The international software market represents a significant business opportunity for U.S

. microcomputer software companies, but illegal copying of programs is limiting the growth of sales abroad. If not dealt with quickly, international piracy of software could become one of the most serious trade problems faced by the United States.

72.Software piracy is already the biggest barrier to U.S. software companies entering foreign markets. One reason is that software is extremely easy and inexpensive to duplicate compared to the cost of developing and marketing the software. The actual cost of duplicating a software program, which may have a retail value of $ 400 or more, can be as little as a dollar or two—the main component being the cost of the diskette. 73. The cost of counterfeiting software is substantially less than the cost of duplicating watches, books, or blue jeans. Given that the difference between the true value of the original and the cost of the counterfeit is so great for software,international piracy has become big business. Unfortunately, many foreign governments view software piracy as an industry in and of itself and look tile other way.

U.S. firms stand to lose million of dollars in new business, and diminished U.S. sales nut only harm individual firms but also adversely affect the entire U.S. economy.

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