key areas for future work of our task: to develop major cultural industries, to implement major projects to lead, to cultivate key cultural enterprises, to speed up the cultural industry and base construction, to expand cultural consumption, to build a modern cultural market system, to develop new cultural Format, to expand cultural trade. January 1, 2010, Press and Publication Administration issued a "press and publishing industry on the development of further guidance," in which the development of books, newspapers, periodicals, and other traditional paper publishing industry, the development of digital publishing and other non-paper at strategic new publishing industry, the development of animation, game publishing industry, the development of printing, copying industry, the development of press and publication distribution, logistics industry are made as the press and publishing industry's key tasks. Closing the end of 2009, China has completed the restructuring of provincial publishing units from All public institutions into business units, will be completed in 2010 Press and Publication of central ministries subordinate units system, and integrates resource, forms a core group of competitive and comprehensive group of regional and industry-professional group. In three to five years, to focus on cultivating 6 or 7 assets exceeded 10 billion, sales exceeded 10 billion domestic first-class, internationally renowned business news publications, to create an internationally competitive multinational publishing media group.Cultural industries are facing one of the biggest obstacles to piracy. Low price of pirated goods make genuine goods in the market without any advantage. Cultural production companies can not get return, compensation from the market, and be on the verge of bankruptcy. Since2001, our annual collection of law enforcement agencies at all levels of piracy of books, audio and video products nearly hundred million volumes (disks), but our anti-piracy situation is still severe, the sale of pirated cultural products is still rampant in some cities. Some stalls selling pirated books, audio and video products open up on streets. In 2007, the United States had problems of copyright enforcement in China to the WTO against China. Therefore, the piracy issue is the development of cultural industry one of the problems be solved first. Otherwise, national policies can not get good effect, early investment can not be recovered. Especially in the networked digital era, the piracy problem will be more serious, protection of genuine goods will be more difficult. This paper is divided into five parts. The first part is of the relationship between culture industry and piracy. It defines the cultural industries, explains the cultural products of the composition and production process, introduces the piracy and it's harm and that the existence of piracy and copying technology-related, replication technology makes piracy a reality and into a large-scale production. Finally, copyright protection is in two ways: technical protection and system protection. The main means of technical protection of cultural products are the encryption technology, by physical means to limit piracy. The system of protection is mainly through administrative and judicial organs of copyright laws, administrative regulations, judicial interpretations of cultural products to provide administrative, legal protection.The second part is about economic analysis of piracy phenomenon on cultural industries. Through the relation of indifference curve and budget line of genuine and pirated goods, it illustrates the selection of consumer facing genuine and pirated goods. It uses the Representative Consumer Model to illustrate the reasons that copyright needs protect the consumer. By the relation of opportunity cost between expected income, it obtains the minimum probability of effective punishment.The third part introduces the international anti-piracy, and important conventions and agreements - "Protection of Literary and Artistic Works of the Berne Convention," "Universal Copyright Convention," "Agreement on Trade-Related Intellectual Property Rights" and the World Intellectual Property Organization (WIPO).The fourth part is about the copyright protection situation of U.S. An overview of the history of U.S. copyright protection is first introduced. The part introduces internal organs of the United States (U.S. State Copyright Bureau), foreign copyright protection authorities (the President of the United States Trade Representative Office , U.S. International Trade Commission , the Customs Department), U.S. copyright protection of the law enforcement system and the U.S. non-governmental anti-piracy force.Part five describes the situation of Chinese anti-piracy. It introduces the legislative history of copyright protection and the existing copyright law, rules, regulations and judicial interpretation. The system of Chinese protection provides the administrative protection and judicial protection for copyright. Administrative law enforcement agencies are copyright administrative organs, and copyright-related cultural market administration law enforcement agencies. Judicial organs are the police, prosecutors and courts. It introduces the importment coordinating body–"SHDF"Working Group Office. This section states: weak law enforcement, mandatory relatively short administrative enforcement, problems of the joint of administrative protection between judicial protection and the relatively few judicial initiative are the main reason for the lack of long-term mechanism in Chinese combating piracy. This part proposes recommendations to improve Chinese anti-piracy: increasing law enforcement manpower, material and financial resources to invest in law enforcement practice, the main judicial protection, improving and enhancing the identification of piracy, combating piracy on the transport channel and supporting the development of anti-piracy efforts of folk.