CASE STUDY-MICROSOFT OPENS THE GATES: PATENT, PIRACY AND POLITICAL CHALLENGES IN CHINA

Microsoft was faced with huge problems of piracy and infringement of intellectual rights. The Chinese government favored domestic industry against foreign firms by promoting the interests of local industries. They protected and encouraged domestic technology based companies to forge alliances and joint ventures with foreign firms for transfer of knowledge and technical know how. AML or anti monopoly law was designed to suit the interests of domestic companies. Though Chinas entry into WTO forced the government to create favorable environment for foreign investment, Chinese nationalism remained major obstacle for foreign firms.