Then imagine the Indians, or the Germans, or (to a much lesser extent) the Israelis. The point is, what if someone says, "My comparative advantage will be that I steal your code and localize it for people who don't speak your language"? Baidu is Chinese Google, Wallah is Israeli Yahoo. Once you've got web designs out in public, or important algorithms like PageRank in published research papers, these supposed "trade secrets" to running a web-service are actually dead easy to copy/steal.
The only reason Google doesn't feel the pain from Baidu is that Google never depended on China as their primary market. While we're talking about the Chinese versus other nationalities, by the way, the Chinese currently share the attribute of many rising superpowers (including, in its day, the USA): complete disrespect for "intellectual property" as subordinate to actual production.
Baidu and Wallah did not "steal code" from Google and Yahoo. You can argue they "stole" ideas of search and portal, but that would imply there's ownership of these concepts and it belongs to Google and Yahoo - which is wrong on both counts, both ideas existed long before their implementations by current kings of the hill, and nobody owns them.
If you think copying Google is "dead easy", you're well on the way to become a multi-millionaire. I've tried recently a number of emerging search engines, and none of them is as good as Google, despite the fact that copying PageRank is supposed to be dead easy. On the other hand, I'm sure Google's understanding of Chineese or Hebrew or Russian is not perfect and specialized engines can do much better (I know about Yandex on Russian market, but I'm sure there are more).
There's a place on these markets for much more than one player, so treating everybody being in the same search engine market as Google as "stealing intellectual property" makes zero sense. It's like treating everyone that makes smartphones as "stealing Apple's intellectual property". Maybe some hardcore Apple fanboys think that way, but this is not useful for anybody but them and Apple, certainly not for the consumers or for the public.
As for "respect for intellectual property", I don't see why Chinese should necessarily respect artificial mental constructs that were erected by Western politicians in order to produce some utilitarian value. These things are defined as utilitarian, the only reason that is being argued of why somebody can use the idea and somebody else can not is: "To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries". If Chinese do not agree that this would promote Progress and useful Arts for them, why they should feel obligation to respect it?
>As for "respect for intellectual property", I don't see why Chinese should necessarily respect artificial mental constructs that were erected by Western politicians in order to produce some utilitarian value.
I don't either. But you've missed my fundamental claim: lacking any kind of "intellectual property" enforcement, pretty much nothing stops people from treating the code for web-services the exact same way they treat the code for video games or office suites: avast ye maties!
I didn't miss it - I actually addressed it in another comment. While stealing your website code would be unpleasant, it doesn't really matter that much. First, backend website code is not protected by copyright because it's not published - only the design is. Second, do you really think Facebook became Facebook because they found right magic color and right column widths to be successful, and if only you could use the same design you would be billionaire? This is obviously nonsense - Facebook success is composed of many factors, design being very very minor part.
As for DDG, I used it for a month to test, and unfortunately had to go back to Google - for my loads, its quality proved to be inadequate, Google found what I needed in more cases than they did. It may be because usually I search for very easy and obvious stuff. I would like to say my coworkers "why, you still use Google? Man, it's so 2000s... It's 2012 now, use something that's not ancient!" Unfortunately, it's not the time yet that I could do that.
But wouldn't you need to distribute for copyright protection to kick in? Copyright is exclusive right to distribute. If you just stole the code and keep it, you can be liable to various crimes, but I don't see how copyright infringement can be one of them.
The only reason Google doesn't feel the pain from Baidu is that Google never depended on China as their primary market. While we're talking about the Chinese versus other nationalities, by the way, the Chinese currently share the attribute of many rising superpowers (including, in its day, the USA): complete disrespect for "intellectual property" as subordinate to actual production.