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To: Jorj X Mckie who wrote (229270)11/18/2009 1:54:47 AM
From: Selectric IIRespond to of 306849
 
Obama tchotchkes: What would Mao do?
washingtonpost.com

"Oba Mao" items flew off shelves until last week when, shopkeepers say, officials told them to stop sales. (Yi Caijing)

By Keith B. Richburg and Wang Juan
Tuesday, November 17, 2009

BEIJING -- President Obama spent the second day of his state visit to China in the capital Monday, and the government adopted a two-track policy toward Obama memorabilia for sale here: Obama dressed as Superman was in, and Obama dressed as a Red Guard was out.

Liu Mingjie learned the latter lesson. He is the designer and entrepreneur behind the popular "Oba Mao" image, which takes a silk-screen likeness of Obama and dresses him in a green jacket and cap to resemble the late Communist leader Mao Zedong.

Since September, Liu's shop had been doing a brisk business selling the hugely popular Oba Mao T-shirts, purses and magnets. Oba Mao became one of the hottest-selling items in town, particularly among urban young people and online "netizens." Oba Mao melded two iconic images -- even if no one could explain precisely what it meant.

But suddenly last week, Liu had no more supplies, and no explanation why.

Liu nervously did not want to answer a reporter's questions. He also removed most of the Oba Mao articles and photos from his blog.

But neighbors in nearby shops reported that they were all visited last week by uniformed officers from Beijing's Industry and Commerce Administration and were told they were not allowed to sell anything with Obama's image, and particularly not Oba Mao items.

"My understanding is it is related with Obama's China visit," said one sales clerk from a shop selling matchbooks with colorful covers. "They think that stuff with Obama's image might be insulting."

Yao Lan, the sales manager for another souvenir shop selling T-shirts and toys, said: "Yes, it is true, we have been told not to sell any Obama-themed stuff. The government officials visited our store and told us not to do that."

"My understanding is, as Obama is visiting China, our government is making a good gesture not to embarrass him with that stuff," Yao said. "I think the U.S. government would do the same thing if Chinese leaders are visiting the U.S."

But another Beijing shop, called Grifted, selling politically themed merchandise, seems to have been immune from last week's crackdown. The store was selling an Obama action doll dressed as Superman, right next to Mao in uniform.

P.P. Xiong, the creator of the Obama-Superman toy, said he came up with the design because "I like Obama a lot. And I made such a design after the inauguration. I think American people have high expectations for Obama, and I hope he will come to help the U.S. just like Superman."

For the record, at least two officials of the Industry and Commerce Administration denied the shopkeepers' claims that they had been asked to stop selling Obama merchandise.

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To: Jorj X Mckie who wrote (229270)11/18/2009 11:09:08 AM
From: neolibRead Replies (1) | Respond to of 306849
 
As the market gets bigger and the early innovator that has the market dominance fails to innovate or lower prices, competition steps in at a lower price or with a better product.

Lacking regulatory interference, why would not a market leader simply deprive any new innovators by lowering prices and preventing the new players from achieving critical mass? This is particularly effective when the following two conditions exist 1) high cost of entry barriers such as large scale infrastructure or extensive IP is needed (think Telcom, airlines, railroads, etc) and 2) compatibility with existing IP exists (think Microsoft OS's or Intel CPU's).

If those conditions exist, I can think of three ways to dethrone a dominant player:

1) Regulatory (you don't like that)
2) Customers just decide to pay more for poor products from other suppliers because they understand that monopolies are long term problems. Think Linux vs MS OS.
3 Management is incompetent.

You seem to think 3) works just fine. I concede it works on occasions. I would certainly not want that as the only method for structuring the system I live in.

Perhaps I'm missing something. Is it possible you view patents as government intervention in a free market? Possibly you think there should not be patents, just trade secrets? And if a competitor can figure out your trade secret they are free to use it?