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WarnerBrothers is doing a thriving business by licensing images of Harry Potter characters. Firms that manufacture software, games, clothing, and other products enter into licensing agreements with Warner, paying the firm ongoing compensation to produce goods that feature Potter images. However, some illicit operators produce products that feature Potter images without entering a licensing agreement with Warner. What steps can Warner take to address this problem? Some nations lack substantial intellectual property protections and are characterized by significant, ongoing counterfeiting of corporate assets. What can Warner do to protect Harry Potter properties from intellectual property infringement in such countries? Intellectual property violations are especially common in China. Should Warner avoid licensing Potter in China? Justify your answer.
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