Microsoft China

1. How important is China to Microsoft's long-term future?

Microsoft's software programs such as Word, Excel and Power Point offer great advantages to the Chinese publics. The software allows for translation ad ease in presenting and incorporating information that is streamlined throughout much of the world.

2. What are the legal impediments to Microsoft growing its sales in China? What are the political impediments?

The legal impediments to Microsoft in China are the laws that are in place to prevent piracy of software but are lightly enforced by the foreign government authorities. This non-action forcing Microsoft to decrease the purchase price of about 200% to stay in competition against the software pirates. Though Microsoft has taken such drastic measures, they are still in competition with pirate's selling software at 80 to 90 % less than the reduced original software sale price. The political issues are in relation to trade through the United States governments demanded legal enforcement to include fines in the millions. The government in the short term enforced the laws requirements until trade agreements were accepted and in place.

The lack of force by governmental law and the numerous pirate programs that continually generate make it difficult to reduce piracy of Microsoft software programs. Instilling blockers in the software to prevent copies from being made and as in the United States only several downloads are allowed to be conducted followed by electronic activation by support staff only.

3. Why do you think it is so difficult to reduce software piracy in China? What strategies might Microsoft adopt to try to limit piracy in China? Are there ways of selling software that might make it difficult for piracy to occur?

Yes, by registering the software to the purchaser per CD may reduce the number of pirate copies being generated, if done the original purchaser of the software and be digitally linked to piracy downloads. This process would accompany