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TABLE OF CONTENTS EXECUTIVE SUMMARY iii IINTRODUCTION 1 Background Statement of Problem Purpose of Report Scope IIINTELLECTUAL PROPERTY RIGHTS 2 Intellectual Property Rights in America Intellectual Property Rights in China IIIPRODUCTION OF PATENTED INTELLECTUAL PROPERTY 3 What is Being Produced Dangers Associated with the Production of Fraudulent Goods IVECONOMICS 4 Effects of Fake and Pirated Goods on the Economy Correcting the Fraudulent Goods Market VCONCLUSION 6 Defying Economic Principles REFERENCES 7 ii EXECUTIVE SUMMARY This report was created for The purpose of it is to describe the growing problem with piracy and patented intellectual property rights and how they are being disregarded in China This paper will explain the effects of producing fraudulent goods on the local Chinese government and on the world market China has recently been admitted into the World Trade Organization and this has put pressure on them to reform their black market and start enforcing stricter penalties for individuals who choose to create fraudulent goods Intellectual property rights are protected under federal law they include copyrighted products ideas and inventions In America they are strictly adhered to and most Americans are similar with what they are and how they work In China they are loosely enforced and are not taken with the same amount of seriousness as the US Part of the reason for that is the ideas that have been embedded in the Chinese due to communism and the lack of individualism that stems from it There are many items being produced illegally in China Almost every consumer good imaginable is being made illegally there They are making fake Audis and Mercedes Benzs Everything from shaving razors and shampoo to batteries are being forged About forty percent of all goods
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