@maemae, true. But many of these small companies will not spend any time or money on developing new products, because they will only get stolen.

So looking at a small local economy of small companies the cost benefit of innovation is not there, and it is better to copy.
As a result a lot of new things are not being invented, and the market is not growing. This stops these companies from ever becoming leaders of development.

If everyone copies, then everyone is producing the same. The only thing you can compete on is price. Competition means that profit margins get smaller and smaller, until someone goes broke. Meanwhile, as Chinese companies fight with each other to become the worlds cheapest manufacturers of CD players (for example), other countries companies invent mp3 players and people pay top dollar for them, including Chinese.
As China catches up and becomes the worlds cheapest manufacturers of mp3 the other countries invent new technology, and earn the big money.
If the whole world copied, there would be no innovation, and we would all still be listening to old wax records by gas light. There would be no TV, and we would cycle to work.

But people innovate and others copy. What is the benefit to companies, and the economy, and to customers? Well ask yourself, how much is a Xiaomi, how much is an iPhone 6? And why?

One more question maemae
Do you want Chinese companies to become a world leaders in technology and innovation, or remain the world leaders in copying other people and only getting a fraction of the money that they could. Lower priced products and less of them sold so fewer jobs. And your own family and friends continuing to say to you, 'buy the imported one, it is better'.

iphone 6 is more expensive, why? simply put...R&D. also youre paying for a certain life style. at first apple was appealing to rich, after middle class started buying. they branched into different tiered products, so that everyone can see the class of the user. if xiaomi invested the same money, and time in R&D they would be just as expensive.

Iphone 6 is more expensive, because it is a better product and people are willing to pay for the premium product.

Sony have also been playing that game for years, and as a result it is a trusted brand and people are willing to pay more for the no longer cutting edge products made by Sony as well.

Same for Samsung. There is now a technology race between Apple and Samsung, Nokia and Ericson fell by the wayside. But in this technology race we have seen the R&D pay for technologies that have benefited other industries. For example LiPo batteries that have made hybrid and electric car technologies feasible and ultimately a reality. The same is true of screen and other technologies. But none of this would have happened for a lot longer time, if at all, without IPR.

Another reason why company copies another product is because they know people are not willing to pay for that ridiculious price. Why the price point is too high for the masses that when people say "heck I'll buy the cheaper one' even if it's a copy. People like to pretend that they have money by showing off what looks like the real thing. Companies take advantage of this. So the cycle begins.

companies take advantage of this. leads to counterfiting and shortcuts for profit. counterfit goood, ipr baaadd, sanlu milk for the sheeple. so the cycle continues

Well - on a perhaps positive note, the Japanese copied Chinese culture from the Tang Dynasty and preserved it - and now it's revered globally (except by Chinese) as a uniquely Japanese culture.

I initially alarmingly thought this thread was about pirating software, movies, books, TV shows, for personal consumption...oops...

@tigertiger
the iphone is more expensive, coz of marketing and exclusive contracts with manufacturers, giving the illusion of quality.
in reality it is not. nothing to do with quality or R&D.

@laotou

how do you steal or copy a culture?
is that even possible?

also keeping in mind that japan and china hate each other, since the beginning of time. i doubt that,beyond the occassional philosophy or religious consumption, that they would have prefered to stay away from each other.

copying is good for a country or company that needs to catch up on tech and knowledge. beyond that point it just embarrassing, since it shows a lack of innovation,creation and creativity, marketing....basically everything.

in terms of auto and electronics enfineering China is able to build those things since the early 2000's but they refuse to. coz they are too lazy and too dumb(production management, not in general) to produce innovative ideas.

thus leading to the same lack in key technologies,as in the past. which was the reason to copy in the first place...thus dumb!

stealing is easier and less brainwork consuming, than creating.

and in the past century. the once great inventors of china have become clinically think- lazy. ...if that is a real word.
again not in general.

my iphone is way better than my samsung. even if it is an illusion copyrights protects that illussion. more profits for apple, and good or bad it pays for new tech. iphone 7 anyone? bet the chinese market will be fighting for it.

IPR is pure evil and never ending. There are 100s if not 1000s of patents that are hidden away so no one can use them. It is just another capitalist way to maintain profit.

I understand a person has the right to earn a living and be rewarded for their hard work and ingenuity. But when does it end? After 1 year, 5 years, or forever.

I am so happy that here in China I can get Bill Gates windows for free. I feel no loss at him losing money.

This is the part people just do not understand about patents and are distracted about simple debates like - Are GMOs safe or not. While the ridiculous debate rages, Monsanto is profiting and stealing from all of us for something that was FREE in the past. GMOs are evil because Monsanto will eventually own all the food - Research Percy Schmiser to know the truth. There are lifetime batteries whos patents have been bought up by multinational companies that are kept from the public. Yes, the small inventor was paid millions but now he must just shut his mouth.

Or thern you have someone like Stanley Meyer who would not sell his patent because he wants it to be free for all humanity. Well, people like him commit suicide with 2 shots to the head or he jumps out the window without bothering to open the window, or he has a car accident in a perfectly good car.

Wake up - it is not a small inventor who is lobbying with the WTO to protect their IPR - is the big companies who do this. China does not care about pirated DVDs but they are forced to make a show every once in a while and raid a few stores so they can keep their precious WTO status. At least China cares more about its people because if those people are out of work they become a burden to society.