Founder Group, which was created at Beijing University and became independent in 1992, is one of the leaders in desktop publishing throughout Asia and sells software to Chinese newspaper publishers worldwide. Local companies are grabbing their portion of the market too. Attracted by those numbers, foreign software providers are bringing more development business to China. The Chinese software market totaled $1.6 billion in 2001, led by IBM, and is expected to growīy 36.7 percent per year through 2006, when it is projected to reach $7.8 billion. That success is reflected throughout the industry. Revenue has grown by 100 percent in that time, and the company now leads its field in market share in China. Three years ago, Rising had fewer than 20 employees now, with piracy declining and demand rising for a wider variety of products, it has 280 employees and scant places to put them. The results of the reform movement, combined with growing demand, have been percolating down. "There is an old saying: 'If a mouse crosses the street, everyone will try to beat it.'" Said Jian Daning, director of the Shanghai Waigaoqiao Free Trade Zone, a government post. We treat it is as one of the most important elements of attracting foreign business," "We fully understand the importance of intellectual property protection. The laws have served as a watershed moment in the ongoing reforms, sources said. In some cases, executions have been ordered. Manufacturers face jail time and equipment confiscation. Under the new laws, people who buy pirated goods can be fined five to 10 times the value of the pirated software. Last year, the government issued "Document 18"-a directive that outlined harsh penalties for software piracy. Even with the advantage of low labor costs and tariffs on imported products, local companies could do little to compete in a market awash with illegally copied operating systems selling for $1.īut with China's push to become a member in good standing of the World Trade Organization, the situation has begun to change. But the industry's outlook has changed dramatically since the national government began cracking down on piracy in a substantial way for the first time.Ĭombined with foreign competition and a lack of expertise, rampant piracy had curbed the country's software sales and thwarted new businesses for years. Success like this wasn't likely a few years ago. "We're going to go public on the Hong Kong stock market soon," Mao, the company's vice president of marketing, said through a translator. Has 10 times more employees than it had in 1999 and was able to raise prices in June because of high demand. His company, an antivirus specialist called Beijing Rising Technology, In a cramped room with no air conditioning on a sweltering Beijing afternoon, nothing could dampen Mao's enthusiasm. Software comes of age: Piracy crackdown pays offīEIJING-Mao Yi Ding has the same problem that high-flying dot-com executives had a few years ago: He needs more office space.
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