The so-called IPR-losses

"I'm not sure you would agree," writes Shaun Rein in an email where he announces his latest contribution to Business Week, this time a strategy to beat piracy.
Well, Shaun for sure takes off at wrong leg by simply copying the figures the US companies claim they have been losing on piracy in China.

Some of the numbers are startling. The Business Software Alliance estimates that in 2005, 86% of all software used in China was pirated, accounting for a $3.9 billion sales loss.

That is an old trick: the BSA does as if there would be a market for legitimate software in China for US prices. That is not the case, but you do get nice big figures in that way.
Also, the assumption that Chinese consumers want rather genuine products in stead of the fakes as soon as they can afford it sounds rather outlandish:

One positive sign is that Chinese are in many ways no different from other consumers. Millions are entering the ranks of the middle class, and they want to look the part of the urban aristocrat. If they cannot afford genuine items they turn to touts on the street hawking fake Louis Vuitton, Tiffany (TIF), Montblanc (CFR.VX), olex, and Polo (RL) items. But as Chinese consumers become increasingly sophisticated, the situation is changing. Now consumers can value the difference between a real Giorgio Armani tie and a fake one.

I have no proof this is wrong, apart from the observations of the purchasing pattern. Now the Xiangyang market has been closed, they walk the extra mile to get their fakes. When asked by a researcher they would of course always deny they would buy fakes.
Probably there are some more items I would not agree on, but have to prepare to leave to Beijing right now. Will read the article further when the combination of time and wifi's allows.
(I like the way how he throws with name: that will make the search engines very excited.)