From the perspective of market failure, generally speaking (classical economics), the market can realize the allocation of resources, but the market cannot solve all problems. This situation is called market failure. When there is an external economy, the market often fails. External economy refers to a person or group whose behavior will affect market traders. For example, environmental pollution belongs to external diseconomy, such as holding fireworks parties and building parks, which can be enjoyed by people who don't pay. This is the spillover of utility. As far as piracy is concerned, as consumers, if they can get the same or similar effect as the original at a lower cost and have no incentive to buy the original, then most consumers will choose piracy because of the incentive of minimizing the cost. However, after the loss of intellectual property rights, the so-called genuine products have no motivation to continue to develop, because genuine products pay a lot of costs, but they can't get corresponding benefits. This is the market failure. Since the market is out of order, it needs external management agencies to adjust. Therefore, the problem of piracy needs government intervention. If piracy is allowed to completely occupy the market and developers and R&D organizations cannot survive, then technology will stagnate, which is unfavorable to consumers, developers and the government. The government can take legal measures to control piracy and protect intellectual property rights, so that the market can develop healthily.