MIT Sloan Management Review

Many executives may feel that they have a pretty good grasp of the reasons why people make or purchase counterfeit goods. In effect, these senior managers rely on their own values and their understanding of business models to form conclusions about counterfeiting and to develop strategies to combat it.

The information age has created a host of digitized products — in the realms of software, databases, music, videos and electronic books — that can be produced and distributed with low variable costs, resulting in high gross margins.