Does pirated software/movies help poor country economy?
Answer:
In the short-run, yes. But in the long-run this may be very costly. Piracy is theft. A poor nation by aloowing piracy encourages theft and corruption. The social values get degraded. Soon, piracy takes place within the country from one citizen to another. That is why u see many poor countries with corruption high among common citizens. Dependence of piracy also retards application of minds to innovate indegeneously. There will be always some piracy everywhere, but where a nation practices piracy, it shows that that nation will ever remain a laggard.
In the short run - it MIGHT help a country with a low per capita income in that products are available to the public at low cost.
However, in the long run, it may be harmful to the country for a number of reasons -
1) The pirated products are usually of poorer quality and may not perform to the standards expected of that product. This may not be as crucial in terms of a video of Star Wars, but for products such as business software, medicines, industrial parts, motor vehicle parts, it could be very detrimental in terms of economic losses and even public safety.
2) Typically after sales service and support will not be available for pirated or counterfeit goods, and this hurts the consumer in countries with a high proportion of pirated goods.
3) Countries with high levels of counterfeiting and poor intellectual property (IP) protection suffer a poor international reputation and may discourage certain types of foreign investment which can be helpful to economic development.
4) Ultimately, poor IP protection in a country will hurt local entrepeneurs and product innovation if they cannot get their IP protected. This is what happened in Taiwan, which used to be notorious for pirating copyrighted products - the government got tough on IP enforcement because they wanted to encourage their local entrepeneurs and inventors, and it worked. We are seeing improvement in intellectual property enforcement in China because it is critical to the success of companies such as Lenovo, Ha'er and Huawei in growing their business.
it helps keep the price down in the world price of movies. The movie companies tell you that it increase the price but it does not. It forces the companies to compete with more suppliers.
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