This morning, the New York Times reported that Chinese authorities, working with the FBI, seized more than $500 million of counterfeit Microsoft and Symantec software and arrested 25 people involved in the counterfeiting operation. “This is a real milestone,” said David Finn, Microsoft associate general counsel. Finn is right. The Chinese deserve great credit for busting a ring that looks as if it were responsible for at least $2 billion of pirated software sales. (As Gao Feng, Deputy Director General of China’s Ministry of Public Security, has said, profit margins for software piracy exceed those for drug trafficking.)

Unfortunately, with those enormous profits, counterfeiters have been able to buy off the political system maintained by the Communist Party. Officials at the lowest rungs of that organization personally profit from protecting counterfeiters and often own part of the counterfeiting factories. The officials then buy protection for themselves from their superiors in the Party’s entrenched patronage system. The upshot of all this? Piracy in China is not going away anytime soon.

So what can foreign owners of intellectual property do? For one thing, they can publicly demand that Beijing protect their rights as vigorously as it has protected the five Fuwa, the cutesy mascots for the 2008 Summer Olympics. China has stopped counterfeiters from knocking off Beibei the fish, Jingjing the panda, Huanhuan the Olympic flame, Yingying the Tibetan antelope, and Nini the swallow. Yes, the latest raid reported by the Times is good news indeed, but there’s a lot more the Chinese government can—and should—do.

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