Question

Discuss some of the economic costs associated with the piracy and counterfeiting of intellectual property rights. Explore the basic issue in light of the following types of legal systems: common law, civil law, and theocratic law. Is any one system better than the others for effectively dealing with the problem? Why or why not? After reading your essay, the reader should better understand the legal issues facing international companies. Write minimum 350 words for this question.

Answer 1

Some of the economic costs associated with the piracy and counterfeiting of intellectual property rights are:

* It deters the companies from investing huge funds in R&D of new and innovative products and services.

* It leads to consumers consuming low quality and ineffective products due to their lower price.

* It leads to lower trust in the law system.

* It deters the large firms to enter poor/developing countries and expand their base.

Enforcement and protection of IPRs is a time consuming and expensive system in different systems of law.

Under common law, the court proceedings refreed by judge and the arguments placed by certified lawyers decide on the case filed for infringement of these rights. Where the fees of lawyers is very high and the court proceedings are based on facts and evidences which can be manipulated by either party. Also, the advice given by the lawyers is the most important to both the parties. , and it can change the decision either ways. Also, the proceedings depend on the arguments made by lawyers, therefore parties prefer good lawyers, who might charge higher prices. The court proceedings go on for a number of dates, and thus takes a lot of time in final decision.

Under civil law, the court proceedings are done by judges, who place the arguments and the decision is taken on the basis of pre-defined civil codes( which are the precedents recorded and published, used as basis for decisions for future cases). In this law also, lawyers are compulsorily hired but they do not hold importance in the court of law. Only their advice matters to the parties filing the case.

Under the theocratic law, the court proceedings are governed by the religious officials and the decision is made on the basis the religious texts.

Both the common law and and civil law are better in dealing with the problem. but both involve expensive as well as lengthy process  without having the surety of favourable decision. Therefore, international companies face a lot of problems due to different system of law in different countries.