Where counterfeiting and piracy are commonplace, companies are reluctant to invent, innovate, and market legitimate products, which reduces consumer choices and ultimately lowers living standards.

Question

Quizplus · Accepted Answer

Counterfeiting and piracy undermine the incentives for innovation and investment in new products, as companies face the risk of not being able to recoup their costs or earn profits due to the competition with illegal copies. This can lead to a decrease in the variety and quality of products available to consumers and negatively impact economic growth and living standards.

Where Counterfeiting and Piracy Are Commonplace, Companies Are Reluctant to Invent