We consider a model with North exporting a copyrighted product to South where there is IPR violation,and South exports a basic good to North. We examine the impact of North’s imposition of import tariff onSouth’s monitoring of IPR violation and the incidence of piracy. If South values IPR compliance “lowly”,then tariff imposition do not alter the pre-tariff no monitoring equilibrium outcome but unambiguouslyraises the incidence of piracy. If IPR compliance is valued “highly” then tariff either switches the equilibrium outcome from not monitoring to monitoring or increases its rate. However, the incidence of piracymay increase.
- Incidence of piracy
- Intellectual property right