Russian arms manufacturer Izhmash (Izhevsk Mechanical Works) faces bankruptcy from legal and mostly illegal copies of the AK-47 Kalashnikov. According to the World Bank, out of 500 million total firearms world wide in 2007, 100 million were Kalashnikov related and 75 million were AK-47s.
Founded in 1807 by the Czarist government, Izhmash is the original producer of AK-47s, designed by Mikhail Kalashnikov in 1947. Izhmash granted licenses to companies in soviet countries for the support of rebel movements by the Kremlin. Those countries found it cheaper to respect patent laws than to steal their design, but the patent laws were mostly ignored. Russia now has a hard time enforcing those laws.
Sources:
Kalashnikov maker faces bankruptcy
http://www.upi.com/Business_News/Security-Industry/2009/10/07/Kalashnikov-maker-faces-bankruptcy/UPI-95111254931260/
The Curse Of The AK-47
http://www.strategypage.com/htmw/htmurph/articles/20091003.aspx
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